[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5553 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5553

To provide access to information and loan modifications for successors 
                  in interest, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2014

  Mrs. Beatty (for herself and Mr. Heck of Washington) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
To provide access to information and loan modifications for successors 
                  in interest, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preventing Improper Foreclosures Act 
of 2014''.

SEC. 2. ACCESS TO INFORMATION AND LOAN MODIFICATIONS.

    Section 341 of the Garn-St Germain Depository Institutions Act of 
1982 (12 U.S.C. 1701j-3) is amended by adding at the end the following:
    ``(h) Access to Information and Loan Modifications.--
            ``(1) In general.--In the case of a transfer described 
        under paragraph (3), (5), (6), (7), (8), or (9) of subsection 
        (d), a lender shall--
                    ``(A) provide the successor homeowner with 
                information about the mortgage loan, including the 
                outstanding amount due, monthly payment, if any, and 
                available loan modification options; and
                    ``(B) with respect to a transfer involving a real 
                property loan other than a reverse mortgage--
                            ``(i) promptly evaluate the successor 
                        homeowner for a loan modification on the same 
                        terms as if the successor homeowner had been 
                        the original borrower and mortgagor; and
                            ``(ii) perform such evaluation and offer 
                        any available loss mitigation prior to any 
                        assumption of the obligations under the note.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) limit or interfere with the independent 
                rights of a successor homeowner to assume a mortgage 
                under State law; or
                    ``(B) empower a lender to place any restrictions on 
                the right of successor homeowners protected by 
                subsection (d) to assume a mortgage.
            ``(3) Defense in foreclosure.--If a lender fails to comply 
        with paragraph (1), such failure may be asserted as a defense 
        to any judicial or non-judicial foreclosure.
            ``(4) Recovery of statutory damages, actual damages, and 
        costs.--In any successful action brought by a successor 
        homeowner under this subsection, the homeowner shall be 
        entitled to recover statutory damages not to exceed $1,000 per 
        violation, actual damages, costs, and attorneys fees.''.

SEC. 3. PROTECTION OF HOME EQUITY CONVERSION MORTGAGORS.

    (a) Safeguard To Prevent Displacement of Homeowner.--Subsection (j) 
of section 255 of the National Housing Act (12 U.S.C. 1715z-20(j)) is 
amended--
            (1) in the first sentence by striking ``the homeowner's 
        obligation to satisfy the loan obligation is deferred until the 
        homeowner's death'' and inserting ``maturity of the loan 
        obligation is deferred until the death of the homeowner and the 
        homeowner's spouse, the permanent relocation of the homeowner 
        and the homeowner's spouse''; and
            (2) by striking the second sentence.
    (b) Sale Terms of Eligible Mortgages.--Paragraph (7) of section 
255(d) of the National Housing Act (12 U.S.C. 1715z-20(d)(7)) is 
amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and realigning such subparagraphs, 
        as so redesignated, so as to be indented 6 ems from the left 
        margin; and
            (2) by striking the matter that precedes clause (i) (as so 
        redesignated by paragraph (1) of this subsection) and inserting 
        the following:
            ``(7)(A) provide that--
                    ``(i) the mortgagor may sell the dwelling that is 
                subject to the mortgage for at least the lesser of the 
                remaining balance on the mortgage or the appraised 
                value of such dwelling;
                    ``(ii) if the loan is due and payable, the 
                mortgagor may sell the dwelling that is subject to the 
                mortgage for the lesser of the remaining balance on the 
                mortgage or the amount that is equal to 5 percent less 
                than the appraised value of such dwelling; and
                    ``(iii) upon the death of the mortgagor, the estate 
                or heirs of the mortgagor may satisfy the loan 
                obligation by paying the lesser of the remaining 
                balance on the mortgage or the amount that is equal to 
                5 percent less than the appraised value of the dwelling 
                that is subject to the mortgage; and
            ``(B) provide that the mortgagor, the estate of the 
        mortgagor, or the heirs of the mortgagor shall not be liable 
        for any difference between the amount of indebtedness under the 
        mortgage and the amount recovered by the mortgagee from--''.
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