[Congressional Record Volume 164, Number 41 (Thursday, March 8, 2018)]
[Senate]
[Page S1585]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2158. Ms. CORTEZ MASTO submitted an amendment intended to be 
proposed by her to the bill S. 2155, to promote economic growth, 
provide tailored regulatory relief, and enhance consumer protections, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title III, add the following:

     SEC. 308. SAFEGUARDS TO PREVENT DISPLACEMENT OF SENIORS.

       Section 255(j) of the National Housing Act (12 U.S.C. 
     1715z-20(j)) is amended--
       (1) by striking the subsection designation and all that 
     follows through ``The Secretary'' and inserting the 
     following:
       ``(j) Safeguards to Prevent Displacement of Homeowners.--
       ``(1) Deferral of obligations of homeowners.--The 
     Secretary''; and
       (2) by adding at the end the following:
       ``(2) Loss mitigation in cases of delinquent taxes, 
     insurance, and homeowners association fees.--
       ``(A) Requirement.--In the case of a mortgage insured under 
     this section that is in default by reason of failure to pay 
     taxes or insurance required under the mortgage or homeowners 
     association fees, the Secretary shall require that the 
     mortgagee, as a precondition of sending a due and payable 
     request to the Secretary, take appropriate loss mitigation 
     actions, which may include--
       ``(i) establishing a realistic repayment plan for the 
     delinquency;
       ``(ii) assisting the borrower in contacting a housing 
     counseling agency approved by the Secretary to obtain free 
     assistance with--

       ``(I) finding a viable resolution to the delinquency; or
       ``(II) identifying local resources available to provide 
     funds or homestead exemptions;

       ``(iii) refinancing the delinquent mortgage into a new home 
     equity conversion mortgage if--

       ``(I) there is sufficient equity to satisfy the existing 
     mortgage and the delinquency; and
       ``(II) the applicant for refinancing meets the financial 
     assessment guidelines of the Secretary;

       ``(iv) extending the deadline for foreclosure in a case in 
     which the youngest living borrower--

       ``(I) is not less than 80 years of age; and
       ``(II) has critical circumstances, such as a terminal 
     illness, long-term physical disability, or unique occupancy 
     need;

       ``(v) refraining from submitting a due and payable request 
     to the Secretary in a case in which the total arrearage for 
     the delinquency is not more than $2,000; and
       ``(vi) any other loss mitigation action the Secretary 
     considers appropriate.
       ``(B) Treatment of non-borrowing spouses.--For purposes of 
     loss mitigation required under subparagraph (A), a mortgagee 
     shall treat a non-borrowing spouse as a borrower.
       ``(C) Failure to comply.--In the case of a claim for 
     insurance benefits for a mortgage insured under this section 
     made by a mortgagee who fails to comply with the requirement 
     under subparagraph (A), the Secretary may reduce or deny 
     those benefits based on that failure.
       ``(3) Definitions.--In this subsection:
       ``(A) Borrower.--The term `borrower', with respect to a 
     mortgage insured under this section--
       ``(i) means the original borrower under the note and 
     mortgage; and
       ``(ii) does not include successors or assigns of the 
     original borrower.
       ``(B) Non-borrowing spouse.--The term `non-borrowing 
     spouse', with respect to a borrower under a mortgage insured 
     under this section, means the spouse of the borrower who is 
     not a borrower.''.
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