[Congressional Record (Bound Edition), Volume 155 (2009), Part 9]
[Senate]
[Pages 11304-11319]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1014. Mr. DURBIN (for himself, Mr. Dodd, Mr. Reid, Mr. Schumer, 
Mr. Whitehouse, and Mr. Harkin) proposed an amendment to the bill S. 
896, to prevent mortgage foreclosures and enhance mortgage credit 
availability; as follows:

       At the end of the bill, add the following:

              TITLE V--PREVENTION OF MORTGAGE FORECLOSURES

           Subtitle A--Modification of Residential Mortgages

     SEC. 501. DEFINITIONS.

       Section 101 of title 11, United States Code, is amended by 
     inserting after paragraph (43) the following:
       ``(43A)(A) The term `qualified loan modification offer' 
     means a loan modification agreement that is consistent with 
     the terms described in subparagraph (B) and that is offered--
       ``(i) in accordance with the guidelines of the Homeowner 
     Affordability and Stability Plan, to a debtor who qualifies 
     for such plan;
       ``(ii) in accordance with the qualified loan guidelines 
     described in subparagraph (C)(i) for loans insured or 
     guaranteed by the Federal Housing Administration of the 
     Department of Housing and Urban Development, the Department 
     of Veterans Affairs, or the Department of Agriculture, to a 
     debtor for whom a loan is insured or guaranteed under 
     programs of such Government entities; or
       ``(iii) in accordance with qualified loan guidelines 
     described in subparagraph (C)(ii) to a debtor who does not 
     qualify for the Homeowner Affordability and Stability Plan, 
     for a loan for which the servicer is not a participant in 
     such plan, and for whom a loan is not insured or guaranteed 
     under programs of the Government entities described in 
     subparagraph (A)(ii).
       ``(B) For purposes of this paragraph, a `qualified loan 
     modification offer'--
       ``(i) requires no fees or charges to be paid by the debtor 
     in order to obtain such modification;
       ``(ii) permits the debtor to continue to make payments 
     under the modification agreement, notwithstanding the filing 
     of a case under this title, as if such case had not been 
     filed;
       ``(iii) is offered in good faith to the debtor in writing, 
     not later than 45 days after the date on which the debtor 
     provided to the servicer of such loan, in good faith, all 
     required information, as defined in subparagraph (G), in 
     order to be considered for a qualified loan modification 
     offer or a qualified loan refinancing offer;
       ``(iv) is presented to the debtor as a firm written offer 
     in a form that can be accepted by the debtor by signing the 
     offer and returning it to the servicer of such loan;
       ``(v) is offered with respect to a loan for which no 
     foreclosure sale is scheduled, or shall be scheduled, during 
     the time the request for modification is being considered or 
     is scheduled during the 30-day period beginning on the 
     expiration of the time period specified in clause (iii); and
       ``(vi) is not revoked by the servicer of such loan for 
     reasons within the control of the debtor before the 
     confirmation of the plan filed under section 1321 or the 
     modification of a plan under section 1323 or 1329.
       ``(C) For purposes of this paragraph, the term `qualified 
     loan guidelines' describes a loan modification agreement 
     that--
       ``(i) in the case of a loan that is insured or guaranteed 
     by the Federal Housing Administration, the Department of 
     Veterans Affairs, or the Department of Agriculture and that 
     is secured by the senior security interest in the principal 
     residence of the debtor, modifies the debtor's monthly 
     housing payment for at least a period of 5 years--
       ``(I) to 31 percent or less of the debtor's monthly gross 
     income at the time of the modification, without any period of 
     negative amortization; or

[[Page 11305]]

       ``(II) before expiration of the 90-day period beginning on 
     the effective date of this paragraph, to the lowest 
     percentage of the debtor's monthly gross income allowed under 
     the applicable program guidelines in effect before the 
     effective date of this paragraph, without any period of 
     negative amortization, if such lowest percentage is greater 
     than 31 percent of the debtor's monthly gross income at the 
     time of the modification, without any period of negative 
     amortization;
       ``(ii) in the case of a loan for a debtor who does not 
     qualify for the Homeowner Affordability and Stability Plan, 
     or of a loan for which the servicer is not a participant in 
     such plan and for whom a loan is not insured or guaranteed 
     under programs of the Government entities described in 
     subparagraph (A)(ii)--
       ``(I) modifies the debtor's monthly housing payment for at 
     least a period of 5 years to 31 percent or less of the 
     debtor's monthly gross income at the time of the 
     modification, without any period of negative amortization; 
     and
       ``(II) provides that, after the initial period of 5 years, 
     the interest rate on the modified loan may increase by not 
     more than 1 percentage point per year until the interest rate 
     reaches (but does not exceed) the prevailing market interest 
     rate on the date on which the modification is finalized, as 
     published by the Federal Home Loan Mortgage Corporation, at 
     which time such maximum interest rate shall be fixed for the 
     remaining loan term.
       ``(D) For purposes of this paragraph--
       ``(i) the term `debtor's monthly gross income' means the 
     total income amount before any payroll deductions, and 
     includes wages and salaries, overtime pay, commissions, fees, 
     tips, bonuses, housing allowances, other compensation for 
     personal services, Social Security payments, including Social 
     Security received by adults on behalf of minors or by minors 
     intended for their own support, and monthly income from 
     annuities, insurance policies, retirement funds, pensions, 
     disability or death benefits, unemployment benefits, rental 
     income, and other income. For income from the operation of a 
     business, profession, or farm, monthly gross income shall be 
     the sum of the debtor's gross receipts exclusive of ordinary 
     and necessary business expenses; and
       ``(ii) the term `debtor's monthly housing payment' includes 
     fixed principal and interest, and payments for real estate 
     taxes, hazard insurance, mortgage insurance premium, 
     homeowners' association dues, ground rent, special 
     assessments, and all other amounts collected by the servicer 
     as part of that payment.
       ``(E) The term `Homeowner Affordability and Stability Plan' 
     means the loan modification plan announced and implemented by 
     the Secretary of the Treasury on March 4, 2009, and any 
     successor thereto.
       ``(F) For purposes of this paragraph, the term `servicer' 
     means the person responsible for any of master servicing, 
     servicing, or subservicing of a debt secured by the debtor's 
     principal residence (including the person who makes or holds 
     a loan if such person also master services, services, or 
     subservices the loan).
       ``(G) For purposes of this paragraph, the term `required 
     information' means all information required to be provided to 
     the servicer under the Homeowner Affordability and Stability 
     Plan, or according to a similar standardized list, as issued 
     by the Secretary of the Treasury or the Secretary of the 
     Department of Housing and Urban Development, to allow the 
     servicer to determine the debtor's eligibility for a 
     qualified loan modification offer or a qualified loan 
     refinancing offer made by the holder of the loan. If the 
     servicer fails to notify the debtor within 30 days of the 
     date of submission of information by the debtor that the 
     information is incomplete and specify what further 
     information must be submitted, it shall be conclusively 
     presumed that the information submitted by the debtor 
     satisfies such requirement. For purposes of this 
     subparagraph, required information provided to the servicer 
     by the debtor shall be deemed accurate and complete as of the 
     time it was delivered to the servicer. Material differences 
     not based on a change in the debtor's circumstances between 
     the required information provided under the Homeowner 
     Affordability and Stability Plan or a similar standardized 
     list, as issued by the Secretary of the Treasury or the 
     Secretary of the Department of Housing and Urban Development, 
     and information provided by the debtor in the schedules 
     required under section 521(a), shall give rise to a 
     rebuttable presumption that the debtor is not eligible for a 
     modification under section 1322(b)(11), if such material 
     differences in the required information render the debtor 
     ineligible for a qualified loan modification offer or a 
     qualified loan refinancing offer. The debtor may rebut the 
     presumption by showing that the debtor offered the required 
     information in good faith.
       ``(43B) The term `qualified loan refinancing offer' means a 
     loan offered in accordance with the HOPE for Homeowners 
     program, as authorized by section 257 of the National Housing 
     Act (12 U.S.C. 1715z-23) that--
       ``(A) refinances a loan secured by the senior security 
     interest in the principal residence of the debtor, and which 
     is eligible to be refinanced under the HOPE for Homeowners 
     program;
       ``(B) permits the debtor to continue to make payments under 
     the loan, notwithstanding the filing of a case under this 
     title, as if such case had not been filed; and
       ``(C) with respect to which the debtor has received a 
     written notice that the debtor's application for such loan 
     was approved by a person or entity authorized by the 
     Secretary of the Department of Housing and Urban Development 
     to serve as a mortgagee, and such loan approval was not 
     revoked by such person or entity before the date of the 
     confirmation of the plan filed under section 1321 or the 
     modification of a plan under section 1323 or 1329.''.

     SEC. 502. ELIGIBILITY FOR RELIEF.

       Section 109 of title 11, United States Code, is amended--
       (1) in subsection (e)--
       (A) by inserting ``(1)'' after ``(e)''; and
       (B) by adding at the end the following:
       ``(2) For purposes of this subsection, the computation of 
     debts shall not include the secured or unsecured portions 
     of--
       ``(A) debts secured by the debtor's principal residence, if 
     the value of such residence as of the date of the order for 
     relief under chapter 13 is less than the applicable maximum 
     amount of noncontingent, liquidated, secured debts specified 
     in this subsection; or
       ``(B) debts secured or formerly secured by what was the 
     debtor's principal residence that was sold in foreclosure or 
     that the debtor surrendered to the creditor, if the value of 
     such real property as of the date of the order for relief 
     under chapter 13 was less than the applicable maximum amount 
     of noncontingent, liquidated, secured debts specified in this 
     subsection.'';
       (2) in subsection (h)(1), by striking ``and (3)'' and 
     inserting ``, (3), and (5)''; and
       (3) in subsection (h), by adding at the end the following:
       ``(5) With respect to a debtor in a case under chapter 13 
     who is at least 60 days delinquent with respect to the claim 
     secured by the debtor's principal residence and submits to 
     the court a certification that the debtor has received 
     written notice that the holder of a claim secured by the 
     debtor's principal residence may commence a foreclosure on 
     the debtor's principal residence, the requirements of 
     paragraph (1) shall be considered to be satisfied if the 
     debtor satisfies such requirements not later than the 
     expiration of the 45-day period beginning on the date of the 
     filing of the petition.''.

     SEC. 503. AUTHORITY TO MODIFY CERTAIN MORTGAGES.

       Section 1322 of title 11, United States Code, is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraph (11) as paragraph (12);
       (B) in paragraph (10), by striking ``and'' at the end; and
       (C) by inserting after paragraph (10) the following:
       ``(11) notwithstanding paragraph (2), modify the rights of 
     the holder of a claim for a loan originated before January 1, 
     2009, with an unpaid principal balance that is not greater 
     than the maximum loan amount provided for in the guidelines 
     of the Homeowner Affordability and Stability Plan, that is at 
     least 60 days delinquent and secured by a security interest 
     in the debtor's principal residence and, in the case of a 
     claim secured by the senior security interest in such 
     residence that is the subject of a written notice that a 
     foreclosure may be commenced with respect to such loan--
       ``(A) by providing for payment of the amount of the allowed 
     secured claim, as determined under section 506(a)(1);
       ``(B) by modifying the terms and conditions of such loan--
       ``(i) to extend the repayment period for a period that is 
     not longer than the longer of 40 years (reduced by the period 
     for which such loan has been outstanding) or the remaining 
     term of such loan, beginning on the date of the order for 
     relief under this chapter; and
       ``(ii) to provide for the payment of interest accruing 
     after the date of the order for relief under this chapter at 
     a fixed annual rate equal to the currently applicable average 
     prime offer rate, as of the date of the order for relief 
     under this chapter, corresponding to the repayment term 
     determined under the preceding paragraph, as published by the 
     Federal Financial Institutions Examination Council in its 
     table entitled `Average Prime Offer Rates--Fixed' (or any 
     successor thereto), rounded to the nearest 0.125 percent, 
     plus a reasonable premium for risk; and
       ``(C) by providing for payments of such modified loan 
     directly to the holder of the claim or, at the discretion of 
     the court, through the trustee during the term of the plan; 
     and''; and
       (2) by adding at the end the following:
       ``(g) A claim may be reduced under subsection (b)(11)(A) 
     only on the condition that if the debtor sells the principal 
     residence securing such claim during the pendency of the case 
     under this chapter and receives net proceeds from the sale of 
     such residence--
       ``(1) the debtor agrees to pay to such holder 50 percent of 
     the amount of the difference between the sale price and the 
     amount of such claim, as originally determined under 
     subsection (b)(11) (plus costs of sale and improvements), but 
     not to exceed the unpaid

[[Page 11306]]

     amount of the allowed secured claim determined as if such 
     claim had not been reduced under such subsection;
       ``(2) the debtor notifies the holder of such claim (or 
     entity collecting payments on behalf of such holder), not 
     later than 30 days before the closing date of such sale, of 
     the details of sale, including the buyer's name and address, 
     the buyer's relationship to the debtor, if any, purchase 
     price, anticipated sale closing date, name and address of the 
     closing agent, and any other relevant information; and
       ``(3) any amount to be received by the holder is listed in 
     the closing documents.
       ``(h) With respect to a claim of the kind described in 
     subsection (b)(11) that is secured by the senior security 
     interest in the debtor's principal residence, the plan may 
     not contain a modification under the authority of subsection 
     (b)(11)--
       ``(1) in a case commenced under this chapter after the 
     expiration of the 45-day period beginning on the effective 
     date of this subsection, unless the debtor certifies that the 
     debtor sought a qualified loan modification offer or a 
     qualified loan refinancing offer, as those terms are defined 
     in paragraphs (43A) and (43B) of section 101, respectively, 
     and submitted the required information, as that term is 
     defined in section 101(43A)(G);
       ``(2) in any other case under this chapter, unless the 
     debtor certifies that the debtor sought a qualified loan 
     modification offer or qualified loan refinancing offer, as 
     those terms are so defined, at least 45 days before--
       ``(A) the date of confirmation of a plan under section 1321 
     that contains a modification under the authority of 
     subsection (b)(11) of this section; or
       ``(B) the date of modification of a plan under section 1323 
     or 1329 to contain a modification under the authority of 
     subsection (b)(11) of this section;
       ``(3) except as provided in subsection (i)(2), if the 
     debtor's monthly housing payment prior to loan modification 
     or refinance is less than 31 percent of the debtor's gross 
     monthly income (as those terms are defined in section 
     101(43A)(D)); or
       ``(4) except as provided in subsection (i)(2), if the 
     debtor has received a qualified loan modification offer or a 
     qualified loan refinancing offer, as those terms are so 
     defined.
       ``(i)(1) If the debtor's income at the time at which a 
     petition is filed under this chapter is equal to or greater 
     than 80 percent of the area median income, as published by 
     the Department of Housing and Urban Development, with respect 
     to a claim of the kind described in subsection (b)(11), and 
     if the debtor has received a qualified loan modification 
     offer or a qualified loan refinancing offer (as those terms 
     are defined in paragraphs (43A) and (43B) of section 101, 
     respectively for purposes of this subsection), such debtor 
     may not modify the rights of the holder of a claim that is 
     secured by the senior security interest in the debtor's 
     principal residence pursuant to subsection (b)(11), 
     regardless of whether the debtor has accepted the offer.
       ``(2) If the debtor's income at the time at which a 
     petition is filed under this chapter is not equal to or 
     greater than 80 percent of the area median income, as 
     published by the Department of Housing and Urban Development, 
     the debtor shall be subject to all requirements applicable to 
     other debtors under this section with respect to a claim of 
     the kind described in subsection (b)(11), provided that--
       ``(A) if the debtor is subject to subsection (h)(3) or 
     (h)(4), such debtor may still modify the rights of the holder 
     of a claim secured by the senior security interest in the 
     debtor's principal residence pursuant to subsection (b)(11), 
     other than by reduction in the principal balance, if the 
     payments that would be due under a modification implemented 
     by a plan under this chapter permitting payments over a term 
     of 40 years and an interest rate equal to the currently 
     applicable prime offer rate described in subsection 
     (b)(11)(B)(ii) would be less than the payments due under the 
     qualified loan modification offer or a qualified loan 
     refinancing offer; and
       ``(B) if the debtor has received an otherwise qualified 
     loan modification offer or a qualified loan refinancing offer 
     that reduces the debtor's monthly housing payment to 25 
     percent or less of the debtor's monthly gross income (as 
     those terms are defined in section 101(43A)(D)), such debtor 
     may not modify the rights of the holder of a claim secured by 
     the senior security interest in the debtor's principal 
     residence pursuant to subsection (b)(11), regardless of 
     whether or not the debtor has accepted the offer.
       ``(j) In determining the holder's allowed secured claim 
     under section 506(a)(1) for purposes of subsection (b)(11)(A) 
     of this section, the value of the debtor's principal 
     residence shall be the fair market value of such residence on 
     the date of the determination of the value of the allowed 
     secured claim and, if the issue of value is contested, the 
     court shall determine such value in accordance with the 
     appraisal rules used by the Federal Housing Administration.
       ``(k) If the rights of a holder of a claim of the kind 
     described in subsection (b)(11) have been modified pursuant 
     to subsection (b)(11), the court may not approve, and the 
     debtor may not borrow, any additional funds during the 
     pendency of the case that are secured by a security interest 
     in the debtor's principal residence that is junior to the 
     lien securing such claim.''.

     SEC. 504. COMBATING EXCESSIVE FEES.

       Section 1322(c) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(3) the debtor, the debtor's property, and property of 
     the estate are not liable for a fee, cost, or charge that is 
     incurred while the case under this chapter is pending and 
     arises from a debt that is secured by the debtor's principal 
     residence, except to the extent that--
       ``(A) the holder of the claim for the debt files with the 
     court and serves on the trustee, the debtor, and the debtor's 
     attorney (annually or, in order to permit filing consistent 
     with clause (ii), more frequently, as the court determines 
     necessary) notice of the fee, cost, or charge before the 
     earlier of--
       ``(i) 1 year after the date on which the fee, cost, or 
     charge is incurred; or
       ``(ii) 60 days before the closing of the case under this 
     chapter; and
       ``(B) the fee, cost, or charge is not unlawful under 
     applicable nonbankruptcy law, and is reasonable and provided 
     for in the applicable security agreement;
       ``(4) the failure of a party to give notice described in 
     paragraph (3) shall be deemed a waiver of any claim for any 
     fee, cost, or charge described in paragraph (3) for all 
     purposes, and any attempt to collect such a fee, cost, or 
     charge shall constitute a violation of section 524(a)(2) or, 
     if the violation occurs before the date of discharge, of 
     section 362(a); and
       ``(5) a plan may provide for the waiver of any prepayment 
     penalty on a claim secured by the debtor's principal 
     residence.''.

     SEC. 505. CONFIRMATION OF PLAN.

       Section 1325(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (5)--
       (A) by inserting ``except as otherwise provided in section 
     1322(b)(11),'' after ``(5)''; and
       (B) in subparagraph (B)(iii)(I), by inserting ``(including 
     payments of a claim modified under section 1322(b)(11))'' 
     after ``payments'' the 1st place that term appears;
       (2) in paragraph (8), by striking ``and'' at the end;
       (3) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (4) by inserting immediately after paragraph (9) the 
     following:
       ``(10) notwithstanding paragraph (5)(B)(i)(I), in a case in 
     which the plan modifies a claim in accordance with section 
     1322(b)(11), the holder of a claim whose rights are modified 
     pursuant to section 1322(b)(11) retains the lien until the 
     full payment of the allowed secured claim of the holder, 
     together with postpetition interest, fees, costs, and charges 
     permitted under section 1322(b)(11) and, if applicable, 
     1322(c)(3); and
       ``(11) in a case in which the plan modifies a claim in 
     accordance with section 1322(b)(11), the court--
       ``(A) finds that the modification is in good faith, which 
     the court may not find if the debtor has no need for relief 
     under section 1322(b)(11) because the debtor can pay all of 
     the debts of the debtor and any payment increases on such 
     debts without difficulty for the foreseeable future, 
     including the positive amortization of mortgage debt; and
       ``(B) does not find that the debtor has been criminally 
     convicted of actual fraud in obtaining the extension, 
     renewal, or refinancing of credit that gives rise to a 
     modified claim.''.

     SEC. 506. DISCHARGE.

       Section 1328(a) of title 11, United States Code, is 
     amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``(other than payments to holders of claims whose rights are 
     modified under section 1322(b)(11))'' after ``paid''; and
       (2) in paragraph (1), by inserting ``or, to the extent of 
     the unpaid portion of an allowed secured claim, as provided 
     for under section 1322(b)(11)'' after ``1322(b)(5)''.

     SEC. 507. STANDING TRUSTEE FEES.

       (a) Amendment to Title 28.--Section 586(e)(1)(B)(i) of 
     title 28, United States Code, is amended--
       (1) by inserting ``(I) except as provided in subclause 
     (II),'' after ``(i)'';
       (2) by striking ``or'' at the end and inserting ``and''; 
     and
       (3) by adding at the end the following:
       ``(II) 4 percent, with respect to payments received under 
     section 1322(b)(11) of title 11, by the individual as a 
     result of the operation of section 1322(b)(11)(C) of title 
     11, unless the bankruptcy court waives all fees with respect 
     to such payments, based on a determination that the 
     individual has income equal to less than 150 percent of the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved, and 
     payment of such fees would render the plan of the debtor 
     infeasible; or''.
       (b) Applicability.--The amendments made by this section 
     shall apply to any trustee to whom the provisions of section 
     302(d)(3) of

[[Page 11307]]

     the Bankruptcy Judges, United States Trustees, and Family 
     Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) apply.

     SEC. 508. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Application of Amendments.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this title shall apply with respect to any 
     case commenced under title 11 of the United States Code 
     before, on, or after the date of enactment of this Act with 
     respect to loans serviced by entities affiliated with 
     entities for which participation in the Homeowner 
     Affordability and Stability Plan announced and implemented by 
     the Secretary of the Treasury on March 4, 2009, (and any 
     successor thereto) is mandatory.
       (2) Exception.--With respect to loans serviced by entities 
     that are unaffiliated with entities for which participation 
     in the Homeowner Affordability and Stability Plan is 
     mandatory, and that have announced and implemented a policy 
     of ceasing all foreclosure activities for 45 days after the 
     date of enactment of this Act, the time period in clause 
     (iii) of section 101(43A)(B) of title 11, United States Code 
     (as added by this title), shall expire on the later of 90 
     days after the date of enactment of this Act or the date on 
     which it would otherwise expire under that clause.
       (3) Limitation.--The amendments made by this subtitle shall 
     not apply with respect to any case closed under title 11 of 
     the United States Code as of the date of enactment of this 
     Act that is not pending on appeal in, nor appealable to, any 
     court of the United States.
       (b) Sunset.--The amendments made by sections 501, 503, 505, 
     506, and 507 shall not apply to any case commenced under 
     title 11 of the United States Code after the later of 
     December 31, 2012 or the expiration of any extension of the 
     Homeowner Affordability and Stability Plan (or any successor 
     thereto).

     SEC. 509. GAO STUDY AND REPORT.

       (a) Study.--The Comptroller General of the United States 
     shall carry out a study of--
       (1) the number of debtors who filed, during the 1-year 
     period beginning on the date of enactment of this Act, cases 
     under chapter 13 of title 11, United States Code, for the 
     purpose of restructuring a mortgage loan secured by the 
     principal residence of the debtor;
       (2) the number of such mortgages restructured under the 
     amendments made by this subtitle that subsequently resulted 
     in default and foreclosure; and
       (3) a comparison between the effectiveness of mortgages 
     restructured under programs outside of bankruptcy law, such 
     as Hope Now, the Homeowner Affordability and Stability Plan 
     (as implemented by the Secretary of the Treasury on March 4, 
     2009), and the HOPE for Homeowners program, and mortgages 
     restructured under the amendments made by this subtitle.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General shall submit a 
     report on the results of the study required by subsection (a) 
     to the Committee on the Judiciary of the Senate and the 
     Committee on the Judiciary of the House of Representatives.

     SEC. 510. UNENFORCEABILITY OF CERTAIN PROVISION AS BEING 
                   CONTRARY TO PUBLIC POLICY.

       (a) Congressional Findings.--Congress finds that--
       (1) in conjunction with the amendments made by this 
     subtitle, the enforcement of provisions of certain investment 
     contracts in effect on the date of enactment of this Act, 
     which require excess bankruptcy losses that exceed a certain 
     dollar amount on residential mortgages to be borne by classes 
     of certificates on a pro rata basis, would affect the parties 
     to those contracts in ways that could not have occurred under 
     the law in effect at the time at which such contracts were 
     entered into, would interfere with the achievement of the 
     purposes of this subtitle, and would have adverse effects on 
     the national economy, potentially including adverse effects 
     on the security of depositors of banking institutions and 
     policyholders of insurance companies operating in interstate 
     commerce; and
       (2) to achieve the purposes of this subtitle to avoid 
     preventable foreclosures, avoid unintended and adverse 
     systemic effects on the national economy, and preserve the 
     existing economic expectations of the parties to investment 
     contracts to the extent reasonably possible, it is necessary 
     that such provisions be unenforceable to the extent that such 
     provisions refer to types of bankruptcy losses that could not 
     have been incurred under the law in effect at the time at 
     which such contracts were entered into.
       (b) Unenforceability of Provisions.--
       (1) In general.--Any bankruptcy loss allocation provision 
     in any mortgage-backed securities contract in effect on the 
     date of enactment of this Act shall be unenforceable as 
     contrary to public policy, to the extent that such bankruptcy 
     loss allocation provision allocates to senior classes of 
     mortgage-backed securities of the issuer bankruptcy losses 
     that could not have been incurred under the law in effect on 
     the date on which such mortgage-backed securities contract 
     was entered into, without the consent of the holder of the 
     related residential mortgage or mortgages.
       (2) Effect of unenforceability.--Any bankruptcy losses that 
     would have been allocated under a bankruptcy loss allocation 
     provision that is unenforceable under paragraph (1) shall be 
     allocated as if the bankruptcy losses constituted losses 
     (other than bankruptcy losses) under the applicable mortgage-
     backed securities contract.
       (c) Covered Bankruptcy Losses.--For purposes of subsection 
     (b), the term ``bankruptcy losses that could not have been 
     incurred under the law in effect on the date on which such 
     mortgage-backed securities contract was entered into, without 
     the consent of the holder of the related residential mortgage 
     or mortgages'' includes all bankruptcy losses incurred as a 
     result of the application of section 1322(b)(11) of title 11, 
     United States Code, as amended by this title.
       (d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Bankruptcy loss allocation provision.--The term 
     ``bankruptcy loss allocation provision'' means any provision 
     in a mortgage-backed securities contract that allocates any 
     portion of bankruptcy losses to senior classes of mortgage-
     backed securities of the issuer before the outstanding 
     principal amount of subordinated classes of the mortgage-
     backed securities of the issuer has been reduced to zero as a 
     result of the allocation of losses or otherwise.
       (2) Bankruptcy losses.--The term ``bankruptcy losses'' 
     means any losses relating to residential mortgages held by a 
     securitization vehicle that arise in a proceeding under title 
     11 of the United States Code.
       (3) Mortgage-backed securities.--The term ``mortgage-backed 
     securities'' means mortgage pass-through certificates, 
     participation certificates, mortgage-backed securities, or 
     other similar securities backed by a pool of assets that 
     includes residential mortgage loans.
       (4) Mortgage-backed securities contract.--The term 
     ``mortgage-backed securities contract'' means a contract or 
     other instrument that governs the terms of mortgage-backed 
     securities.
       (5) Securitization vehicle.--The term ``securitization 
     vehicle'' means a trust, corporation, partnership, limited 
     liability entity, special purpose entity, or other structure 
     that--
       (A) is the issuer, or is created by the issuer, of mortgage 
     pass-through certificates, participation certificates, 
     mortgage-backed securities, or other similar securities 
     backed by a pool of assets that includes residential mortgage 
     loans; and
       (B) holds such mortgages.

          Subtitle B--Related Mortgage Modification Provisions

     SEC. 511. ADJUSTMENTS AS A RESULT OF MODIFICATION IN 
                   BANKRUPTCY OF HOUSING LOANS GUARANTEED BY THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) In General.--Section 3732(a)(2) of title 38, United 
     States Code, is amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) In the event that a housing loan guaranteed under 
     this chapter is modified under the authority provided under 
     section 1322(b)(11) of title 11, United States Code, the 
     Secretary shall pay the holder of the obligation the unpaid 
     balance of the obligation due as of the date of the filing of 
     the petition under title 11, United States Code, plus accrued 
     interest, but only upon the assignment, transfer, and 
     delivery to the Secretary (in a form and manner satisfactory 
     to the Secretary) of all rights, interest, claims, evidence, 
     and records with respect to the housing loan.''.
       (b) Maturity of Housing Loans.--Section 3703(d)(1) of title 
     38, United States Code, is amended by inserting ``at the time 
     of origination'' after ``loan''.
       (c) Implementation.--The Secretary of Veterans Affairs may 
     implement the amendments made by this section through notice, 
     procedure notice, or administrative notice.

     SEC. 512. PAYMENT OF FHA MORTGAGE INSURANCE BENEFITS.

       (a) In General.--Section 204(a) of the National Housing Act 
     (12 U.S.C. 1710(a)) is amended--
       (1) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(E) Modification of mortgage in bankruptcy.--
       ``(i) Authority.--If an order is entered under the 
     authority provided under section 1322(b)(11) of title 11, 
     United States Code, that (a) determines the amount of an 
     allowed secured claim under a mortgage in accordance with 
     section 506(a)(1) of title 11, United States Code, and the 
     amount of such allowed secured claim is less than the amount 
     due under the mortgage as of the date of the filing of the 
     petition under title 11, United States Code, or (b) reduces 
     the interest to be paid under a mortgage in accordance with 
     section 1325 of such title, the Secretary shall pay insurance 
     benefits for the mortgage in 1 of the following manners:

       ``(I) Full payment and assignment.--The Secretary may pay 
     the insurance benefits for the mortgage, but only upon the 
     assignment, transfer, and delivery to the Secretary of all 
     rights, interest, claims, evidence, and

[[Page 11308]]

     records with respect to the mortgage specified in clauses (i) 
     through (iv) of paragraph (1)(A). The insurance benefits 
     shall be paid in the amount equal to the original principal 
     obligation of the mortgage (with such additions and 
     deductions as the Secretary determines are appropriate) which 
     was unpaid upon the date of the filing by the mortgagor of 
     the petition under title 11 of the United States Code. 
     Nothing in this clause may be construed to prevent the 
     Secretary from providing insurance under this title for a 
     mortgage that has previously been assigned to the Secretary 
     under this subclause.
       ``(II) Assignment of unsecured claim.--The Secretary may 
     make a partial payment of the insurance benefits for any 
     unsecured claim under the mortgage, but only upon the 
     assignment to the Secretary of any unsecured claim of the 
     mortgagee against the mortgagor or others arising out of such 
     order. Such assignment shall be deemed valid irrespective of 
     whether such claim has been or will be discharged under title 
     11 of the United States Code. The insurance benefits shall be 
     paid in the amount specified in subclause (I) of this clause, 
     as such amount is reduced by the amount of the allowed 
     secured claim. Such allowed secured claim shall continue to 
     be insured under section 203.
       ``(III) Interest payments.--The Secretary may make periodic 
     payments, or a one-time payment, of insurance benefits for 
     interest payments that are reduced pursuant to such order, as 
     determined by the Secretary, but only upon assignment to the 
     Secretary of all rights and interest related to such 
     payments.

       ``(ii) Delivery of evidence of entry of order.--
     Notwithstanding any other provision of this paragraph, no 
     insurance benefits may be paid pursuant to this subparagraph 
     for a mortgage before delivery to the Secretary of evidence 
     of the entry of the order issued pursuant to title 11, United 
     States Code, in a form satisfactory to the Secretary.''; and
       (2) in paragraph (5), in the matter preceding subparagraph 
     (A), by inserting after ``section 520, and'' the following: 
     ``, except as provided in paragraph (1)(E),''.
       (b) Implementation.--The Secretary of Housing and Urban 
     Development may implement the amendments made by this section 
     through notice or mortgagee letter.

     SEC. 513. ADJUSTMENTS AS RESULT OF MODIFICATION OF RURAL 
                   SINGLE FAMILY HOUSING LOANS IN BANKRUPTCY.

       (a) Guaranteed Rural Housing Loans.--Section 502(h) of the 
     Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) in paragraph (7)--
       (A) in subparagraph (A), by inserting before the semicolon 
     at the end the following: ``, unless the maturity date of the 
     loan is modified in a bankruptcy proceeding or authorized at 
     the discretion of the Secretary in accordance with paragraph 
     (15)(A)''; and
       (B) in subparagraph (B), by inserting before the semicolon 
     the following: ``, unless such rate is modified in a 
     bankruptcy proceeding or as provided in paragraph (14) or 
     (15)'';
       (2) by redesignating paragraphs (13) and (14) as paragraphs 
     (14) and (15), respectively; and
       (3) by inserting after paragraph (12) the following new 
     paragraphs:
       ``(13) Payment of losses.--To pay for losses incurred by 
     holders or servicers in the event of a modification pursuant 
     to the authority provided under section 1322(b)(11) of title 
     11, United States Code, that either (1) determines the amount 
     of an allowed secured claim under a mortgage in accordance 
     with section 506(a)(1) of title 11, United States Code, and 
     the amount of such allowed secured claim is less than the 
     amount due under the mortgage as of the date of the filing of 
     the petition under title 11, United States Code, or (2) 
     reduces the interest to be paid under a mortgage in 
     accordance with section 1325 of such title, as follows:
       ``(A) Full payment and assignment.--The Secretary may pay 
     the guarantee for the mortgage, but only upon the assignment, 
     transfer, and delivery to the Secretary of all rights, 
     interest, claims, evidence, and records with respect to the 
     mortgage. The guarantee shall be paid in the amount equal to 
     the original principal obligation of the mortgage (with such 
     additions and deductions as the Secretary determines are 
     appropriate) which was unpaid upon the date of the filing by 
     the mortgagor of the petition under title 11 of the United 
     States Code. Nothing in this subparagraph may be construed to 
     prevent the Secretary from providing a guarantee under this 
     subsection for a mortgage that has previously been assigned 
     to the Secretary under this subparagraph.
       ``(B) Assignment of unsecured claim.--The Secretary may 
     make a partial payment of the guarantee for any unsecured 
     claim under the mortgage, but only upon the assignment to the 
     Secretary of any unsecured claim of the mortgagee against the 
     mortgagor or others arising out of such order. Such 
     assignment shall be deemed valid irrespective of whether such 
     claim has been or will be discharged under title 11 of the 
     United States Code. The guarantee shall be paid in the amount 
     specified subparagraph (A), as such amount is reduced by the 
     amount of the allowed secured claim. Such allowed secured 
     claim shall continue to be insured under section 1472 and 
     1487, without reduction for any amounts modified.
       ``(C) Interest payments.--The Secretary may make periodic 
     payments, or a one-time payment, of guarantees for interest 
     payments that are reduced pursuant to such order, as 
     determined by the Secretary, but only upon assignment to the 
     Secretary of all rights and interest related to such 
     payments.
       ``(D) Delivery of evidence of entry of order.--
     Notwithstanding any other provision of this section, no 
     guarantees may be paid pursuant to this paragraph for a 
     mortgage before delivery to the Secretary of evidence of the 
     entry of the order issued pursuant to title 11, United States 
     Code, in a form satisfactory to the Secretary.''.
       (b) Insured Rural Housing Loans.--Section 517(j) of the 
     Housing Act of 1949 (42 U.S.C. 1487(j)) is amended--
       (1) by redesignating paragraphs (2) through (7) as 
     paragraphs (3) through (8), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) to pay for losses incurred by holders or servicers in 
     the event of a modification pursuant to a bankruptcy 
     proceeding;''.
       (c) Technical Amendments.--Subsection (h) of section 502 of 
     the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) in paragraph (5)(A), by striking ``(as defined in 
     paragraph (13)'' and inserting ``(as defined in paragraph 
     (14)''; and
       (2) in paragraph (18)(E) (as so redesignated by subsection 
     (a)(2)), by--
       (A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)'' 
     and inserting ``paragraphs (3), (6), (7)(A), (8), (10), and 
     (13)''; and
       (B) striking ``paragraphs (2) through (13)'' and inserting 
     ``paragraphs (2) through (15)''.
       (d) Procedure.--
       (1) In general.--The promulgation of regulations 
     necessitated and the administration actions required by the 
     amendments made by this section shall be made without regard 
     to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (B) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (2) Congressional review of agency rulemaking.--In carrying 
     out this section, and the amendments made by this section, 
     the Secretary shall use the authority provided under section 
     808 of title 5, United States Code.
                                 ______
                                 
  SA 1015. Mr. MERKLEY submitted an amendment intended to be proposed 
by him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 103. PROHIBITION ON YIELD SPREAD PREMIUMS.

       (a) In General.--No person shall provide, and no mortgage 
     originator shall receive, directly or indirectly, any 
     compensation that is based on, or varies with, the terms of 
     any home mortgage loan (other than the amount of the loan).
       (b) Definitions.--For purposes of this section--
       (1) the term ``home mortgage loan'' means a loan secured by 
     a mortgage or lien on residential property;
       (2) the term ``mortgage originator'' means any creditor or 
     other person, including a mortgage broker or bank lender, 
     who, for compensation or in anticipation of compensation, 
     engages either directly or indirectly in the--
       (A) acceptance of applications for home mortgage loans;
       (B) solicitation of home mortgage loans on behalf of 
     borrowers;
       (C) negotiation of terms or conditions of home mortgage 
     loans on behalf of borrowers or lenders; or
       (D) negotiation of sales of existing home mortgage loans to 
     institutional or noninstitutional lenders; and
       (3) the term ``residential property'' means a 1-4 family, 
     owner-occupied residence, including a 1-family unit in a 
     condominium project, a membership interest and occupancy 
     agreement in a cooperative housing project, and a 
     manufactured home and the lot on which the home is situated.

     SEC. 104. PROHIBITION ON PREPAYMENT PENALTIES.

       The Truth in Lending Act (15 U.S.C. 1601 et seq.) is 
     amended by inserting after section 129A the following new 
     section:

     ``SEC. 129B. PROHIBITION ON PREPAYMENT PENALTIES.

       ``No prepayment fees or penalties shall be charged or 
     collected under the terms of any consumer credit transaction 
     secured by an owner-occupied principal dwelling of the 
     consumer. Any prepayment penalty in violation of this section 
     shall be unenforceable.''.
                                 ______
                                 
  SA 1016. Mr. VITTER submitted an amendment intended to be proposed to 
amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to

[[Page 11309]]

the bill S. 896, to prevent mortgage foreclosures and enhance mortgage 
credit availability; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPAYMENT OF TARP FUNDS.

       Section 111(g) of the Emergency Economic Stabilization Act 
     of 2008 (12 U.S.C. 5221(g)) is amended--
       (1) by striking ``Subject to'' and inserting the following:
       ``(1) Repayment permitted.--Subject to'';
       (2) by inserting ``if, subsequent to such repayment, the 
     TARP recipient is well capitalized (as determined by the 
     appropriate Federal banking agency having supervisory 
     authority over the TARP recipient)'' after ``waiting 
     period,'';
       (3) by striking ``, and when such assistance is repaid, the 
     Secretary shall liquidate warrants associated with such 
     assistance at the current market price''; and
       (4) by adding at the end the following:
       ``(2) No repayment precondition for warrants.--A TARP 
     recipient that exercises the repayment authority under 
     paragraph (1) shall not be required to repurchase warrants 
     from the Federal Government as a condition of repayment of 
     assistance provided under the TARP. The Secretary shall, at 
     the request of the relevant TARP recipient, repay the 
     proceeds of warrants repurchased before the date of enactment 
     of this paragraph.''.
                                 ______
                                 
  SA 1017. Mr. VITTER submitted an amendment intended to be proposed to 
amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 896, to prevent mortgage foreclosures and enhance mortgage 
credit availability; as follows:

       At the appropriate place, insert the following:

     SEC. __. DUTIES OF THE FHA.

       (a) Duty to Maintain Solvency.--Notwithstanding any other 
     provision of law or of this Act, the primary and foundational 
     responsibility of the Federal Housing Administration shall be 
     to safeguard and preserve the solvency of the Administration.
       (b) Suspension of Activities.--If in the determination of 
     the Commissioner of the Federal Housing Administration, any 
     existing Federal requirement, program, or law, or any 
     amendment to such requirement, program, or law made by this 
     Act, threatens the solvency of the Administration or makes 
     the Administration reasonably likely to need a credit subsidy 
     from Congress, the Commissioner shall--
       (1) temporary suspend any such requirement, program, or 
     law; and
       (2) recommend legislation to the appropriate congressional 
     committees to address such solvency issues.
                                 ______
                                 
  SA 1018. Mr. DODD (for himself and Mr. Shelby) submitted an amendment 
intended to be proposed by him to the bill S. 896, to prevent mortgage 
foreclosures and enhance mortgage credit availability; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Helping 
     Families Save Their Homes Act of 2009''.
       (b) Table of Contents.--The table of contents of this Act 
     is the following:

Sec. 1. Short title; table of contents.

              TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

Sec. 101. Guaranteed rural housing loans.
Sec. 102. Modification of housing loans guaranteed by the Department of 
              Veterans Affairs.
Sec. 103. Additional funding for HUD programs to assist individuals to 
              better withstand the current mortgage crisis.
Sec. 104. Mortgage modification data collecting and reporting.

        TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

Sec. 201. Servicer safe harbor for mortgage loan modifications.
Sec. 202. Changes to HOPE for Homeowners Program.
Sec. 203. Requirements for FHA-approved mortgagees.
Sec. 204. Enhancement of liquidity and stability of insured depository 
              institutions to ensure availability of credit and 
              reduction of foreclosures.
Sec. 205. Application of GSE conforming loan limit to mortgages 
              assisted with TARP funds.
Sec. 206. Mortgages on certain homes on leased land.
Sec. 207. Sense of Congress regarding mortgage revenue bond purchases.

                  TITLE III--MORTGAGE FRAUD TASK FORCE

Sec. 301. Sense of the Congress on establishment of a Nationwide 
              Mortgage Fraud Task Force.

              TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

Sec. 401. Sense of the Congress on foreclosures.

              TITLE I--PREVENTION OF MORTGAGE FORECLOSURES

     SEC. 101. GUARANTEED RURAL HOUSING LOANS.

       (a) Guaranteed Rural Housing Loans.--Section 502(h) of the 
     Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) by redesignating paragraphs (13) and (14) as paragraphs 
     (16) and (17), respectively; and
       (2) by inserting after paragraph (12) the following new 
     paragraphs:
       ``(13) Loss mitigation.--Upon default or imminent default 
     of any mortgage guaranteed under this subsection, mortgagees 
     shall engage in loss mitigation actions for the purpose of 
     providing an alternative to foreclosure (including actions 
     such as special forbearance, loan modification, pre-
     foreclosure sale, deed in lieu of foreclosure, as required, 
     support for borrower housing counseling, subordinate lien 
     resolution, and borrower relocation), as provided for by the 
     Secretary.
       ``(14) Payment of partial claims and mortgage 
     modifications.--The Secretary may authorize the modification 
     of mortgages, and establish a program for payment of a 
     partial claim to a mortgagee that agrees to apply the claim 
     amount to payment of a mortgage on a 1- to 4-family 
     residence, for mortgages that are in default or face imminent 
     default, as defined by the Secretary. Any payment under such 
     program directed to the mortgagee shall be made at the sole 
     discretion of the Secretary and on terms and conditions 
     acceptable to the Secretary, except that--
       ``(A) the amount of the partial claim payment shall be in 
     an amount determined by the Secretary, and shall not exceed 
     an amount equivalent to 30 percent of the unpaid principal 
     balance of the mortgage and any costs that are approved by 
     the Secretary;
       ``(B) the amount of the partial claim payment shall be 
     applied first to any outstanding indebtedness on the 
     mortgage, including any arrearage, but may also include 
     principal reduction;
       ``(C) the mortgagor shall agree to repay the amount of the 
     partial claim to the Secretary upon terms and conditions 
     acceptable to the Secretary;
       ``(D) expenses related to a partial claim or modification 
     are not to be charged to the borrower;
       ``(E) the Secretary may authorize compensation to the 
     mortgagee for lost income on monthly mortgage payments due to 
     interest rate reduction;
       ``(F) the Secretary may reimburse the mortgagee from the 
     appropriate guaranty fund in connection with any activities 
     that the mortgagee is required to undertake concerning 
     repayment by the mortgagor of the amount owed to the 
     Secretary;
       ``(G) the Secretary may authorize payments to the mortgagee 
     on behalf of the borrower, under such terms and conditions as 
     are defined by the Secretary, based on successful performance 
     under the terms of the mortgage modification, which shall be 
     used to reduce the principal obligation under the modified 
     mortgage; and
       ``(H) the Secretary may authorize the modification of 
     mortgages with terms extended up to 40 years from the date of 
     modification.
       ``(15) Assignment.--
       ``(A) Program authority.--The Secretary may establish a 
     program for assignment to the Secretary, upon request of the 
     mortgagee, of a mortgage on a 1- to 4-family residence 
     guaranteed under this chapter.
       ``(B) Program requirements.--
       ``(i) In general.--The Secretary may encourage loan 
     modifications for eligible delinquent mortgages or mortgages 
     facing imminent default, as defined by the Secretary, through 
     the payment of the guaranty and assignment of the mortgage to 
     the Secretary and the subsequent modification of the terms of 
     the mortgage according to a loan modification approved under 
     this section.
       ``(ii) Acceptance of assignment.--The Secretary may accept 
     assignment of a mortgage under a program under this 
     subsection only if--

       ``(I) the mortgage is in default or facing imminent 
     default;
       ``(II) the mortgagee has modified the mortgage or qualified 
     the mortgage for modification sufficient to cure the default 
     and provide for mortgage payments the mortgagor is reasonably 
     able to pay, at interest rates not exceeding current market 
     interest rates; and
       ``(III) the Secretary arranges for servicing of the 
     assigned mortgage by a mortgagee (which may include the 
     assigning mortgagee) through procedures that the Secretary 
     has determined to be in the best interests of the appropriate 
     guaranty fund.

       ``(C) Payment of guaranty.--Under the program under this 
     paragraph, the Secretary may pay the guaranty for a mortgage, 
     in the amount determined in accordance with paragraph (2), 
     without reduction for any amounts modified, but only upon the 
     assignment, transfer, and delivery to the Secretary of all 
     rights, interest, claims, evidence, and records with respect 
     to the mortgage, as defined by the Secretary.
       ``(D) Disposition.--After modification of a mortgage 
     pursuant to this paragraph, and assignment of the mortgage, 
     the Secretary

[[Page 11310]]

     may provide guarantees under this subsection for the 
     mortgage. The Secretary may subsequently--
       ``(i) re-assign the mortgage to the mortgagee under terms 
     and conditions as are agreed to by the mortgagee and the 
     Secretary;
       ``(ii) act as a Government National Mortgage Association 
     issuer, or contract with an entity for such purpose, in order 
     to pool the mortgage into a Government National Mortgage 
     Association security; or
       ``(iii) re-sell the mortgage in accordance with any program 
     that has been established for purchase by the Federal 
     Government of mortgages insured under this title, and the 
     Secretary may coordinate standards for interest rate 
     reductions available for loan modification with interest 
     rates established for such purchase.
       ``(E) Loan servicing.--In carrying out the program under 
     this subsection, the Secretary may require the existing 
     servicer of a mortgage assigned to the Secretary under the 
     program to continue servicing the mortgage as an agent of the 
     Secretary during the period that the Secretary acquires and 
     holds the mortgage for the purpose of modifying the terms of 
     the mortgage. If the mortgage is resold pursuant to 
     subparagraph (D)(iii), the Secretary may provide for the 
     existing servicer to continue to service the mortgage or may 
     engage another entity to service the mortgage.''.
       (b) Technical Amendments.--Subsection (h) of section 502 of 
     the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
       (1) in paragraph (5)(A), by striking ``(as defined in 
     paragraph (13)'' and inserting ``(as defined in paragraph 
     (17)''; and
       (2) in paragraph (18)(E)(as so redesignated by subsection 
     (a)(2)), by--
       (A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)'' 
     and inserting ``paragraphs (3), (6), (7)(A), (8), (10), (13), 
     and (14)''; and
       (B) striking ``paragraphs (2) through (13)'' and inserting 
     ``paragraphs (2) through (15)''.
       (c) Procedure.--
       (1) In general.--The promulgation of regulations 
     necessitated and the administration actions required by the 
     amendments made by this section shall be made without regard 
     to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (B) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (2) Congressional review of agency rulemaking.--In carrying 
     out this section, and the amendments made by this section, 
     the Secretary shall use the authority provided under section 
     808 of title 5, United States Code.

     SEC. 102. MODIFICATION OF HOUSING LOANS GUARANTEED BY THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) Maturity of Housing Loans.--Section 3703(d)(1) of title 
     38, United States Code, is amended by inserting ``at the time 
     of origination'' after ``loan''.
       (b) Implementation.--The Secretary of Veterans Affairs may 
     implement the amendments made by this section through notice, 
     procedure notice, or administrative notice.

     SEC. 103. ADDITIONAL FUNDING FOR HUD PROGRAMS TO ASSIST 
                   INDIVIDUALS TO BETTER WITHSTAND THE CURRENT 
                   MORTGAGE CRISIS.

       (a) Additional Appropriations for Advertising to Increase 
     Public Awareness of Mortgage Scams and Counseling 
     Assistance.--In addition to any amounts that may be 
     appropriated for each of the fiscal years 2010 and 2011 for 
     such purpose, there is authorized to be appropriated to the 
     Secretary of Housing and Urban Development, to remain 
     available until expended, $10,000,000 for each of the fiscal 
     years 2010 and 2011 for purposes of providing additional 
     resources to be used for advertising to raise awareness of 
     mortgage fraud and to support HUD programs and approved 
     counseling agencies, provided that such amounts are used to 
     advertise in the 100 metropolitan statistical areas with the 
     highest rate of home foreclosures, and provided, further that 
     up to $5,000,000 of such amounts are used for advertisements 
     designed to reach and inform broad segments of the community.
       (b) Additional Appropriations for the Housing Counseling 
     Assistance Program.--In addition to any amounts that may be 
     appropriated for each of the fiscal years 2010 and 2011 for 
     such purpose, there is authorized to be appropriated to the 
     Secretary of Housing and Urban Development, to remain 
     available until expended, $50,000,000 for each of the fiscal 
     years 2010 and 2011 to carry out the Housing Counseling 
     Assistance Program established within the Department of 
     Housing and Urban Development, provided that such amounts are 
     used to fund HUD-certified housing-counseling agencies 
     located in the 100 metropolitan statistical areas with the 
     highest rate of home foreclosures for the purpose of 
     assisting homeowners with inquiries regarding mortgage-
     modification assistance and mortgage scams.
       (c) Additional Appropriations for Personnel at the Office 
     of Fair Housing and Equal Opportunity.--In addition to any 
     amounts that may be appropriated for each of the fiscal years 
     2010 and 2011 for such purpose, there is authorized to be 
     appropriated to the Secretary of Housing and Urban 
     Development, to remain available until expended, $5,000,000 
     for each of the fiscal years 2010 and 2011 for purposes of 
     hiring additional personnel at the Office of Fair Housing and 
     Equal Opportunity within the Department of Housing and Urban 
     Development, provided that such amounts are used to hire 
     personnel at the local branches of such Office located in the 
     100 metropolitan statistical areas with the highest rate of 
     home foreclosures.

     SEC. 104. MORTGAGE MODIFICATION DATA COLLECTING AND 
                   REPORTING.

       (a) Reporting Requirements.--Not later than 120 days after 
     the date of the enactment of this Act, and quarterly 
     thereafter, the Comptroller of the Currency and the Director 
     of the Office of Thrift Supervision, shall jointly submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Financial Services of 
     the House of Representatives on the volume of mortgage 
     modifications reported to the Office of the Comptroller of 
     the Currency and the Office of Thrift Supervision, under the 
     mortgage metrics program of each such Office, during the 
     previous quarter, including the following:
       (1) A copy of the data collection instrument currently used 
     by the Office of the Comptroller of the Currency and the 
     Office of Thrift Supervision to collect data on loan 
     modifications.
       (2) The total number of mortgage modifications resulting in 
     each of the following:
       (A) Additions of delinquent payments and fees to loan 
     balances.
       (B) Interest rate reductions and freezes.
       (C) Term extensions.
       (D) Reductions of principal.
       (E) Deferrals of principal.
       (F) Combinations of modifications described in subparagraph 
     (A), (B), (C), (D), or (E).
       (3) The total number of mortgage modifications in which the 
     total monthly principal and interest payment resulted in the 
     following:
       (A) An increase.
       (B) Remained the same.
       (C) Decreased less than 10 percent.
       (D) Decreased between 10 percent and 20 percent.
       (E) Decreased 20 percent or more.
       (4) The total number of loans that have been modified and 
     then entered into default, where the loan modification 
     resulted in--
       (A) higher monthly payments by the homeowner;
       (B) equivalent monthly payments by the homeowner;
       (C) lower monthly payments by the homeowner of up to 10 
     percent;
       (D) lower monthly payments by the homeowner of between 10 
     percent to 20 percent; or
       (E) lower monthly payments by the homeowner of more than 20 
     percent.
       (b) Data Collection.--
       (1) Required.--
       (A) In general.--Not later than 60 days after the date of 
     the enactment of this Act, the Comptroller of the Currency 
     and the Director of the Office of Thrift Supervision, shall 
     issue mortgage modification data collection and reporting 
     requirements to institutions covered under the reporting 
     requirement of the mortgage metrics program of the 
     Comptroller or the Director.
       (B) Inclusiveness of collections.--The requirements under 
     subparagraph (A) shall provide for the collection of all 
     mortgage modification data needed by the Comptroller of the 
     Currency and the Director of the Office of Thrift Supervision 
     to fulfill the reporting requirements under subsection (a).
       (2) Report.--The Comptroller of the Currency shall report 
     all requirements established under paragraph (1) to each 
     committee receiving the report required under subsection (a).

        TITLE II--FORECLOSURE MITIGATION AND CREDIT AVAILABILITY

     SEC. 201. SERVICER SAFE HARBOR FOR MORTGAGE LOAN 
                   MODIFICATIONS.

       (a) Congressional Findings.--Congress finds the following:
       (1) Increasing numbers of mortgage foreclosures are not 
     only depriving many Americans of their homes, but are also 
     destabilizing property values and negatively affecting State 
     and local economies as well as the national economy.
       (2) In order to reduce the number of foreclosures and to 
     stabilize property values, local economies, and the national 
     economy, servicers must be given--
       (A) authorization to--
       (i) modify mortgage loans and engage in other loss 
     mitigation activities consistent with applicable guidelines 
     issued by the Secretary of the Treasury or his designee under 
     the Emergency Economic Stabilization Act of 2008; and
       (ii) refinance mortgage loans under the Hope for Homeowners 
     program; and
       (B) a safe harbor to enable such servicers to exercise 
     these authorities.
       (b) Safe Harbor.--Section 129A of the Truth in Lending Act 
     (15 U.S.C. 1639a) is amended to read as follows:

[[Page 11311]]



     ``SEC. 129. DUTY OF SERVICERS OF RESIDENTIAL MORTGAGES.

       ``(a) In General.--Notwithstanding any other provision of 
     law, whenever a servicer of residential mortgages agrees to 
     enter into a qualified loss mitigation plan with respect to 1 
     or more residential mortgages originated before the date of 
     enactment of the Helping Families Save Their Homes Act of 
     2009, including mortgages held in a securitization or other 
     investment vehicle--
       ``(1) to the extent that the servicer owes a duty to 
     investors or other parties to maximize the net present value 
     of such mortgages, the duty shall be construed to apply to 
     all such investors and parties, and not to any individual 
     party or group of parties; and
       ``(2) the servicer shall be deemed to have satisfied the 
     duty set forth in paragraph (1) if, before December 31, 2012, 
     the servicer implements a qualified loss mitigation plan that 
     meets the following criteria:
       ``(A) Default on the payment of such mortgage has occurred, 
     is imminent, or is reasonably foreseeable, as such terms are 
     defined by guidelines issued by the Secretary of the Treasury 
     or his designee under the Emergency Economic Stabilization 
     Act of 2008.
       ``(B) The mortgagor occupies the property securing the 
     mortgage as his or her principal residence.
       ``(C) The servicer reasonably determined, consistent with 
     the guidelines issued by the Secretary of the Treasury or his 
     designee, that the application of such qualified loss 
     mitigation plan to a mortgage or class of mortgages will 
     likely provide an anticipated recovery on the outstanding 
     principal mortgage debt that will exceed the anticipated 
     recovery through foreclosures.
       ``(b) No Liability.--A servicer that is deemed to be acting 
     in the best interests of all investors or other parties under 
     this section shall not be liable to any party who is owed a 
     duty under subsection (a)(1), and shall not be subject to any 
     injunction, stay, or other equitable relief to such party, 
     based solely upon the implementation by the servicer of a 
     qualified loss mitigation plan.
       ``(c) Standard Industry Practice.--The qualified loss 
     mitigation plan guidelines issued by the Secretary of the 
     Treasury under the Emergency Economic Stabilization Act of 
     2008 shall constitute standard industry practice for purposes 
     of all Federal and State laws.
       ``(d) Scope of Safe Harbor.--Any person, including a 
     trustee, issuer, and loan originator, shall not be liable for 
     monetary damages or be subject to an injunction, stay, or 
     other equitable relief, based solely upon the cooperation of 
     such person with a servicer when such cooperation is 
     necessary for the servicer to implement a qualified loss 
     mitigation plan that meets the requirements of subsection 
     (a).
       ``(e) Reporting.--Each servicer that engages in qualified 
     loss mitigation plans under this section shall regularly 
     report to the Secretary of the Treasury the extent, scope, 
     and results of the servicer's modification activities. The 
     Secretary of the Treasury shall prescribe regulations or 
     guidance specifying the form, content, and timing of such 
     reports.
       ``(f) Definitions.--As used in this section--
       ``(1) the term `qualified loss mitigation plan' means--
       ``(A) a residential loan modification, workout, or other 
     loss mitigation plan, including to the extent that the 
     Secretary of the Treasury determines appropriate, a loan 
     sale, real property disposition, trial modification, pre-
     foreclosure sale, and deed in lieu of foreclosure, that is 
     described or authorized in guidelines issued by the Secretary 
     of the Treasury or his designee under the Emergency Economic 
     Stabilization Act of 2008; and
       ``(B) a refinancing of a mortgage under the Hope for 
     Homeowners program;
       ``(2) the term `servicer' means the person responsible for 
     the servicing for others of residential mortgage 
     loans(including of a pool of residential mortgage loans); and
       ``(3) the term `securitization vehicle' means a trust, 
     special purpose entity, or other legal structure that is used 
     to facilitate the issuing of securities, participation 
     certificates, or similar instruments backed by or referring 
     to a pool of assets that includes residential mortgages (or 
     instruments that are related to residential mortgages such as 
     credit-linked notes).''.

     SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PROGRAM.

       (a) Program Changes.--Section 257 of the National Housing 
     Act (12 U.S.C. 1715z-23) is amended--
       (1) in subsection (c)--
       (A) in the heading for paragraph (1), by striking ``the 
     board'' and inserting ``secretary'';
       (B) in paragraph (1), by striking ``Board'' inserting 
     ``Secretary, after consultation with the Board,'';
       (C) in paragraph (1)(A), by inserting ``consistent with 
     section 203(b) to the maximum extent possible'' before the 
     semicolon; and
       (D) by adding after paragraph (2) the following:
       ``(3) Duties of board.--The Board shall advise the 
     Secretary regarding the establishment and implementation of 
     the HOPE for Homeowners Program.'';
       (2) by striking ``Board'' each place such term appears in 
     subsections (e), (h)(1), (h)(3), (j), (l), (n), (s)(3), and 
     (v) and inserting ``Secretary'';
       (3) in subsection (e)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) Borrower certification.--
       ``(A) No intentional default or false information.--The 
     mortgagor shall provide a certification to the Secretary that 
     the mortgagor has not intentionally defaulted on the existing 
     mortgage or mortgages or any other substantial debt within 
     the last 5 years and has not knowingly, or willfully and with 
     actual knowledge, furnished material information known to be 
     false for the purpose of obtaining the eligible mortgage to 
     be insured and has not been convicted under Federal or State 
     law for fraud during the 10-year period ending upon the 
     insurance of the mortgage under this section.
       ``(B) Liability for repayment.--The mortgagor shall agree 
     in writing that the mortgagor shall be liable to repay to the 
     Secretary any direct financial benefit achieved from the 
     reduction of indebtedness on the existing mortgage or 
     mortgages on the residence refinanced under this section 
     derived from misrepresentations made by the mortgagor in the 
     certifications and documentation required under this 
     paragraph, subject to the discretion of the Secretary.
       ``(C) Current borrower debt-to-income ratio.--As of the 
     date of application for a commitment to insure or insurance 
     under this section, the mortgagor shall have had, or 
     thereafter is likely to have, due to the terms of the 
     mortgage being reset, a ratio of mortgage debt to income, 
     taking into consideration all existing mortgages of that 
     mortgagor at such time, greater than 31 percent (or such 
     higher amount as the Secretary determines appropriate).'';
       (B) in paragraph (4)--
       (i) in subparagraph (A), by striking ``, subject to 
     standards established by the Board under subparagraph (B),''; 
     and
       (ii) in subparagraph (B)(i), by striking ``shall'' and 
     inserting ``may''; and
       (C) in paragraph (7), by striking ``; and provided that'' 
     and all that follows through ``new second lien'';
       (D) in paragraph (9)--
       (i) by striking ``by procuring (A) an income tax return 
     transcript of the income tax return of the mortgagor, or 
     (B)'' and inserting ``in accordance with procedures and 
     standards that the Secretary shall establish (provided that 
     such procedures and standards are consistent with section 
     203(b) to the maximum extent possible) which may include 
     requiring the mortgagee to procure''; and
       (ii) by striking ``and by any other method, in accordance 
     with procedures and standards that the Board shall 
     establish'';
       (E) in paragraph (10)--
       (i) by striking ``The mortgagor shall not'' and inserting 
     the following:
       ``(A) Prohibition.--The mortgagor shall not''; and
       (ii) by adding at the end the following:
       ``(B) Duty of mortgagee.--The duty of the mortgagee to 
     ensure that the mortgagor is in compliance with the 
     prohibition under subparagraph (A) shall be satisfied if the 
     mortgagee makes a good faith effort to determine that the 
     mortgagor has not been convicted under Federal or State law 
     for fraud during the period described in subparagraph (A).'';
       (F) in paragraph (11), by inserting before the period at 
     the end the following: ``, except that the Secretary may 
     provide exceptions to such latter requirement (relating to 
     present ownership interest) for any mortgagor who has 
     inherited a property''; and
       (G) by adding at the end:
       ``(12) Ban on millionaires.--The mortgagor shall not have a 
     net worth, as of the date the mortgagor first applies for a 
     mortgage to be insured under the Program under this section, 
     that exceeds $1,000,000.'';
       (4) in subsection (h)(2), by striking ``The Board shall 
     prohibit the Secretary from paying'' and inserting ``The 
     Secretary shall not pay''; and
       (5) in subsection (i)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and adjusting the 
     margins accordingly;
       (B) in the matter preceding subparagraph (A), as 
     redesignated by this paragraph, by striking ``For each'' and 
     inserting the following:
       ``(1) Premiums.--For each'';
       (C) in subparagraph (A), as redesignated by this paragraph, 
     by striking ``equal to 3 percent'' and inserting ``not more 
     than 3 percent''; and
       (D) in subparagraph (B), as redesignated by this paragraph, 
     by striking ``equal to 1.5 percent'' and inserting ``not more 
     than 1.5 percent'';
       (E) by adding at the end the following:
       ``(2) Considerations.--In setting the premium under this 
     subsection, the Secretary shall consider--
       ``(A) the financial integrity of the HOPE for Homeowners 
     Program; and
       ``(B) the purposes of the HOPE for Homeowners Program 
     described in subsection (b).'';
       (6) in subsection (k)--
       (A) by striking the subsection heading and inserting ``Exit 
     Fee'';
       (B) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``such

[[Page 11312]]

     sale or refinancing'' and inserting ``the mortgage being 
     insured under this section''; and
       (C) in paragraph (2), by striking ``and the mortgagor'' and 
     all that follows through the end and inserting ``may, upon 
     any sale or disposition of the property to which the mortgage 
     relates, be entitled to up to 50 percent of appreciation, up 
     to the appraised value of the home at the time when the 
     mortgage being refinanced under this section was originally 
     made. The Secretary may share any amounts received under this 
     paragraph with the holder of the existing senior mortgage on 
     the eligible mortgage, the holder of any existing subordinate 
     mortgage on the eligible mortgage, or both.'';
       (7) in the heading for subsection (n), by striking ``the 
     Board'' and inserting ``Secretary'';
       (8) in subsection (p), by striking ``Under the direction of 
     the Board, the'' and inserting ``The'';
       (9) in subsection (s)--
       (A) in the first sentence of paragraph (2), by striking 
     ``Board of Directors of'' and inserting ``Advisory Board 
     for''; and
       (B) in paragraph (3)(A)(ii), by striking ``subsection 
     (e)(1)(B) and such other'' and inserting ``such'';
       (10) in subsection (v), by inserting after the period at 
     the end the following: ``The Secretary shall conform 
     documents, forms, and procedures for mortgages insured under 
     this section to those in place for mortgages insured under 
     section 203(b) to the maximum extent possible consistent with 
     the requirements of this section.''; and
       (11) by adding at the end the following new subsections:
       ``(x) Payments to Servicers and Originators.--The Secretary 
     may establish a payment to the--
       ``(1) servicer of the existing senior mortgage for every 
     loan insured under the HOPE for Homeowners Program; and
       ``(2) originator of each new loan insured under the HOPE 
     for Homeowners Program.
       ``(y) Auctions.--The Secretary, with the concurrence of the 
     Board, shall, if feasible, establish a structure and organize 
     procedures for an auction to refinance eligible mortgages on 
     a wholesale or bulk basis.''.
       (b) Reducing TARP Funds To Offset Costs of Program 
     Changes.--Paragraph (3) of section 115(a) of the Emergency 
     Economic Stabilization Act of 2008 (12 U.S.C. 5225) is 
     amended by inserting ``, as such amount is reduced by 
     $2,316,000,000,'' after ``$700,000,000,000''.
       (c) Technical Correction.--The second section 257 of the 
     National Housing Act (Public Law 110-289; 122 Stat. 2839; 12 
     U.S.C. 1715z-24) is amended by striking the section heading 
     and inserting the following:

     ``SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS 
                   WITHOUT SUFFICIENT CREDIT HISTORY.''.

     SEC. 203. REQUIREMENTS FOR FHA-APPROVED MORTGAGEES.

       (a) Mortgagee Review Board.--
       (1) In general.--Section 202(c)(2) of the National Housing 
     Act (12 U.S.C. 1708(c)) is amended--
       (A) in subparagraph (E), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (F), by striking ``; and'' and 
     inserting ``or their designees.''; and
       (C) by striking subparagraph (G).
       (2) Prohibition against limitations on mortgagee review 
     board's power to take action against mortgagees.--Section 
     202(c) of the National Housing Act (12 U.S.C. 1708(c)) is 
     amended by adding at the end the following new paragraph:
       ``(9) Prohibition against limitations on mortgagee review 
     board's power to take action against mortgagees.--No State or 
     local law, and no Federal law (except a Federal law enacted 
     expressly in limitation of this subsection after the 
     effective date of this sentence), shall preclude or limit the 
     exercise by the Board of its power to take any action 
     authorized under paragraphs (3) and (6) of this subsection 
     against any mortgagee.''.
       (b) Limitations on Participation and Mortgagee Approval and 
     Use of Name.--Section 202 of the National Housing Act (12 
     U.S.C. 1708) is amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Limitations on Participation in Origination and 
     Mortgagee Approval.--
       ``(1) Requirement.--Any person or entity that is not 
     approved by the Secretary to serve as a mortgagee, as such 
     term is defined in subsection (c)(7), shall not participate 
     in the origination of an FHA-insured loan except as 
     authorized by the Secretary.
       ``(2) Eligibility for approval.--In order to be eligible 
     for approval by the Secretary, an applicant mortgagee shall 
     not be, and shall not have any officer, partner, director, 
     principal, manager, supervisor, loan processor, loan 
     underwriter, or loan originator of the applicant mortgagee 
     who is--
       ``(A) currently suspended, debarred, under a limited denial 
     of participation (LDP), or otherwise restricted under part 25 
     of title 24 of the Code of Federal Regulations, 2 Code of 
     Federal Regulations, part 180 as implemented by part 2424, or 
     any successor regulations to such parts, or under similar 
     provisions of any other Federal agency;
       ``(B) under indictment for, or has been convicted of, an 
     offense that reflects adversely upon the applicant's 
     integrity, competence or fitness to meet the responsibilities 
     of an approved mortgagee;
       ``(C) subject to unresolved findings contained in a 
     Department of Housing and Urban Development or other 
     governmental audit, investigation, or review;
       ``(D) engaged in business practices that do not conform to 
     generally accepted practices of prudent mortgagees or that 
     demonstrate irresponsibility;
       ``(E) convicted of, or who has pled guilty or nolo 
     contendre to, a felony related to participation in the real 
     estate or mortgage loan industry--
       ``(i) during the 7-year period preceding the date of the 
     application for licensing and registration; or
       ``(ii) at any time preceding such date of application, if 
     such felony involved an act of fraud, dishonesty, or a breach 
     of trust, or money laundering;
       ``(F) in violation of provisions of the S.A.F.E. Mortgage 
     Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any 
     applicable provision of State law; or
       ``(G) in violation of any other requirement as established 
     by the Secretary.
       ``(3) Rulemaking and implementation.--The Secretary shall 
     conduct a rulemaking to carry out this subsection. The 
     Secretary shall implement this subsection not later than the 
     expiration of the 60-day period beginning upon the date of 
     the enactment of this subsection by notice, mortgagee letter, 
     or interim final regulations, which shall take effect upon 
     issuance.''; and
       (3) by adding at the end the following new subsection:
       ``(h) Use of Name.--The Secretary shall, by regulation, 
     require each mortgagee approved by the Secretary for 
     participation in the FHA mortgage insurance programs of the 
     Secretary--
       ``(1) to use the business name of the mortgagee that is 
     registered with the Secretary in connection with such 
     approval in all advertisements and promotional materials, as 
     such terms are defined by the Secretary, relating to the 
     business of such mortgagee in such mortgage insurance 
     programs; and
       ``(2) to maintain copies of all such advertisements and 
     promotional materials, in such form and for such period as 
     the Secretary requires.''.
       (c) Payment for Loss Mitigation.--Section 204(a)(2) of the 
     National Housing Act (12 U.S.C. 1710(a)(2)) is amended--
       (1) by inserting ``or faces imminent default, as defined by 
     the Secretary'' after ``default'';
       (2) by inserting ``support for borrower housing counseling, 
     partial claims, borrower incentives, preforeclosure sale,'' 
     after ``loan modification,''; and
       (3) by striking ``204(a)(1)(A)'' and inserting ``subsection 
     (a)(1)(A) or section 203(c)''.
       (d) Payment of FHA Mortgage Insurance Benefits.--
       (1) Additional loss mitigation actions.--Section 230(a) of 
     the National Housing Act (12 U.S.C. 1715u(a)) is amended--
       (A) by inserting ``or imminent default, as defined by the 
     Secretary'' after ``default'';
       (B) by striking ``loss'' and inserting ``loan'';
       (C) by inserting ``preforeclosure sale, support for 
     borrower housing counseling, subordinate lien resolution, 
     borrower incentives,'' after ``loan modification,'';
       (D) by inserting ``as required,'' after ``deeds in lieu of 
     foreclosure,''; and
       (E) by inserting ``or section 230(c),'' before ``as 
     provided''.
       (2) Amendment to partial claim authority.--Section 230(b) 
     of the National Housing Act (12 U.S.C. 1715u(b)) is amended 
     to read as follows:
       ``(b) Payment of Partial Claim.--
       ``(1) Establishment of program.--The Secretary may 
     establish a program for payment of a partial claim to a 
     mortgagee that agrees to apply the claim amount to payment of 
     a mortgage on a 1- to 4-family residence that is in default 
     or faces imminent default, as defined by the Secretary.
       ``(2) Payments and exceptions.--Any payment of a partial 
     claim under the program established in paragraph (1) to a 
     mortgagee shall be made in the sole discretion of the 
     Secretary and on terms and conditions acceptable to the 
     Secretary, except that--
       ``(A) the amount of the payment shall be in an amount 
     determined by the Secretary, not to exceed an amount 
     equivalent to 30 percent of the unpaid principal balance of 
     the mortgage and any costs that are approved by the 
     Secretary;
       ``(B) the amount of the partial claim payment shall first 
     be applied to any arrearage on the mortgage, and may also be 
     applied to achieve principal reduction;
       ``(C) the mortgagor shall agree to repay the amount of the 
     insurance claim to the Secretary upon terms and conditions 
     acceptable to the Secretary;
       ``(D) the Secretary may permit compensation to the 
     mortgagee for lost income on monthly payments, due to a 
     reduction in the interest rate charged on the mortgage;
       ``(E) expenses related to the partial claim or modification 
     may not be charged to the borrower;
       ``(F) loans may be modified to extend the term of the 
     mortgage to a maximum of 40 years from the date of the 
     modification; and

[[Page 11313]]

       ``(G) the Secretary may permit incentive payments to the 
     mortgagee, on the borrower's behalf, based on successful 
     performance of a modified mortgage, which shall be used to 
     reduce the amount of principal indebtedness.
       ``(3) Payments in connection with certain activities.--The 
     Secretary may pay the mortgagee, from the appropriate 
     insurance fund, in connection with any activities that the 
     mortgagee is required to undertake concerning repayment by 
     the mortgagor of the amount owed to the Secretary.''.
       (3) Assignment.--Section 230(c) of the National Housing Act 
     (12 U.S.C. 1715u(c)) is amended--
       (A) by inserting ``(1)'' after ``(c)'';
       (B) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (C) in paragraph (1)(B) (as so redesignated)--
       (i) by redesignating subparagraphs (A), (B), and (C) as 
     clauses (i), (ii), and (iii), respectively;
       (ii) in the matter preceding clause (i) (as so 
     redesignated), by striking ``under a program under this 
     subsection'' and inserting ``under this paragraph''; and
       (iii) in clause (i) (as so redesignated), by inserting ``or 
     facing imminent default, as defined by the Secretary'' after 
     ``default'';
       (D) in paragraph (1)(C) (as so redesignated), by striking 
     ``under a program under this subsection'' and inserting 
     ``under this paragraph''; and
       (E) by adding at the end the following:
       ``(2) Assignment and loan modification.--
       ``(A) Authority.--The Secretary may encourage loan 
     modifications for eligible delinquent mortgages or mortgages 
     facing imminent default, as defined by the Secretary, through 
     the payment of insurance benefits and assignment of the 
     mortgage to the Secretary and the subsequent modification of 
     the terms of the mortgage according to a loan modification 
     approved by the mortgagee.
       ``(B) Payment of benefits and assignment.--In carrying out 
     this paragraph, the Secretary may pay insurance benefits for 
     a mortgage, in the amount determined in accordance with 
     section 204(a)(5), without reduction for any amounts 
     modified, but only upon the assignment, transfer, and 
     delivery to the Secretary of all rights, interest, claims, 
     evidence, and records with respect to the mortgage specified 
     in clauses (i) through (iv) of section 204(a)(1)(A).
       ``(C) Disposition.--After modification of a mortgage 
     pursuant to this paragraph, the Secretary may provide 
     insurance under this title for the mortgage. The Secretary 
     may subsequently--
       ``(i) re-assign the mortgage to the mortgagee under terms 
     and conditions as are agreed to by the mortgagee and the 
     Secretary;
       ``(ii) act as a Government National Mortgage Association 
     issuer, or contract with an entity for such purpose, in order 
     to pool the mortgage into a Government National Mortgage 
     Association security; or
       ``(iii) re-sell the mortgage in accordance with any program 
     that has been established for purchase by the Federal 
     Government of mortgages insured under this title, and the 
     Secretary may coordinate standards for interest rate 
     reductions available for loan modification with interest 
     rates established for such purchase.
       ``(D) Loan servicing.--In carrying out this paragraph, the 
     Secretary may require the existing servicer of a mortgage 
     assigned to the Secretary to continue servicing the mortgage 
     as an agent of the Secretary during the period that the 
     Secretary acquires and holds the mortgage for the purpose of 
     modifying the terms of the mortgage, provided that the 
     Secretary compensates the existing servicer appropriately, as 
     such compensation is determined by the Secretary consistent, 
     to the maximum extent possible, with section 203(b). If the 
     mortgage is resold pursuant to subparagraph (C)(iii), the 
     Secretary may provide for the existing servicer to continue 
     to service the mortgage or may engage another entity to 
     service the mortgage.''.
       (4) Implementation.--The Secretary of Housing and Urban 
     Development may implement the amendments made by this 
     subsection through notice or mortgagee letter.
       (e) Change of Status.--The National Housing Act is amended 
     by striking section 532 (12 U.S.C. 1735f-10) and inserting 
     the following new section:

     ``SEC. 532. CHANGE OF MORTGAGEE STATUS.

       ``(a) Notification.--Upon the occurrence of any action 
     described in subsection (b), an approved mortgagee shall 
     immediately submit to the Secretary, in writing, notification 
     of such occurrence.
       ``(b) Actions.--The actions described in this subsection 
     are as follows:
       ``(1) The debarment, suspension or a Limited Denial of 
     Participation (LDP), or application of other sanctions, other 
     exclusions, fines, or penalties applied to the mortgagee or 
     to any officer, partner, director, principal, manager, 
     supervisor, loan processor, loan underwriter, or loan 
     originator of the mortgagee pursuant to applicable provisions 
     of State or Federal law.
       ``(2) The revocation of a State-issued mortgage loan 
     originator license issued pursuant to the S.A.F.E. Mortgage 
     Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other 
     similar declaration of ineligibility pursuant to State 
     law.''.
       (f) Civil Money Penalties.--Section 536 of the National 
     Housing Act (12 U.S.C. 1735f-14) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or any of its owners, officers, or directors'' after 
     ``mortgagee or lender'';
       (ii) in subparagraph (H), by striking ``title I'' and all 
     that follows through ``under this Act.'' and inserting 
     ``title I or II of this Act, or any implementing regulation, 
     handbook, or mortgagee letter that is issued under this 
     Act.''; and
       (iii) by inserting after subparagraph (J) the following:
       ``(K) Violation of section 202(d) of this Act (12 U.S.C. 
     1708(d)).
       ``(L) Use of `Federal Housing Administration', `Department 
     of Housing and Urban Development', `Government National 
     Mortgage Association', `Ginnie Mae', the acronyms `HUD', 
     `FHA', or `GNMA', or any official seal or logo of the 
     Department of Housing and Urban Development, except as 
     authorized by the Secretary.'';
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``or'' at the end;
       (ii) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following new subparagraph:
       ``(D) causing or participating in any of the violations set 
     forth in paragraph (1) of this subsection.''; and
       (C) by amending paragraph (3) to read as follows:
       ``(3) Prohibition against misleading use of federal entity 
     designation.--The Secretary may impose a civil money penalty, 
     as adjusted from time to time, under subsection (a) for any 
     use of `Federal Housing Administration', `Department of 
     Housing and Urban Development', `Government National Mortgage 
     Association', `Ginnie Mae', the acronyms `HUD', `FHA', or 
     `GNMA', or any official seal or logo of the Department of 
     Housing and Urban Development, by any person, party, company, 
     firm, partnership, or business, including sellers of real 
     estate, closing agents, title companies, real estate agents, 
     mortgage brokers, appraisers, loan correspondents, and 
     dealers, except as authorized by the Secretary.''; and
       (2) in subsection (g), by striking ``The term'' and all 
     that follows through the end of the sentence and inserting 
     ``For purposes of this section, a person acts knowingly when 
     a person has actual knowledge of acts or should have known of 
     the acts.''.
       (g) Expanded Review of FHA Mortgagee Applicants and Newly 
     Approved Mortgagees.--Not later than the expiration of the 3-
     month period beginning upon the date of the enactment of this 
     Act, the Secretary of Housing and Urban Development shall--
       (1) expand the existing process for reviewing new 
     applicants for approval for participation in the mortgage 
     insurance programs of the Secretary for mortgages on 1- to 4-
     family residences for the purpose of identifying applicants 
     who represent a high risk to the Mutual Mortgage Insurance 
     Fund; and
       (2) implement procedures that, for mortgagees approved 
     during the 12-month period ending upon such date of 
     enactment--
       (A) expand the number of mortgages originated by such 
     mortgagees that are reviewed for compliance with applicable 
     laws, regulations, and policies; and
       (B) include a process for random reviews of such mortgagees 
     and a process for reviews that is based on volume of 
     mortgages originated by such mortgagees.

     SEC. 204. ENHANCEMENT OF LIQUIDITY AND STABILITY OF INSURED 
                   DEPOSITORY INSTITUTIONS TO ENSURE AVAILABILITY 
                   OF CREDIT AND REDUCTION OF FORECLOSURES.

       (a) Temporary Increase in Deposit Insurance Extended.--
     Section 136 of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5241) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``December 31, 2009'' and 
     inserting ``December 31, 2013'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2), as so redesignated, by striking 
     ``December 31, 2009'' and inserting ``December 31, 2013''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``December 31, 2009'' and 
     inserting ``December 31, 2013'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) in paragraph (2), as so redesignated, by striking 
     ``December 31, 2009'' and inserting ``December 31, 2013''; 
     and
       (b) Extension of Restoration Plan Period.--Section 
     7(b)(3)(E)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)(3)(E)(ii)) is amended by striking ``5-year 
     period'' and inserting ``8-year period''.
       (c) FDIC and NCUA Borrowing Authority.--

[[Page 11314]]

       (1) FDIC.--Section 14(a) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1824(a)) is amended--
       (A) by striking ``$30,000,000,000'' and inserting 
     ``$100,000,000,000'';
       (B) by striking ``The Corporation is authorized'' and 
     inserting the following:
       ``(1) In general.--The Corporation is authorized'';
       (C) by striking ``There are hereby'' and inserting the 
     following:
       ``(2) Funding.--There are hereby''; and
       (D) by adding at the end the following:
       ``(3) Temporary increases authorized.--
       ``(A) Recommendations for increase.--During the period 
     beginning on the date of enactment of this paragraph and 
     ending on December 31, 2010, if, upon the written 
     recommendation of the Board of Directors (upon a vote of not 
     less than two-thirds of the members of the Board of 
     Directors) and the Board of Governors of the Federal Reserve 
     System (upon a vote of not less than two-thirds of the 
     members of such Board), the Secretary of the Treasury (in 
     consultation with the President) determines that additional 
     amounts above the $100,000,000,000 amount specified in 
     paragraph (1) are necessary, such amount shall be increased 
     to the amount so determined to be necessary, not to exceed 
     $500,000,000,000.
       ``(B) Report required.--If the borrowing authority of the 
     Corporation is increased above $100,000,000,000 pursuant to 
     subparagraph (A), the Corporation shall promptly submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives describing the reasons and 
     need for the additional borrowing authority and its intended 
     uses.
       ``(C) Restriction on usage.--The Corporation may not borrow 
     pursuant to subparagraph (A) to fund obligations of the 
     Corporation incurred as a part of a program established by 
     the Secretary of the Treasury pursuant to the Emergency 
     Economic Stabilization Act of 2008 to purchase or guarantee 
     assets.''.
       (2) NCUA.--Section 203(d)(1) of the Federal Credit Union 
     Act (12 U.S.C. 1783(d)(1)) is amended to read as follows:
       ``(1) If, in the judgment of the Board, a loan to the 
     insurance fund, or to the stabilization fund described in 
     section 217 of this title, is required at any time for 
     purposes of this subchapter, the Secretary of the Treasury 
     shall make the loan, but loans under this paragraph shall not 
     exceed in the aggregate $6,000,000,000 outstanding at any one 
     time. Except as otherwise provided in this subsection, 
     section 217, and in subsection (e) of this section, each loan 
     under this paragraph shall be made on such terms as may be 
     fixed by agreement between the Board and the Secretary of the 
     Treasury.''.
       (3) Temporary increases of borrowing authority for ncua.--
     Section 203(d) of the Federal Credit Union Act (12 U.S.C. 
     1783(d)) is amended by adding at the end the following:
       ``(4) Temporary increases authorized.--
       ``(A) Recommendations for increase.--During the period 
     beginning on the date of enactment of this paragraph and 
     ending on December 31, 2010, if, upon the written 
     recommendation of the Board (upon a vote of not less than 
     two-thirds of the members of the Board) and the Board of 
     Governors of the Federal Reserve System (upon a vote of not 
     less than two-thirds of the members of such Board), the 
     Secretary of the Treasury (in consultation with the 
     President) determines that additional amounts above the 
     $6,000,000,000 amount specified in paragraph (1) are 
     necessary, such amount shall be increased to the amount so 
     determined to be necessary, not to exceed $30,000,000,000.
       ``(B) Report required.--If the borrowing authority of the 
     Board is increased above $6,000,000,000 pursuant to 
     subparagraph (A), the Board shall promptly submit a report to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives describing the reasons and need for the 
     additional borrowing authority and its intended uses.''.
       (d) Expanding Systemic Risk Special Assessments.--Section 
     13(c)(4)(G)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1823(c)(4)(G)(ii)) is amended to read as follows:
       ``(ii) Repayment of loss.--

       ``(I) In general.--The Corporation shall recover the loss 
     to the Deposit Insurance Fund arising from any action taken 
     or assistance provided with respect to an insured depository 
     institution under clause (i) from 1 or more special 
     assessments on insured depository institutions, depository 
     institution holding companies (with the concurrence of the 
     Secretary of the Treasury with respect to holding companies), 
     or both, as the Corporation determines to be appropriate.
       ``(II) Treatment of depository institution holding 
     companies.--For purposes of this clause, sections 7(c)(2) and 
     18(h) shall apply to depository institution holding companies 
     as if they were insured depository institutions.
       ``(III) Regulations.--The Corporation shall prescribe such 
     regulations as it deems necessary to implement this clause. 
     In prescribing such regulations, defining terms, and setting 
     the appropriate assessment rate or rates, the Corporation 
     shall establish rates sufficient to cover the losses incurred 
     as a result of the actions of the Corporation under clause 
     (i) and shall consider: the types of entities that benefit 
     from any action taken or assistance provided under this 
     subparagraph; economic conditions, the effects on the 
     industry, and such other factors as the Corporation deems 
     appropriate and relevant to the action taken or the 
     assistance provided. Any funds so collected that exceed 
     actual losses shall be placed in the Deposit Insurance 
     Fund.''.

       (e) Establishment of a National Credit Union Share 
     Insurance Fund Restoration Plan Period.--Section 202(c)(2) of 
     the Federal Credit Union Act (12 U.S.C. 1782(c)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(D) Fund restoration plans.--
       ``(i) In general.--Whenever--

       ``(I) the Board projects that the equity ratio of the Fund 
     will, within 6 months of such determination, fall below the 
     minimum amount specified in subparagraph (C); or
       ``(II) the equity ratio of the Fund actually falls below 
     the minimum amount specified in subparagraph (C) without any 
     determination under sub-clause (I) having been made,

     the Board shall establish and implement a restoration plan 
     within 90 days that meets the requirements of clause (ii) and 
     such other conditions as the Board determines to be 
     appropriate.
       ``(ii) Requirements of restoration plan.--A restoration 
     plan meets the requirements of this clause if the plan 
     provides that the equity ratio of the Fund will meet or 
     exceed the minimum amount specified in subparagraph (C) 
     before the end of the 8-year period beginning upon the 
     implementation of the plan (or such longer period as the 
     Board may determine to be necessary due to extraordinary 
     circumstances).
       ``(iii) Transparency.--Not more than 30 days after the 
     Board establishes and implements a restoration plan under 
     clause (i), the Board shall publish in the Federal Register a 
     detailed analysis of the factors considered and the basis for 
     the actions taken with regard to the plan.''.
       (f) Temporary Corporate Credit Union Stabilization Fund.--
       (1) Establishment of stabilization fund.--Title II of the 
     Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended 
     by adding at the end the following new section:

     ``SEC. 217. TEMPORARY CORPORATE CREDIT UNION STABILIZATION 
                   FUND.

       ``(a) Establishment of Stabilization Fund.--There is hereby 
     created in the Treasury of the United States a fund to be 
     known as the `Temporary Corporate Credit Union Stabilization 
     Fund.' The Board will administer the Stabilization Fund as 
     prescribed by section 209.
       ``(b) Expenditures From Stabilization Fund.--Money in the 
     Stabilization Fund shall be available upon requisition by the 
     Board, without fiscal year limitation, for making payments 
     for the purposes described in section 203(a), subject to the 
     following additional limitations:
       ``(1) All payments other than administrative payments shall 
     be connected to the conservatorship, liquidation, or 
     threatened conservatorship or liquidation, of a corporate 
     credit union.
       ``(2) Prior to authorizing each payment the Board shall--
       ``(A) certify that, absent the existence of the 
     Stabilization Fund, the Board would have made the identical 
     payment out of the National Credit Union Share Insurance Fund 
     (Insurance Fund); and
       ``(B) report each such certification to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives.
       ``(c) Authority to Borrow.--
       ``(1) In general.--The Stabilization Fund is authorized to 
     borrow from the Secretary of the Treasury from time-to-time 
     as deemed necessary by the Board. The maximum outstanding 
     amount of all borrowings from the Treasury by the 
     Stabilization Fund and the National Credit Union Share 
     Insurance Fund, combined, is limited to the amount provided 
     for in section 203(d)(1), including any authorized increases 
     in that amount.
       ``(2) Repayment of advances.--
       ``(A) In general.--The advances made under this section 
     shall be repaid by the Stabilization Fund, and interest on 
     such advance shall be paid, to the General fund of the 
     Treasury.
       ``(B) Variable rate of interest.--The Secretary of the 
     Treasury shall make the first rate determination at the time 
     of the first advance under this section and shall reset the 
     rate again for all advances on each anniversary of the first 
     advance. The interest rate shall be equal to the average 
     market yield on outstanding marketable obligations of the 
     United States with remaining periods to maturity equal to 12 
     months.
       ``(3) Repayment schedule.--The Stabilization Fund shall 
     repay the advances on a first-in, first-out basis, with 
     interest on the amount repaid, at times and dates determined 
     by the Board at its discretion. All advances shall be repaid 
     not later than the date of the seventh anniversary of the 
     first advance to the Stabilization Fund, unless the Board 
     extends this final repayment date.

[[Page 11315]]

     The Board shall obtain the concurrence of the Secretary of 
     the Treasury on any proposed extension, including the terms 
     and conditions of the extended repayment.
       ``(d) Assessment to Repay Advances.--At least 90 days prior 
     to each repayment described in subsection (c)(3), the Board 
     shall set the amount of the upcoming repayment and determine 
     if the Stabilization Fund will have sufficient funds to make 
     the repayment. If the Stabilization Fund might not have 
     sufficient funds to make the repayment, the Board shall 
     assess each federally insured credit union a special premium 
     due and payable within 60 days in an aggregate amount 
     calculated to ensure the Stabilization Fund is able to make 
     the repayment. The premium charge for each credit union shall 
     be stated as a percentage of its insured shares as 
     represented on the credit union's previous call report. The 
     percentage shall be identical for each credit union. Any 
     credit union that fails to make timely payment of the special 
     premium is subject to the procedures and penalties described 
     under subsections (d), (e), and (f) of section 202.
       ``(e) Distributions From Insurance Fund.--At the end of any 
     calendar year in which the Stabilization Fund has an 
     outstanding advance from the Treasury, the Insurance Fund is 
     prohibited from making the distribution to insured credit 
     unions described in section 202(c)(3). In lieu of the 
     distribution described in that section, the Insurance Fund 
     shall make a distribution to the Stabilization Fund of the 
     maximum amount possible that does not reduce the Insurance 
     Fund's equity ratio below the normal operating level and does 
     not reduce the Insurance Fund's available assets ratio below 
     1.0 percent.
       ``(f) Investment of Stabilization Fund Assets.--The Board 
     may request the Secretary of the Treasury to invest such 
     portion of the Stabilization Fund as is not, in the Board's 
     judgment, required to meet the current needs of the 
     Stabilization Fund. Such investments shall be made by the 
     Secretary of the Treasury in public debt securities, with 
     maturities suitable to the needs of the Stabilization Fund, 
     as determined by the Board, and bearing interest at a rate 
     determined by the Secretary of the Treasury, taking into 
     consideration current market yields on outstanding marketable 
     obligations of the United States of comparable maturity.
       ``(g) Reports.--The Board shall submit an annual report to 
     Congress on the financial condition and the results of the 
     operation of the Stabilization Fund. The report is due to 
     Congress within 30 days after each anniversary of the first 
     advance made under subsection (c)(1). Because the Fund will 
     use advances from the Treasury to meet corporate 
     stabilization costs with full repayment of borrowings to 
     Treasury at the Board's discretion not due until 7 years from 
     the initial advance, to the extent operating expenses of the 
     Fund exceed income, the financial condition of the Fund may 
     reflect a deficit. With planned and required future 
     repayments, the Board shall resolve all deficits prior to 
     termination of the Fund.
       ``(h) Closing of Stabilization Fund.--Within 90 days 
     following the seventh anniversary of the initial 
     Stabilization Fund advance, or earlier at the Board's 
     discretion, the Board shall distribute any funds, property, 
     or other assets remaining in the Stabilization Fund to the 
     Insurance Fund and shall close the Stabilization Fund. If the 
     Board extends the final repayment date as permitted under 
     subsection (c)(3), the mandatory date for closing the 
     Stabilization Fund shall be extended by the same number of 
     days.''.
       (2) Conforming amendment.--Section 202(c)(3)(A) of the 
     Federal Credit Union Act (12 U.S.C. 1782(c)(3)(A)) is amended 
     by inserting ``, subject to the requirements of section 
     217(e),'' after ``The Board shall''.

     SEC. 205. APPLICATION OF GSE CONFORMING LOAN LIMIT TO 
                   MORTGAGES ASSISTED WITH TARP FUNDS.

       In making any assistance available to prevent and mitigate 
     foreclosures on residential properties, including any 
     assistance for mortgage modifications, using any amounts made 
     available to the Secretary of the Treasury under title I of 
     the Emergency Economic Stabilization Act of 2008, the 
     Secretary shall provide that the limitation on the maximum 
     original principal obligation of a mortgage that may be 
     modified, refinanced, made, guaranteed, insured, or otherwise 
     assisted, using such amounts shall not be less than the 
     dollar amount limitation on the maximum original principal 
     obligation of a mortgage that may be purchased by the Federal 
     Home Loan Mortgage Corporation that is in effect, at the time 
     that the mortgage is modified, refinanced, made, guaranteed, 
     insured, or otherwise assisted using such amounts, for the 
     area in which the property involved in the transaction is 
     located.

     SEC. 206. MORTGAGES ON CERTAIN HOMES ON LEASED LAND.

       Section 255(b)(4) of the National Housing Act (12 U.S.C. 
     1715z-20(b)(4)) is amended by striking subparagraph (B) and 
     inserting:
       ``(B) under a lease that has a term that ends no earlier 
     than the minimum number of years, as specified by the 
     Secretary, beyond the actuarial life expectancy of the 
     mortgagor or comortgagor, whichever is the later date.''.

     SEC. 207. SENSE OF CONGRESS REGARDING MORTGAGE REVENUE BOND 
                   PURCHASES.

       It is the sense of the Congress that the Secretary of the 
     Treasury should use amounts made available in this Act to 
     purchase mortgage revenue bonds for single-family housing 
     issued through State housing finance agencies and through 
     units of local government and agencies thereof.

                  TITLE III--MORTGAGE FRAUD TASK FORCE

     SEC. 301. SENSE OF CONGRESS ON ESTABLISHMENT OF A NATIONWIDE 
                   MORTGAGE FRAUD TASK FORCE.

       (a) In General.--It is the sense of the Congress that the 
     Department of Justice establish a Nationwide Mortgage Fraud 
     Task Force (hereinafter referred to in this section as the 
     ``Task Force'') to address mortgage fraud in the United 
     States.
       (b) Support.--If the Department of Justice establishes the 
     Task Force referred to in subsection (a), it is the sense of 
     the Congress that the Attorney General should provide the 
     Task Force with the appropriate staff, administrative 
     support, and other resources necessary to carry out the 
     duties of the Task Force.
       (c) Mandatory Functions.--If the Department of Justice 
     establishes the Task Force referred to in subsection (a), it 
     is the sense of the Congress that the Attorney General 
     should--
       (1) establish coordinating entities, and solicit the 
     voluntary participation of Federal, State, and local law 
     enforcement and prosecutorial agencies in such entities, to 
     organize initiatives to address mortgage fraud, including 
     initiatives to enforce State mortgage fraud laws and other 
     related Federal and State laws;
       (2) provide training to Federal, State, and local law 
     enforcement and prosecutorial agencies with respect to 
     mortgage fraud, including related Federal and State laws;
       (3) collect and disseminate data with respect to mortgage 
     fraud, including Federal, State, and local data relating to 
     mortgage fraud investigations and prosecutions; and
       (4) perform other functions determined by the Attorney 
     General to enhance the detection of, prevention of, and 
     response to mortgage fraud in the United States.
       (d) Optional Functions.--If the Department of Justice 
     establishes the Task Force referred to in subsection (a), it 
     is the sense of the Congress that the Task Force should--
       (1) initiate and coordinate Federal mortgage fraud 
     investigations and, through the coordinating entities 
     described under subsection (c), State and local mortgage 
     fraud investigations;
       (2) establish a toll-free hotline for--
       (A) reporting mortgage fraud;
       (B) providing the public with access to information and 
     resources with respect to mortgage fraud; and
       (C) directing reports of mortgage fraud to the appropriate 
     Federal, State, and local law enforcement and prosecutorial 
     agency, including to the appropriate branch of the Task Force 
     established under subsection (d);
       (3) create a database with respect to suspensions and 
     revocations of mortgage industry licenses and certifications 
     to facilitate the sharing of such information by States;
       (4) make recommendations with respect to the need for and 
     resources available to provide the equipment and training 
     necessary for the Task Force to combat mortgage fraud; and
       (5) propose legislation to Federal, State, and local 
     legislative bodies with respect to the elimination and 
     prevention of mortgage fraud, including measures to address 
     mortgage loan procedures and property appraiser practices 
     that provide opportunities for mortgage fraud.

              TITLE IV--FORECLOSURE MORATORIUM PROVISIONS

     SEC. 401. SENSE OF THE CONGRESS ON FORECLOSURES.

       (a) In General.--It is the sense of the Congress that 
     mortgage holders, institutions, and mortgage servicers should 
     not initiate a foreclosure proceeding or a foreclosure sale 
     on any homeowner until the foreclosure mitigation provisions, 
     like the Hope for Homeowners program, as required under title 
     II, and the President's ``Homeowner Affordability and 
     Stability Plan'' have been implemented and determined to be 
     operational by the Secretary of Housing and Urban Development 
     and the Secretary of the Treasury.
       (b) Scope of Moratorium.--The foreclosure moratorium 
     referred to in subsection (a) should apply only for first 
     mortgages secured by the owner's principal dwelling.
       (c) FHA-Regulated Loan Modification Agreements.--If a 
     mortgage holder, institution, or mortgage servicer to which 
     subsection (a) applies reaches a loan modification agreement 
     with a homeowner under the auspices of the Federal Housing 
     Administration before any plan referred to in such subsection 
     takes effect, subsection (a) shall cease to apply to such 
     institution as of the effective date of the loan modification 
     agreement.
       (d) Duty of Consumer to Maintain Property.--Any homeowner 
     for whose benefit any foreclosure proceeding or sale is 
     barred under subsection (a) from being instituted, continued, 
     or consummated with respect to

[[Page 11316]]

      any homeowner mortgage should not, with respect to any 
     property securing such mortgage, destroy, damage, or impair 
     such property, allow the property to deteriorate, or commit 
     waste on the property.
       (e) Duty of Consumer to Respond to Reasonable Inquiries.--
     Any homeowner for whose benefit any foreclosure proceeding or 
     sale is barred under subsection (a) from being instituted, 
     continued, or consummated with respect to any homeowner 
     mortgage should respond to reasonable inquiries from a 
     creditor or servicer during the period during which such 
     foreclosure proceeding or sale is barred.
                                 ______
                                 
  SA 1019. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 896, to prevent mortgage foreclosures and enhance mortgage 
credit availability; as follows:

       On page 17, strike line 1 and all that follows through page 
     18, line 4 and insert the following:
       ``(1) to the extent that the servicer owes a duty to 
     investors or other parties to maximize the net present value 
     of such mortgages, the duty shall be construed to apply to 
     all such investors or group of investors; and
       ``(2) the servicer shall be deemed to have satisfied the 
     duty set forth in paragraph (1) if, before December 31, 2012, 
     the servicer implements a qualified loss mitigation plan that 
     meets the following criteria:
       ``(A) Default on the payment of such mortgage has occurred, 
     is imminent, or is reasonably foreseeable, as such terms are 
     defined by guidelines issued by the Secretary of the Treasury 
     or his designee under the Emergency Economic Stabilization 
     Act of 2008.
       ``(B) The mortgagor occupies the property securing the 
     mortgage as his or her principal residence.
       ``(C) The servicer reasonably determined, in good faith, 
     consistent with the guidelines issued by the Secretary of the 
     Treasury or his designee, that the application of such 
     qualified loss mitigation plan to a mortgage or class of 
     mortgages will likely provide an anticipated recovery on the 
     outstanding principal mortgage debt that will exceed the 
     anticipated recovery through foreclosures or other 
     resolution.
                                 ______
                                 
  SA 1020. Mr. GRASSLEY (for himself, Mr. Baucus, and Ms. Snowe) 
submitted an amendment intended to be proposed by him to the bill S. 
896, to prevent mortgage foreclosures and enhance mortgage credit 
availability; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

    TITLE V--ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF PROGRAM

     SEC. 501. ENHANCED OVERSIGHT OF THE TROUBLED ASSET RELIEF 
                   PROGRAM.

       Section 116 of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5226) is amended--
       (1) in subsection (a)(1)(A)--
       (A) in clause (iii), by striking ``and'' at the end;
       (B) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(v) public accountability for the exercise of such 
     authority, including with respect to actions taken by those 
     entities participating in programs established under this 
     Act.''; and
       (2) in subsection (a)(2)--
       (A) by redesignating subparagraph (C) as subparagraph (E); 
     and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Access to records.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, and for purposes of reviewing the performance of the 
     TARP, the Comptroller General shall have access, upon 
     request, to any information, data, schedules, books, 
     accounts, financial records, reports, files, electronic 
     communications, or other papers, things, or property 
     belonging to or in use by the TARP, any entity established by 
     the Secretary under this Act, or any entity participating in 
     a program established under the authority of this Act, and to 
     the officers, employees, directors, independent public 
     accountants, financial advisors and any and all other agents 
     and representatives thereof, at such time as the Comptroller 
     General may request.
       ``(ii) Verification.--The Comptroller General shall be 
     afforded full facilities for verifying transactions with the 
     balances or securities held by, among others, depositories, 
     fiscal agents, and custodians.
       ``(iii) Copies.--The Comptroller General may make and 
     retain copies of such books, accounts, and other records as 
     the Comptroller General deems appropriate.
       ``(C) Agreement by entities.--Each contract, term sheet, or 
     other agreement between the Secretary or the TARP (or any 
     TARP vehicle, officer, director, employee, independent public 
     accountant, financial advisor, or other TARP agent or 
     representative) and an entity participating in a program 
     established under this Act shall provide for access by the 
     Comptroller General in accordance with this section.
       ``(D) Restriction on public disclosure.--
       ``(i) In general.--The Comptroller General may not publicly 
     disclose proprietary or trade secret information obtained 
     under this section.
       ``(ii) Exception for congressional committees.--This 
     subparagraph does not limit disclosures to congressional 
     committees or members thereof having jurisdiction over any 
     private or public entity participating in a program 
     established under this Act.
       ``(iii) Rule of construction.--Nothing in this section 
     shall be construed to alter or amend the prohibitions against 
     the disclosure of trade secrets or other information 
     prohibited by section 1905 of title 18, United States Code, 
     or other applicable provisions of law.''.
                                 ______
                                 
  SA 1021. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the appropriate place insert the following:

       TITLE __--COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES

     SEC. ___. COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES.

       (a) Definition of Agency.--Section 714(a) of title 31, 
     United States Code, is amended by striking ``Federal Reserve 
     Board,'' and inserting ``Board of Governors of the Federal 
     Reserve System (in this section referred to as the `Board'), 
     the Federal Open Market Committee, the Federal Advisory 
     Council,''.
       (b) Audits of the Board of Governors of the Federal Reserve 
     System and the Federal Reserve Banks.--Section 714(b) of 
     title 31, United States Code, is amended by striking the 
     second sentence.
       (c) Confidential Information.--Section 714(c) of title 31, 
     United States Code, is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2)(A) Except as provided under paragraph (4), an officer 
     or employee of the Government Accountability Office may not 
     provide to any person outside the Government Accountability 
     Office any document or name described under subparagraph (B) 
     if that document or name is maintained as confidential by the 
     Board, the Federal Open Market Committee, the Federal 
     Advisory Council, or any Federal reserve bank.
       ``(B) The documents and names referred to under 
     subparagraph (A) are--
       ``(i) any document relating to--
       ``(I) transactions for or with a foreign central bank, 
     government of a foreign country, or nonprivate international 
     financing organization;
       ``(II) deliberations, decisions, or actions on monetary 
     policy matters, including discount window operations, 
     reserves of member banks, securities credit, interest on 
     deposits, and open market operations; or
       ``(III) transactions made under the direction of the 
     Federal Open Market Committee; or
       ``(ii) the name of any foreign central bank, government of 
     a foreign country, or non-private international financing 
     organization associated with a transaction described under 
     clause (i)(I).''; and
       (3) by striking paragraph (4) (as redesignated by this 
     subsection) and inserting the following:
       ``(4) This subsection shall not--
       ``(A) authorize an officer or employee of an agency to 
     withhold information from any committee or subcommittee of 
     jurisdiction of Congress, or any member of such committee or 
     subcommittee; or
       ``(B) limit any disclosure by the Government Accountability 
     Office to any committee or subcommittee of jurisdiction of 
     Congress, or any member of such committee or subcommittee.''.
       (d) Access to Records.--
       (1) Access to records.--Section 714(d)(1) of title 31, 
     United States Code, is amended--
       (A) in the first sentence, by inserting ``or any entity 
     established by an agency'' after ``an agency''; and
       (B) by inserting ``The Comptroller General shall have 
     access to the officers, employees, contractors, and other 
     agents and representatives of an agency or any entity 
     established by an agency at any reasonable time as the 
     Comptroller General may request. The Comptroller General may 
     make and retain copies of such books, accounts, and other 
     records as the Comptroller General determines appropriate.'' 
     after the first sentence.
       (2) Unauthorized access.--Section 714(d)(2) of title 31, 
     United States Code, is amended by inserting ``, copies of any 
     record,'' after ``records''.
       (e) Availability of Draft Reports for Comment.--Section 
     718(a) of title 31, United States Code, is amended by 
     striking ``Federal Reserve Board,'' and inserting ``Board of 
     Governors of the Federal Reserve System, the Federal Open 
     Market Committee, the Federal Advisory Council,''.

[[Page 11317]]


                                 ______
                                 
  SA 1022. Mr. CASEY submitted an amendment intended to be proposed by 
him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the end of title I of the amendment, add the following:

     SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.

       (a) In General.--Section 2301(c) of the Foreclosure 
     Prevention Act of 2008 (42 U.S.C. 5301 note) is amended by 
     adding at the end the following:
       ``(4) Foreclosure prevention.--For any amounts appropriated 
     under the heading `Community Development Fund' of title XII 
     of division A of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 217), each State and 
     unit of general local government that receives an allocation 
     of any such amounts pursuant to section 2302 may use up to 10 
     percent of such amounts for foreclosure prevention programs, 
     activities, and services, as such programs, activities, and 
     services are defined by the Secretary, provided that the 
     State or unit of general local government discloses, in its 
     application for such amounts, its intentions to use such 
     amounts for such foreclosure prevention purposes.''.
       (b) Retroactive Effective Date.--The amendment made by 
     subsection (a) shall take effect as if enacted on the date of 
     enactment of the American Recovery and Reinvestment Act of 
     2009.
                                 ______
                                 
  SA 1023. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to 
the bill S. 896, to prevent mortgage foreclosures and enhance mortgage 
credit availability; which was ordered to lie on the table; as follows:

       At the end of title I of the amendment, add the following:

     SEC. 105. WARNINGS TO HOMEOWNERS OF FINANCIAL SCAMS.

       (a) In General.--If a loan servicer finds that a homeowner 
     has failed to make 2 consecutive payments on a residential 
     mortgage loan and such loan is at risk of being foreclosed 
     upon, the loan servicer shall notify such homeowner of the 
     dangers of fraudulent activities associated with foreclosure.
       (b) Notice Requirements.--Each notice provided under 
     subsection (a) shall--
       (1) be in writing;
       (2) be included with a mailing of account information;
       (3) have the heading ``Notice Required by Federal Law'' in 
     a 14-point boldface type in English and Spanish at the top of 
     such notice; and
       (4) contain the following statement in English and Spanish: 
     ``Mortgage foreclosure is a complex process. Some people may 
     approach you about saving your home. You should be careful 
     about any such promises. There are government and nonprofit 
     agencies you may contact for helpful information about the 
     foreclosure process. Contact your lender immediately at 
     [____], call the Department of Housing and Urban Development 
     Housing Counseling Line at (800) 569-4287 to find a housing 
     counseling agency certified by the Department to assist you 
     in avoiding foreclosure, or visit the Department's Tips for 
     Avoiding Foreclosure website at http://www.hud.gov/
 foreclosure for additional assistance.'' (the blank space to 
     be filled in by the loan servicer and successor telephone 
     numbers and Uniform Resource Locators (URLs) for the 
     Department of Housing and Urban Development Housing 
     Counseling Line and Tips for Avoiding Foreclosure website, 
     respectively.).
       (c) Loan Servicer.--As used in this section, the term 
     ``loan servicer'' has the same meaning as the term 
     ``servicer'' in section 6(i)(2) of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2605(i)(2)).
       (d) Enforcement by Federal Trade Commission.--
       (1) Unfair or deceptive act or practice.--A failure to 
     comply with any provision of this section shall be treated as 
     a violation of a rule defining an unfair or deceptive act or 
     practice promulgated under section 18(a)(1)(B) of the Federal 
     Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
       (2) Actions by the federal trade commission.--The Federal 
     Trade Commission shall enforce the provisions of this section 
     in the same manner, by the same means, and with the same 
     jurisdiction, powers, and duties as though all applicable 
     terms and provisions of the Federal Trade Commission Act (15 
     U.S.C. 41 et seq.) were incorporated into and made part of 
     this section.
                                 ______
                                 
  SA 1024. Mr. KERRY (for himself, Mrs. Boxer, Mrs. Gillibrand, and Mr. 
Kennedy) submitted an amendment intended to be proposed to amendment SA 
1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to the bill S. 
896, to prevent mortgage foreclosures and enhance mortgage credit 
availability; which was ordered to lie on the table; as follows:

       At the end of the amendment, add the following:

             TITLE V--PROTECTING TENANTS AT FORECLOSURE ACT

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Protecting Tenants at 
     Foreclosure Act of 2009''.

     SEC. 502. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.

       (a) In General.--In the case of any foreclosure on any 
     dwelling or residential real property after the date of 
     enactment of this title, any immediate successor in interest 
     in such property pursuant to the foreclosure shall assume 
     such interest subject to--
       (1) the provision, by such successor in interest of a 
     notice to vacate to any bona fide tenant at least 90 days 
     before the effective date of such notice; and
       (2) the rights of any bona fide tenant, as of the date of 
     such notice of foreclosure--
       (A) under any bona fide lease entered into before the 
     notice of foreclosure to occupy the premises until the end of 
     the remaining term of the lease, except that a successor in 
     interest may terminate a lease effective on the date of sale 
     of the unit to a purchaser who will occupy the unit as a 
     primary residence, subject to the receipt by the tenant of 
     the 90 day notice under paragraph (1); or
       (B) without a lease or with a lease terminable at will 
     under State law, subject to the receipt by the tenant of the 
     90 day notice under subsection (1),

     except that nothing under this section shall affect the 
     requirements for termination of any Federal- or State-
     subsidized tenancy or of any State or local law that provides 
     longer time periods or other additional protections for 
     tenants.
       (b) Bona Fide Lease or Tenancy.--For purposes of this 
     section, a lease or tenancy shall be considered bona fide 
     only if--
       (1) the mortgagor under the contract is not the tenant;
       (2) the lease or tenancy was the result of an arms-length 
     transaction; or
       (3) the lease or tenancy requires the receipt of rent that 
     is not substantially less than fair market rent for the 
     property.

     SEC. 503. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.

       Section 8(o)(7) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(7)) is amended--
       (1) by inserting before the semi-colon in subparagraph (C) 
     the following: ``and in the case of an owner who is an 
     immediate successor in interest pursuant to foreclosure--
       ``(i) during the initial term of the lease vacating the 
     property prior to sale shall not constitute other good cause; 
     and
       ``(ii) in subsequent lease terms, vacating the property 
     prior to sale may constitute good cause if the property is 
     unmarketable while occupied, or if such owner will occupy the 
     unit as a primary residence''; and
       (2) by inserting at the end of subparagraph (F) the 
     following: ``In the case of any foreclosure on any 
     residential real property in which a recipient of assistance 
     under this subsection resides, the immediate successor in 
     interest in such property pursuant to the foreclosure shall 
     assume such interest subject to the lease between the prior 
     owner and the tenant and to the housing assistance payments 
     contract between the prior owner and the public housing 
     agency for the occupied unit, except that this provision and 
     the provisions related to foreclosure in subparagraph (C) 
     shall not shall not affect any State or local law that 
     provides longer time periods or other additional protections 
     for tenants.''.
                                 ______
                                 
  SA 1025. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the end of the amendment, add the following:

                  TITLE V--TARP REDUCTION PRIORITY ACT

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``TARP Reduction Priority 
     Act''.

     SEC. 502. FINDINGS.

       Congress finds the following:
       (1) On October 7, 2008, Congress established the Troubled 
     Assets Relief Program (TARP) as part of the Emergency 
     Economic Stabilization Act (Public 110-343; 122 Stat. 3765) 
     and allocated $700,000,000,000 for the purchase of toxic 
     assets from banks with the goal of restoring liquidity to the 
     financial sector and restarting the flow of credit in our 
     markets.
       (2) The Department of Treasury, without consultation with 
     Congress, changed the purpose of TARP and began injecting 
     capital into financial institutions through a program called 
     the Capital Purchase Program (CPP) rather than purchasing 
     toxic assets.
       (3) Lending by financial institutions was not noticeably 
     increased with the implementation of the CPP and the 
     expenditure of $218,000,000,000 of TARP funds, despite the 
     goal of the program.
       (4) The recipients of amounts under the CPP are now faced 
     with additional restrictions related to accepting those 
     funds.
       (5) A number of community banks and large financial 
     institutions have expressed their desire to return their CPP 
     funds to the

[[Page 11318]]

     Department of Treasury and the Department has begun the 
     process of accepting receipt of such funds.
       (6) The Department of the Treasury should not reuse 
     returned funds for additional lending for financial 
     assistance.
       (7) The United States Constitution provided Congress with 
     the power of the purse hence any future spending of TARP 
     funds, or other financial assistance, should be determined by 
     Congress.

     SEC. 503. TARP AUTHORIZATION REDUCTION.

       Section 115(a)(3) the Emergency Economic Stabilization Act 
     of 2008 (12 U.S.C. 5211 et seq.) is amended by inserting 
     ``minus any aggregate amounts received by the Secretary for 
     repayment of the principal of financial assistance by an 
     entity that has received financial assistance under the TARP 
     or any program enacted by the Secretary under the authorities 
     granted to the Secretary under this Act,'' before 
     ``outstanding at any one time.''
                                 ______
                                 
  SA 1026. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITATION ON USE OF TARP FUNDS.

       Notwithstanding any other provision of law, on and after 
     April 22, 2009, no funds made available to carry out the 
     Troubled Asset Relief Program may be used for the acquisition 
     of ownership of the common stock of any financial institution 
     assisted under title I of the Emergency Economic 
     Stabilization Act of 2008, either directly or through a 
     conversion of preferred stock or future direct capital 
     purchases.
                                 ______
                                 
  SA 1027. Mr. ISAKSON submitted an amendment intended to be proposed 
by him to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the end, insert the following:

                        TITLE V--TAX PROVISIONS

     SEC. 501. CREDIT FOR CERTAIN HOME PURCHASES.

       (a) Allowance of Credit.--Subpart A of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after section 25D the following 
     new section:

     ``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual who is a 
     purchaser of a principal residence during the taxable year, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter an amount equal to 10 percent of the purchase 
     price of the residence.
       ``(2) Dollar limitation.--The amount of the credit allowed 
     under paragraph (1) shall not exceed $15,000.
       ``(3) Allocation of credit amount.--At the election of the 
     taxpayer, the amount of the credit allowed under paragraph 
     (1) (after application of paragraph (2)) may be equally 
     divided among the 2 taxable years beginning with the taxable 
     year in which the purchase of the principal residence is 
     made.
       ``(b) Limitations.--
       ``(1) Date of purchase.--The credit allowed under 
     subsection (a) shall be allowed only with respect to 
     purchases made--
       ``(A) after March 30, 2009, and
       ``(B) before April 1, 2010.
       ``(2) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section) for the taxable year.
       ``(3) One-time only.--
       ``(A) In general.--If a credit is allowed under this 
     section in the case of any individual (and such individual's 
     spouse, if married) with respect to the purchase of any 
     principal residence, no credit shall be allowed under this 
     section in any taxable year with respect to the purchase of 
     any other principal residence by such individual or a spouse 
     of such individual.
       ``(B) Joint purchase.--In the case of a purchase of a 
     principal residence by 2 or more unmarried individuals or by 
     2 married individuals filing separately, no credit shall be 
     allowed under this section if a credit under this section has 
     been allowed to any of such individuals in any taxable year 
     with respect to the purchase of any other principal 
     residence.
       ``(c) Principal Residence.--For purposes of this section, 
     the term `principal residence' has the same meaning as when 
     used in section 121.
       ``(d) Denial of Double Benefit.--No credit shall be allowed 
     under this section for any purchase for which a credit is 
     allowed under section 36 or section 1400C.
       ``(e) Special Rules.--
       ``(1) Joint purchase.--
       ``(A) Married individuals filing separately.--In the case 
     of 2 married individuals filing separately, subsection (a) 
     shall be applied to each such individual by substituting 
     `$7,500' for `$15,000' in subsection (a)(1).
       ``(B) Unmarried individuals.--If 2 or more individuals who 
     are not married purchase a principal residence, the amount of 
     the credit allowed under subsection (a) shall be allocated 
     among such individuals in such manner as the Secretary may 
     prescribe, except that the total amount of the credits 
     allowed to all such individuals shall not exceed $15,000.
       ``(2) Purchase.--In defining the purchase of a principal 
     residence, rules similar to the rules of paragraphs (2) and 
     (3) of section 1400C(e) (as in effect on the date of the 
     enactment of this section) shall apply.
       ``(3) Reporting requirement.--Rules similar to the rules of 
     section 1400C(f) (as so in effect) shall apply.
       ``(f) Recapture of Credit in the Case of Certain 
     Dispositions.--
       ``(1) In general.--In the event that a taxpayer--
       ``(A) disposes of the principal residence with respect to 
     which a credit was allowed under subsection (a), or
       ``(B) fails to occupy such residence as the taxpayer's 
     principal residence,

     at any time within 24 months after the date on which the 
     taxpayer purchased such residence, then the tax imposed by 
     this chapter for the taxable year during which such 
     disposition occurred or in which the taxpayer failed to 
     occupy the residence as a principal residence shall be 
     increased by the amount of such credit.
       ``(2) Exceptions.--
       ``(A) Death of taxpayer.--Paragraph (1) shall not apply to 
     any taxable year ending after the date of the taxpayer's 
     death.
       ``(B) Involuntary conversion.--Paragraph (1) shall not 
     apply in the case of a residence which is compulsorily or 
     involuntarily converted (within the meaning of section 
     1033(a)) if the taxpayer acquires a new principal residence 
     within the 2-year period beginning on the date of the 
     disposition or cessation referred to in such paragraph. 
     Paragraph (1) shall apply to such new principal residence 
     during the remainder of the 24-month period described in such 
     paragraph as if such new principal residence were the 
     converted residence.
       ``(C) Transfers between spouses or incident to divorce.--In 
     the case of a transfer of a residence to which section 
     1041(a) applies--
       ``(i) paragraph (1) shall not apply to such transfer, and
       ``(ii) in the case of taxable years ending after such 
     transfer, paragraph (1) shall apply to the transferee in the 
     same manner as if such transferee were the transferor (and 
     shall not apply to the transferor).
       ``(D) Relocation of members of the armed forces.--Paragraph 
     (1) shall not apply in the case of a member of the Armed 
     Forces of the United States on active duty who moves pursuant 
     to a military order and incident to a permanent change of 
     station.
       ``(3) Joint returns.--In the case of a credit allowed under 
     subsection (a) with respect to a joint return, half of such 
     credit shall be treated as having been allowed to each 
     individual filing such return for purposes of this 
     subsection.
       ``(4) Return requirement.--If the tax imposed by this 
     chapter for the taxable year is increased under this 
     subsection, the taxpayer shall, notwithstanding section 6012, 
     be required to file a return with respect to the taxes 
     imposed under this subtitle.
       ``(g) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to the 
     purchase of any residence, the basis of such residence shall 
     be reduced by the amount of the credit so allowed.
       ``(h) Election to Treat Purchase in Prior Year.--In the 
     case of a purchase of a principal residence after December 
     31, 2009, and before April 1, 2010, a taxpayer may elect to 
     treat such purchase as made on December 31, 2009, for 
     purposes of this section.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B'' and inserting ``, 
     25B, and 25E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``25E,'' after ``25D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (4) Section 904(i) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (5) Section 1016(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (36), by striking the period 
     at the end of paragraph (37) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(38) to the extent provided in section 25E(g).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Credit for certain home purchases.''.
       (d) Sunset of Current First-Time Homebuyer Credit.--
       (1) In general.--Subsection (h) of section 36 of the 
     Internal Revenue Code of 1986 is

[[Page 11319]]

     amended by striking ``December 1, 2009'' and inserting 
     ``April 1, 2009''.
       (2) Election to treat purchase in prior year.--Subsection 
     (g) of section 36 of such Code is amended by striking 
     ``December 1, 2009'' and inserting ``April 1, 2009''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to purchases after the date of the enactment of 
     this Act.
                                 ______
                                 
  SA 1028. Ms. KLOBUCHAR submitted an amendment intended to be proposed 
by her to the bill S. 896, to prevent mortgage foreclosures and enhance 
mortgage credit availability; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ___ PROHIBITION ON STEERING.

       (a) In General.--The Truth in Lending Act (15 U.S.C. 1601 
     et seq.) is amended by inserting after section 129 the 
     following new section:

     ``SEC. 129A. PROHIBITION ON STEERING WITH RESPECT TO HOME 
                   MORTGAGE LOANS.

       ``(a) In General.--In connection with a home mortgage loan, 
     a mortgage broker or creditor may not--
       ``(1) steer, counsel, or direct a consumer to rates, 
     charges, principal amount, or prepayment terms that are more 
     expensive for that which the consumer qualifies; or
       ``(2) make, provide, or arrange for any consumer credit 
     transaction secured by a consumer's principal dwelling that 
     is more expensive than that for which the consumer qualifies.
       ``(b) Duties to Consumers.--If unable to suggest, offer, or 
     recommend to a consumer a home loan that is not more 
     expensive than that for which the consumer qualifies, a 
     mortgage originator shall--
       ``(1) based on the information reasonably available and 
     using the skill, care, and diligence reasonably expected for 
     a mortgage originator, originate or otherwise facilitate a 
     suitable home mortgage loan by another creditor to a 
     consumer, if permitted by and in accordance with all 
     otherwise applicable law; or
       ``(2) disclose to a consumer--
       ``(A) that the creditor does not offer a home mortgage loan 
     that is not more expensive than a loan for which the consumer 
     qualifies, but that other creditors may offer such a loan; 
     and
       ``(B) the reasons that the products and services offered by 
     the mortgage originator are not available to or reasonably 
     advantageous for the consumer.
       ``(c) Prohibited Conduct.--In connection with a home 
     mortgage loan, a mortgage originator may not--
       ``(1) mischaracterize the credit history of a consumer or 
     the home loans available to a consumer;
       ``(2) mischaracterize or suborn the mischaracterization of 
     the appraised value of the property securing the extension of 
     credit; and
       ``(3) if unable to suggest, offer, or recommend to a 
     consumer a loan that is not more expensive than a loan for 
     which the consumer qualifies, discourage a consumer from 
     seeking a home mortgage loan from another creditor or with 
     another mortgage originator.
       ``(d) Mortgage Broker Defined.--For purposes of this 
     section, the term `mortgage broker' means any person who is 
     defined as a mortgage broker under applicable State law.''.
       (b) Clerical Amendment.--The table of sections for the 
     Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by 
     inserting after the item relating to section 129 the 
     following new item:

``Sec. 129A. Prohibition on steering with respect to home mortgage 
              loans.''.
                                 ______
                                 
  SA 1029. Mr. SCHUMER submitted an amendment intended to be proposed 
by him to the resolution S. Res. 93, a bill supporting the mission and 
goals of 2009 National Crime Victim's Rights Week, to increase public 
awareness of the rights, needs, and concerns of victims and survivors 
of crime in the United States, and to commemorate the 25th anniversary 
of the enactment of the Victims of Crime Act of 1984; as follows:

       Strike all after the resolving clause and insert the 
     following:
       That the Senate--
       (1) supports the mission and goals of 2009 National Crime 
     Victims' Rights Week to increase public awareness of the 
     impact of crime on victims and survivors, and of the 
     constitutional and statutory rights and needs of victims; and
       (2) recognizes the 25th anniversary of the enactment of the 
     Victims of Crime Act of 1984 (42 U.S.C. 10601 et seq.).

                          ____________________