[House Report 111-21]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-21
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1106) TO PREVENT MORTGAGE
FORECLOSURES AND ENHANCE MORTGAGE CREDIT AVAILABILITY
_______
February 25, 2009.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Hastings of Florida, from the Committee on Rules, submitted the
following
R E P O R T
[To accompany H. Res. 190]
The Committee on Rules, having had under consideration
House Resolution 190, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 1106, the
``Helping Families Save Their Homes Act of 2009,'' under a
structured rule. The resolution provides one hour of general
debate equally divided and controlled by the chair and ranking
minority member of the Committee on Financial Services and the
chair and ranking minority member of the Committee on the
Judiciary.
The resolution waives all points of order against
consideration of the bill except those arising under clause 9
of rule XXI and provides that the bill shall be considered as
read. The resolution waives all points of order against
provisions in the bill. This waiver does not affect the point
of order available under clause 9 of rule XXI (regarding
earmark disclosure).
The resolution makes in order only those amendments printed
in this report. Each amendment may be offered only in the order
printed, may be offered only by a Member designated, shall be
considered as read, shall be debatable for the time specified
equally divided and controlled by the proponent and an
opponent, and shall not be subject to amendment or demand for
division of the question. The resolution waives all points of
order against such amendments except those arising under clause
9 or 10 of rule XXI. The resolution provides one motion to
recommit with or without instructions.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill (except those arising under clause 9 of rule XXI)
includes a waiver of clause 10 of rule XXI (regarding paygo).
The waiver is necessary because of a technical violation of
clause 10 by section 204 of the bill. Because of the timing of
cash flows of the Federal Deposit Insurance Corporation, the
provision increases direct spending in the first five-year
period but more than offsets that increase in the ten-year
period.
Although the resolution waives all points of order against
the bill, the Committee is not aware of any points of order.
The waiver of all points of order against the bill is
prophylactic.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 35
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Smith, Lamar (TX), #21, which
would permit reduction of mortgage payments to between 31% and
38% of the debtor's monthly income through changes (in this
order) in mortgage interest rates, loan periods, and reduction
of the amount of the claim. Also, it would permit lenders to
recoup reduced principal if a home is sold after loan
modification.
Results: Defeated 2-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea.
Rules Committee record vote No. 36
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Dreier, David (CA), and Rep.
Bilbray, Brian (CA), #17, which would provide a tax credit for
borrowers who put at least 5% down for the purchase of a home
in 2009 and 2010. Borrowers would receive a $2,000 credit for
5% down, a $5,000 credit for 10% down and a $10,000 tax credit
for 15% down. The credit would be available for the purchase of
any type of property (i.e. primary residence, investment,
vacation etc) and would not need to be repaid, unless the
property is sold within 3 years of exercising the credit. It
would expire after 2010.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 37
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Neugebauer, Randy (TX), #19,
which would amend the servicer safe harbor provision to provide
that unsuccessful plaintiffs must pay all attorneys' fees and
any legal costs incurred by the defendant.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 38
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Neugebauer, Randy (TX), #39,
which would prohibit the Treasury from using TARP funds to
purchase common stock share and would prohibit the Treasury
from converting existing preferred shares to common shares.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 39
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Capito, Shelley Moore (WV),
#30, which would strike the Hope for Homeowners program and
permit HUD to set up a new, 3-year program.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 40
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Capito, Shelley Moore (WV),
#31, which would exempt the Federal Housing Administration,
Veterans Administration Loan Guaranty Program, and the
Guaranteed Rural Housing Loans from adjustments to the terms of
the loan in bankruptcy.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 41
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order en bloc and provide
appropriate waivers for: an amendment by Biggert, Judy (IL),
#37, which would, for homeowners receiving mortgage relief
through any program, means, or federally insured institution
mentioned in this bill, upon the sale of their home: (1)
eliminate any applicable capital gains exclusions that may
apply; and (2) require homeowners to pay double the amount of
capital gains tax that would normally apply upon sale of the
home; and an amendment by Rep. Biggert, Judy (IL), #38, which
would, for homeowners receiving mortgage relief through
programs or federally insured institutions mentioned in the
bill, require that before an entity authorizes or provides any
mortgage relief to a homeowner, that the entity certify that
the homeowner: (1) stated accurate income on the homeowner's
original loan application; (2) claims that home as his or her
principal residence; (3) was not convicted of any financial
fraud; and (4) is a U.S. citizen, national, or alien lawfully
admitted for permanent residence.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 42
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Franks, Trent (AZ), #18, which
would limit the scope of the judicial modification provisions
to subprime and non-traditional loans and would impose a three
year expiration date.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 43
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. King, Steve (IA), #6, which
would preclude judicial modification if the debtor obtained the
extension, renewal, or refinancing of credit that gives rise to
a modified claim by the debtor's material misrepresentation,
false pretenses, or actual fraud.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 44
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #8, which
would prevent judges from modifying principal on a primary
residence mortgage during a bankruptcy proceeding.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 45
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Dr. Foxx.
Summary of motion: To make in order en bloc and provide
appropriate waivers for: an amendment by Rep. Hensarling, Jeb
(TX), #24, which would exclude from participation in the Hope
for Homeowners program any borrower whose original loan was a
zero down payment loan; an amendment by Rep. Hensarling, Jeb
(TX), #25, which would exclude from participation in the Hope
for Homeowners program any borrower whose original loan
documentation did not include verification of the amount and
source of income; and an amendment by Rep. Hensarling, Jeb
(TX), #26, which would exclude from participation in the Hope
for Homeowners program any borrower who has a family income
that exceeds 125 percent of the area median income for where
they live.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
Rules Committee record vote No. 46
Date: February 25, 2009.
Measure: H.R. 1106.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Turner, Mike (OH), which would
require Congress to establish a bi-partisan commission entitled
the ``Commission on the Foreclosure and Mortgage Lending
Crisis'' to undertake a comprehensive analysis and review of
the origins and causes of the current foreclosure and mortgage
lending crisis and to issue a report of its findings and
recommendations to Congress.
Results: Defeated 3-8.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea.
SUMMARY OF AMENDMENTS TO BE MADE IN ORDER UNDER THE RULE
1. Conyers, John (MI): The amendment would (1) require
courts to use FHA appraisal guidelines where the fair market
value of a home is in dispute; (2) deny relief to individuals
who can afford to repay their mortgages without judicial
mortgage modification; and (3) extend the negotiation period
from 15 to 30 days, requiring the debtor to certify that he or
she contacted the lender, provided the lender with income,
expense and debt statements, and that there was a process for
the borrower and lender to seek to reach agreement on a
qualified loan modification. It also would require a GAO study
regarding the effectiveness of mortgage modifications outside
of bankruptcy and judicial modifications, whether there should
be a sunset, the impact of the amendment on bankruptcy courts,
whether relief should be limited to certain types of
homeowners. The GAO must analyze how bankruptcy judges
restructure mortgages, including the number of judges
disciplined as a result of actions taken to restore mortgages.
The Amendment would clarify that loan modifications, workout
plans or other loss mitigation plans are eligible for the
servicer safe harbor. Requires HUD to receive public input
before implementing certain FHA approval provisions. With
respect to the HOPE for Homeowners Program: recasts the
prohibition against having committed fraud over the last 10
years from a freestanding prohibition to a borrower
certification. Would amend the National Housing Act to broaden
eligibility for Home Equity Conversion Mortgage (HECM) or
``reverse mortgage.'' Would provide that the GAO must submit to
Congress a review of the effects of the judicial modification
program. Would require the Comptroller of Currency, in
coordination with the Director of Thrift Supervision, to submit
reports to Congress on the volume of mortgage modifications and
issue modification data collection and reporting requirements.
Would express the Sense of Congress that the Treasury Secretary
should use amounts made available under the Act to purchase
mortgage revenue bonds for single-family housing. Would express
the Sense of Congress that financial institutions should not
foreclose on any principal homeowner until the loan
modification programs included in H.R. 1106 and the President's
foreclosure plan are implemented and deemed operational by the
Treasury and HUD Secretaries. Would establish a Justice
Department Nationwide Mortgage Fraud Task Force to coordinate
anti-mortgage fraud efforts. Would provide that the Treasury
Secretary shall provide that the limit on the maximum original
principal obligation of a mortgage that may be modified using
EESA funds shall not be less than the dollar limit 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 the mortgage is modified. (30 minutes)
2. Price, Tom (GA): Would provide that if a homeowner who
has had a mortgage modified in a bankruptcy proceeding sells
the home at a profit, the lender can recapture the amount of
principal lost in the modification. (10 minutes)
3. Peters, Gary (MI): Would provide that, in the case of a
debtor whose home is in foreclosure, the debtor could meet the
pre-filing credit counseling requirement by receiving
counseling either before filing or up to 30 days after filing.
(10 minutes)
4. Titus, Dina (NV): Would require a servicer that receives
an incentive payment under the Hope for Homeowners program to
notify all mortgagors under mortgages they service who are
``at-risk homeowners'' (as such term is defined by the
Secretary), in a form and manner as shall be prescribed by the
Secretary, that they may be eligible for the HOPE for
Homeowners Program and how to obtain information regarding the
program. (10 minutes)
TEXT OF AMENDMENTS TO BE MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Conyers of Michigan, or
His Designee, Debatable for 30 Minutes
In the table of contents of the bill, in the item relating to
section 121, strike ``department of veterans affairs'' and
insert ``Department of Veterans Affairs''.
Beginning on page 8, strike line 17 and all that follows
through line 7 on page 9, and insert the following (and make
such technical and conforming changes as may be appropriate)
``(h) With respect to a claim of the kind described in
subsection (b)(11), 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 30-day period beginning on the
effective date of this subsection, unless--
``(A) the debtor certifies that the debtor--
``(i) not less than 30 days before
the commencement of the case, contacted
the holder of such claim (or the entity
collecting payments on behalf of such
holder) regarding modification of the
loan that is the subject of such claim;
``(ii) provided the holder of the
claim (or the entity collecting
payments on behalf of such holder) a
written statement of the debtor's
current income, expenses, and debt
substantially conforming with the
schedules required under section 521(a)
or such other form as is promulgated by
the Judicial Conference of the United
States for such purpose; and
``(iii) considered any qualified loan
modification offered to the debtor by
the holder of the claim (or the entity
collecting payments on behalf of such
holder); or
``(B) a foreclosure sale is scheduled to
occur on a date in the 30-day period beginning
on the date of case is commenced;''.
Page 9, after line 19, insert the following:
``(3) As used in this subsection, the term `qualified
loan modification' means, with respect to an individual
residential mortgage, a loan modification or
refinancing under a loan modification program
implemented by the Federal Deposit Insurance
Corporation with respect to the IndyMac Federal Savings
Bank, any loan modification program that conforms to
the uniform guidance for loan modification developed by
the Secretary of the Treasury under the Homeowner
Affordability and Stability Plan, or any offer of a
refinance under the HOPE for Homeowners program.''.
Page 9, line 24, insert ``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'' after ``determined''.
Page 11, strike lines 23 through 25, insert the following:
(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 it appears,
Page 12, line 20, insert the following after ``faith'':
(Lack of good faith exists if the debtor has no need
for relief under this paragraph because the debtor can
pay all of his or her debts and any future payment
increases on such debts without difficulty for the
foreseeable future, including the positive amortization
of mortgage debt.)
Page 15, after line 8, insert the following (and make such
technical and conforming changes as may be appropriate):
SEC. 109. GAO STUDY.
The Comptroller General shall carry out a study, and submit
to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the
Senate, not later than 2 years after the date of the enactment
of this Act a report containing--
(1) the results of such study of--
(A) the number of debtors who filed, during
the 1-year period beginning on the date of the
enactment of this Act, cases under chapter 13
of title 11 of the United States Code for the
purpose of restructuring their principal
residence mortgages,
(B) the number of mortgages restructured
under the amendments made by this subtitle that
subsequently resulted in default and
foreclosure,
(C) a comparison between the effectiveness of
mortgages restructured under programs outside
of bankruptcy, such as Hope Now and Help for
Homeowners, and mortgages restructured under
the amendments made by this subtitle,
(D) the number of cases presented to the
bankruptcy courts where mortgages were
restructured under the amendments made by this
subtitle that were appealed,
(E) the number of cases presented to the
bankruptcy courts where mortgages were
restructured under the amendments made by the
subtitle that were overturned on appeal, and
(F) the number of bankruptcy judges
disciplined as a result of actions taken to
restructure mortgages under the amendments made
by this subtitle, and
(2) a recommendation as to whether such amendments
should be amended to include a sunset clause.
SEC. 110. REPORT TO CONGRESS.
Not later than 18 months after the date of the enactment of
this Act, the Comptroller General, in consultation with the
Federal Housing Administration, shall submit to the Congress, a
report containing --
(1) a comprehensive review of the effects of the
amendments made by this subtitle on bankruptcy court,
(2) a survey of whether the program should limit the
types of homeowners eligible for the program, and
(3) a recommendation on whether such amendments
should remain in effect.
Page 15, line 15, strike ``Subsection (a) of section'' and
insert ``Section''.
Page 25, after line 9, insert the following (and make such
technical and conforming changes as may be appropriate):
SEC. 125. 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, in coordination
with the Director of the Office of Thrift Supervision, shall
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, and the Joint Economic Committee
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).
Page 25, line 24, after ``disposition'' insert the following:
``, including any modification or refinancing undertaken
pursuant to standard loan modification, sale, or disposition
guidelines issued by the Secretary of the Treasury or his
designee under the Emergency Economic Stabilization Act of
2008,''.
Page 28, strike lines 18 and 19 and insert the following:
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(2) Securitization vehicle.--The term
``securitization vehi-
Page 28, strike line 22 and insert the following:
(A) is the issuer, or is created by the
issuer, of
Page 29, strike line 3 and insert the following:
(B) holds such mortgages.
Page 30, line 12, before the period insert the following:
``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''.
Page 30, after line 23, insert the following:
(B) in paragraph (4)(A), by striking ``; subject to
standards established by the Board under subparagraph
(B),'';
Page 31, line 1, strike lines 1 through 3 and insert the
following:
(C) in paragraph (7), by striking ``and
provided that'' and all that follows through
``new second lien'' and inserting ``and except
that the Secretary may, under such terms and
conditions as the Secretary may establish,
permit the establishment of a second lien on a
property under an eligible mortgage to be
insured, for the purpose of facilitating
payment of closing or refinancing costs by a
State or locality using funds provided under
the HOME Investment Partnerships program under
title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12721 et
seq.) or the community development block grants
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.) or by a State or local housing
finance agency'';
Page 31, line 4, strike ``(C)'' and insert ``(D)''.
Page 31, line 15, strike ``and''.
Page 31, after line 15, insert the following:
(E) by striking subparagraph (10);
(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 or for any mortgagor who
has relocated to a new jurisdiction, and is in
the process of trying to sell such property or
has been unable to sell such property due to
adverse market conditions'';
(G) by redesignating paragraph (11) as
paragraph (10); and
Page 31, line 16, strike ``(D) by adding after paragraph
(11)'' and insert ``(H) by adding at the end''.
Page 31, line 18, strike ``(12)'' and insert ``(11)''.
Page 36, line 6, strike ``or employee'' and insert ``manager,
supervisor, loan processor, loan underwriter, or loan
originator''.
Page 37, strike the quotation marks in line 19 and all that
follows through the end of the line.
Page 37, after line 19, insert the following:
``(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
Page 47, after line 13, insert the following (and make such
technical and conforming changes as may be appropriate):
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.
Page 47, at the end of title II, add the following (and
conform the table of contents accordingly):
TITLE III--MORTGAGE FRAUD
SEC. 301. SHORT TITLE.
This title may be cited as the ``Nationwide Mortgage Fraud
Task Force Act of 2009''.
SEC. 302. NATIONWIDE MORTGAGE FRAUD TASK FORCE.
(a) Establishment.--There is established in the Department of
Justice the 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.--The Attorney General shall provide the Task
Force with the appropriate staff, administrative support, and
other resources necessary to carry out the duties of the Task
Force.
(c) Executive Director.--The Attorney General shall appoint
one staff member provided to the Task Force to be the Executive
Director of the Task Force and such Executive Director shall
ensure that the duties of the Task Force are carried out.
(d) Branches.--The Task Force shall establish, oversee, and
direct branches in each of the 10 States determined by the
Attorney General to have the highest concentration of mortgage
fraud.
(e) Mandatory Functions.--The Task Force, including the
branches of the Task Force established under subsection (d),
shall--
(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.
(f) Optional Functions.--The Task Force, including the
branches of the Task Force established under subsection (d),
may--
(1) initiate and coordinate Federal mortgage fraud
investigations and, through the coordinating entities
established under subsection (e), 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.
(g) Definition.--In this section, the term ``mortgage fraud''
means a material misstatement, misrepresentation, or omission
relating to the property or potential mortgage relied on by an
underwriter or lender to fund, purchase, or insure a loan.
Page 47, at the end of the bill, add the following (and
conform the table of contents accordingly):
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 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.
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2. An Amendment To Be Offered by Representative Price of Georgia, or
His Designee, Debatable for 10 Minutes
Beginning on page 7, strike line 5 and all that follows
through line 16 on page 8, insert the following (and make such
technical and conforming changes as may be appropriate):
days after receiving such proceeds, if such residence is sold
after the effective date of the plan, the amount of the
difference between the sales 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 amount
of the allowed secured claim determined as if such claim had
not been reduced under such subsection.
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3. An Amendment To Be Offered by Representative Peters of Michigan, or
His Designee, Debatable for 10 Minutes
Beginning on page 3, strike line 21 and all that follows
through line 2 on page 4, insert the following:
``(5) Notwithstanding the 180-day period specified in
paragraph (1), with respect to a debtor in a case under
chapter 13 who submits to the court a certification
that the debtor has received 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 30-
day period beginning on the date of the filing of the
petition.''.
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4. An Amendment To Be Offered by Representative Titus of Nevada, or Her
Designee, Debatable for 10 Minutes
Page 34, strike line 13, and insert the following:
``(x) Payment to Existing Loan Servicers.--
``(1) Payment.--The''.
Page 34, after line 17, insert the following:
``(2) Notification requirement.--The Secretary shall
require each servicer that receives a payment under
this paragraph to notify all mortgagors under mortgages
serviced by such servicer who are at-risk homeowners
(as such term is defined by the Secretary), in a form
and manner as shall be prescribed by the Secretary,
that they may be eligible for the HOPE for Homeowners
Program under this section and how to obtain
information regarding the program.''.