[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.
                              ----------                              


 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.
                              ----------                              


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.''.
                              ----------                              


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.''.

                                  
