[House Report 111-98]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-98
======================================================================
PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (H.R. 1728) TO AMEND
THE TRUTH IN LENDING ACT TO REFORM CONSUMER MORTGAGE PRACTICES AND
PROVIDE ACCOUNTABILITY FOR SUCH PRACTICES, TO PROVIDE CERTAIN MINIMUM
STANDARDS FOR CONSUMER MORTGAGE LOANS, AND FOR OTHER PURPOSES
_______
May 6, 2009.--Referred to the House Calendar and ordered to be printed
_______
Mr. Cardoza, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 406]
The Committee on Rules, having had under consideration
House Resolution 406, by a record vote of 9-4, report the same
to the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for further consideration of H.R.
1728, the ``Mortgage Reform and Anti-Predatory Lending Act,''
under a structured rule. The resolution provides that no
general debate shall be in order pursuant to this resolution.
The resolution provides that the amendment in the nature of a
substitute recommended by the Committee on Financial Services
now printed in the bill shall be considered as an original bill
for the purpose of amendment and shall be considered as read.
The resolution waives all points of order against the amendment
in the nature of a substitute except for clause 10 of rule XXI.
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. The amendments made in order may be offered
only in the order printed in this report, may be offered only
by a Member designated in this report, shall be considered as
read, shall be debatable for the time specified in this report
equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be
subject to a demand for a division of the question in the House
or in the Committee of the Whole. All points of order against
the amendments except for clauses 9 and 10 of rule XXI are
waived. The resolution provides one motion to recommit with or
without instructions.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against the
amendment in the nature of a substitute (except for clause 10
of rule XXI), the Committee is not aware of any points of
order. The waiver of all points of order 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. 80
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Reps. Garrett (NJ) and McHenry
(NC), #5, which would require the Federal banking agencies to
prescribe risk-retention regulations on creditors that make
residential mortgage loans that are not qualified mortgages.
Results: Defeated 4-7.
Vote by Members: Hastings--Nay; Matsui--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 81
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #30, which
would require consumers, if they file a lawsuit under this bill
and lose, to pay legal costs for mortgage originators,
creditors, assignees and securitizers.
Results: Defeated 4-7.
Vote by Members: Hastings--Nay; Matsui--Nay; Arcuri--Nay;
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 82
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Mr. Diaz-Balart.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Manzullo (IL), #40, which
would place a 12-month moratorium on the implementation of the
Home Valuation Code of Conduct and require the Federal Housing
Finance Authority to promulgate regulations for the GSEs to
enhance the independence and accuracy of the appraisal process,
and provide added protections to homebuyers, mortgage
investors, and the housing market.
Results: Defeated 5-6.
Vote by Members: Hastings--Nay; Matsui--Nay; Arcuri--Nay;
Perlmutter--Yea; Pingree--Nay; Polis--Nay; Dreier--Yea; Diaz-
Balart--Yea; Sessions--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 83
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Sessions (TX), #13, which
would limit the award of attorney's fees to an hourly fee, as
determined by the court, and would prevent contingency fee
agreements for attorneys for legal actions brought under this
bill.
Results: Defeated 4-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea;
Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 84
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #31, which
would provide funding for HUD to investigate suspected
instances of lender and borrower mortgage fraud, which would be
offset by eliminating funding for taxpayer-subsidized lawsuits.
Results: Defeated 4-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea;
Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 85
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Dr. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #32, which
would prevent funds from the HOPE for Homeowners or any TARP-
funded program from being used to subsidize any new non-
qualified loans made by lenders under this bill.
Results: Defeated 4-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Sessions--Yea;
Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 86
Date: May 6, 2009.
Measure: H.R. 1728.
Motion by: Mr. Hastings (FL).
Summary of motion: To report the rule.
Results: Adopted 9-4.
Vote by Members: McGovern--Yea; Hastings--Yea; Matsui--Yea;
Cardoza--Yea; Arcuri--Yea; Perlmutter--Yea; Pingree--Yea;
Polis--Yea; Dreier--Nay; Diaz-Balart--Nay; Sessions--Nay;
Foxx--Nay; Slaughter--Yea.
SUMMARY OF AMENDMENTS TO BE MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Frank (MA) Would add additional prohibitions on mortgage
originator conduct within the anti-steering section of the
bill; would provide that regulations proposed or issued
pursuant to the requirements of Section 106 shall include
``model'' disclosure forms, and would also provide that the
relevant financial regulators (HUD/Fed) may develop
``standardized'' disclosure forms, and may require their use,
when they jointly determine that use of a standardized form
would be of substantial benefit to consumers; would require a
study into how shared appreciation mortgages could be used to
strengthen housing markets and provide opportunities for
affordable homeownership; would allow creditors to consider a
consumer's good standing with them above other credit history
considerations in refinancing of hybrid loans; would require
lenders who are subject to the Federal Truth in Lending Act or
the Homeowners Equity Protection Act to disclose to borrowers
that the anti-deficiency protections of the initial residential
mortgage loan may be lost when a non-purchase money loan is
received; would require creditors to disclose their policy
regarding the acceptance of partial payments for a residential
mortgage loan; would modify preemption language in section 208
(b) to include any state that has a law at the time of
enactment; would provide disclosure of the total cost of the
mortgage over the life of the loan; would require that mortgage
disclosures for each billing cycle include contact information
for local mortgage counseling agencies or programs approved by
the Secretary of HUD or a state housing finance authority;
would direct the GAO to analyze the effectiveness of the risk-
retention provisions of this bill and make recommendations to
Congress as needed; would require a property owner to notify
any tenants or potential tenants upon becoming subject to
foreclosure, or defaulting on their mortgage loan; would
prohibit third parties from charging fees to consumers for
mortgage modifications unless these actions result in a benefit
to the consumer; would clarify that the Office of Housing
Counseling, in providing rules for building of capacity to
provide housing counseling services in areas that lack
sufficient services, should consider underdeveloped areas that
lack basic water and sewer systems, electricity and safe,
sanitary housing; would amend the Office of Housing Counseling
homeownership counseling criteria to include flood or other
disaster specific insurance in applicable regions; would
require energy efficient mortgage loans, pursuant to section
106 of the Energy Policy Act of 1992, to be covered by the
Office of Housing Counseling; would ensure adequate
distribution of counseling funds for rural areas, including
areas with insufficient access to the Internet; would require
the Secretary of HUD to establish and make publicly available a
national database of mortgage default and foreclosure
statistics; would include in the study by the Secretary of HUD
into the causes of the default and foreclosure crisis an
examination of the role of the Mortgage Electronic Registry
System (MERS) in initiating foreclosures; would clarify, in
reference to the general prohibition on using broker price
opinions to value a mortgage, that such a statutory ban should
only apply to loan originations done in conjunction with a
mortgage purchase; would require the GAO to conduct a study on
current inter-agency efforts by the Treasury Department,
Department of Housing and Urban Development, Justice
Department, and the Federal Trade Commission to end and prevent
mortgage foreclosure rescue scams and loan modification fraud;
would establish a multifamily loan modification program for
multifamily properties that are delinquent, at risk of default
or disinvestment, or in foreclosure to ensure the protection of
current and future tenants; and would make a number of
technical and conforming changes. (30 minutes)
2. Frank (MA) Would provide that no funds in this bill for
legal assistance or housing counseling grants may be
distributed to any organization which has been or which employs
an individual who has been convicted within 10 years of the
date of applying for legal assistance for a felony violation
under Federal law relating to an election for Federal office.
(10 minutes)
3. Bachus, Spencer (AL) Would provide assistance to the
Neighborhood Reinvestment Corporation for activities, in
connection with servicers of residential mortgage loans, to
inform borrowers under such loans who are delinquent with
respect to payments due under such loans of the dangers of
fraudulent activities associated with foreclosure. (10 minutes)
4. Perlmutter (CO) Would reduce the grace period for
renters renting a unit in violation of a mortgage contract when
that property is sold to a purchaser who intends to use such
property as an owner-occupied unit from 90 days to 30 days.
Additionally, creditors may only accelerate debt repayment in
certain circumstances. (10 minutes)
5. Hensarling (TX) Would strike the assignee and
securitizer liability provisions from the bill. (10 minutes)
6. Moore, Dennis (KS)/Kratovil (MD)/Kilroy (OH) Would
require income to be verified by lenders utilizing IRS tax
transcripts or similar methods that verify income by a third
party. (10 minutes)
7. Price, Tom (GA) Would delay the enactment of titles I,
II, and III of the bill until the Federal Reserve certifies
that they will not reduce the availability or increase the
price of credit for qualified mortgages. (10 minutes)
8. McNerney (CA) Would stipulate that when awarding
assistance to HUD-approved housing counseling agencies and/or
state housing finance agencies, the Secretary may give priority
consideration to entities serving areas with high rates of
foreclosure. (10 minutes)
9. McHenry (NC) Would strike title III from the bill
relating to high-cost mortgages. (10 minutes)
10. Dahlkemper (PA) Would require that benefits of pre-
payment of mortgage balances be explained in the consumer
education guide produced by HUD. (10 minutes)
11. Brown-Waite (FL) Would expand the scope of the GAO
study required under this act to include an examination of any
effects on consumer and small business credit availability and
affordability. (10 minutes)
12. Titus (NV)/Cardoza (CA) Would require that the costs
and benefits of each residential mortgage loan offered,
discussed or referred to by the originator be clearly presented
side by side and that the disclosures for each product have
equal prominence. Would require that disclosure be made in
writing, the understanding of which will be acknowledged by the
signature of the mortgage originator and consumer. (10 minutes)
13. Diaz-Balart, Mario (FL)/Wexler (FL) Would require the
Secretary of HUD to study the effects of the presence of
Chinese dry wall on foreclosures and the availability of
property insurance for residential structures where Chinese dry
wall is present. (10 minutes)
14. Weiner (NY) Would require Fannie Mae and Freddie Mac to
take into account factors such as the health of the local or
regional housing market and other factors when determining fee
schedules, occupancy and pre-sale guidelines for condominium
and cooperative housing mortgages. (10 minutes)
TEXT OF AMENDMENTS TO BE MADE IN ORDER
1. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 30 Minutes
In section 103(cc)(2) of the Truth in Lending Act (as added
by section 101 of the bill), insert at the end the following:
``All rule writing by the `Federal banking agencies' as
designated by the Mortgage Reform and Anti-Predatory Lending
Act will be coordinated through the Financial Institutions
Examination Council in consultation with the Chairman of the
State Liaison Committee.''.
In section 103(cc)(3)(C) of the Truth in Lending Act (as
added by section 101 of the bill), insert before the semicolon
the following: ``and who does not advise a consumer on loan
terms (including rates, fees, and other costs)''.
In section 103(cc)(3) of the Truth in Lending Act (as added
by section 101 of the bill)--
(1) in subparagraph (D), strike the final ``and'';
(2) in subparagraph (E), strike the period at the end
and insert ``; and''; and
(3) add at the end the following:
``(F) does not include a servicer or servicer
employees, agents and contractors, including
but not limited to those who offer or negotiate
terms of a residential mortgage loan for
purposes of renegotiating, modifying, replacing
and subordinating principal of existing
mortgages where borrowers are behind in their
payments, in default or have a reasonable
likelihood of being in default or falling
behind.''.
In section 103(cc)(6) of the Truth in Lending Act (as added
by section 101 of the bill), strike ``128(a)(f) and 128(b)(4)''
and insert ``and 128(f)''.
In section 129B(b)(4)(A) of the Truth in Lending Act (as
added by section 102 of the bill), strike ``, the Chairman of
the State Liaison Committee to the Financial Institutions
Examination Council,''.
In section 129B(c) of the Truth in Lending Act (as added by
section 103 of the bill), insert after paragraph (1) the
following (and redesignate succeeding paragraphs accordingly):
``(2) Restructuring of financing origination fee.--
``(A) In general.--For any mortgage loan, a
mortgage originator may not arrange for a
consumer to finance through rate any
origination fee or cost except bona fide third
party settlement charges not retained by the
creditor or mortgage originator.
``(B) Exception.--Notwithstanding paragraph
subparagraph (A), a mortgage originator may
arrange for a consumer to finance through rate
an origination fee or cost if--
``(i) the mortgage originator does
not receive any other compensation from
the consumer except the compensation
that is financed through rate; and
``(ii) the mortgage is a qualified
mortgage.''.
In section 129B(c)(2) of the Truth in Lending Act (as added
by section 103 of the bill)--
(1) in subparagraph (C), strike the final ``and'';
(2) in subparagraph (D), strike the period and insert
``; and''; and
(3) add at the end the following new subparagraph:
``(E) mortgage originators from--
``(i) mischaracterizing the credit
history of a consumer or the
residential mortgage loans available to
a consumer;
``(ii) mischaracterizing or suborning
the mischaracterization of the
appraised value of the property
securing the extension of credit; or
``(iii) 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,
discouraging a consumer from seeking a
home mortgage loan secured by a
consumer's principal dwelling from
another mortgage originator.''.
In section 129B(c)(3)(D) of the Truth in Lending Act (as
added by section 103 of the bill), strike ``rate or''.
In section 129B(e)(1) of the Truth in Lending Act (as added
by section 105 of the bill), insert after ``standards'' the
following: ``necessary or proper to ensure that responsible,
affordable mortgage credit remains available to consumers in a
manner consistent with the purposes of this section and section
129B,''.
Section 106 is amended by inserting after subsection (e) the
following new subsection:
(f) Standardized Disclosure Forms.--
(1) In general.--Any regulations proposed or issued
pursuant to the requirements of this section shall
include model disclosure forms.
(2) Option for mandatory use.--In issuing proposed
regulations under subsection (a), the Secretary of
Housing and Urban Development and the Board of
Governors of the Federal Reserve System shall include
regulations for the mandatory use of standardized
disclosure forms if they jointly determine that it
would substantially benefit the consumer.
At the end of title I, add the following new section:
SEC. 107. STUDY OF SHARED APPRECIATION MORTGAGES.
(a) Study.--The Secretary of Housing and Urban Development,
in consultation with the Secretary of the Treasury and other
relevant agencies, shall conduct a comprehensive study to
determine prudent statutory and regulatory requirements
sufficient to provide for the widespread use of shared
appreciation mortgages to strengthen local housing markets,
provide new opportunities for affordable homeownership, and
enable homeowners at-risk of foreclosure to refinance or modify
their mortgages.
(b) Report.--Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit a
report to the Congress on the results of the study, which shall
include recommendations for the regulatory and legislative
requirements referred to in subsection (a).
In paragraph (4) of section 129C(a) of the Truth in Lending
Act (as added by section 201(a) of the bill), insert after
subparagraph (D) the following new subparagraph:
``(E) Refinance of hybrid loans with current
lender.--In considering any application for
refinancing an existing hybrid loan by the
creditor into a standard loan to be made by the
same creditor in any case in which the sole
net-tangible benefit to the mortgagor would be
a reduction in monthly payment and the
mortgagor has not been delinquent on any
payment on the existing hybrid loan, the
creditor may--
``(i) consider the mortgagor's good
standing on the existing mortgage;
``(ii) consider if the extension of
new credit would prevent a likely
default should the original mortgage
reset and give such concerns a higher
priority as an acceptable underwriting
practice; and
``(iii) offer rate discounts and
other favorable terms to such mortgagor
that would be available to new
customers with high credit ratings
based on such underwriting practice.''.
In section 129C(a)(4)(D)(ii) of the Truth in Lending Act (as
added by section 201 of the bill), strike ``the contract's
repayment schedule shall be used in this calculation'' and
insert the following: ``the calculation shall be made (I) in
accordance with regulations prescribed by the Federal banking
agencies, with respect to any loan which has an annual
percentage rate that does not exceed the average prime offer
rate for a comparable transaction, as of the date the interest
rate is set, by 1.5 or more percentage points for a first lien
residential mortgage loan; and by 3.5 or more percentage points
for a subordinate lien residential mortgage loan; or (II) using
the contract's repayment schedule, with respect to a loan which
has an annual percentage rate, as of the date the interest rate
is set, that is at least 1.5 percentage points above the
average prime offer rate for a first lien residential mortgage
loan; and 3.5 percentage points above the average prime offer
rate for a subordinate lien residential mortgage loan''.
In section 129C(c)(2)(A)(iv)(I) of the Truth in Lending Act
(as added by section 203 of the bill)--
(1) strike ``does not exceed'' and insert ``is equal
to or less than''; and
(2) strike the final ``and''.
In section 129C(c)(2)(A)(iv)(II) of the Truth in Lending Act
(as added by section 203 of the bill)--
(1) strike ``exceeds'' and insert ``is more than'';
and
(2) strike the semicolon on the end and insert ``;
and''.
In section 129C(c)(2)(A)(iv) of the Truth in Lending Act (as
added by section 203 of the bill), add at the end the
following:
``(III) by 3.5 or more
percentage points, in the case
of a subordinate lien
residential mortgage loan;''.
In section 129C(c) of the Truth in Lending Act (as added by
section 203 of the bill), in the header of paragraph (3), after
``rate'' insert the following: ``and APR thresholds''.
In section 129C(c)(3) of the Truth in Lending Act (as added
by section 203 of the bill)--
(1) in subparagraph (A), strike the final ``and'';
(2) in subparagraph (B), strike the period and insert
``; and''; and
(3) add at the end the following:
``(C) shall adjust the thresholds of 1.50
percentage points in paragraph (2)(A)(iv)(I),
2.50 percentage points in paragraph
(2)(A)(iv)(II), and 3.50 percentage points in
paragraph (2)(A)(v)(III), as necessary to
reflect significant changes in market
conditions and to effectuate the purposes of
the Mortgage Reform and Anti-Predatory Lending
Act.''.
In section 129C(c)(4)(B)(i) of the Truth in Lending Act (as
added by section 203 of the bill), after ``are'' insert the
following: ``necessary or proper to ensure that responsible,
affordable mortgage credit remains available to consumers in a
manner consistent with the purposes of this section,''.
In section 129C(c)(4)(B)(ii) of the Truth in Lending Act (as
added by section 203 of the bill), after ``shall'' insert the
following: ``, in consultation with the Federal banking
agencies,''.
In section 129C(d)(1)(B) of the Truth in Lending Act (as
added by section 204 of the bill), strike ``creditor provides''
and insert ``creditor, acting in good faith,''.
In section 129C(d)(3) of the Truth in Lending Act (as added
by section 204 of the bill), strike ``and (b) shall'' and
insert ``and (b), consistent with reasonable due diligence
practices prescribed by the Federal banking agencies, shall''.
In section 129C(d)(10) of the Truth in Lending Act (as added
by section 204 of the bill)--
(1) in the header, strike ``Pools and'' and insert
``Trustees, pools, and''; and
(2) insert before ``the pools of such loans'' the
following: ``any trustee that holds such loans solely
for the benefit of the securitization vehicle,''.
In section 129C(g)(2) of the Truth in Lending Act (as added
by section 205 of the bill), after ``designees,'' insert the
following: ``subject to the rights of the consumer described in
this subsection,''.
In section 129C(h) of the Truth in Lending Act (as added by
section 206 of the bill), strike paragraph (3) (and redesignate
succeeding paragraphs accordingly).
In section 206, insert at the end the following new
subsections:
(c) Protection Against Loss of Anti-Deficiency Protection.--
Section 129C of the Truth in Lending Act is amended by
inserting after subsection (k) (as added by subsection (a) of
this section) the following new subsection (and designated
succeeding subsections accordingly):
``(l) Protection Against Loss of Anti-Deficiency
Protection.--
``(1) Definition.--For purposes of this subsection,
the term `anti-deficiency law' means the law of any
State which provides that, in the event of foreclosure
on the residential property of a consumer securing a
mortgage, the consumer is not liable, in accordance
with the terms and limitations of such State law, for
any deficiency between the sale price obtained on such
property through foreclosure and the outstanding
balance of the mortgage.
``(2) Notice at time of consummation.--In the case of
any residential mortgage loan that is, or upon
consummation will be, subject to protection under an
anti-deficiency law, the creditor or mortgage
originator shall provide a written notice to the
consumer describing the protection provided by the
anti-deficiency law and the significance for the
consumer of the loss of such protection before such
loan is consummated.
``(3) Notice before refinancing that would cause loss
of protection.--In the case of any residential mortgage
loan that is subject to protection under an anti-
deficiency law, if a creditor or mortgage originator
provides an application to a consumer, or receives an
application from a consumer, for any type of
refinancing for such loan that would cause the loan to
lose the protection of such anti-deficiency law, the
creditor or mortgage originator shall provide a written
notice to the consumer describing the protection
provided by the anti-deficiency law and the
significance for the consumer of the loss of such
protection before any agreement for any such
refinancing is consummated.''.
(d) Policy Regarding Acceptance of Partial Payment.--Section
129C of the Truth in Lending Act is amended by inserting after
subsection (l) the following new subsection (and redesignating
subsequent subsections of such section accordingly):
``(m) Policy Regarding Acceptance of Partial Payment.--In the
case of any residential mortgage loan, a creditor shall
disclose prior to settlement or, in the case of a person
becoming a creditor with respect to an existing residential
mortgage loan, at the time such person becomes a creditor--
``(1) the creditor's policy regarding the acceptance
of partial payments; and
``(2) if partial payments are accepted, how such
payments will be applied to such mortgage and if such
payments will be placed in escrow;''.
In section 208(b)--
(1) in paragraph (3)(B), strike the final ``or'';
(2) in paragraph (4), strike the period on the end
and insert ``; or''; and
(3) add at the end the following new paragraph:
(5) notwithstanding paragraph (2), the availability
of any remedies under State law against any assignee,
securitizer or securitization vehicle that--
(A) are in addition to those remedies
provided for in section 129C; and
(B) were in effect on the date of enactment
of this Act.
In section 129C(l)(1) of the Truth in Lending Act (as added
by section 213 of the bill), strike ``in section'' and insert
``under section''.
In section 129C(l)(2)(B) of the Truth in Lending Act (as
added by section 213 of the bill)--
(1) strike ``prohibit creditors'' and insert
``prohibit a creditor''; and
(2) strike ``creditors are required'' and insert
``such creditor is required''.
In section 129C(l)(2)(C) of the Truth in Lending Act (as
added by section 213 of the bill)--
(1) strike ``require creditors'' and insert ``require
a creditor''; and
(2) insert before the semicolon the following: ``by
such creditor''.
In section 129C(l)(3)(A) of the Truth in Lending Act (as
added by section 213 of the bill), after ``authority to''
insert the following: ``jointly''.
In section 129C(l)(3)(B)(i) of the Truth in Lending Act (as
added by section 213 of the bill), strike ``mortgage lenders''
and insert ``creditors that make residential mortgage loans
that are not qualified mortgages''.
In section 129C(l)(3)(B)(ii) of the Truth in Lending Act (as
added by section 213 of the bill), strike ``mortgage lenders''
and insert ``such creditors''.
In section 129C(l)(4) of the Truth in Lending Act (as added
by section 213 of the bill)--
(1) in the heading, strike ``securitization
sponsors'' and insert ``securitizers'';
(2) strike ``agencies shall have discretion to'' and
insert ``agencies may jointly, in their discretion,'';
(3) strike ``non-qualified mortgages in addition to
or in place of creditors that make non-qualified
mortgages if the agencies determine that applying the
requirements to securitization sponsors rather than
originators'' and insert ``residential mortgages (or
particular types of residential mortgages) that are not
qualified mortgages in addition to or in substitution
for any or all of the requirements that apply to
creditors that make such mortgages if the agencies
jointly determine that applying the requirements to
such securitizers'';
(4) in subparagraph (A), strike ``mortgage lenders''
and insert ``creditors of residential mortgage loans
that are not qualified mortgages''; and
(5) in subparagraph (B)--
(A) strike ``mortgage lenders, or'' and
insert ``such creditors,''; and
(B) before the period, insert ``, or
otherwise serve the public interest''.
After section 128(a)(18) of the Truth in Lending Act (as
added by section 214(a) of the bill) add the following:
``(19) In the case of a residential mortgage loan,
the total amount of interest that the consumer will pay
over the life of the loan as a percentage of the
principal of the loan. Such amount shall be computed
assuming the consumer makes each monthly payment in
full and on-time, and does not make any over-
payments.''.
Strike section 214(b).
In subsection (f)(1) of section 128 of the Truth in Lending
Act (as added by section 215 of the bill), insert after
subparagraph (F) the following new subparagraph (and
redesignate the subsequent subparagraph accordingly):
``(G) The names, addresses, telephone
numbers, and Internet addresses of counseling
agencies or programs reasonably available to
the consumer that have been certified or
approved and made publicly available by the
Secretary of Housing and Urban Development or a
State housing finance authority (as defined in
section 1301 of the Financial Institutions
Reform, Recovery, and Enforcement Act of
1989).''.
In subsection (c) of section 218, insert ``, including an
analysis of the exceptions and adjustments authorized in
section 129C(l)(3)(A) of the Truth in Lending Act and a
recommendation on whether a uniform standard is needed'' before
the period at the end.
At the end of section 218, insert the following new
subsection:
(d) Analysis of Credit Risk Retention Provisions.--The report
required by subsection (b) shall also include--
(1) an analysis by the Comptroller General of whether
the credit risk retention provisions have significantly
reduced risks to the larger credit market of the
repackaging and selling of securitized loans on a
secondary market; and
(2) recommendations to the Congress on adjustments
that should be made, or additional measures that should
be undertaken.
In section 130(e) of the Truth in Lending Act (as amended by
section 219 of the bill), strike ``section 219'' and insert
``section 220''.
In section 220 of the bill, insert after subsection (b) the
following new subsection (and redesignate succeeding
subsections accordingly):
(c) Landlord Notice to Tenants.--Notwithstanding the law of
any State or the terms of any consumer residential lease, each
person who owns a dwelling or residential real property--
(1) which is leased to a bona fide tenant (including
a tenancy terminable at will), or which the landlord
offers to lease to a prospective tenant; and
(2) which, pursuant to the terms of a valid loan to
such person which is secured by such dwelling or
property, is or becomes subject to foreclosure or with
respect to which the person is in default,
shall promptly notify any such tenant or prospective tenant of
the circumstances prevailing with respect to such property and
the effect of any such default or foreclosure. The requirements
of this subsection shall have no effect on any State or local
law that provides additional notice or other additional
protections for tenants.
In section 103(aa)(4)(B) of the Truth in Lending Act (as
amended by section 301(c) of the bill)--
(1) strike ``broker'' and insert ``originator''; and
(2) strike ``the originator'' and insert ``the
creditor''.
In section 103(dd) of the Truth in Lending Act (as added by
section 301(d) of the bill)--
(1) in the header, strike ``and prepayment
penalties'';
(2) in the matter preceding paragraph (1)--
(A) strike ``(4)'' and insert ``(2)''; and
(B) strike ``may'' and insert ``shall'';
(3) redesignate paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(4) in paragraph (4), as redesignated by paragraph
(3), strike ``paragraph (1)'' and insert ``paragraphs
(1) and (2)''; and
(5) strike paragraph (1) and insert the following:
``(1) Up to and including 2 bona fide discount points
payable by the consumer in connection with the
mortgage, but only if the interest rate from which the
mortgage's interest rate will be discounted does not
exceed by more than 1 percentage point--
``(A) the required net yield for a 90-day
standard mandatory delivery commitment for a
reasonably comparable loan from either the
Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation,
whichever is greater; or
``(B) if secured by a personal property loan,
the average rate on a loan in connection with
which insurance is provided under title I of
the National Housing Act (12 U.S.C. 1702 et
seq.).
``(2) Unless 2 bona fide discount points have been
excluded under paragraph (1), up to and including 1
bona fide discount point payable by the consumer in
connection with the mortgage, but only if the interest
rate from which the mortgage's interest rate will be
discounted does not exceed by more than 2 percentage
points--
``(A) the required net yield for a 90-day
standard mandatory delivery commitment for a
reasonably comparable loan from either the
Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation,
whichever is greater; or
``(B) if secured by a personal property loan,
the average rate on a loan in connection with
which insurance is provided under title I of
the National Housing Act (12 U.S.C. 1702 et
seq.).''.
In subsection (r) of section 129 of the Truth in Lending Act,
as added by section 303(c) of the bill, strike ``Deferral Fees
Prohibited.--A creditor'' and insert ``Deferral Fees
Prohibited.--
``(1) Creditors.--A creditor''.
At the end of paragraph (1) of subsection (r) of section 129
of the Truth in Lending Act, (as so designated by the preceding
amendment) insert the following new paragraphs:
``(2) Third parties.--A third-party may not charge a
consumer any fee to--
``(A) modify, renew, extend, or amend a high-
cost mortgage, or defer any payment due under
the terms of such mortgage;
``(B) negotiate with a creditor on behalf of
a consumer, the modification, renewal,
extension, or amendment of a high-cost
mortgage; or
``(C) negotiate with a creditor on behalf of
a consumer, the deferral of any payment due
under the terms of such mortgage,
unless the modification renewal, extension or amendment
results in a significantly lower annual percentage rate
on the mortgage, or a significant reduction in the
amount of the outstanding principal on the mortgage,
for the consumer and then only if the amount of the fee
is comparable to fees imposed for similar transactions
in connection with consumer credit transactions that
are secured by a consumer's principal dwelling and are
not high-cost mortgages.
``(3) Enforcement.--Section 130 shall be applied for
purposes of paragraph (2) by--
``(A) substituting `third party' for
`creditor'each place such term appears; and
``(B) substituting `any fee charged by a
third party' for `finance charge' each place
such term appears.''.
In subsection (g)(3)(B)(ix) of section 4 of the Department of
Housing and Urban Development Act (as added by section 402)
insert ``, including underdeveloped areas that lack basic water
and sewer systems, electricity services, and safe, sanitary
housing'' before the period at the end.
In the matter proposed to be inserted by the amendment made
by section 403(a) of the bill, in subsection (g)(1)(B)(xi),
strike ``and'' after the semicolon.
In the matter proposed to be inserted by the amendment made
by section 403(a) of the bill, in subsection (g)(1)(B)(xii),
strike the period at the end and insert ``; and''.
In the matter proposed to be inserted by the amendment made
by section 403(a) of the bill, after clause (xii) of subsection
(g)(1)(B) add the following:
``(xiii) section 106 of the Energy
Policy Act of 1992 (42 U.S.C. 12712
note).''.
In the matter proposed to be inserted by the amendment made
by section 403(a) of the bill, in subsection (g)(5), strike
``and home repair loans'' and insert the following: ``home
repair loans, and where appropriate by region, any requirements
and costs associated with obtaining flood or other disaster-
specific insurance coverage''.
In subparagraph (C) of paragraph (4) of the matter proposed
to be inserted by the amendment made by section 404 of the
bill, before the period at the end insert the following: ``and
that ensures adequate distribution of amounts for rural areas
having traditionally low levels of access to such counseling
services, including areas with insufficient access to the
Internet''.
In section 406, insert ``, and the role of computer
registries of mortgages, including those used for trading
mortgage loans'' before the period at the end of the 2nd
sentence.
After section 406, insert the following new section (and
redesignate succeeding sections in title IV accordingly):
SEC. 407. DEFAULT AND FORECLOSURE DATABASE.
(a) Establishment.--The Secretary of Housing and Urban
Development, in consultation with the Federal agencies
responsible for regulation of banking and financial
institutions involved in residential mortgage lending and
servicing, shall establish and maintain a database of
information on foreclosures and defaults on mortgage loans for
one- to four-unit residential properties and shall make such
information publicly available.
(b) Census Tract Data.--Information in the database shall be
collected, aggregated, and made available on a census tract
basis.
(c) Requirements.--Information collected and made available
through the database shall include--
(1) the number and percentage of such mortgage loans
that are delinquent by more than 30 days;
(2) the number and percentage of such mortgage loans
that are delinquent by more than 90 days;
(3) the number and percentage of such properties that
are real estate-owned;
(4) number and percentage of such mortgage loans that
are in the foreclosure process;
(5) the number and percentage of such mortgage loans
that have an outstanding principal obligation amount
that is greater than the value of the property for
which the loan was made; and
(6) such other information as the Secretary considers
appropriate.
In section 6(l)(1)(B) of the Real Estate Settlement
Procedures Act of 1974 (as added by section 503 of the bill),
strike ``clauses'' and insert ``clause''.
In section 129D(b) of the Truth in Lending Act (as added by
section 501 of the bill), amend paragraph (3) to read as
follows:
``(3) the transaction is secured by a first mortgage
or lien on the consumer's principal dwelling having an
original principal obligation amount that--
``(A) does not exceed the amount of the
maximum limitation on the original principal
obligation of mortgage in effect for a
residence of the applicable size, as of the
date such interest rate set, pursuant to the
sixth sentence of section 305(a)(2) the Federal
Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), and the annual percentage rate
will exceed the average prime offer rate for a
comparable transaction by 1.5 or more
percentage points; or
``(B) exceeds the amount of the maximum
limitation on the original principal obligation
of mortgage in effect for a residence of the
applicable size, as of the date such interest
rate set, pursuant to the sixth sentence of
section 305(a)(2) the Federal Home Loan
Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), and the annual percentage rate
will exceed the average prime offer rate for a
comparable transaction by 2.5 or more
percentage points; or''.
Redesignate section 128(b)(5) of the Truth in Lending Act (as
added by section 505 of the bill) as section 128(b)(4) of the
Truth in Lending Act.
Section 601 is amended to read as follows:
SEC. 601. PROPERTY APPRAISAL REQUIREMENTS.
Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et
seq.) is amended by inserting after 129G (as added by section
504) the following new section:
``SEC. 129H PROPERTY APPRAISAL REQUIREMENTS.
``(a) In General.--A creditor may not extend credit in the
form of a subprime mortgage to any consumer without first
obtaining a written appraisal of the property to be mortgaged
prepared in accordance with the requirements of this section.
``(b) Appraisal Requirements.--
``(1) Physical property visit.--An appraisal of
property to be secured by a subprime mortgage does not
meet the requirement of this section unless it is
performed by a qualified appraiser who conducts a
physical property visit of the interior of the
mortgaged property.
``(2) Second appraisal under certain circumstances.--
``(A) In general.--If the purpose of a
subprime mortgage is to finance the purchase or
acquisition of the mortgaged property from a
person within 180 days of the purchase or
acquisition of such property by that person at
a price that was lower than the current sale
price of the property, the creditor shall
obtain a second appraisal from a different
qualified appraiser. The second appraisal shall
include an analysis of the difference in sale
prices, changes in market conditions, and any
improvements made to the property between the
date of the previous sale and the current sale.
``(B) No cost to applicant.--The cost of any
second appraisal required under subparagraph
(A) may not be charged to the applicant.
``(3) Qualified appraiser defined.--For purposes of
this section, the term `qualified appraiser' means a
person who--
``(A) is, at a minimum, certified or licensed
by the State in which the property to be
appraised is located; and
``(B) performs each appraisal in conformity
with the Uniform Standards of Professional
Appraisal Practice and title XI of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, and the regulations
prescribed under such title, as in effect on
the date of the appraisal.
``(c) Free Copy of Appraisal.--A creditor shall provide 1
copy of each appraisal conducted in accordance with this
section in connection with a subprime mortgage to the applicant
without charge, and at least 3 days prior to the transaction
closing date.
``(d) Consumer Notification.--At the time of the initial
mortgage application, the applicant shall be provided with a
statement by the creditor that any appraisal prepared for the
mortgage is for the sole use of the creditor, and that the
applicant may choose to have a separate appraisal conducted at
their own expense.
``(e) Violations.--In addition to any other liability to any
person under this title, a creditor found to have willfully
failed to obtain an appraisal as required in this section shall
be liable to the applicant or borrower for the sum of $2,000.
``(f) Subprime Mortgage Defined.--For purposes of this
section, the term `subprime mortgage' means a residential
mortgage loan secured by a principal dwelling with an annual
percentage rate that exceeds the average prime offer rate for a
comparable transaction, as of the date the interest rate is
set--
``(1) by 1.5 or more percentage points, in the case
of a first lien residential mortgage loan having an
original principal obligation amount that does not
exceed the amount of the maximum limitation on the
original principal obligation of mortgage in effect for
a residence of the applicable size, as of the date of
such interest rate set, pursuant to the sixth sentence
of section 305(a)(2) the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2));
``(2) by 2.5 or more percentage points, in the case
of a first lien residential mortgage loan having an
original principal obligation amount that exceeds the
amount of the maximum limitation on the original
principal obligation of mortgage in effect for a
residence of the applicable size, as of the date of
such interest rate set, pursuant to the sixth sentence
of section 305(a)(2) the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)); and
``(3) by 3.5 or more percentage points for a
subordinate lien residential mortgage loan''.
In section 603, amend the header to read as follows:
``Amendments relating to Appraisal Subcommittee of FIEC,
Appraiser Independence Monitoring, Approved Appraiser
Education, Appraisal Management Companies, Appraiser Complaint
Hotline, Automated Valuation Models, and Broker Price
Opinions''.
Strike section 603(a)(2)(B) (and redesignate succeeding
subparagraphs accordingly).
In section 1103(a) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (as amended by sections
603(a) and 603(b) of the bill)--
(1) in paragraph (5), strike ``; and'' and insert a
period; and
(2) strike paragraph (4) and redesignate paragraph
(6) as paragraph (4).
In the header of section 603(e), strike ``Field''.
In section 1121 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (as added by section
603(e)(4) of the bill), strike ``10 certified'' and insert ``15
certified''.
In section 1125(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (as added by section
603(q) of the bill), after ``member agencies'' insert the
following: ``, in consultation with the Appraisal Standards
Board of the Appraisal Foundation and other interested
parties,''.
In section 1125(c)(1) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (as added by section
603(q) of the bill), strike ``institution or regulatory'' and
insert ``institution regulatory''.
In section 1126 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (as added by section
603(r) of the bill), strike subsections (a), (b), and (c), and
insert the following:
``(a) General Prohibition.--In conjunction with the purchase
of a consumer's principal dwelling, broker price opinions may
not be used as the primary basis to determine the value of a
piece of property for the purpose of a loan origination of a
residential mortgage loan secured by such piece of property.
``(b) Broker Price Opinion Defined.--For purposes of this
section, the term `broker price opinion' means an estimate
prepared by a real estate broker, agent, or sales person that
details the probable selling price of a particular piece of
real estate property and provides a varying level of detail
about the property's condition, market, and neighborhood, and
information on comparable sales, but does not include an
automated valuation model, as defined in section 1125(c).''.
In section 604, add at the end the following:
(c) Additional Study Required.--The Comptroller General shall
conduct an additional study to determine the effects that the
changes to the seller-guide appraisal requirements of Fannie
Mae and Freddie Mac contained in the Home Valuation Code of
Conduct have on small business, like mortgage brokers and
independent appraisers, and consumers, including the effect on
the--
(1) quality and costs of appraisals;
(2) length of time for obtaining appraisals;
(3) impact on consumer protection, especially
regarding maintaining appraisal independence, abating
appraisal inflation, and mitigating acts of appraisal
fraud;
(4) structure of the appraisal industry, especially
regarding appraisal management companies, fee-for-
service appraisers, and the regulation of appraisal
management companies by the states; and
(5) impact on mortgage brokers and other small
business professionals in the financial services
industry.
(d) Additional Report.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the
Comptroller General shall submit an additional report to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate containing the findings and conclusions of the
Comptroller General with respect to the study conducted
pursuant to subsection (c). Such additional report shall take
into consideration the Small Business Administration's views on
how small businesses are affected by the Home Valuation Code of
Conduct.
Insert after title VII the following new title (and conform
the table of contents accordingly):
TITLE VIII--REPORTS
SEC. 801. GAO STUDY REPORT ON GOVERNMENT EFFORTS TO COMBAT MORTGAGE
FORECLOSURE RESCUE SCAMS AND LOAN MODIFICATION
FRAUD.
(a) Study.--The Comptroller General of the United States
shall conduct a study of the current inter-agency efforts of
the Secretary of the Treasury, the Secretary of Housing and
Urban Development, the Attorney General, and the Federal Trade
Commission to crackdown on mortgage foreclosure rescue scams
and loan modification fraud in order to advise the Congress to
the risks and vulnerabilities of emerging schemes in the loan
modification arena.
(b) Report.--
(1) In general.--The Comptroller General shall submit
a report to the Congress on the study conducted under
subsection (a) containing such recommendations for
legislative and administrative actions as the
Comptroller General may determine to be appropriate in
addition to the recommendations required under
paragraph (2).
(2) Specific topics.--The report made under paragraph
(1) shall include--
(A) an evaluation of the effectiveness of the
inter-agency task force current efforts to
combat mortgage foreclosure rescue scams and
loan modification fraud scams;
(B) specific recommendations on agency or
legislative action that are essential to
properly protect homeowners from mortgage
foreclosure rescue scams and loan modification
fraud scams; and
(C) the adequacy of financial resources that
the Federal Government is allocating to--
(i) crackdown on loan modification
and foreclosure rescue scams; and
(ii) the education of homeowners
about fraudulent scams relating to loan
modification and foreclosure rescues.
Insert after title VIII the following new title (and conform
the table of contents accordingly):
TITLE IX--MULTIFAMILY MORTGAGE RESOLUTION
SEC. 901. MULTIFAMILY MORTGAGE RESOLUTION PROGRAM.
(a) Establishment.--Subject to subsection (e), the Secretary
of the Treasury, in consultation with the Secretary of Housing
and Urban Development, shall develop a program to stabilize
multifamily properties which are delinquent, at risk of default
or disinvestment, or in foreclosure.
(b) Focus of Program.--The program developed under this
section shall be used to ensure the protection of current and
future tenants of at risk multifamily properties, where
feasible, by--
(1) creating sustainable financing of such properties
that is based on--
(A) the current rental income generated by
such properties; and
(B) the preservation of adequate operating
reserves;
(2) maintaining the level of Federal, State, and city
subsidies in effect as of the date of enactment of this
Act; and
(3) facilitating the transfer, when necessary, of
such properties to responsible new owners.
(c) Coordination.--The Secretary of the Treasury shall in
carrying out the program developed under this section
coordinate with the Secretary of Housing and Urban Development,
the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System, the Federal Housing
Finance Agency, and any other Federal Government agency that
the Secretary considers appropriate.
(d) Definition.--For purposes of this section, the term
``multifamily properties'' means a residential structure that
consists of 5 or more dwelling units.
(e) Authority.--This section shall not limit the ability of
the Secretary of the Treasury to use any existing authority to
carry out the program under this section.
----------
2. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 10 Minutes
Strike section 216(e) and insert the following:
(e) Limitation on Distribution of Assistance.--
(1) In general.--None of the amounts made available
under this section shall be distributed to--
(A) any organization which has been convicted
for a violation under Federal law relating to
an election for Federal office; or
(B) any organization which employs applicable
individuals.
(2) Definition of applicable individuals.--In this
subsection, the term ``applicable individual'' means an
individual who--
(A) is--
(i) employed by the organization in a
permanent or temporary capacity;
(ii) contracted or retained by the
organization; or
(iii) acting on behalf of, or with
the express or apparent authority of,
the organization; and
(B) has been convicted for a violation under
Federal law relating to an election for Federal
office.
Strike section 106(a)(4)(D) of the Housing and Urban
Development Act of 1968 (as added by section 404 of the bill)
and insert the following:
``(D) Limitation on distribution of
assistance.--
``(i) In general.--None of the
amounts made available under this
paragraph shall be distributed to--
``(I) any organization which
has been convicted for a
violation under Federal law
relating to an election for
Federal office; or
``(II) any organization which
employs applicable individuals.
``(i) Definition of applicable
individuals.--In this subparagraph, the
term `applicable individual' means an
individual who--
``(I) is--
``(aa) employed by
the organization in a
permanent or temporary
capacity;
``(bb) contracted or
retained by the
organization; or
``(cc) acting on
behalf of, or with the
express or apparent
authority of, the
organization; and
``(II) has been convicted for
a violation under Federal law
relating to an election for
Federal office.''.
----------
3. An Amendment To Be Offered by Representative Bachus of Alabama, or
His Designee, Debatable for 10 Minutes
At the end of title IV, add the following new section:
SEC. 410. WARNINGS TO HOMEOWNERS OF FORECLOSURE RESCUE SCAMS.
(a) Assistance to NRC.--Notwithstanding any other provision
of law, of any amounts made available for any fiscal year
pursuant to section 106(a)(4)(F) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(a)(4)(F)) (as added by
section 404 of this Act), 10 percent shall be used only for
assistance to the Neighborhood Reinvestment Corporation for
activities, in consultation with servicers of residential
mortgage loans, to provide notice to borrowers under such loans
who are delinquent with respect to payments due under such
loans that makes such borrowers aware of the dangers of
fraudulent activities associated with foreclosure.
(b) Notice.--The Neighborhood Reinvestment Corporation, in
consultation with servicers of residential mortgage loans,
shall use the amounts provided pursuant to subsection (a) to
carry out activities to inform borrowers under residential
mortgage loans--
(1) that the foreclosure process is complex and can
be confusing;
(2) that the borrower may be approached during the
foreclosure process by persons regarding saving their
home and they should use caution in any such dealings;
(3) that there are Federal Government and nonprofit
agencies that may provide information about the
foreclosure process, including the Department of
Housing and Urban Development; and
(4) that they should contact their lender
immediately, contact the Department of Housing and
Urban Development to find a housing counseling agency
certified by the Department to assist in avoiding
foreclosure, or visit the Department's website
regarding tips for avoiding foreclosure; and
(5) of the telephone number of the loan servicer or
successor, the telephone number of the Department of
Housing and Urban Development housing counseling line,
and the Uniform Resource Locators (URLs) for the
Department of Housing and Urban Development websites
for housing counseling and for tips for avoiding
foreclosure.
----------
4. An Amendment To Be Offered by Representative Perlmutter of Colorado,
or His Designee, Debatable for 10 Minutes
In section 220(a)(2)(B)--
(1) insert ``(i)'' before ``such notice to vacate'';
and
(2) insert before the period the following: ``; and
(ii) with respect to a single-family residence for
which the borrower rented the unit in violation of the
mortgage contract, such notice to vacate shall be
provided by the purchaser to the tenant in such unit at
least 30 days before the effective date of such notice,
and shall include a copy of the mortgage contract
prohibiting the rental of the unit''.
Amend section 129(l) of the Truth in Lending Act (as added by
section 303 of the bill) to read as follows:
``(l) Acceleration of Debt.--No high-cost mortgage may
contain a provision which permits the creditor to accelerate
the indebtedness, except when repayment of the loan has been
accelerated by default in payment, or pursuant to a due-on-sale
provision, or pursuant to a material violation of some other
provision of the loan document unrelated to payment
schedule.''.
----------
5. An Amendment To Be Offered by Representative Hensarling of Texas, or
His Designee, Debatable for 10 Minutes
In section 129C(d) of the Truth in Lending Act (as added by
section 204 of the bill), strike paragraphs (2) and (3) and
insert the following (and redesignate succeeding paragraphs
accordingly):
``(2) Assignee and securitizer exemption.--No
assignee or securitizer of a residential mortgage loan
shall be liable under this subsection.''.
In section 129C(d)(6) of the Truth in Lending Act (as added
by section 204 of the bill), strike ``, assignee, or
securitizer'' each place it appears.
In section 129C(d)(7) of the Truth in Lending Act (as added
by section 204 of the bill), strike ``, assignee, or
securitizer'' each place it appears.
Strike section 129C(d)(8) of the Truth in Lending Act (as
added by section 204 of the bill) (and redesignate succeeding
paragraphs accordingly).
In section 129C(d)(9) of the Truth in Lending Act (as added
by section 204 of the bill)--
(1) strike ``, assignee, or securitizer''; and
(2) strike ``or an assignee or securitizer under
paragraph (2)''.
In section 129C(d)(10) of the Truth in Lending Act (as added
by section 204 of the bill), strike ``the terms `assignee' and
`securitizer', as used in this section, do not include''.
In section 129C(e) of the Truth in Lending Act (as added by
section 205 of the bill), strike ``or any assignee or
securitizer'' each place it appears.
----------
6. An Amendment To Be Offered by Representative Moore of Kansas, or His
Designee, Debatable for 10 Minutes
In section 129C(a) of the Truth in Lending Act (as added by
section 201(a) of the bill), insert after paragraph (3) the
following (and redesignate succeeding paragraphs accordingly):
``(4) Income verification.--In order to safeguard
against fraudulent reporting, any consideration of a
consumer's income history in making a determination
under this subsection shall include the verification of
such income by the use of--
``(A) Internal Revenue Service transcripts of
tax returns provided by a third party; or
``(B) such other similar method that quickly
and effectively verifies income documentation
by a third party as the Federal banking
agencies may jointly prescribe.''.
----------
7. An Amendment To Be Offered by Representative Price of Georgia, or
His Designee, Debatable for 10 Minutes
Add at the end the following:
TITLE VIII--EFFECTIVE DATE
SEC. 801. EFFECTIVE DATE.
Notwithstanding any other provision of this Act, titles I,
II, and III of this Act shall not take effect until 90 days
after the Board of Governors of the Federal Reserve System
provides written certification to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate that such
titles will not reduce the availability or increase the price
of credit for qualified mortgages (as defined in section
129C(c)(2) of the Truth in Lending Act).
----------
8. An Amendment To Be Offered by Representative McNerney of California,
or His Designee, Debatable for 10 Minutes
In the matter proposed to be inserted by the amendment made
by section 404 of the bill, after the period at the end of
paragraph (4)(C) insert the following: ``In distributing such
assistance, the Secretary may give priority consideration to
entities serving areas with the highest home foreclosure
rates.''.
----------
9. An Amendment To Be Offered by Representative McHenry of North
Carolina, or His Designee, Debatable for 10 Minutes
Strike title III (relating to high-cost mortgages).
----------
10. An Amendment To Be Offered by Representative Dahlkemper of
Pennsylvania, or Her Designee, Debatable for 10 Minutes
In section 5(b)(1) of the Real Estate Settlement Procedures
Act of 1974 (as amended by section 408 of the bill)--
(1) in subparagraph (B), strike ``and''; and
(2) insert after subparagraph (B) the following (and
redesignate succeeding subparagraphs accordingly):
``(C) the advantages of prepayment; and''.
----------
11. An Amendment To Be Offered by Representative Brown-Waite of
Florida, or Her Designee, Debatable for 10 Minutes
In section 218(a), strike ``homebuyers and mortgage lending''
and insert ``consumers, small businesses, homebuyers, and
mortgage lending''.
----------
12. An Amendment To Be Offered by Representative Titus of Nevada, or
Her Designee, Debatable for 10 Minutes
In that portion of subparagraph (C) of section 129B(b)(1) of
the Truth in Lending Act (as added by section 102(a) of the
bill) that appears before clause (i) of such subparagraph,
insert ``in writing, the receipt and understanding of which
shall be acknowledged by the signature of the mortgage
originator and the consumer,'' after ``timely disclosure to
each such consumer''.
In clause (i) of section 129B(b)(1)(C) of the Truth in
Lending Act (as added by section 102(a) of the bill) insert
``(and such comparative costs and benefits for each such
product shall be presented side by side and the disclosures for
each such product shall have equal prominence)'' before the
semicolon at the end.
----------
13. An Amendment To Be Offered by Representative Mario Diaz-Balart of
Florida, or His Designee, Debatable for 10 Minutes
At the end of the bill add the following new title:
TITLE VIII--STUDY OF EFFECT OF DRYWALL PRESENCE ON FORECLOSURES
SEC. 801. STUDY OF EFFECT OF DRYWALL PRESENCE ON FORECLOSURES.
(a) Study.--The Secretary of Housing and Urban Development,
in consultation with the Secretary of the Treasury, shall
conduct a study of the effect on residential mortgage loan
foreclosures of--
(1) the presence in residential structures subject to
such mortgage loans of drywall that was imported from
China during the period beginning with 2004 and ending
at the end of 2007; and
(2) the availability of property insurance for
residential structures in which such drywall is
present.
(b) Report.--Not later than the expiration of the 120-day
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit to the
Congress a report on the study conducted under subsection (a)
containing its findings, conclusions, and recommendations.
----------
14. An Amendment To Be Offered by Representative Weiner of New York, or
His Designee, Debatable for 10 Minutes
At the end of the bill, add the following new title:
TITLE VIII--FANNIE MAE GUIDELINES FOR PURCHASE OF CONDOMINIUM AND
COOPERATIVE HOUSING MORTGAGES
SEC. 801. GUIDELINES FOR PURCHASE OF CONDOMINIUM AND COOPERATIVE
HOUSING MORTGAGES.
The Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation shall take actions as are
appropriate to establish and revise fee schedules, occupancy
and pre-sale guidelines, and other relevant underwriting
standards in order to ensure the availability of affordable
mortgage credit for condominium and cooperative housing,
consistent with appropriate levels of credit risk. In setting
such fees, guidelines, and standards, each association may
consider factors such as the relative health of the local or
regional housing market in which such housing is located, and
whether the housing is in a new or existing development.