# Public Law 111-22/Division A/Title I
## TITLE I—PREVENTION OF MORTGAGE FORECLOSURES
### SEC. 101. GUARANTEED RURAL HOUSING LOANS.

    (a) Guaranteed rural housing loans.—
       Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended—
          (1) by redesignating paragraphs (13) and (14) as paragraphs (16) and (17), respectively; and
          (2) by inserting after paragraph (12) the following new paragraphs:
             ``(13) Loss mitigation.—Upon default or imminent default of any mortgage guaranteed under this subsection, mortgagees shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including actions such as special forbearance, loan modification, pre-foreclosure sale, deed in lieu of foreclosure, as required, support for borrower housing counseling, subordinate lien resolution, and borrower relocation), as provided for by the Secretary.
             ``(14) Payment of partial claims and mortgage modifications.—The Secretary may authorize the modification of mortgages, and establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage on a 1- to 4-family residence, for mortgages that are in default or face imminent default, as defined by the Secretary. Any payment under such program directed to the mortgagee shall be made at the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary, except that—
                ``(A) the amount of the partial claim payment shall be in an amount determined by the Secretary, and shall not exceed an amount equivalent to 30 percent of the unpaid principal balance of the mortgage and any costs that are approved by the Secretary;
                ``(B) the amount of the partial claim payment shall be applied first to any outstanding indebtedness on the mortgage, including any arrearage, but may also include principal reduction;
                ``(C) the mortgagor shall agree to repay the amount of the partial claim to the Secretary upon terms and conditions acceptable to the Secretary;
                ``(D) expenses related to a partial claim or modification are not to be charged to the borrower;
                ``(E) the Secretary may authorize compensation to the mortgagee for lost income on monthly mortgage payments due to interest rate reduction;
                ``(F) the Secretary may reimburse the mortgagee from the appropriate guaranty fund in connection with any activities that the mortgagee is required to undertake concerning repayment by the mortgagor of the amount owed to the Secretary;
                ``(G) the Secretary may authorize payments to the mortgagee on behalf of the borrower, under such terms and conditions as are defined by the Secretary, based on successful performance under the terms of the mortgage modification, which shall be used to reduce the principal obligation under the modified mortgage; and
                ``(H) the Secretary may authorize the modification of mortgages with terms extended up to 40 years from the date of modification.
             ``(15) Assignment.—
                ``(A) Program authority.—The Secretary may establish a program for assignment to the Secretary, upon request of the mortgagee, of a mortgage on a 1- to 4-family residence guaranteed under this chapter.
                ``(B) Program requirements.—
                   ``(i) In general.—The Secretary may encourage loan modifications for eligible delinquent mortgages or mortgages facing imminent default, as defined by the Secretary, through the payment of the guaranty and assignment of the mortgage to the Secretary and the subsequent modification of the terms of the mortgage according to a loan modification approved under this section.
                   ``(ii) Acceptance of assignment.—The Secretary may accept assignment of a mortgage under a program under this subsection only if—
                      ``(I) the mortgage is in default or facing imminent default;
                      ``(II) the mortgagee has modified the mortgage or qualified the mortgage for modification sufficient to cure the default and provide for mortgage payments the mortgagor is reasonably able to pay, at interest rates not exceeding current market interest rates; and
                      ``(III) the Secretary arranges for servicing of the assigned mortgage by a mortgagee (which may include the assigning mortgagee) through procedures that the Secretary has determined to be in the best interests of the appropriate guaranty fund.
                ``(C) Payment of guaranty.—Under the program under this paragraph, the Secretary may pay the guaranty for a mortgage, in the amount determined in accordance with paragraph (2), without reduction for any amounts modified, but only upon the assignment, transfer, and delivery to the Secretary of all rights, interest, claims, evidence, and records with respect to the mortgage, as defined by the Secretary.
                ``(D) Disposition.—After modification of a mortgage pursuant to this paragraph, and assignment of the mortgage, the Secretary may provide guarantees under this subsection for the mortgage. The Secretary may subsequently—
                   ``(i) re-assign the mortgage to the mortgagee under terms and conditions as are agreed to by the mortgagee and the Secretary;
                   ``(ii) act as a Government National Mortgage Association issuer, or contract with an entity for such purpose, in order to pool the mortgage into a Government National Mortgage Association security; or
                   ``(iii) re-sell the mortgage in accordance with any program that has been established for purchase by the Federal Government of mortgages insured under this title, and the Secretary may coordinate standards for interest rate reductions available for loan modification with interest rates established for such purchase.
                ``(E) Loan Servicing.—In carrying out the program under this subsection, the Secretary may require the existing servicer of a mortgage assigned to the Secretary under the program to continue servicing the mortgage as an agent of the Secretary during the period that the Secretary acquires and holds the mortgage for the purpose of modifying the terms of the mortgage. If the mortgage is resold pursuant to subparagraph (D)(iii), the Secretary may provide for the existing servicer to continue to service the mortgage or may engage another entity to service the mortgage.´´.
    (b) Technical amendments.—
       Subsection (h) of section 502 of the Housing Act of 1949 (42 U.S.C. 1472(h)) is amended—
          (1) in paragraph (5)(A), by striking ``(as defined in paragraph (13)´´ and inserting ``(as defined in paragraph (17)´´; and
          (2) in paragraph (18)(E)(as so redesignated by subsection (a)(2)), by—
                (A) striking ``paragraphs (3), (6), (7)(A), (8), and (10)´´ and inserting ``paragraphs (3), (6), (7)(A), (8), (10), (13), and (14)´´; and
                (B) striking ``paragraphs (2) through (13)´´ and inserting ``paragraphs (2) through (15)´´.
    (c) Procedure.—
          (1) In general.—
             The promulgation of regulations necessitated and the administration actions required by the amendments made by this section shall be made without regard to—
                (A) the notice and comment provisions of section 553 of title 5, United States Code;
                (B) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and
                (C) chapter 35 of title 44, United States Code (commonly known as the ``Paperwork Reduction Act´´).
          (2) Congressional review of agency rulemaking.—
             In carrying out this section, and the amendments made by this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

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

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

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

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

### SEC. 104. MORTGAGE MODIFICATION DATA COLLECTING AND REPORTING.

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

### SEC. 105. NEIGHBORHOOD STABILIZATION PROGRAM REFINEMENTS.

    (a) In general.—
       Section 2301(c) of the Foreclosure Prevention Act of 2008 (42 U.S.C. 5301 note) is amended—
          (1) by redesignating paragraph (3) as paragraph (4); and
          (2) by inserting after paragraph (2) the following new paragraph:
             ``(3) Exception for certain states.—Each State that has received the minimum allocation of amounts pursuant to the requirement under section 2302 may, to the extent such State has fulfilled the requirements of paragraph (2), distribute any remaining amounts to areas with homeowners at risk of foreclosure or in foreclosure without regard to the percentage of home foreclosures in such areas.´´.
    (b) Retroactive effective date.—
       The amendment made by subsection (a) shall take effect as if enacted on the date of enactment of the Foreclosure Prevention Act of 2008 (Public Law 110-289).