I 

113TH CONGRESS 

1ST SESSION H. R. 190 

To require the filing of certain information regarding a residential mortgage 

in any proceeding for foreclosure of the mortgage. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2013 

Ms. KAPTUR introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require the filing of certain information regarding a residential mortgage in any proceeding for foreclosure of 

the mortgage. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Produce the Note Act 

5 of 2013’’. 

6 SEC. 2. REQUIRED INFORMATION AND NOTICE. 

7 Notwithstanding any other provision of State or Fed8 eral law, no foreclosure, whether judicial or nonjudicial, 

9 may be commenced with respect to a covered residential 


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1 mortgage unless the person commencing the foreclosure 

2 complies with all of the following requirements: 

3 (1) SUBMISSION OF INFORMATION.—The per4 son commencing the foreclosure shall submit to the 

5 court, in the case of a judicial foreclosure, or to the 

6 office of the State or other subdivision of the State 

7 to which notice of default, foreclosure, or sale of the 

8 foreclosed property is required under State law to be 

9 submitted, in the case of a nonjudicial foreclosure, 

10 a report prepared by an independent party that in11 cludes the following information: 

12 (A) A statement of findings as to whether 

13 the covered residential mortgage was made and 

14 serviced in compliance with the terms of, and 

15 regulations under, the following laws: 

16 (i) The Truth in Lending Act (15 

17 U.S.C. 1601) and Regulation Z of the 

18 Board of Governors of the Federal Reserve 

19 System under such Act. 

20 (ii) The Equal Credit Opportunity Act 

21 (15 U.S.C. 1691 et seq.) and Regulation B 

22 of the Board of Governors of the Federal 

23 Reserve System under such Act. 

24 (iii) The Fair Debt Collection Prac25 tices Act (15 U.S.C. 1692 et seq.). 


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1 (iv) The Federal Fair Credit Report2 ing Act (15 U.S.C. 1681 et seq.). 

3 (v) The Real Estate Settlement Proce4 dures Act of 1974 (12 U.S.C. 2601 et 

5 seq.) and Regulation X of the Secretary of 

6 Housing and Urban Development under 

7 such Act. 

8 (vi) The Flood Disaster Protection 

9 Act of 1973 (42 U.S.C. 2002 et seq.). 

10 (vii) The Fair Housing Act (42 

11 U.S.C. 3601 et seq.). 

12 (viii) The Home Mortgage Disclosure 

13 Act of 1975 (12 U.S.C. 2801 et seq.). 

14 (ix) The Financial Institutions Re15 form, Recovery, and Enforcement Act of 

16 1989 (Public Law 101–73). 

17 (x) Any applicable provisions of State 

18 and local law relating to real estate lending 

19 or consumer protection. 

20 (B) Certification of any mortgage modi21 fication efforts that were employed and any of22 fers made to the mortgagor by the person com23 mencing the foreclosure. 

24 (C) If any noncompliance is found pursu25 ant to subparagraph (A), a statement as to 


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1 whether the violations are such that the mort2 gagor should be afforded an extended right, be3 yond the period permitted under State law— 

4 (i) to rescind the mortgage in defense 

5 of the foreclosure; or 

6 (ii) to redeem the mortgage. 

7 (D) Identification of— 

8 (i) the actual holder of the mortgage 

9 note, the originating lender for the mort10 gage and all subsequent assignees, and all 

11 other parties who have an interest in the 

12 real estate that is subject to the mortgage 

13 or in the mortgage or the proceeds of the 

14 mortgage; and 

15 (ii) any parties identified pursuant to 

16 clause (i) that received any assistance pur17 suant to title I of the Emergency Eco18 nomic Stabilization Act of 2008 (12 U.S.C. 

19 5211 et seq.) and the amount of any such 

20 assistance received. 

21 (E) A statement of whether a bona fide de22 fault on the covered mortgage has occurred. 

23 (F) A description of any hardship cir24 cumstances regarding the economic cir25 cumstances of the mortgagor that would be relVerDate Mar 15 2010 03:54 Jan 11, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H190.IH H190

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1 evant to a determination by the mortgagee of 

2 whether to modify the mortgage. 

3 (G) A statement of whether the mortgage 

4 is insured under title II of the National Hous5 ing Act (12 U.S.C. 1707 et seq.). 

6 (H) A statement of whether the mortgage 

7 is, or any terms of the mortgage are, unfair or 

8 constitute an unfair or deceptive act or practice 

9 violating the Federal Trade Commission Act 

10 (15 U.S.C. 41 et seq.), and if so, a description 

11 of the unfairness or the unfair or deceptive act 

12 or practice. 

13 (I) A statement of whether any material 

14 misrepresentations were made that fraudulently 

15 induced the mortgagor to enter into the trans16 action to his or her detriment, and if so, a de17 scription of such misrepresentation. 

18 (J) Identification of any offsets to the 

19 creditor claim on the mortgage. 

20 (K) A statement of the racial characteris21 tics, gender, census tract, and income level of 

22 the mortgagor, as such terms are used for pur23 poses of compliance with the Home Mortgage 

24 Disclosure Act of 1975 (12 U.S.C. 2801 et 

25 seq.). 


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1 (2) REQUIRED NOTIFICATION.—The person 

2 commencing the foreclosure shall provide notice to 

3 the mortgagor, in writing, not less than 5 days be4 fore any action is taken to commence the proceeding 

5 or action for foreclosure, and shall certify to the 

6 court, in the case of a judicial foreclosure, or to the 

7 office of the State or other subdivision of the State 

8 to which notice of default, foreclosure, or sale of the 

9 foreclosed property is required under State law to be 

10 submitted in the case of a nonjudicial foreclosure, 

11 that such notice has been provided, that includes the 

12 following information: 

13 (A) A statement of any rights of the mort14 gagor under the applicable laws governing the 

15 foreclosure and consumer rights. 

16 (B) A statement of any deadlines for filing 

17 answers, defenses, or objections to the fore18 closure, including those rights of the mortgagor 

19 under the Real Estate Settlement Procedures 

20 Act of 1974 and any applicable State laws. 

21 (C) A statement of any penalties and other 

22 consequences for the mortgagor if the mort23 gagor does not respond or file answers to the 

24 foreclosure. 


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1 (D) A statement of the amounts claimed to 

2 be in arrears under the mortgage and needed to 

3 reinstate the account and all associated costs 

4 and fees, set forth in itemized and distinct cat5 egories, and current and correct contact infor6 mation, including telephone numbers, electronic 

7 mail addresses, and postal addresses, at which 

8 the mortgagor can obtain further information 

9 regarding the mortgage account. 

10 (E) A description of any additional op11 tions, such as mortgage workout, modification, 

12 mitigation, and redemption, that might be avail13 able to the mortgagor to prevent the foreclosure 

14 from proceeding and a description of how the 

15 mortgagor can obtain additional information re16 garding such options. 

17 (F) A statement of the correct names, tele18 phone numbers, electronic mail addresses, post19 al addresses, and any State licensing numbers 

20 of the mortgage holder, the mortgage servicer, 

21 and the person or persons authorized to take 

22 the actions described pursuant to subparagraph 

23 (E). 


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1 SEC. 3. DEFINITIONS. 

2 For purposes of this Act, the following definitions 

3 shall apply: 

4 (1) INDEPENDENT PARTY.—The term ‘‘inde5 pendent party’’ means, with respect to foreclosure on 

6 a covered residential mortgage, an individual who 

7 has no interest in, or affiliation with, any party in8 volved in such foreclosure or with the covered resi9 dential mortgage involved in such foreclosure, in10 cluding any party that owns, manages, controls, or 

11 directs such an involved party, any party that is 

12 owned, managed, controlled, or directed by such an 

13 involved party, or any party that is under common 

14 ownership, management, control, or direction with 

15 such an involved party. 

16 (2) COVERED RESIDENTIAL MORTGAGE.—The 

17 term ‘‘covered residential mortgage’’ means a mort18 gage that meets the following requirements: 

19 (A) The property securing the obligation 

20 under the mortgage shall be a one- to four-fam21 ily dwelling, including a condominium or a 

22 share in a cooperative ownership housing asso23 ciation. 

24 (B) The mortgagor under the mortgage 

25 shall occupy the property securing the obligaVerDate Mar 15 2010 03:54 Jan 11, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H190.IH H190

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1 tion under the mortgage as his or her principal 

2 residence. 

3 (3) MORTGAGE.— 

4 (A) IN GENERAL.—The term ‘‘mortgage’’ 

5 means a deed of trust, mortgage, deed to secure 

6 debt, security agreement, or any other form of 

7 instrument under which any property (real, per8 sonal, or mixed), or any interest in property 

9 (including leaseholds, life estates, reversionary 

10 interests, and any other estates under applica11 ble State law), is conveyed in trust, mortgaged, 

12 encumbered, pledged, or otherwise rendered 

13 subject to a lien for the purpose of securing the 

14 payment of money or the performance of an ob15 ligation. 

16 (B) CONDOMINIUMS AND COOPERA17 TIVES.—Such term includes a first mortgage 

18 given to secure— 

19 (i) the unpaid purchase price of a fee 

20 interest in, or a long-term leasehold inter21 est in, a one-family unit in a multifamily 

22 project, including a project in which the 

23 dwelling units are attached or are manu24 factured housing units, semi-detached, or 

25 detached, and an undivided interest in the 


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1 common areas and facilities that serve the 

2 project; or 

3 (ii) repayment of a loan made to fi4 nance the purchase of stock or membership 

5 in a cooperative housing corporation the 

6 permanent occupancy of dwelling units of 

7 which is restricted to members of such cor8 poration, where the purchase of such stock 

9 or membership entitles the purchaser to 

10 the permanent occupancy of one of such 

11 units. 

12 SEC. 4. RELATION TO STATE LAW. 

13 This Act does not annul, alter, or affect, or exempt 

14 any person subject to the provisions of this Act from com15 plying with, the laws of any State or subdivision thereof 

16 with respect to foreclosure on a residential mortgage, ex17 cept to the extent that those laws are inconsistent with 

18 any provision of this Act, and then only to the extent of 

19 the inconsistency. No provision of the laws of any State 

20 or subdivision thereof may be determined to be incon21 sistent with any provision of this Act if such law is deter22 mined to require greater disclosure or notice than is re23 quired under this Act or to provide greater protection to 

24 the mortgagee than is required under this Act. 

Æ 


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