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[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.

                                  
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