111TH CONGRESS 

1ST SESSION H. R. 384 

AN ACT 

To reform the Troubled Assets Relief Program of the Secretary of the Treasury and ensure accountability under 

such Program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘TARP Reform and Accountability Act of 2009’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MODIFICATIONS TO TARP AND TARP OVERSIGHT 

Sec. 101. New conditionality for TARP-assisted institutions. 

Sec. 102. Executive compensation and corporate governance. 

Sec. 103. New lending by insured depository institutions that is attributable to 

TARP investments and assistance. 

Sec. 104. Other protections for the taxpayer. 

Sec. 105. Availability of TARP funds to smaller community institutions. 

Sec. 106. Increase in size and authority of Financial Stability Oversight Board. 

Sec. 107. Inclusion of women and minorities. 

Sec. 108. Analysis of use of assistance. 

Sec. 109. Database of use of TARP funds. 

Sec. 110. Clarification. 

Sec. 111. Investment of TARP funds in credit unions taken into account in determination of net worth. 

Sec. 112. Treasury facilitated auction. 

Sec. 113. Broadened Inspector General Authority. 

TITLE II—FORECLOSURE RELIEF 

Sec. 201. TARP foreclosure mitigation plan and implementation. 

Sec. 202. Elements of plan. 

Sec. 203. Program alternatives. 

Sec. 204. Systematic foreclosure prevention and mortgage modification plan established. 

Sec. 205. Modification of plan. 

Sec. 206. Servicer safe harbor. 

Sec. 207. Foreclosure moratorium recommendation. 

Sec. 208. Foreclosure prevention for affordable housing. 

Sec. 209. Report by Congressional Oversight Panel. 

Sec. 210. Mortgage modification data collecting and reporting. 

TITLE III—AUTO INDUSTRY FINANCING AND RESTRUCTURING 

Sec. 301. Short title. 

Sec. 302. Direct loan provisions. 

TITLE IV—CLARIFICATION OF AUTHORITY 

Sec. 401. Consumer loans. 

Sec. 402. Municipal securities. 

Sec. 403. Commercial real estate loans. 

Sec. 404. Small business loans. 

Sec. 405. Commercial loans. 
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Sec. 406. Automobile fleet purchase loans. 

Sec. 407. Certification. 

TITLE V—HOPE FOR HOMEOWNERS PROGRAM IMPROVEMENTS 

Sec. 501. Changes to HOPE for Homeowners Program. 

TITLE VI—HOME BUYER STIMULUS 

Sec. 601. Home buyer stimulus program. 

TITLE VII—FDIC PROVISIONS 

Sec. 701. Permanent increase in deposit insurance. 

Sec. 702. Extension of restoration plan period. 

Sec. 703. Borrowing authority. 

Sec. 704. Systemic risk special assessments. 

TITLE VIII—REPORTS ON THE GUARANTEE OF CERTAIN 

CITIGROUP ASSETS 

Sec. 801. Reports required. 

TITLE IX—GAO STUDY OF FINANCIAL CRISIS 

Sec. 901. Study required. 

Sec. 902. Treasury strategy and timeline. 

TITLE X—AGENCY MBS PURCHASE PROGRAM DISCLOSURE 

Sec. 1001. Disclosure required. 

1 TITLE I—MODIFICATIONS TO 

2 TARP AND TARP OVERSIGHT 

3 SEC. 101. NEW CONDITIONALITY FOR TARP-ASSISTED IN4 STITUTIONS. 

5 (a) IN GENERAL.—Section 113 of the Emergency 

6 Economic Stabilization Act of 2008 (12 U.S.C. 5223) is 

7 amended by adding at the end the following new sub8 sections: 

9 ‘‘(e) REPORTING, MONITORING AND ACCOUNT10 ABILITY.— 

11 ‘‘(1) PERIODIC PUBLIC REPORTING ON USE OF

12 ASSISTANCE.—The Secretary shall require any as-
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1 sisted institution that became an assisted institution 

2 on or after October 3, 2008, to publicly report, not 

3 less than quarterly, on such institution’s use of the 

4 assistance. Such reporting may be required directly 

5 for nondepository institutions or through the appro6 priate Federal banking agency, as provided in sec7 tion 103. 

8 ‘‘(2) ADDITIONAL REQUIREMENTS AND COMPLI9 ANCE.—The Secretary— 

10 ‘‘(A) may establish additional reporting 

11 and information requirements for any direct or 

12 indirect recipient of any assistance or benefit at 

13 any time on or after October 3, 2008, that in14 volves the obligation or expenditure, loan, or in15 vestment of funds available to the Secretary 

16 under this title; and 

17 ‘‘(B) shall establish appropriate mecha18 nisms to ensure appropriate use and compliance 

19 with all terms of any use of funds made avail20 able under this title. 

21 ‘‘(3) CONSULTATION.—The Secretary shall con22 sult with the appropriate Federal banking agencies 

23 in establishing the reporting requirements under this 

24 subsection that are applicable to insured depository 

25 institutions. 
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1 ‘‘(4) ONLINE PUBLICATION OF PERIODIC RE2 PORTS.—The Secretary shall make publicly available 

3 on the Internet each report made in accordance with 

4 paragraph (1). 

5 ‘‘(5) USE OF 2008 ASSISTANCE.— 

6 ‘‘(A) COLLECTION OF INFORMATION.—Ef7 fective upon enactment of this paragraph, The 

8 Secretary shall require any assisted institution 

9 which received assistance under this title before 

10 January 1, 2009, to provide sufficient informa11 tion with regard to such assistance as to inform 

12 the Secretary of the precise use of such assist13 ance by the institution and the purpose for the 

14 use. 

15 ‘‘(B) ANALYSIS.—The Secretary shall con16 duct an analysis of the use of the assistance for 

17 which information was received under subpara18 graph (A). 

19 ‘‘(C) REPORT TO THE CONGRESS.—Within 

20 30 days after the enactment of this paragraph, 

21 the Secretary shall promptly submit a report 

22 containing the findings and conclusion of the 

23 Secretary on the use of the assistance referred 

24 to in subparagraph (A), together with such rec25 ommendations for legislative or administrative 
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1 action as the Secretary may determine to be ap2 propriate, to the Committee on Financial Serv3 ices of the House of Representatives, the Com4 mittee on Banking, Housing, and Urban Affairs 

5 of the Senate, and the Committees on Appro6 priations of the House of Representatives and 

7 the Senate. 

8 ‘‘(f) USE AND ACCOUNTABILITY FOR USE OF

9 FUNDS.— 

10 ‘‘(1) INSURED DEPOSITORY INSTITUTION.— 

11 ‘‘(A) INVESTMENT IN OR OTHER INJEC12 TION OF FUNDS INTO A DEPOSITORY INSTITU13 TION.—Except as provided in section 105, as a 

14 condition for the provision of any investment in 

15 the capital or assets of, or any other provision 

16 of assistance to or for the benefit of, any in17 sured depository institution made after the date 

18 of the enactment of the TARP Reform and Ac19 countability Act of 2009, the Secretary shall in20 corporate into the agreement for such invest21 ment or assistance an agreement between the 

22 depository institution and the appropriate Fed23 eral banking agency with respect to such insti24 tution on the manner in which the funds are to 

25 be used and benchmarks that the institution is 
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1 required to meet in using the assistance so as 

2 to advance the purposes of this Act to strength3 en the soundness of the financial system and 

4 the availability of credit to the economy. 

5 ‘‘(B) EXAMINATIONS.—In the case of any 

6 assisted insured depository institution that be7 came an assisted institution on or after October 

8 3, 2008, the appropriate Federal banking agen9 cy shall specifically review at least once annu10 ally the use, by the institution, of assistance 

11 made available under this Act and compliance 

12 by the institution with the requirements estab13 lished by or pursuant to this title or by agree14 ment of the institution with the Secretary or 

15 the appropriate Federal banking agency, includ16 ing executive compensation and any other spe17 cific agreement terms. Such review may be con18 ducted in connection with the regular full-site 

19 examination, or any other examination. 

20 ‘‘(C) COMPLIANCE PROCEDURES RE21 QUIRED.—Each appropriate Federal banking 

22 agency shall prescribe regulations requiring as23 sisted insured depository institutions to estab24 lish and maintain procedures designed to assure 

25 and monitor the compliance of such depository 
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1 institutions with the requirements established 

2 by or pursuant to this title or by agreement of 

3 the institution with the Secretary or such agen4 cy. 

5 ‘‘(2) USE OF TARP FUNDS FOR MERGERS OR

6 ACQUISITIONS.—Effective as of the date of the en7 actment of the TARP Reform and Accountability 

8 Act of 2009, no assisted institution that became an 

9 assisted institution at any time on or after October 

10 3, 2008, may merge or consolidate with any insured 

11 depository institution or, either directly or indirectly, 

12 acquire the assets of, or assume liability to pay any 

13 deposits made in, any insured depository institution, 

14 and no Federal banking agency may approve any 

15 such action under section 18(c) of the Federal De16 posit Insurance Act, while any of such assistance is 

17 outstanding unless, prior to the approval of such 

18 agency, the Secretary has determined in consultation 

19 with any relevant Federal banking agencies that— 

20 ‘‘(A) such action will reduce risk to the 

21 taxpayer; or 

22 ‘‘(B) the transaction could have been con23 summated without assistance provided under 

24 this title. 
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1 ‘‘(3) NONDEPOSITORY INSTITUTIONS.—In the 

2 case of any assisted institution that became an as3 sisted institution on or after October 3, 2008, and 

4 is not described in and subject to paragraph (1), the 

5 Secretary shall establish such reporting requirements 

6 and require any other conditions or agreements no 

7 less stringent than those applicable to assisted in8 sured depository institutions, including requirements 

9 to conduct examinations of the books, affairs, and 

10 procedures of any such financial institution by the 

11 Secretary or by delegation to the Board. 

12 ‘‘(4) RENTER PROTECTION.—In the case of any 

13 foreclosure on any dwelling or residential real prop14 erty securing an extension of credit made under a 

15 contract entered into after the date of the enactment 

16 of this Act, any successor in interest in such prop17 erty pursuant to the foreclosure shall assume such 

18 interest subject to— 

19 ‘‘(A) the provision, by the successor in in20 terest, of a notice to vacate to any bona fide 

21 tenant at least 90 days before the effective date 

22 of the notice to vacate; and 

23 ‘‘(B) the rights of any bona fide tenant, as 

24 of the date of such notice of foreclosure— 
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1 ‘‘(i) under any bona fide lease entered 

2 into before the notice of foreclosure to oc3 cupy the premises until the end of the re4 maining term of the lease or the end of the 

5 6-month period beginning on the date of 

6 the notice of foreclosure, whichever occurs 

7 first, subject to the receipt by the tenant 

8 of the 90-day notice under subparagraph 

9 (A); or 

10 ‘‘(ii) without a lease or with a lease 

11 terminable at will under State law, subject 

12 to the receipt by the tenant of the 90-day 

13 notice under subparagraph (A). 

14 ‘‘(5) BONA FIDE LEASE OR TENANCY.—For 

15 purposes of this paragraph (1), a lease or tenancy 

16 shall be considered bona fide only if— 

17 ‘‘(A) the mortgagor under the contract is 

18 not the tenant; 

19 ‘‘(B) the lease or tenancy was the result of 

20 an arms-length transaction; or 

21 ‘‘(C) the lease or tenancy requires the re22 ceipt of rent that is not substantially less than 

23 fair market rent for the property. 

24 ‘‘(6) PROHIBITION ON USE OF TARP FUNDS

25 FOR FOREIGN CUSTOMER SERVICE POSITIONS.—Ef-
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1 fective as of the date of the enactment of the TARP 

2 Reform and Accountability Act of 2009, no assisted 

3 institution that became an assisted institution on or 

4 after October 3, 2008, may enter into a new agree5 ment, or expand a current agreement, with any for6 eign company for provision of customer service func7 tions, including call-center services, while any of 

8 such assistance is outstanding. 

9 ‘‘(g) NO IMPEDIMENT TO WITHDRAWAL.—Subject to 

10 consultation with the appropriate Federal banking agen11 cies, the Secretary shall permit an assisted insured deposi12 tory institution to repay any assistance previously pro13 vided under this title to such depository institution with14 out regard to whether the depository institution has re15 placed such funds from any other source, and when such 

16 assistance is repaid, the Secretary shall liquidate warrants 

17 associated with such assistance at the current market 

18 price.’’. 

19 (b) DEFINITIONS.—Section 3 of the Emergency Eco20 nomic Stabilization Act of 2008 (12 U.S.C. 5202) is 

21 amended by adding at the end the following new para22 graphs: 

23 ‘‘(10) DEFINITIONS RELATING TO INSURED DE24 POSITORY INSTITUTIONS.—The terms ‘depository in25 stitution’, ‘insured depository institution’, ‘Federal 
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1 banking agency’ and ‘appropriate Federal banking 

2 agency’ have the same meanings as in section 3 of 

3 the Federal Deposit Insurance Act. 

4 ‘‘(11) ASSISTED INSTITUTION.—The terms ‘as5 sisted institution’ or ‘assisted insured depository in6 stitution’ mean any such institution that receives, di7 rectly or indirectly, any assistance or benefit that in8 volves the obligation or expenditure, loan, or invest9 ment of funds available to the Secretary under title 

10 I.’’. 

11 SEC. 102. EXECUTIVE COMPENSATION AND CORPORATE 

12 GOVERNANCE. 

13 (a) IN GENERAL.—Section 111 of the Emergency 

14 Economic Stabilization Act of 2008 (12 U.S.C. 5221) is 

15 amended by adding at the end the following new sub16 sections: 

17 ‘‘(e) ACROSS-THE-BOARD EXECUTIVE COMPENSA18 TION AND CORPORATE GOVERNANCE REQUIREMENTS.— 

19 ‘‘(1) STANDARDS REQUIRED.—Notwithstanding 

20 any provision of, and in addition to any requirement 

21 of subsection (a), (b), or (c) (other than the defini22 tions in subsection (b)(3)), the Secretary shall re23 quire any institution that became an assisted institu24 tion after the date of the enactment of the TARP 

25 Reform and Accountability Act of 2009 to meet 
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1 standards for executive compensation and corporate 

2 governance while any assistance under this title is 

3 outstanding. 

4 ‘‘(2) SPECIFIC REQUIREMENTS.—The standards 

5 established under paragraph (1) shall include— 

6 ‘‘(A) limits on compensation that exclude 

7 incentives for senior executive officers of such 

8 institution to take unnecessary and excessive 

9 risks that threaten the value of such institution 

10 during the period that any assistance under this 

11 title is outstanding; 

12 ‘‘(B) a provision for the recovery by such 

13 institution of any bonus or incentive compensa14 tion paid to a senior executive officer based on 

15 statements of earnings, gains, or other criteria 

16 that are later found to be materially inaccurate; 

17 ‘‘(C) a prohibition on such institution mak18 ing any golden parachute payment to a senior 

19 executive officer during the period that the as20 sistance under this title is outstanding; 

21 ‘‘(D) a prohibition on such institution pay22 ing or accruing any bonus or incentive com23 pensation, during the period that the assistance 

24 under this title is outstanding, to the 25 most 

25 highly-compensated employees; and 
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1 ‘‘(E) a prohibition on any compensation 

2 plan that would encourage manipulation of such 

3 institution’s reported earnings to enhance the 

4 compensation of any of its employees. 

5 ‘‘(3) APPLICABILITY TO PRIOR ASSISTANCE.— 

6 Notwithstanding any limitations included in sub7 section (a), (b), or (c) with regard to applicability, 

8 the Secretary may apply the requirements of and the 

9 standards established under this subsection to any 

10 assisted institution that received any assistance 

11 under this title before the date of the enactment of 

12 the TARP Reform and Accountability Act of 2009. 

13 ‘‘(f) BOARD OBSERVER.—The Secretary may require 

14 the attendance of an observer delegated by the Secretary, 

15 on behalf of the Secretary, to attend the meetings of the 

16 board of directors of any assisted institution that became 

17 an assisted institution before October 3, 2008, and any 

18 committees of such board of directors, while any assist19 ance under this title is outstanding.’’. 

20 (b) REPEAL OF DE MINIMIS EXCEPTION.—Section 

21 111(c) of the Emergency Economic Stabilization Act of 

22 2008 (12 U.S.C. 5221(c)) is amended by striking ‘‘and 

23 only where such purchases per financial institution in the 

24 aggregate exceed $300,000,000 (including direct pur25 chases),’’. 
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1 SEC. 103. NEW LENDING BY INSURED DEPOSITORY INSTI2 TUTIONS THAT IS ATTRIBUTABLE TO TARP 

3 INVESTMENTS AND ASSISTANCE. 

4 Section 7(a) of the Federal Deposit Insurance Act 

5 (U.S.C. 1817(a)) is amended by adding at the end the 

6 following new paragraph: 

7 ‘‘(12) LENDING INCREASES ATTRIBUTABLE TO

8 INVESTMENT OR OTHER ASSISTANCE UNDER THE

9 TROUBLED ASSETS RELIEF PROGRAM.— 

10 ‘‘(A) IN GENERAL.—Each report of condi11 tion filed pursuant to this subsection by an in12 sured depository institution which received an 

13 investment or other assistance under the Trou14 bled Assets Relief Program established by the 

15 Emergency Economic Stabilization Act of 2008 

16 or section 136(d) of the Energy Independence 

17 and Security Act of 2007 shall report the 

18 amount of any increase in new lending in the 

19 period covered by such report (or the amount of 

20 any reduction in any decrease in new lending) 

21 that is attributable to such investment or as22 sistance, to the extent possible. 

23 ‘‘(B) ALTERNATIVE MEASURE.—If an in24 sured depository institution that is subject to 

25 subparagraph (A) cannot accurately quantify 

26 the effect that an investment or other assist-
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1 ance under such Troubled Assets Relief Pro2 gram has had on new lending by the institution, 

3 the insured depository institution shall report 

4 the total amount of the increase in new lending, 

5 if any, in the period covered by such report. 

6 ‘‘(C) DESIGNATION OF REPORTING RE7 QUIREMENT.—The Federal banking agencies 

8 and the Secretary of the Treasury shall specify 

9 the form, content, and manner of reports re10 quired under this paragraph, and shall require 

11 such reports to be provided to the appropriate 

12 State bank supervisor (as defined in section 3 

13 of the Federal Deposit Insurance Act).’’. 

14 SEC. 104. OTHER PROTECTIONS FOR THE TAXPAYER. 

15 (a) WARRANT REQUIREMENTS.—Subsection (d) of 

16 section 113 of the Emergency Economic Stabilization Act 

17 of 2008 (12 U.S.C. 5223(d)) is amended by adding at the 

18 end the following new paragraph: 

19 ‘‘(4) AMOUNT.—For assistance provided after 

20 the date of the enactment of the TARP Reform and 

21 Accountability Act of 2009, and except as provided 

22 in title III of such Act, the warrants or instruments 

23 described in this section shall have a value at least 

24 equal to 15 percent of the aggregate amount of such 

25 assistance.’’. 
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1 (b) REPEAL OF CERTAIN EXCEPTION.—Section 

2 113(d)(3) of the Emergency Economic Stabilization Act 

3 of 2008 (12 U.S.C. 5223(d)(3)) is amended by striking 

4 subparagraph (A). 

5 SEC. 105. AVAILABILITY OF TARP FUNDS TO SMALLER COM6 MUNITY INSTITUTIONS. 

7 (a) PROMPT ACTION.—The Secretary shall promptly 

8 take all necessary actions to provide assistance under title 

9 I of the Emergency Economic Stabilization Act of 2008 

10 to smaller community financial institutions, including such 

11 institutions that are privately held. 

12 (b) COMPARABLE TERMS.—An institution that re13 ceives assistance after the date of the enactment of the 

14 TARP Reform and Accountability Act of 2009, shall do 

15 so on terms comparable to the terms applicable to institu16 tions that received assistance prior to the date of the en17 actment of such Act of 2009: Provided, That the institu18 tion— 

19 (1) has submitted an application on which no 

20 action has been taken, such as institutions that are 

21 C corporations (including privately held institutions) 

22 and community development financial institutions; 

23 or 

24 (2) is of a type for which the Secretary has not 

25 yet established an application deadline or for which 
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1 any such deadline has not yet occurred as of the 

2 date of the enactment of this Act, such as institu3 tions that are non-stock corporations, S-corpora4 tions, mutually-owned insured depository institutions 

5 (as defined in section 3 of the Federal Deposit In6 surance Act). 

7 (c) DEFINITIONS.—For purposes of this section, the 

8 terms ‘‘S Corporation’’ and ‘‘C Corporation’’ shall have 

9 the same meaning given to those terms in section 1361(a) 

10 of the Internal Revenue Code of 1986. 

11 SEC. 106. INCREASE IN SIZE AND AUTHORITY OF FINAN12 CIAL STABILITY OVERSIGHT BOARD. 

13 (a) AUTHORITY.—Section 104 of the Emergency 

14 Economic Stabilization Act of 2008 (12 U.S.C. 2514) is 

15 amended— 

16 (1) by redesignating subsections (g) and (h) as 

17 subsections (h) and (i), respectively; and 

18 (2) by inserting after subsection (f) the fol19 lowing new subsection: 

20 ‘‘(g) REVIEW AND DECISIONMAKING.—After con21 ducting any review under this section of a policy deter22 mination made by the Secretary, the Financial Stability 

23 Oversight Board may overturn any such policy determina24 tion by a two-thirds vote of all members of such board.’’. 
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1 (b) APPOINTMENT OF 3 ADDITIONAL MEMBERS.— 

2 Section 104(b) of the Emergency Economic Stabilization 

3 Act of 2008 (12 U.S.C. 2514(b)) is amended— 

4 (1) by striking ‘‘and’’ at the end of paragraph 

5 (4); 

6 (2) by striking the period at the end of para7 graph (5) and inserting a semicolon; and 

8 (3) by adding at the end the following new 

9 paragraphs: 

10 ‘‘(6) the Chairperson of the Board of Directors 

11 of the Federal Deposit Insurance Corporation; and 

12 ‘‘(7) two members appointed by the President, 

13 by and with the consent of the Senate, from among 

14 individuals who are not officers or employees of the 

15 United States Government.’’. 

16 SEC. 107. INCLUSION OF WOMEN AND MINORITIES. 

17 (a) OFFICE OF MINORITY AND WOMEN INCLU18 SION.—The Secretary of the Treasury shall establish an 

19 Office of Minority and Women Inclusion, or designate an 

20 office of the entity, that shall be responsible for carrying 

21 out this section and ensuring compliance by the Secretary 

22 and each assisted institution (as such term is defined in 

23 section 3 of the Emergency Economic Stabilization Act of 

24 2008) with the requirements of this section. The Office 

25 shall be responsible for all matters of the entity relating 
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1 to diversity in management, employment, and business ac2 tivities in accordance with such standards and require3 ments as the Secretary shall establish regarding the use 

4 of assistance provided under title I of such Act. 

5 (b) INCLUSION IN ALL LEVELS OF BUSINESS ACTIVI6 TIES.—The Secretary and each assisted institution shall 

7 develop and implement standards and procedures to en8 sure, to the maximum extent possible, the inclusion and 

9 utilization of minorities (as such term is defined in section 

10 1204(c) of the Financial Institutions Reform, Recovery, 

11 and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and 

12 women, and minority- and women-owned businesses (as 

13 such terms are defined in section 21A(r)(4) of the Federal 

14 Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including 

15 financial institutions, investment banking firms, mortgage 

16 banking firms, asset management firms, broker-dealers, fi17 nancial services firms, underwriters, accountants, brokers, 

18 investment consultants, and providers of legal services) in 

19 all business and activities of the Secretary and each as20 sisted institution at all levels, including in procurement, 

21 insurance, and all types of contracts (including contracts 

22 for the issuance or guarantee of any debt, equity, or mort23 gage-related securities, the management of its mortgage 

24 and securities portfolios, the making of its equity invest25 ments, the purchase, sale and servicing of single- and 
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1 multi-family mortgage loans, and the implementation of 

2 its affordable housing program and initiatives). The proc3 esses established by the Secretary and each assisted insti4 tution for review and evaluation for contract proposals and 

5 to hire service providers shall include a component that 

6 gives consideration to the diversity of the applicant. 

7 (c) APPLICABILITY.—This section shall apply to all 

8 contracts of the Secretary of the Treasury and assisted 

9 institutions for services of any kind, including services 

10 that require the services of investment banking, asset 

11 management entities, broker-dealers, financial services en12 tities, underwriters, accountants, investment consultants, 

13 and providers of legal services. 

14 (d) REPORTS TO CONGRESS.—Not later than 180 

15 days after the date of the enactment of this Act, the Sec16 retary shall report to the Congress detailed information 

17 describing the actions taken by the Office and assisted in18 stitutions pursuant to this section, which shall include a 

19 statement of the total amounts provided by the Secretary 

20 and assisted institutions under title I of the Emergency 

21 Economic Stabilization Act of 2008 to third party contrac22 tors since the last such report and the percentage of such 

23 amounts paid to businesses described in subsection (b) of 

24 this section. 
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1 SEC. 108. ANALYSIS OF USE OF ASSISTANCE. 

2 (a) REQUIREMENT.—The Secretary of the Treasury 

3 shall regularly analyze timely and detailed information 

4 concerning the use of assistance provided under title I of 

5 the Emergency Economic Stabilization Act of 2008 by as6 sisted institutions to ensure that the program established 

7 under title I of such Act is meeting the goals of the pro8 gram. 

9 (b) AGENCY COLLECTION.—The Secretary of the 

10 Treasury shall require the Federal banking agencies (as 

11 defined in section 3 of the Federal Deposit Insurance Act) 

12 and any other Federal agency the Secretary chooses to 

13 report detailed information to the Secretary on the use 

14 of assistance provided by the Secretary under the Emer15 gency Economic Stabilization Act of 2008 in a standard 

16 electronic form on no less than a quarterly basis. 

17 (c) SOURCE OF INFORMATION.—The data collected 

18 and analyzed under subsections (a) and (b)— 

19 (1) shall come from existing reports filed by all 

20 assisted institutions where possible, including deposi21 tory institutions and nondepository institutions, with 

22 the principal Federal regulator of each such institu23 tion, if any; and 

24 (2) and should be sufficiently detailed and time25 ly to enable the Secretary to determine the effective26 ness of the program established under title I of the 
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1 Emergency Economic Stabilization Act of 2008 in 

2 stimulating prudent lending and strengthening bank 

3 capital. 

4 (d) ADJUSTMENTS AND RECOMMENDATIONS.— If 

5 the Secretary of the Treasury determines that— 

6 (1) the goals of the program established under 

7 title I of the Emergency Economic Stabilization Act 

8 of 2008 are not being met, the Secretary shall work 

9 with the Federal agencies supplying the information 

10 under subsection (b) to encourage such agencies to 

11 provide the recipients of assistance under such title 

12 with recommendations for better meeting the goals 

13 of the program; and 

14 (2) the goals of the program are not being met 

15 following the recommendations and adjustments 

16 made in accordance with paragraph (1), the Sec17 retary shall adjust the future uses of assistance pro18 vided under such title. 

19 SEC. 109. DATABASE OF USE OF TARP FUNDS. 

20 The Secretary of the Treasury shall create and main21 tain a fully searchable database, accessible on the Internet 

22 at no cost to the public, that contains the name of each 

23 entity receiving funds made available under section 115(a) 

24 of the Emergency Economic Stabilization Act of 2008 (12 
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1 U.S.C. 5225(a)) and the purpose for which such entity 

2 is receiving such funds. 

3 SEC. 110. CLARIFICATION. 

4 Section 101 of the Emergency Economic Stabilization 

5 Act of 2008 (12 U.S.C. 2514(b)) is amended by adding 

6 at the end the following new subsections: 

7 ‘‘(f) CLARIFICATION.—Any provision of capital to, 

8 purchase of equity in, or assistance provided to any insti9 tution under this title shall be considered to be a purchase 

10 of troubled assets for purposes of this title. 

11 ‘‘(g) QUALIFIED PROPERTY.— 

12 ‘‘(1) GUARANTEE.—Upon the request of a les13 see of qualified property in leases where the lessee 

14 economically defeased its rent and purchase option 

15 payments, the Secretary may serve as a guarantor 

16 with respect to all payment obligations of such lessee 

17 with respect to any defeased lease transaction that 

18 is in technical default because of a downgrade of a 

19 financial guarantor. Such guarantee shall be on such 

20 terms and conditions as are determined by the Sec21 retary. 

22 ‘‘(2) DEFINITIONS.—For purposes of this sub23 section, the following definitions shall apply: 

24 ‘‘(A) QUALIFIED PROPERTY.—The term 

25 ‘qualified property’ means domestic property 
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1 subject to a lease entered into prior to Novem2 ber 1, 2007, in which a State or local govern3 ment authority (as defined in section 5302(a) 

4 of title 49, United States Code) is the lessee. 

5 ‘‘(B) GUARANTOR.—The term ‘guarantor’ 

6 includes any guarantor, surety, and payment 

7 undertaker.’’. 

8 SEC. 111. INVESTMENT OF TARP FUNDS IN CREDIT UNIONS 

9 TAKEN INTO ACCOUNT IN DETERMINATION 

10 OF NET WORTH. 

11 (a) IN GENERAL.—Section 216(o)(2) of the Federal 

12 Credit Union Act (12 U.S.C. 1790d(o)(2)) is amended by 

13 striking subparagraph (A) and inserting the following new 

14 subparagraph: 

15 ‘‘(A) with respect to any insured credit 

16 union, means— 

17 ‘‘(i) the retained earnings balance of 

18 the credit union, as determined under gen19 erally accepted accounting principles, to20 gether with any amounts that were pre21 viously the retained earnings of any other 

22 credit union with which the credit union 

23 has combined; and 

24 ‘‘(ii) any donated equity, permanent, 

25 and perpetual capital deposits, or other 
26 

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1 primary capital made available under Title 

2 I of the Emergency Economic Stabilization 

3 Act of 2008, as determined by regulation 

4 or order of the Board with due regard for 

5 the accepted capital standards for United 

6 States depository institutions generally; 

7 and’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall take effect at the end of the 30-day 

10 period beginning on the date of the enactment of this Act. 

11 SEC. 112. TREASURY FACILITATED AUCTION. 

12 Section 113(b) of the Emergency Economic Stabiliza13 tion Act of 2008 (12 U.S.C. 5223(b)) is amended to read 

14 as follows: 

15 ‘‘(b) USE OF MARKET MECHANISMS.— 

16 ‘‘(1) IN GENERAL.—In making purchases under 

17 this Act, the Secretary shall— 

18 ‘‘(A) make such purchases at the lowest 

19 price that the Secretary determines to be con20 sistent with the purposes of this Act; and 

21 ‘‘(B) maximize the efficiency of the use of 

22 taxpayer resources by using market mecha23 nisms, including auctions or reverse auctions, 

24 where appropriate. 

25 ‘‘(2) AUCTION FACILITATION.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall, 

2 in coordination with institutions that volunteer 

3 to participate, and not using any funds under 

4 this title for purchases, facilitate an auction of 

5 troubled assets owned by such institutions to 

6 third party purchasers. 

7 ‘‘(B) REPORT.—If the auction described in 

8 subparagraph (A) does not take place within 

9 the 3 month period following the date of the en10 actment of the TARP Reform and Account11 ability Act of 2009, the Secretary shall issue a 

12 report to the Congress stating— 

13 ‘‘(i) why such auction has not taken 

14 place; and 

15 ‘‘(ii) by what mechanism the Sec16 retary feels that troubled assets could most 

17 expeditiously be valued and liquidated.’’. 

18 SEC. 113. BROADENED INSPECTOR GENERAL AUTHORITY. 

19 Section 121(c) of the Emergency Economic Stabiliza20 tion Act (12 U.S.C. 5231(c)) is amended by striking ‘‘the 

21 purchase, management, and sale of assets’’ and all that 

22 follows through ‘‘under section 102’’ and inserting ‘‘any 

23 action taken by the Secretary of the Treasury under this 

24 title (except sections 115, 116, 117, and 125), as the Spe25 cial Inspector General determines appropriate’’. 
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1 TITLE II—FORECLOSURE 

2 RELIEF 

3 SEC. 201. TARP FORECLOSURE MITIGATION PLAN AND IM4 PLEMENTATION. 

5 (a) COMMITMENT OF RESOURCES.—Notwithstanding 

6 any provision of title I of the Emergency Economic Sta7 bilization Act of 2008, not later than seven days after the 

8 date of the enactment of the TARP Reform and Account9 ability Act of 2009, the Secretary of the Treasury (in this 

10 title referred to as the ‘‘Secretary’’) shall commit funds 

11 made available to the Secretary under title I of the Emer12 gency Economic Stabilization Act of 2008 in an amount 

13 of at least $100,000,000,000, unless the Secretary cer14 tifies otherwise under subsection (d), but in no case less 

15 than $40,000,000,000, for the purposes of foreclosure 

16 mitigation. Not less than $20,000,000,000 of this amount 

17 shall be dedicated to the program described under section 

18 204 of this Act. The Secretary shall consult with the 

19 Chairperson of the Board of Directors of the Federal De20 posit Insurance Corporation regarding the administration 

21 of the program. 

22 (b) PLAN REQUIRED.—Notwithstanding any provi23 sion of title I of the Emergency Economic Stabilization 

24 Act of 2008, none of the funds otherwise available to the 

25 Secretary pursuant to section 115(a)(3) of such Act shall 
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1 be available to the Secretary after March 15, 2009, unless 

2 a comprehensive plan to use the funds committed under 

3 subparagraph (a) to prevent and mitigate foreclosures on 

4 residential properties, in accordance with the requirements 

5 of this title, has been developed by the Secretary and ap6 proved by the Financial Stability Oversight Board by such 

7 date. 

8 (c) IMPLEMENTATION REQUIRED.—The Secretary 

9 shall begin to implement the comprehensive plan estab10 lished pursuant to subsection (b) by not later than April 

11 1, 2009. 

12 (d) CERTIFICATION.—If the Secretary does not com13 mit at least $100,000,000,000 in the plan established 

14 under subsection (b), the Secretary shall certify to the 

15 Congress in the plan the specific reasons that such 

16 amounts have not been committed. 

17 (e) CLARIFICATION.—For purposes of this title, the 

18 term ‘‘residential properties’’ shall include 1- to 4-family 

19 residential properties. 

20 SEC. 202. ELEMENTS OF PLAN. 

21 (a) REQUIRED ELEMENTS.—The comprehensive plan 

22 established pursuant to section 201(b) shall comply with 

23 the following requirements: 

24 (1) OWNER-OCCUPIED RESIDENCES ONLY.— 

25 The programs implemented under the plan shall pre-
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1 vent and mitigate foreclosures specifically on owner2 occupied residential properties. 

3 (2) LEVERAGING OF PRIVATE CAPITAL.—The 

4 plan shall leverage private capital to the maximum 

5 extent possible consistent with the purpose of pre6 venting and mitigating foreclosures on such prop7 erties. 

8 (3) USE OF PROGRAM ALTERNATIVES.—The ac9 tions to be taken under the plan shall consist of the 

10 systematic foreclosure prevention and mortgage 

11 modification program under section 204 and a com12 bination of the program alternatives set forth in sec13 tion 203. 

14 (4) WORKFORCE AND OUTREACH.—The plan 

15 shall set forth how the Secretary intends to develop, 

16 second, or contract for appropriate staffing to carry 

17 out the plan and the component programs and to en18 sure that private mortgage servicers utilizing the 

19 programs established by the Secretary will provide 

20 sufficient staffing and resources to engage in the 

21 outreach, loss mitigation activities, and homeowner 

22 education necessary for successful foreclosure miti23 gation. 

24 (b) CONCENTRATIONS OF FORECLOSURES.—The 

25 comprehensive plan established pursuant to section 201(b) 
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1 may include provisions designed to prevent and mitigate 

2 foreclosures on residential properties located in areas that 

3 are most seriously affected by such foreclosures. 

4 SEC. 203. PROGRAM ALTERNATIVES. 

5 The program alternatives set forth in this section are 

6 as follows: 

7 (1) REDUCTION OF HOPE FOR HOMEOWNERS

8 PROGRAM COSTS.—A program under which the Sec9 retary— 

10 (A) provides coverage for fees under the 

11 HOPE for Homeowners Program under section 

12 257 of the National Housing Act (12 U.S.C. 

13 1715z–23), as amended by title V of this Act; 

14 or 

15 (B) ensures the affordability of interest 

16 rates of mortgages insured under such Pro17 gram. 

18 (2) BUY-DOWN OF SECOND LIEN MORT19 GAGES.—A program under which the Secretary 

20 makes available to owners of owner-occupied residen21 tial properties a direct mortgage loan the proceeds 

22 of which shall be used only to reduce the out23 standing debt of such owner under an existing sec24 ond lien mortgage on such residential property, for 

25 the purpose of facilitating loan modification, subject 
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1 to such reductions in the principal of such existing 

2 second lien mortgages as the Secretary may require. 

3 (3) SERVICER INCENTIVES AND ASSISTANCE.— 

4 A program under which the Secretary may make 

5 payments to servicers, including servicers that are 

6 not affiliated with a depository institution, who im7 plement modifications to mortgages that result in 

8 mortgages that meet such requirements as the Sec9 retary shall establish. 

10 (4) LOAN PURCHASES.—A program under 

11 which the Secretary, or one or more entities that the 

12 Secretary, in consultation with the Secretary of 

13 Housing and Urban Development, enters into a con14 tract with to carry out the program under this para15 graph, which may include the Federal Deposit Insur16 ance Corporation, regional public-private partner17 ships, and entities selected as contractors under sec18 tion 107 of the Emergency Economic Stabilization 

19 Act of 2008, purchases whole loans for the purpose 

20 of modifying or refinancing the loans. 

21 (5) SUBSTITUTION OF TRUST.—A program 

22 under which modifications are allowed to the 

23 securitization trust agreements with respect to secu24 rities secured by pools of mortgages to allow a new 

25 qualified buyer to be substituted on a foreclosed 
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1 property or a delinquent mortgage without seeking 

2 new financing. 

3 SEC. 204. SYSTEMATIC FORECLOSURE PREVENTION AND 

4 MORTGAGE MODIFICATION PLAN ESTAB5 LISHED. 

6 (a) IN GENERAL.—The systematic foreclosure pre7 vention and mortgage modification program under this 

8 section shall be a program established by the Secretary, 

9 in consultation with the Chairperson of the Board of Di10 rectors of the Federal Deposit Insurance Corporation and 

11 the Secretary of Housing and Urban Development, that— 

12 (1) provides lenders and loan servicers with cer13 tain compensation to cover administrative costs for 

14 each loan modified according to the required stand15 ards; and 

16 (2) provides loss sharing or guarantees for cer17 tain losses incurred if a modified loan should subse18 quently re-default. 

19 (b) PROGRAM ADMINISTRATION.—The Secretary, in 

20 consultation with the Chairperson of the Federal Deposit 

21 Insurance Corporation and the Secretary of Housing and 

22 Urban Development, may contract with one or more enti23 ties, including the Federal Deposit Insurance Corporation 

24 and entities selected as contractors under section 107 of 

25 the Emergency Economic Stabilization Act of 2008, to 
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1 conduct the program activities required under the pro2 gram under this section. 

3 (c) PROGRAM COMPONENTS.—The program estab4 lished under subsection (a) may include the following com5 ponents: 

6 (1) ELIGIBLE BORROWERS.—The program shall 

7 be limited to loans secured by owner-occupied prop8 erties. 

9 (2) EXCLUSION FOR EARLY PAYMENT DE10 FAULT.—To promote sustainable mortgages, loss 

11 sharing or guarantees shall be available only after 

12 the borrower has made a specified minimum number 

13 of payments on the modified mortgage. 

14 (3) STANDARD NET PRESENT VALUE TEST.—In 

15 order to promote consistency and simplicity in imple16 mentation and audit, the Secretary shall prescribe a 

17 standardized net present value analysis for partici18 pating lenders and servicers comparing the expected 

19 net present value of modifying past due loans com20 pared to the net present value of foreclosing on them 

21 will be applied. Under this test, standard assump22 tions shall be used to ensure that a consistent stand23 ard for affordability is provided based on a ratio of 

24 the borrower’s mortgage-related expenses for the 
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1 first priority mortgage-to-gross income specified by 

2 the Secretary. 

3 (4) SYSTEMATIC LOAN REVIEW BY PARTICI4 PATING LENDERS AND SERVICERS.—Participating 

5 lenders and servicers shall be required to undertake 

6 a systematic review of all of the loans under their 

7 management, to subject each loan to a standard net 

8 present value test to determine whether it is a suit9 able candidate for modification, and to offer modi10 fications for all loans that pass this test. The pen11 alty for failing to undertake such a systematic re12 view and to carry out modifications where they are 

13 justified would be disqualification from further par14 ticipation in the program until such a systematic 

15 program was introduced. 

16 (5) MODIFICATIONS.—Modifications may in17 clude any of the following: 

18 (A) Reduction in interest rates and fees. 

19 (B) Term or amortization extensions. 

20 (C) Forbearance or forgiveness of prin21 cipal. 

22 (D) Other similar modifications. 

23 (6) SIMPLIFIED LOSS SHARE CALCULATION.— 

24 In order to ensure the administrative efficiency and 

25 effective operation of the program, the Secretary 
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1 shall define appropriate measures for loss sharing or 

2 guarantees designed to reduce the risk and loss upon 

3 redefault of modified mortgages in order to provide 

4 adequate incentives to lenders, servicers, and inves5 tors to modify eligible mortgages and avoid unneces6 sary foreclosures. Interim modifications shall be al7 lowed. 

8 (7) DE MINIMIS TEST.—To lower administra9 tive costs, a de minimis test shall be used to exclude 

10 from loss sharing any modification that does not 

11 lower the monthly payment at least 10 percent. 

12 (8) 8 YEAR LIMIT ON LOSS SHARING PAY13 MENT.—The loss sharing guarantee shall terminate 

14 at the end of the 8-year period beginning on the 

15 date the modification was consummated. 

16 (d) ALTERNATIVE COMPONENTS.—The Secretary 

17 may, with the approval of the Board, implement fore18 closure prevention and mitigation actions other than those 

19 included pursuant to subsection (c) in the comprehensive 

20 plan initially approved by the Board pursuant to section 

21 201(b) that the Secretary believes would provide equiva22 lent or greater impact on foreclosure mitigation. 

23 (e) REGULATIONS.—The Secretary shall prescribe 

24 such regulations as may be necessary to implement this 

25 section and prevent evasions thereof. 
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1 (f) TROUBLED ASSETS.—The costs incurred by the 

2 Federal Government in carrying out the loan modification 

3 program established under this section shall be covered 

4 out of the funds made available to the Secretary of the 

5 Treasury under title I of the Emergency Economic Sta6 bilization Act of 2008 or such other funds as may be avail7 able to the Secretary. 

8 (g) REPORT.—Before the end of the 6-month period 

9 beginning on the date of the enactment of this Act, the 

10 Secretary shall submit a progress report to the Congress 

11 containing such findings and such recommendations for 

12 legislative or administrative action as the Secretary may 

13 determine to be appropriate. 

14 SEC. 205. MODIFICATION OF PLAN. 

15 (a) IN GENERAL.—If the Secretary, in consultation 

16 with the Chairperson of the Board of Directors of the Fed17 eral Deposit Insurance Corporation and the Secretary of 

18 Housing and Urban Development, determines at any time 

19 that modification of the comprehensive plan initially ap20 proved by the Board pursuant to section 201(b) (as such 

21 plan may subsequently have been modified pursuant to 

22 this section), or that modification of any component pro23 gram element, is necessary to maximize the prevention of 

24 foreclosures on residential properties or minimize costs to 

25 taxpayers of such foreclosure mitigation, the Secretary 
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1 may modify the plan or program element, but only to the 

2 extent such modifications are approved by the Board. 

3 SEC. 206. SERVICER SAFE HARBOR. 

4 (a) SAFE HARBOR.— 

5 (1) LOAN MODIFICATIONS AND WORKOUT

6 PLANS.—Notwithstanding any other provision of 

7 law, and notwithstanding any investment contract 

8 between a servicer and a securitization vehicle or in9 vestor, a servicer that acts consistent with the duty 

10 set forth in section 129A(a) of Truth in Lending Act 

11 (15 U.S.C. 1639a) shall not be liable for entering 

12 into a loan modification or workout plan with re13 spect to any such mortgage that meets all of the cri14 teria set forth in paragraph (2)(B) to— 

15 (A) any person, based on that person’s 

16 ownership of a residential mortgage loan or any 

17 interest in a pool of residential mortgage loans 

18 or in securities that distribute payments out of 

19 the principal, interest and other payments in 

20 loans on the pool; 

21 (B) any person who is obligated to make 

22 payments determined in reference to any loan 

23 or any interest referred to in subparagraph (A); 

24 or 
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1 (C) any person that insures any loan or 

2 any interest referred to in subparagraph (A) 

3 under any law or regulation of the United 

4 States or any law or regulation of any State or 

5 political subdivision of any State. 

6 (2) ABILITY TO MODIFY MORTGAGES.— 

7 (A) ABILITY.—Notwithstanding any other 

8 provision of law, and notwithstanding any in9 vestment contract between a servicer and a 

10 securitization vehicle or investor, a servicer— 

11 (i) shall not be limited in the ability 

12 to modify mortgages, the number of mort13 gages that can be modified, the frequency 

14 of loan modifications, or the range of per15 missible modifications; and 

16 (ii) shall not be obligated to repur17 chase loans from or otherwise make pay18 ments to the securitization vehicle on ac19 count of a modification, workout, or other 

20 loss mitigation plan for a residential mort21 gage or a class of residential mortgages 

22 that constitute a part or all of the mort23 gages in the securitization vehicle, 

24 if any mortgage so modified meets all of the cri25 teria set forth in subparagraph (B). 
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1 (B) CRITERIA.—The criteria under this 

2 subparagraph with respect to a mortgage are as 

3 follows: 

4 (i) Default on the payment of such 

5 mortgage has occurred or is reasonably 

6 foreseeable. 

7 (ii) The property securing such mort8 gage is occupied by the mortgagor of such 

9 mortgage. 

10 (iii) The servicer reasonably and in 

11 good faith believes that the anticipated re12 covery on the principal outstanding obliga13 tion of the mortgage under the particular 

14 modification or workout plan or other loss 

15 mitigation action will exceed, on a net 

16 present value basis, the anticipated recov17 ery on the principal outstanding obligation 

18 of the mortgage to be realized through 

19 foreclosure. 

20 (3) APPLICABILITY.—This subsection shall 

21 apply only with respect to modifications, workouts, 

22 and other loss mitigation plans initiated before Jan23 uary 1, 2012. 

24 (b) REPORTING.—Each servicer that engages in loan 

25 modifications or workout plans subject to the safe harbor 
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1 in subsection (a) shall report to the Secretary on a regular 

2 basis regarding the extent, scope and results of the 

3 servicer’s modification activities. The Secretary shall pre4 scribe regulations specifying the form, content, and timing 

5 of such reports. 

6 (c) DEFINITION OF SECURITIZATION VEHICLES.— 

7 For purposes of this section, the term ‘‘securitization vehi8 cle’’ means a trust, corporation, partnership, limited liabil9 ity entity, special purpose entity, or other structure that— 

10 (1) is the issuer, or is created by the issuer, of 

11 mortgage pass-through certificates, participation cer12 tificates, mortgage-backed securities, or other similar 

13 securities backed by a pool of assets that includes 

14 residential mortgage loans; and 

15 (2) holds such mortgages. 

16 SEC. 207. FORECLOSURE MORATORIUM RECOMMENDA17 TION. 

18 (a) FORECLOSURE DEFERMENT.—It is the sense of 

19 the Congress that any institution which becomes an as20 sisted institution on or after the date of the enactment 

21 of this Act should not initiate, or allow to continue, a fore22 closure proceeding or a foreclosure sale on any with re23 spect to any principal homeowner mortgage, until the ear24 liest of the following: 
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1 (1) The date by which the comprehensive plan 

2 to prevent and mitigate foreclosures has been devel3 oped by the Secretary and the Federal Deposit In4 surance Corporation and approved by the Financial 

5 Stability Oversight Board under section 201 and be6 come fully operational. 

7 (2) The date by which the systematic fore8 closure prevention and mortgage modification plan 

9 has been established by the Secretary in accordance 

10 with section 204 and become fully operational. 

11 (3) The end of the 9-month period beginning on 

12 the date of the enactment of this Act. 

13 (b) FHA-REGULATED LOAN MODIFICATION AGREE14 MENTS.—If an assisted institution to which subsection (a) 

15 applies reaches a loan modification agreement with a 

16 homeowner under the auspices of the Federal Housing Ad17 ministration before any plan referred to in paragraph (1) 

18 or (2) of such subsection takes effect, subsection (a) shall 

19 cease to apply to such institution as of the effective date 

20 of the loan modification agreement. 

21 (c) DUTY OF CONSUMER TO MAINTAIN PROPERTY.— 

22 Any homeowner for whose benefit any foreclosure pro23 ceeding or sale is barred under subsection (a) from being 

24 instituted, continued , or consummated with respect to any 

25 homeowner mortgage may not, with respect to any prop-
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1 erty securing such mortgage, destroy, damage, or impair 

2 such property, allow the property to deteriorate, or commit 

3 waste on the property. 

4 (d) DUTY OF CONSUMER TO RESPOND TO REASON5 ABLE INQUIRIES.—Any homeowner for whose benefit any 

6 foreclosure proceeding or sale is barred under subsection 

7 (a) from being instituted, continued , or consummated 

8 with respect to any homeowner mortgage shall respond to 

9 reasonable inquiries from a creditor or servicer during the 

10 period during which such foreclosure proceeding or sale 

11 is barred. 

12 SEC. 208. FORECLOSURE PREVENTION FOR AFFORDABLE 

13 HOUSING. 

14 Section 109 of the Emergency Economic Stabilization 

15 Act of 2008 (12 U.S.C. 5219) is amended to read as fol16 lows: 

17 ‘‘SEC. 109. FORECLOSURE MITIGATION EFFORTS. 

18 ‘‘(a) RESIDENTIAL MORTGAGE SERVICING STAND19 ARDS.—To the extent that the Secretary acquires mort20 gages, mortgage backed securities, and other assets se21 cured by residential real estate, including multifamily 

22 housing, the Secretary shall implement a plan that seeks 

23 to maximize assistance for homeowners and renters and 

24 use the authority of the Secretary to encourage the 

25 servicers of the underlying mortgages, considering net 
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1 present value to the taxpayer, to take advantage of the 

2 HOPE for Homeowners Program under section 257 of the 

3 National Housing Act or other available programs to mini4 mize foreclosures. In addition, the Secretary may use loan 

5 guarantees and credit enhancements to facilitate loan 

6 modifications to prevent avoidable foreclosures on single7 family and multifamily housing. 

8 ‘‘(b) COORDINATION.—The Secretary shall coordi9 nate with the Corporation, the Board (with respect to any 

10 mortgage or mortgage-backed securities or pool of securi11 ties held, owned, or controlled by or on behalf of a Federal 

12 reserve bank, as provided in section 110(a)(1)(C)), the 

13 Federal Housing Finance Agency, the Secretary of Hous14 ing and Urban Development, and other Federal Govern15 ment entities that hold troubled assets to attempt to iden16 tify opportunities for the acquisition of classes of troubled 

17 assets that will improve the ability of the Secretary to im18 prove the loan modification and restructuring process and, 

19 where permissible, to permit bona fide tenants who are 

20 current on their rent to remain in their homes under the 

21 terms of the lease. In the case of a mortgage on a residen22 tial rental property, including a qualified low-income 

23 building under section 42 of the Internal Revenue Code 

24 of 1986, the plan required under this section shall include 

25 protecting Federal, State, and local rental subsidies and 
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1 protections, and ensuring any modification takes into ac2 count the need for operating funds to maintain decent and 

3 safe conditions at the property. 

4 ‘‘(c) CONSENT TO REASONABLE LOAN MODIFICA5 TION REQUESTS.—Upon any request arising under exist6 ing investment contracts, the Secretary shall consent, 

7 where appropriate and considering net present value to the 

8 taxpayer, to reasonable requests by homeowners and own9 ers of multifamily housing, including qualified low-income 

10 buildings under section 42 of the Internal Revenue Code 

11 of 1986, for loss mitigation measures, including term ex12 tensions, rate reductions, principal write downs, increases 

13 in the proportion of loans within a trust or other structure 

14 allowed to be modified, or removal of other limitation on 

15 modifications.’’. 

16 SEC. 209. REPORT BY CONGRESSIONAL OVERSIGHT PANEL. 

17 The Congressional Oversight Panel established by 

18 section 125 of the Emergency Economic Stabilization Act 

19 of 2008 shall submit a report to the Congress, not later 

20 than July 1, 2009, regarding— 

21 (1) the actions taken by the Secretary pursuant 

22 to this title; 

23 (2) the impact and effectiveness of such actions 

24 on foreclosures on residential properties; and 
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1 (3) the effectiveness of such actions from the 

2 standpoint of minimizing costs to the taxpayers. 

3 SEC. 210. MORTGAGE MODIFICATION DATA COLLECTING 

4 AND REPORTING. 

5 (a) REPORTING REQUIREMENTS.—Not later than 

6 120 days after the date of the enactment of this Act, and 

7 quarterly thereafter, the Comptroller of the Currency, in 

8 coordination with the Director of the Office of Thrift Su9 pervision, shall submit a report to the Committee on 

10 Banking, Housing, and Urban Affairs of the Senate, the 

11 Committee on Financial Services of the House of Rep12 resentatives, and the Joint Economic Committee on the 

13 volume of mortgage modifications reported to the Office 

14 of the Comptroller of the Currency and the Office of 

15 Thrift Supervision, under the mortgage metrics program 

16 of each such Office, during the previous quarter, including 

17 the following: 

18 (1) The total number of mortgage modifications 

19 resulting in each of the following: 

20 (A) Additions of delinquent payments and 

21 fees to loan balances. 

22 (B) Interest rate reductions and freezes. 

23 (C) Term extensions. 

24 (D) Reductions of principal. 

25 (E) Deferrals of principal. 
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1 (F) Combinations of modifications de2 scribed in subparagraph (A), (B), (C), (D), or 

3 (E). 

4 (2) The total number of mortgage modifications 

5 in which the total monthly principal and interest 

6 payment resulted in the following: 

7 (A) An increase. 

8 (B) Remained the same. 

9 (C) Decreased less than 10 percent. 

10 (D) Decreased 10 percent or more. 

11 (b) DATA COLLECTION.— 

12 (1) REQUIRED.— 

13 (A) IN GENERAL.—Not later than 60 days 

14 after the date of the enactment of this Act, the 

15 Comptroller of the Currency and the Director 

16 of the Office of Thrift Supervision, shall issue 

17 mortgage modification data collection and re18 porting requirements to institutions covered 

19 under the reporting requirement of the mort20 gage metrics program of the Comptroller or the 

21 Director. 

22 (B) INCLUSIVENESS OF COLLECTIONS.— 

23 The requirements under subparagraph (A) shall 

24 provide for the collection of all mortgage modi25 fication data needed by the Comptroller of the 
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1 Currency and the Director of the Office of 

2 Thrift Supervision to fulfill the reporting re3 quirements under subsection (a). 

4 (2) REPORT.—The Comptroller of the Currency 

5 shall report all requirements established under para6 graph (1) to each committee receiving the report re7 quired under subsection (a). 

8 TITLE III—AUTO INDUSTRY FI9 NANCING AND RESTRUC10 TURING 

11 SEC. 301. SHORT TITLE. 

12 This title may be cited as the ‘‘TARP Reform and 

13 Accountability Act of 2009’’. 

14 SEC. 302. DIRECT LOAN PROVISIONS. 

15 (a) IN GENERAL.—The Emergency Economic Sta16 bilization Act of 2008 (division A of Public Law 110–343) 

17 is amended by adding at the end the following: 

18 ‘‘TITLE IV—AUTO INDUSTRY FI19 NANCING AND RESTRUC20 TURING 

21 ‘‘SEC. 401. PURPOSES. 

22 ‘‘The purposes of this title are— 

23 ‘‘(1) to clarify and confirm the authority and 

24 facilities to restore liquidity and stability to domestic 

25 vehicle manufacturers in the United States; and 
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1 ‘‘(2) to ensure that such authority and such fa2 cilities are used in a manner that— 

3 ‘‘(A) results in a viable and competitive do4 mestic automobile industry that minimizes ad5 verse effects on the environment; 

6 ‘‘(B) enhances the ability and the capacity 

7 of the domestic automobile industry to pursue 

8 the timely and aggressive production of energy9 efficient advanced technology vehicles; 

10 ‘‘(C) preserves and promotes the jobs of 

11 American workers employed directly by the do12 mestic automobile industry and in related in13 dustries; 

14 ‘‘(D) safeguards the ability of the domestic 

15 automobile industry to provide retirement and 

16 health care benefits for the industry’s retirees 

17 and their dependents; and 

18 ‘‘(E) stimulates manufacturing and sales 

19 of automobiles produced by automobile manu20 facturers in the United States. 

21 ‘‘SEC. 402. PRESIDENTIAL DESIGNATION. 

22 ‘‘(a) DESIGNATION.—The President shall designate 

23 one or more officers from the Executive Branch having 

24 appropriate expertise in such areas as economic stabiliza25 tion, financial aid to commerce and industry, financial re-
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1 structuring, energy efficiency, and environmental protec2 tion (who shall hereinafter in this title be collectively re3 ferred to as the ‘President’s designee’) to carry out the 

4 purposes of this title, including the facilitation of restruc5 turing necessary to achieve the long-term financial viabil6 ity of domestic automobile manufacturers, who shall serve 

7 at the pleasure of the President. 

8 ‘‘(b) ADDITIONAL PERSONS.—The President or the 

9 President’s designee may also employ, appoint, or contract 

10 with additional persons having such expertise as the Presi11 dent or the President’s designee believes will assist the 

12 Government in carrying out the purposes of this title. 

13 ‘‘(c) PARTICIPATION BY OTHER AGENCY PER14 SONNEL.—Other Federal agencies may provide, at the re15 quest of the President’s designee, staff on detail from such 

16 agencies for purposes of carrying out this title. 

17 ‘‘SEC. 403. BRIDGE FINANCING. 

18 ‘‘(a) IN GENERAL.—The President’s designee shall 

19 authorize and direct the disbursement of bridge loans or 

20 enter into commitments for lines of credit to each auto21 mobile manufacturer that submitted a plan to the Con22 gress on December 2, 2008 (hereafter in this title referred 

23 to as an ‘eligible automobile manufacturer’), and has sub24 mitted a request for such loan or commitment. Nothing 

25 in this section shall preclude the President’s designee from 
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1 authorizing and directing the disbursement of bridge loans 

2 or entering into commitments for lines of credit to other 

3 entities. 

4 ‘‘(b) AMOUNT OF ASSISTANCE.—The President’s des5 ignee shall authorize bridge loans or commitments for 

6 lines of credit to each eligible automobile manufacturer in 

7 an amount that is intended to facilitate the continued op8 erations of the eligible automobile manufacturer and to 

9 prevent the failure of the eligible automobile manufac10 turer, consistent with the plan submitted on December 2, 

11 2008, and subject to available funds. 

12 ‘‘SEC. 404. RESTRUCTURING PROGRESS ASSESSMENT. 

13 ‘‘(a) ESTABLISHMENT OF MEASURES FOR ASSESSING

14 PROGRESS.—Not later than February 1, 2009, the Presi15 dent’s designee shall determine appropriate measures for 

16 assessing the progress of each eligible automobile manu17 facturer toward transforming the plan submitted by such 

18 manufacturer to the Congress on December 2, 2008, into 

19 the restructuring plan to be submitted under section 

20 405(b). 

21 ‘‘(b) EVALUATION OF PROGRESS ON BASIS OF RE22 STRUCTURING PROGRESS ASSESSMENT MEASURES.— 

23 ‘‘(1) IN GENERAL.—The President’s designee 

24 shall evaluate the progress of each eligible auto25 mobile manufacturer toward the development of a 
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1 restructuring plan, on the basis of the restructuring 

2 progress assessment measures established under this 

3 section for such manufacturer. 

4 ‘‘(2) TIMING.—Each evaluation required under 

5 paragraph (1) for any eligible automobile manufac6 turer shall be conducted at the end of the 15-day pe7 riod beginning on the date on which the restruc8 turing progress assessment measures were estab9 lished by the President’s designee for such eligible 

10 automobile manufacturer. 

11 ‘‘SEC. 405. SUBMISSION OF PLANS. 

12 ‘‘(a) NEGOTIATED PLANS.— 

13 ‘‘(1) FACILITATION.— 

14 ‘‘(A) IN GENERAL.—Beginning on the date 

15 of any disbursement under the facility, the 

16 President’s designee shall seek to facilitate 

17 agreement on any restructuring plan to achieve 

18 and sustain the long-term viability, inter19 national competitiveness, and energy efficiency 

20 of an eligible automobile manufacturer, nego21 tiated and agreed to by representatives of inter22 ested parties (in this title referred to as a ‘ne23 gotiated plan’) with respect to any eligible auto24 mobile manufacturer. 
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1 ‘‘(B) INTERESTED PARTIES.—For pur2 poses of this section, the term ‘interested party’ 

3 shall be construed broadly so as to include all 

4 persons who have a direct financial interest in 

5 a particular automobile manufacturer, includ6 ing— 

7 ‘‘(i) employees and retirees of the eli8 gible automobile manufacturer; 

9 ‘‘(ii) trade unions; 

10 ‘‘(iii) creditors; 

11 ‘‘(iv) suppliers; 

12 ‘‘(v) automobile dealers; and 

13 ‘‘(vi) shareholders. 

14 ‘‘(2) ACTIONS OF THE PRESIDENT’S DES15 IGNEE.— 

16 ‘‘(A) IN GENERAL.—For the purpose of 

17 achieving a negotiated plan, the President’s 

18 designee may convene, chair, and conduct for19 mal and informal meetings, discussions, and 

20 consultations, as appropriate, with interested 

21 parties of an eligible automobile manufacturer. 

22 ‘‘(B) CLARIFICATION.—The Federal Advi23 sory Committee Act shall not apply with respect 

24 to any of the activities conducted or taken by 

25 the President’s designee pursuant to this title. 
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1 ‘‘(b) RESTRUCTURING PLAN.—Not later than March 

2 31, 2009, each eligible automobile manufacturer shall sub3 mit to the President’s designee a restructuring plan to 

4 achieve and sustain the long-term viability, international 

5 competitiveness, and energy efficiency of the eligible auto6 mobile manufacturer (in this title referred to as the ‘re7 structuring plan’) in accordance with this section. The 

8 President’s designee shall approve the restructuring plan 

9 if the President’s designee determines that the plan will 

10 result in— 

11 ‘‘(1) the repayment of all Government-provided 

12 financing, consistent with the terms specified in sec13 tion 408, or otherwise agreed to; 

14 ‘‘(2) the ability— 

15 ‘‘(A) to comply with applicable fuel effi16 ciency and emissions requirements; 

17 ‘‘(B) to commence domestic manufacturing 

18 of advanced technology vehicles, as described in 

19 section 136 of the Energy Independence and 

20 Security Act of 2007 (Public Law 110–140; 42 

21 U.S.C. 17013); and 

22 ‘‘(C) to produce new and existing products 

23 and capacity; 

24 ‘‘(3) the achievement of a positive net present 

25 value, using reasonable assumptions and taking into 
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1 account all existing and projected future costs, in2 cluding repayment of any financial assistance pro3 vided pursuant to this title; 

4 ‘‘(4) the ability to rationalize costs, capitaliza5 tion, and capacity with respect to the manufacturing 

6 workforce, suppliers, and dealerships of the eligible 

7 automobile manufacturer; 

8 ‘‘(5) proposals to restructure existing debt, in9 cluding, where appropriate, the conversion of debt to 

10 equity, to improve the ability of the eligible auto11 mobile manufacturer to raise private capital; and 

12 ‘‘(6) a product mix and cost structure that is 

13 competitive in the marketplace. 

14 ‘‘(c) EXTENSION OF NEGOTIATIONS AND PLAN

15 DEADLINE.—Notwithstanding the time limitations in sub16 section (b), the President’s designee, upon making a deter17 mination that the interested parties are negotiating in 

18 good faith, are making significant progress, and that an 

19 additional period of time would likely facilitate agreement 

20 on a negotiated plan, and upon notification of the Con21 gress, may extend for not longer than 30 additional days 

22 the negotiation period under subsection (b). 

23 ‘‘SEC. 406. FINANCING FOR RESTRUCTURING. 

24 ‘‘Upon approval by the President’s designee of a re25 structuring plan, the President’s designee may provide fi-
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1 nancial assistance to an eligible automobile manufacturer 

2 to implement the restructuring plan. 

3 ‘‘SEC. 407. DISAPPROVAL AND CALL OF LOAN. 

4 ‘‘If the President’s designee has not approved the re5 structuring plan at the expiration of the period provided 

6 in section 405 for submission and approval of the restruc7 turing plan, the President’s designee shall call the loan 

8 or cancel the commitment within 30 days, unless a re9 structuring plan is approved within that period. 

10 ‘‘SEC. 408. TERMS AND CONDITIONS. 

11 ‘‘(a) DURATION.—The duration of any loan made 

12 under this title shall be 7 years, or such period as the 

13 President’s designee may determine with respect to such 

14 loan. 

15 ‘‘(b) NO PREPAYMENT PENALTY.—A loan made 

16 under this title shall be prepayable without penalty at any 

17 time. 

18 ‘‘(c) INFORMATION ACCESS.—As a condition for the 

19 receipt of any financial assistance made under this title, 

20 an eligible automobile manufacturer shall agree— 

21 ‘‘(1) to allow the President’s designee to exam22 ine any books, papers, records, or other data of the 

23 eligible automobile manufacturer, and those of any 

24 subsidiary, affiliate, or entity holding an ownership 

25 interest of 50 percent or more of such automobile 
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1 manufacturer, that may be relevant to the financial 

2 assistance, including compliance with the terms of a 

3 loan or any conditions imposed under this title; and 

4 ‘‘(2) to provide in a timely manner any infor5 mation requested by the President’s designee, in6 cluding requiring any officer or employee of the eli7 gible automobile manufacturer, any subsidiary, affil8 iate, or entity referred to in paragraph (1) with re9 spect to such manufacturer, or any person having 

10 possession, custody, or care of the reports and 

11 records required under paragraph (1), to appear be12 fore the President’s designee at a time and place re13 quested and to provide such books, papers, records, 

14 or other data, as requested, as may be relevant or 

15 material. 

16 ‘‘(d) OVERSIGHT OF TRANSACTIONS AND FINANCIAL

17 CONDITION.— 

18 ‘‘(1) DUTY TO INFORM.—During the period in 

19 which any loan extended under this title remains 

20 outstanding, the eligible automobile manufacturer 

21 which received such loan shall promptly inform the 

22 President’s designee of— 

23 ‘‘(A) any asset sale, investment, contract, 

24 commitment, or other transaction proposed to 

25 be entered into by such eligible automobile 
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1 manufacturer that has a value in excess of 

2 $100,000,000; and 

3 ‘‘(B) any other material change in the fi4 nancial condition of such eligible automobile 

5 manufacturer. 

6 ‘‘(2) AUTHORITY OF THE PRESIDENT’S DES7 IGNEE.—During the period in which any loan ex8 tended under this title remains outstanding, the 

9 President’s designee may— 

10 ‘‘(A) review any asset sale, investment, 

11 contract, commitment, or other transaction de12 scribed in paragraph (1); and 

13 ‘‘(B) prohibit the eligible automobile man14 ufacturer which received the loan from consum15 mating any such proposed sale, investment, 

16 contract, commitment, or other transaction, if 

17 the President’s designee determines that con18 summation of such transaction would be incon19 sistent with or detrimental to the long-term via20 bility of the eligible automobile manufacturer. 

21 ‘‘(3) PROCEDURES.—The President’s designee 

22 may establish procedures for conducting any review 

23 under this subsection. 
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1 ‘‘(e) CONSEQUENCES FOR FAILURE TO COMPLY.— 

2 The terms of any financial assistance made under this title 

3 shall provide that if— 

4 ‘‘(1) an evaluation by the President’s designee 

5 under section 404(b) demonstrates that the eligible 

6 automobile manufacturer which received the finan7 cial assistance has failed to make adequate progress 

8 towards meeting the restructuring progress assess9 ment measures established by the President’s des10 ignee under section 404(a) with respect to such re11 cipient; 

12 ‘‘(2) after March 31, 2009, the eligible auto13 mobile manufacturer which received the financial as14 sistance fails to submit an acceptable restructuring 

15 plan under section 405(b), or fails to comply with 

16 any conditions or requirement applicable under this 

17 title or applicable fuel efficiency and emissions re18 quirements; or 

19 ‘‘(3) after a restructuring plan of an eligible 

20 automobile manufacturer has been approved by the 

21 President’s designee, the auto manufacturer fails to 

22 make adequate progress in the implementation of 

23 the plan, as determined by the President’s designee, 

24 the repayment of any loan may be accelerated to such ear25 lier date or dates as the President’s designee may deter-
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1 mine and any other financial assistance may be cancelled 

2 by the President’s designee. 

3 ‘‘SEC. 409. TAXPAYER PROTECTION. 

4 ‘‘(a) WARRANTS.— 

5 ‘‘(1) IN GENERAL.—The President’s designee 

6 may not provide any loan under this title, unless the 

7 President’s designee, or such department or agency 

8 as is designated for such purpose by the President, 

9 receives from the eligible automobile manufacturer— 

10 ‘‘(A) in the case of an eligible automobile 

11 manufacturer, the securities of which are traded 

12 on a national securities exchange, a warrant 

13 giving the right to the President’s designee to 

14 receive nonvoting common stock or preferred 

15 stock in such eligible automobile manufacturer, 

16 or voting stock, with respect to which the Presi17 dent’s designee agrees not to exercise voting 

18 power, whichever the President’s designee de19 termines appropriate; or 

20 ‘‘(B) in the case of an eligible automobile 

21 manufacturer other than one described in sub22 paragraph (A), a warrant for common or pre23 ferred stock, or an instrument that is the eco24 nomic equivalent (as determined by the Presi25 dent’s designee) of such a warrant in the hold-
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1 ing company of the eligible automobile manu2 facturer, or any company that controls a major3 ity stake in the eligible automobile manufac4 turer, whichever the President’s designee deter5 mines appropriate. 

6 ‘‘(2) AMOUNT.— 

7 ‘‘(A) IN GENERAL.—The warrants or in8 struments described in paragraph (1) shall have 

9 a value equal to 20 percent of the aggregate 

10 amount of all loans provided to the eligible 

11 automobile manufacturer under this title. Such 

12 warrants or instruments shall entitle the Gov13 ernment to purchase— 

14 ‘‘(i) nonvoting common stock, up to a 

15 maximum amount of 20 percent of the 

16 issued and outstanding common stock of— 

17 ‘‘(I) the eligible automobile man18 ufacturer; or 

19 ‘‘(II) in the case of an eligible 

20 automobile manufacturer, the securi21 ties of which are not traded on a na22 tional securities exchange, a holding 

23 company or company that controls a 

24 majority of the stock thereof (in this 
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1 section referred to as the ‘warrant 

2 common’); and 

3 ‘‘(ii) preferred stock having an aggre4 gate liquidation preference equal to 20 per5 cent of such aggregate loan amount, less 

6 the value of common stock available for 

7 purchase under the warrant common (in 

8 this section referred to as the ‘warrant 

9 preferred’). 

10 ‘‘(B) COMMON STOCK WARRANT PRICE.— 

11 The exercise price on a warrant or instrument 

12 described in paragraph (1) shall be— 

13 ‘‘(i) the 15-day trailing average, as of 

14 the day before the date on which any com15 mitment to provide a loan was entered 

16 into, of the market price of the common 

17 stock of the eligible automobile manufac18 turer which received any loan under this 

19 title; or 

20 ‘‘(ii) in the case of an eligible auto21 mobile manufacturer, the securities of 

22 which are not traded on a national securi23 ties exchange, the economic equivalent of 

24 the market price described in clause (i), as 

25 determined by the President’s designee. 
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1 ‘‘(C) TERMS OF PREFERRED STOCK WAR2 RANT.— 

3 ‘‘(i) IN GENERAL.—The initial exer4 cise price for the preferred stock warrant 

5 shall be $0.01 per share or such greater 

6 amount as the corporate charter may re7 quire as the par value per share of the 

8 warrant preferred. The Government shall 

9 have the right to immediately exercise the 

10 warrants. 

11 ‘‘(ii) REDEMPTION.—The warrant 

12 preferred may be redeemed at any time 

13 after exercise of the preferred stock war14 rant at 100 percent of its issue price, plus 

15 any accrued and unpaid dividends. 

16 ‘‘(iii) OTHER TERMS AND CONDI17 TIONS.—Other terms and conditions of the 

18 warrant preferred shall be determined by 

19 the President’s designee to protect the in20 terests of taxpayers. 

21 ‘‘(3) APPLICATION OF OTHER PROVISIONS OF

22 LAW.—Except as otherwise provided in this section, 

23 the requirements for the purchase of warrants under 

24 section 113(d)(2) of the Emergency Economic Sta25 bilization Act of 2008 (division A of Public Law 
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1 110–343) shall apply to any warrant or instrument 

2 described in paragraph (1), including the 

3 antidilution protection provisions therein. 

4 ‘‘(b) EXECUTIVE COMPENSATION AND CORPORATE

5 GOVERNANCE.— 

6 ‘‘(1) IN GENERAL.—During the period in which 

7 any financial assistance under this title remains out8 standing, the eligible automobile manufacturer which 

9 received such assistance shall be subject to— 

10 ‘‘(A) the standards established by the 

11 President’s designee under paragraph (2); and 

12 ‘‘(B) the provisions of section 162(m)(5) of 

13 the Internal Revenue Code of 1986, as applica14 ble. 

15 ‘‘(2) STANDARDS REQUIRED.—The President’s 

16 designee shall require any eligible automobile manu17 facturer which received any financial assistance 

18 under this title to meet appropriate standards for 

19 executive compensation and corporate governance. 

20 ‘‘(3) SPECIFIC REQUIREMENTS.—The standards 

21 established under paragraph (2) shall include— 

22 ‘‘(A) limits on compensation that exclude 

23 incentives for senior executive officers of an eli24 gible automobile manufacturer which received 

25 assistance under this title to take unnecessary 
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1 and excessive risks that threaten the value of 

2 such manufacturer during the period that the 

3 loan is outstanding; 

4 ‘‘(B) a provision for the recovery by such 

5 automobile manufacturer of any bonus or incen6 tive compensation paid to a senior executive of7 ficer based on statements of earnings, gains, or 

8 other criteria that are later found to be materi9 ally inaccurate; 

10 ‘‘(C) a prohibition on such automobile 

11 manufacturer making any golden parachute 

12 payment to a senior executive officer during the 

13 period that the loan is outstanding; 

14 ‘‘(D) a prohibition on such automobile 

15 manufacturer paying or accruing any bonus or 

16 incentive compensation during the period that 

17 the loan is outstanding to the 25 most highly18 compensated employees; and 

19 ‘‘(E) a prohibition on any compensation 

20 plan that would encourage manipulation of such 

21 automobile manufacturer’s reported earnings to 

22 enhance the compensation of any of its employ23 ees. 

24 ‘‘(4) DIVESTITURE.—During the period in 

25 which any financial assistance provided under this 
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1 title to any eligible automobile manufacturer is out2 standing, the eligible automobile manufacturer may 

3 not own or lease any private passenger aircraft, or 

4 have any interest in such aircraft, except that such 

5 eligible automobile manufacturer shall not be treated 

6 as being in violation of this provision with respect to 

7 any aircraft or interest in any aircraft that was 

8 owned or held by the manufacturer immediately be9 fore receiving such assistance, as long as the recipi10 ent demonstrates to the satisfaction of the Presi11 dent’s designee that all reasonable steps are being 

12 taken to sell or divest such aircraft or interest. 

13 ‘‘(5) DEFINITIONS.—For purposes of this sub14 section, the following definitions shall apply: 

15 ‘‘(A) SENIOR EXECUTIVE OFFICER.—The 

16 term ‘senior executive officer’ means an indi17 vidual who is one of the top five most highly 

18 paid executives of a public company, whose 

19 compensation is required to be disclosed pursu20 ant to the Securities Exchange Act of 1934, 

21 and any regulations issued thereunder, and 

22 non-public company counterparts. 

23 ‘‘(B) GOLDEN PARACHUTE PAYMENT.— 

24 The term ‘golden parachute payment’ means 

25 any payment to a senior executive officer for 
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1 departure from a company for any reason, ex2 cept for payments for services performed or 

3 benefits accrued. 

4 ‘‘(c) PROHIBITION ON PAYMENT OF DIVIDENDS.— 

5 Except with respect to obligations owed pursuant to law 

6 to any nonaffiliated party or any existing contract with 

7 any nonaffiliated party in effect as of December 2, 2008, 

8 no dividends or distributions of any kind, or the economic 

9 equivalent thereof (as determined by the President’s des10 ignee), may be paid by any eligible automobile manufac11 turer which receives financial assistance under this title, 

12 or any holding company or company that controls a major13 ity stake in the eligible automobile manufacturer, while 

14 such financial assistance is outstanding. 

15 ‘‘(d) OTHER INTERESTS SUBORDINATED.— 

16 ‘‘(1) IN GENERAL.—In the case of an eligible 

17 automobile manufacturer which received a loan 

18 under this title, to the extent permitted by the terms 

19 of any existing vested legal rights and the Constitu20 tion, any other obligation of such eligible automobile 

21 manufacturer shall be subordinate to such loan, and 

22 such loan shall be senior and prior to all obligations, 

23 liabilities, and debts of the eligible automobile manu24 facturer, and such eligible automobile manufacturer 

25 shall provide to the Government, all available secu-
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1 rity and collateral against which the loans under this 

2 title shall be secured. 

3 ‘‘(2) APPLICABILITY IN CERTAIN CASES.—In 

4 the case of an eligible automobile manufacturer re5 ferred to in paragraph (1), the securities of which 

6 are not traded on a national securities exchange, a 

7 loan under this title to the eligible automobile manu8 facturer shall— 

9 ‘‘(A) be treated as a loan to any holding 

10 company of, or company that controls a major11 ity stake in, the eligible automobile manufac12 turer; and 

13 ‘‘(B) be senior and prior to all obligations, 

14 liabilities, and debts of any such holding com15 pany or company that controls a majority stake 

16 in the eligible automobile manufacturer. 

17 ‘‘(e) ADDITIONAL TAXPAYER PROTECTIONS.— 

18 ‘‘(1) DISCHARGE.—A discharge under title 11, 

19 United States Code, shall not discharge an eligible 

20 automobile manufacturer, or any successor in inter21 est thereto, from any debt for financial assistance 

22 received pursuant to this title. 

23 ‘‘(2) EXEMPTION.—Any financial assistance 

24 provided to an eligible automobile manufacturer 

25 under this title shall be exempt from the automatic 
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1 stay established by section 362 of title 11, United 

2 States Code. 

3 ‘‘(3) INTERESTED PARTIES.—Notwithstanding 

4 any provision of title 11, United States Code, any 

5 interest in property or equity rights of the United 

6 States arising from financial assistance provided to 

7 an eligible automobile manufacturer under this title 

8 shall remain unaffected by any plan of reorganiza9 tion, except as the United States may agree to in 

10 writing. 

11 ‘‘SEC. 410. OVERSIGHT AND AUDITS. 

12 ‘‘(a) COMPTROLLER GENERAL OVERSIGHT.— 

13 ‘‘(1) SCOPE OF OVERSIGHT.—The Comptroller 

14 General of the United States shall conduct ongoing 

15 oversight of the activities and performance of the 

16 President’s designee. 

17 ‘‘(2) CONDUCT AND ADMINISTRATION OF OVER18 SIGHT.— 

19 ‘‘(A) GAO PRESENCE.—The President’s 

20 designee shall provide to the Comptroller Gen21 eral appropriate space and facilities for pur22 poses of this subsection. 

23 ‘‘(B) ACCESS TO RECORDS.—To the extent 

24 otherwise consistent with law, the Comptroller 

25 General shall have access, upon request, to any 
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1 information, data, schedules, books, accounts, 

2 financial records, reports, files, electronic com3 munications, or other papers, things, or prop4 erty belonging to or in use by the President’s 

5 designee, at such reasonable time as the Comp6 troller General may request. The Comptroller 

7 General shall be afforded full facilities for 

8 verifying transactions with the balances or secu9 rities held by depositaries, fiscal agents, and 

10 custodians. The Comptroller General may make 

11 and retain copies of such books, accounts, and 

12 other records as the Comptroller General deems 

13 appropriate. 

14 ‘‘(3) REPORTING.—The Comptroller General 

15 shall submit reports of findings under this section to 

16 Congress, regularly and not less frequently than 

17 once every 60 days. The Comptroller General may 

18 also submit special reports under this subsection, as 

19 warranted by the findings of its oversight activities. 

20 ‘‘(b) SPECIAL INSPECTOR GENERAL.—It shall be the 

21 duty of the Special Inspector General established under 

22 section 121 of Public Law 110–343 to conduct, supervise, 

23 and coordinate audits and investigations of the President’s 

24 designee in addition to the duties of the Special Inspector 

25 General under such section and for such purposes. The 
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1 Special Inspector General shall also have the duties, re2 sponsibilities, and authorities of inspectors general under 

3 the Inspector General Act of 1978, including section 6 of 

4 such Act. In the event that the Office of the Special In5 spector General is terminated, the Inspector General of 

6 the Department of the Treasury shall assume the respon7 sibilities of the Special Inspector General under this sub8 section. 

9 ‘‘(c) ACCESS TO RECORDS OF BORROWERS BY

10 GAO.—Notwithstanding any other provision of law, dur11 ing the period in which any financial assistance provided 

12 under this title is outstanding, the Comptroller General 

13 of the United States shall have access, upon request, to 

14 any information, data, schedules, books, accounts, finan15 cial records, reports, files, electronic communications, or 

16 other papers, things, or property belonging to or in use 

17 by the eligible automobile manufacturer, and any sub18 sidiary, affiliate, or entity holding an ownership interest 

19 of 50 percent or more of such eligible automobile manufac20 turer (collectively referred to in this section as ‘related en21 tities’), and to any officer, director, or other agent or rep22 resentative of the eligible automobile manufacturer and its 

23 related entities, at such reasonable times as the Comp24 troller General may request. The Comptroller General may 
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1 make and retain copies of such books, accounts, and other 

2 records as the Comptroller General deems appropriate. 

3 ‘‘SEC. 411. REPORTING AND MONITORING. 

4 ‘‘(a) REPORTING ON CONSUMMATION OF LOANS.— 

5 The President’s designee shall submit a report to the Con6 gress on each bridge loan made under this title not later 

7 than 5 days after the date of the consummation of such 

8 loan. 

9 ‘‘(b) REPORTING ON RESTRUCTURING PROGRESS AS10 SESSMENT MEASURES.—The President’s designee shall 

11 submit a report to the Congress on the restructuring 

12 progress assessment measures established for each manu13 facturer under section 404(a) not later than 10 days after 

14 establishing the restructuring progress assessment meas15 ures. 

16 ‘‘(c) REPORTING ON EVALUATIONS.—The Presi17 dent’s designee shall submit a report to the Congress con18 taining the detailed findings and conclusions of the Presi19 dent’s designee in connection with the evaluation of an eli20 gible automobile manufacturer under section 404(b). 

21 ‘‘(d) REPORTING ON CONSEQUENCES FOR FAILURE

22 TO COMPLY.—The President’s designee shall submit a re23 port to the Congress on the exercise of a right under sec24 tion 408(e) to accelerate indebtedness of an eligible auto25 mobile manufacturer under this title or to cancel any other 
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1 financial assistance provided to such eligible automobile 

2 manufacturer, and the facts and circumstances on which 

3 such exercise was based, before the end of the 10-day pe4 riod beginning on the date of the exercise of the right. 

5 ‘‘(e) MONITORING.—The President’s designee shall 

6 monitor the use of loan funds received by eligible auto7 mobile manufacturers under this title, and shall report to 

8 Congress once every 90 days (beginning 30 days after the 

9 date of enactment of this title) on the progress of the abil10 ity of the recipient of the loan to continue operations and 

11 proceed with restructuring processes that restore the fi12 nancial viability of the recipient and promote environ13 mental sustainability. 

14 ‘‘SEC. 412. REPORT TO CONGRESS ON LACK OF PROGRESS 

15 TOWARD ACHIEVING AN ACCEPTABLE NEGO16 TIATED PLAN. 

17 ‘‘(a) AUTHORITY TO FACILITATE A NEGOTIATED

18 PLAN.—At any such time as the President’s designee de19 termines that action is necessary to avoid disruption to 

20 the economy or to achieve a negotiated plan, the Presi21 dent’s designee shall submit to Congress a report outlining 

22 any additional powers and authorities necessary to facili23 tate the completion of a negotiated plan required under 

24 section 405. 
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1 ‘‘(b) IMPEDIMENTS TO ACHIEVING NEGOTIATED

2 PLANS.—If the President’s designee determines, on the 

3 basis of an evaluation by the President’s designee of the 

4 progress being made by an eligible automobile manufac5 turer toward meeting the restructuring progress assess6 ment measures established under section 404, that ade7 quate progress is not being made toward achieving a nego8 tiated plan by March 31, 2009, the President’s designee 

9 shall submit to Congress a report detailing the impedi10 ments to achievement of a negotiated plan by the eligible 

11 automobile manufacturer. 

12 ‘‘SEC. 413. SUBMISSION OF PLAN TO CONGRESS BY THE 

13 PRESIDENT’S DESIGNEE. 

14 ‘‘Upon submission of a report pursuant to section 

15 412(b), the President’s designee shall provide to Congress 

16 a plan that represents the judgement of the President’s 

17 designee as to the steps necessary to achieve the long-term 

18 viability, international competitiveness, and energy effi19 ciency of the eligible automobile manufacturer, consistent 

20 with the factors set forth in section 405(b), including 

21 through a negotiated plan, a plan to be implemented by 

22 legislation, or a reorganization pursuant to chapter 11 of 

23 title 11, United States Code. 
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1 ‘‘SEC. 414. COORDINATION WITH OTHER LAWS. 

2 ‘‘(a) IN GENERAL.—No provision of this title may be 

3 construed as altering, affecting, or superseding— 

4 ‘‘(1) the provisions of section 129 of division A 

5 of the Consolidated Security, Disaster Assistance, 

6 and Continuing Appropriations Act, 2009, relating 

7 to funding for the manufacture of advanced tech8 nology vehicles; 

9 ‘‘(2) any existing authority to provide financial 

10 assistance or liquidity for purposes of the day-to-day 

11 operations in the ordinary course of business or re12 search and development. 

13 ‘‘(b) ANTITRUST PROVISIONS.— 

14 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

15 and (4), the antitrust laws shall not apply to meet16 ings, discussions, or consultations among an eligible 

17 automobile manufacturer and its interested parties 

18 for the purpose of achieving a negotiated plan pur19 suant to section 405(a)(2). 

20 ‘‘(2) EXCLUSIONS.—Paragraph (1) shall not 

21 apply with respect to price-fixing, allocating a mar22 ket between competitors, monopolizing (or attempt23 ing to monopolize) a market, or boycotting. 

24 ‘‘(3) ANTITRUST AGENCY PARTICIPATION.—The 

25 Attorney General of the United States and the Fed26 eral Trade Commission shall, to the extent prac-
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1 ticable, receive reasonable advance notice of, and be 

2 permitted to participate in, each meeting, discussion, 

3 or consultation described in paragraph (1). 

4 ‘‘(4) PRESERVATION OF ENFORCEMENT AU5 THORITY.—Paragraph (1) shall not be construed to 

6 preclude the Attorney General of the United States 

7 or the Federal Trade Commission from bringing an 

8 enforcement action under the antitrust laws for in9 junctive relief. 

10 ‘‘(5) SUNSET.—Paragraph (1) shall apply only 

11 with respect to meetings, discussions, or consulta12 tions that occur within the 3-year period beginning 

13 on the date of the enactment of this title. 

14 ‘‘(6) DEFINITION.—For purposes of this sub15 section, the term ‘antitrust laws’— 

16 ‘‘(A) has the same meaning as in sub17 section (a) of the first section of the Clayton 

18 Act (15 U.S.C. 12(a)), except that such term 

19 includes section 5 of the Federal Trade Com20 mission Act (15 U.S.C. 45), to the extent that 

21 such section 5 applies to unfair methods of 

22 competition; and 

23 ‘‘(B) includes any provision of State law 

24 that is similar to the laws referred to in sub25 paragraph (A). 
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1 ‘‘SEC. 415. TREATMENT OF RESTRUCTURING FOR PUR2 POSES OF APPLYING LIMITATIONS ON NET 

3 OPERATING LOSS CARRYFORWARDS AND 

4 CERTAIN BUILT-IN LOSSES. 

5 ‘‘Section 382 of the Internal Revenue Code of 1986 

6 shall not apply in the case of an ownership change result7 ing from this title or pursuant to a restructuring plan ap8 proved under this title. 

9 ‘‘SEC. 416. CLARIFICATION OF AVAILABILITY OF FINANCIAL 

10 SUPPORT FOR FINANCING ARMS. 

11 ‘‘The authority of the President’s designee to provide 

12 assistance to any eligible automobile manufacturer in13 cludes the authority to provide support to finance com14 pany affiliates of the manufacturer to ensure that such 

15 affiliates have the necessary resources to continue to pro16 vide needed credit, including through dealer and other fi17 nancing of consumer and business auto and other vehicle 

18 loans and dealer floor plan loans.’’. 

19 TITLE IV—CLARIFICATION OF 

20 AUTHORITY 

21 SEC. 401. CONSUMER LOANS. 

22 Title I of the Emergency Economic Stabilization Act 

23 of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 

24 at the end the following new section: 
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1 ‘‘SEC. 137. CLARIFICATION OF AUTHORITY REGARDING 

2 CONSUMER LOANS. 

3 ‘‘The authority of the Secretary to take any action 

4 under this title includes the authority to establish or sup5 port facilities to support the availability of consumer 

6 loans, including loans for autos and other vehicles and stu7 dent loans, including through purchase of asset-backed se8 curities, directly or through the Board or any Federal re9 serve bank. In determining which classes of consumer 

10 loans to support, the Secretary may consider the applica11 ble regulatory structure and level of consumer protection 

12 afforded to such loans.’’. 

13 SEC. 402. MUNICIPAL SECURITIES. 

14 Section 101 of the Emergency Economic Stabilization 

15 Act of 2008 (12 U.S.C. 5211) is amended by inserting 

16 after subsection (g) (as added by section 110 of this Act) 

17 the following new subsection: 

18 ‘‘(h) CLARIFICATION OF AUTHORITY REGARDING

19 MUNICIPAL SECURITIES.— 

20 ‘‘(1) CLARIFICATION.—The authority of the 

21 Secretary to take any action under this title includes 

22 the authority to provide support to State and local 

23 governments, and other issuers of municipal securi24 ties, which are having difficulty accessing appro25 priate financing in the capital markets. Such sup26 port includes the direct purchase of municipal secu-
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1 rities and providing credit enhancement in connec2 tion with municipal securities whose purchase is fi3 nanced under any facility provided by the Board or 

4 any Federal reserve bank. 

5 ‘‘(2) DEFINITION.—For purposes of this sub6 section, the term ‘municipal security’ has the mean7 ing given the term ‘State or local bond’ in section 

8 103(c) of the Internal Revenue Code of 1986 (26 

9 U.S.C. 103(c)) and the regulations issued there10 under or any other entity eligible to issue bonds the 

11 interest on which is excludable from gross income 

12 for Federal income tax purposes.’’. 

13 SEC. 403. COMMERCIAL REAL ESTATE LOANS. 

14 Title I of the Emergency Economic Stabilization Act 

15 of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 

16 after section 137 (as added by section 401 of this title) 

17 the following new section: 

18 ‘‘SEC. 138. CLARIFICATION OF AUTHORITY REGARDING 

19 COMMERCIAL REAL ESTATE LOANS. 

20 ‘‘The authority of the Secretary to take any action 

21 under this title includes the authority to establish or sup22 port facilities to support the availability of commercial real 

23 estate loans, including loans for multifamily housing, in24 cluding through purchase of asset-backed securities, di-
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1 rectly or through the Board of Governors of the Federal 

2 Reserve System or any Federal reserve bank.’’. 

3 SEC. 404. SMALL BUSINESS LOANS. 

4 Title I of the Emergency Economic Stabilization Act 

5 of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 

6 after section 138 (as added by section 403 of this title) 

7 the following new section: 

8 ‘‘SEC. 139. CLARIFICATION OF AUTHORITY REGARDING 

9 SMALL BUSINESS LOANS. 

10 ‘‘The authority of the Secretary to take any action 

11 under this title includes the authority to establish or sup12 port facilities to support the availability of small business 

13 loans, including farm loans, loans to minority and dis14 advantaged businesses, debtor-in-possession financing, 

15 dealer floor plan financing, and any other small business 

16 loans, including through purchase of asset-backed securi17 ties, directly or through the Board or any Federal reserve 

18 bank.’’. 

19 SEC. 405. COMMERCIAL LOANS. 

20 Title I of the Emergency Economic Stabilization Act 

21 of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 

22 after section 139 (as added by section 404 of this title) 

23 the following new section: 
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1 ‘‘SEC. 140. CLARIFICATION OF AUTHORITY REGARDING 

2 COMMERCIAL LOANS. 

3 ‘‘The authority of the Secretary to take any action 

4 under this title includes the authority to establish or sup5 port facilities to support the availability of commercial 

6 loans, including through purchase of asset-backed securi7 ties, directly or through the Board or any Federal reserve 

8 bank.’’. 

9 SEC. 406. AUTOMOBILE FLEET PURCHASE LOANS. 

10 Title I of the Emergency Economic Stabilization Act 

11 of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 

12 after section 140 (as added by section 405 of this title) 

13 the following new section: 

14 ‘‘SEC. 141. CLARIFICATION OF AUTHORITY REGARDING 

15 AUTOMOBILE FLEET PURCHASE LOANS. 

16 ‘‘The authority of the Secretary to take any action 

17 under this title includes the authority to establish or sup18 port facilities to support the availability of automobile fleet 

19 purchase loans, including loans for the automobile rental 

20 industry and other fleet purchasers, including through 

21 purchase of asset-backed securities, directly or through 

22 the Board or any Federal reserve bank.’’. 

23 SEC. 407. CERTIFICATION. 

24 Subsection (a) of section 105 of the Emergency Eco25 nomic Stabilization Act of 2008 (12 U.S.C. 5215(a)) is 

26 amended— 
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1 (1) in paragraph (2), by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (3), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following new 

6 paragraph: 

7 ‘‘(4) the use of the authority for the purposes 

8 specified in the amendments made by title IV of the 

9 TARP Reform and Accountability Act of 2009.’’. 

10 TITLE V—HOPE FOR HOME11 OWNERS PROGRAM IMPROVE12 MENTS 

13 SEC. 501. CHANGES TO HOPE FOR HOMEOWNERS PRO14 GRAM. 

15 Section 257 of the National Housing Act (12 U.S.C. 

16 1715z–23) is amended— 

17 (1) in subsection (e)— 

18 (A) by striking paragraph (1); 

19 (B) in paragraph (2)(B), by striking ‘‘90 

20 percent’’ and inserting ‘‘93 percent’’; 

21 (C) by striking paragraph (7); 

22 (D) in paragraph (9), by striking ‘‘by pro23 curing’’ and all that follows through ‘‘by any 

24 other method’’; and 
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1 (E) by redesignating paragraphs (2), (3), 

2 (4), (5), (6), (8), (9), (10), and (11) as para3 graphs (1), (2), (3), (4), (5), (6), (7), (8), and 

4 (9), respectively; 

5 (2) in subsection (h)(2), by striking ‘‘, or in any 

6 case in which a mortgagor fails to make the first 

7 payment on a refinanced eligible mortgage’’; 

8 (3) by striking subsection (i) and inserting the 

9 following new subsection: 

10 ‘‘(i) ANNUAL PREMIUMS.— 

11 ‘‘(1) IN GENERAL.—For each refinanced eligible 

12 mortgage insured under this section, the Secretary 

13 shall establish and collect an annual premium in an 

14 amount equal to not less than 0.55 percent of the 

15 amount of the remaining insured principal balance 

16 of the mortgage and not more than 0.75 percent of 

17 such remaining insured principal balance, as deter18 mined according to a schedule established by the 

19 Board that assigns such annual premiums based 

20 upon the credit risk of the mortgage. 

21 ‘‘(2) REDUCTION OR TERMINATION DURING

22 MORTGAGE TERM.—Notwithstanding paragraph (1), 

23 the Secretary may provide that the annual premiums 

24 charged for refinanced eligible mortgages insured 

25 under this section are reduced over the term of the 
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1 mortgage or that the collection of such premiums is 

2 discontinued at some time during the term of the 

3 mortgage, in a manner that is consistent with poli4 cies for such reduction or discontinuation of annual 

5 premiums charged for mortgages in accordance with 

6 section 203(c).’’; 

7 (4) in subsection (k)— 

8 (A) by striking the subsection heading and 

9 inserting ‘‘EXIT FEE’’; 

10 (B) in paragraph (1), in the matter pre11 ceding subparagraph (A), by striking ‘‘such sale 

12 or refinancing’’ and inserting ‘‘the mortgage 

13 being insured under this section’’; and 

14 (C) by striking paragraph (2); 

15 (5) in subsection (s)(3)(A)(ii), by striking ‘‘sub16 section (e)(1)(B) and such other’’ and inserting 

17 ‘‘such’’; 

18 (6) in subsection (v), by inserting after the pe19 riod at the end the following: ‘‘The Board shall con20 form documents, forms, and procedures for mort21 gages insured under this section to those in place for 

22 mortgages insured under section 203(b) to the max23 imum extent possible consistent with the require24 ments of this section.’’; 
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1 (7) in subsection (w)(1)(C), by striking 

2 ‘‘(e)(4)(A)’’ and inserting ‘‘(e)(3)(A)’’; and 

3 (8) by adding at the end the following new sub4 section: 

5 ‘‘(x) PAYMENT TO EXISTING LOAN SERVICER.—The 

6 Board may establish a payment to the servicer of the exist7 ing senior mortgage for every loan insured under the 

8 HOPE for Homeowners Program.’’. 

9 TITLE VI—HOME BUYER 

10 STIMULUS 

11 SEC. 601. HOME BUYER STIMULUS PROGRAM. 

12 (a) IN GENERAL.—The Secretary of the Treasury (in 

13 this title referred to as the ‘‘Secretary’’) shall establish 

14 and implement, within 60 days of the date of the enact15 ment of the TARP Reform and Accountability Act of 

16 2009, a program to stimulate demand for home purchases 

17 and reduce unsold inventories of residential properties, by 

18 providing mechanisms to ensure the availability of afford19 able, below-market interest rates on mortgages made for 

20 the purchase, by qualified home buyers, of 1- to 4-family 

21 residential properties. 

22 (b) IMPLEMENTATION.—The Secretary shall execute 

23 the program under this section using the authority to pur24 chase obligations and other securities issued by the Fed25 eral National Mortgage Association, the Federal Home 
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1 Loan Mortgage Corporation, and the Federal Home Loan 

2 Banks made available by the Housing and Economic Re3 covery Act of 2008 and such other authority as the Sec4 retary may have (other than that provided by title I of 

5 the Emergency Economic Stabilization Act of 2008) to 

6 make affordable, below-market interest rates available di7 rectly through portfolio lenders. 

8 (c) AVAILABILITY OF AFFORDABLE LOANS UNDER

9 HOPE FOR HOMEOWNERS PROGRAM.—The Secretary, in 

10 consultation with the Secretary of Housing and Urban De11 velopment, shall ensure that the affordable, below-market 

12 interest rates made available through the program under 

13 this section are made available in connection with mort14 gages made for refinancing eligible mortgages, as such 

15 term is defined in section 257 of the National Housing 

16 Act (12 U.S.C. 1715z–23), to be insured under the HOPE 

17 for Homeowners Program under such section. 

18 (d) TARGETING FOR HOUSING DISASTER AREAS.— 

19 (1) IN GENERAL.—In carrying out the program 

20 under this section, the Secretary shall take into con21 sideration impact of activities under the program on 

22 housing disaster areas. 

23 (2) REPORT.—Not later than 60 days after the 

24 Secretary first has authority to purchase troubled 

25 assets pursuant to section 115(a)(3) of the Emer-
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1 gency Economic Stabilization Act of 2008 (12 

2 U.S.C. 5225(a)(3)), the Secretary shall— 

3 (A) evaluate the impact of existing Federal 

4 foreclosure prevention activities on housing dis5 aster areas; 

6 (B) make a determination of whether the 

7 foreclosure rates and anticipated default rates 

8 in such areas have been adequately reduced; 

9 and 

10 (C) submit a report to the Congress that 

11 describes the impact of such activities and the 

12 determination of the Secretary under subpara13 graph (B). 

14 (3) ALTERNATIVE PROPOSALS.— If the Sec15 retary determines that the foreclosure rates and an16 ticipated default rates in housing disaster areas have 

17 not been adequately reduced, the Secretary shall— 

18 (A) consider carrying out alternative pro19 posals, including a proposal under which the 

20 Federal Government makes available affordable 

21 mortgages, including refinancings, through sub22 sidized financing or mortgage purchases; and 

23 (B) establish and carry out alternative pro24 grams as the Secretary considers necessary to 

25 ensure that foreclosure prevention efforts are 
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1 most effective in the areas of greatest need, in2 cluding housing disaster areas. 

3 (4) HOUSING DISASTER AREAS.—For purposes 

4 of this section, the term ‘‘housing disaster area’’ 

5 means a geographic area having both— 

6 (A) a high foreclosure rate during the 12 

7 months preceding the date of the enactment of 

8 this Act, as measured by percentages of homes 

9 in or having gone through foreclosure during 

10 such period and compared to other areas; and 

11 (B) a substantial decline in home prices 

12 during the 12 months preceding the date of the 

13 enactment of this Act, as measured by the Of14 fice of Federal Housing Enterprise and Over15 sight and compared to other areas. 

16 TITLE VII—FDIC PROVISIONS 

17 SEC. 701. PERMANENT INCREASE IN DEPOSIT INSURANCE. 

18 (a) AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

19 ACT.—Section 11(a)(1) of the Federal Deposit Insurance 

20 Act (12 U.S.C. 1821(a)) is amended— 

21 (1) in paragraph (1)(E), by striking 

22 ‘‘$100,000’’ and inserting ‘‘$250,000’’; 

23 (2) in paragraph (1)(F)(i), by striking ‘‘2010’’ 

24 and inserting ‘‘2015’’; 
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1 (3) in subclause (I) of paragraph (1)(F)(i), by 

2 striking ‘‘$100,000’’ and inserting ‘‘$250,000’’; 

3 (4) in subclause (II) of paragraph (1)(F)(i), by 

4 striking ‘‘the calendar year preceding the date this 

5 subparagraph takes effect under the Federal Deposit 

6 Insurance Reform Act of 2005’’ and inserting ‘‘cal7 endar year 2008’’; and 

8 (5) in paragraph (3)(A)(iii), by striking ‘‘, ex9 cept that $250,000 shall be substituted for $100,000 

10 wherever such term appears in such paragraph’’. 

11 (b) REPEAL OF EESA PROVISION.—Section 136 of 

12 the Emergency Economic Stabilization Act (Public Law 

13 110–343; 122 Stat. 3765) is hereby repealed. 

14 (c) AMENDMENT TO FEDERAL CREDIT UNION

15 ACT.—Section 207(k) of the Federal Credit Union Act 

16 (12 U.S.C. 1787(k) is amended— 

17 (1) in paragraph (3)— 

18 (A) by striking the opening quotation mark 

19 before ‘‘$250,000’’; 

20 (B) by striking ‘‘, except that $250,000 

21 shall be substituted for $100,000 wherever such 

22 term appears in such section’’; and 

23 (C) by striking the closing quotation mark 

24 after the closing parenthesis; and 
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1 (2) in paragraph (5), by striking ‘‘$100,000’’ 

2 and inserting ‘‘$250,000’’; 

3 SEC. 702. EXTENSION OF RESTORATION PLAN PERIOD. 

4 Section 7(b)(3)(E)(ii) of the Federal Deposit Insur5 ance Act (12 U.S.C. 1817(b)(3)(E)(ii)) is amended by 

6 striking ‘‘5-year period’’ and inserting ‘‘8-year period’’. 

7 SEC. 703. BORROWING AUTHORITY. 

8 Section 14(a) of the Federal Deposit Insurance Act 

9 (12 U.S.C. 1824(a)) is amended— 

10 (1) by striking ‘‘$30,000,000,000’’ and insert11 ing ‘‘$100,000,000,000’’; and 

12 (2) by inserting prior to the last sentence, the 

13 following new sentence: ‘‘The Corporation may re14 quest in writing to borrow, and the Secretary may 

15 authorize and approve the borrowing of, additional 

16 amounts above $100,000,000,000 to the extent that 

17 the Board of Directors and the Secretary determine 

18 such borrowing to be necessary.’’. 

19 SEC. 704. SYSTEMIC RISK SPECIAL ASSESSMENTS. 

20 Section 13(c)(4)(G)(ii) of the Federal Deposit Insur21 ance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended to read 

22 as follows: 

23 ‘‘(ii) REPAYMENT OF LOSS.— 

24 ‘‘(I) IN GENERAL.—The Corpora25 tion shall recover the loss to the De-
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1 posit Insurance Fund arising from 

2 any action taken or assistance pro3 vided with respect to an insured de4 pository institution under clause (i) 

5 from 1 or more special assessments on 

6 insured depository institutions, deposi7 tory institution holding companies 

8 (with the concurrence of the Secretary 

9 of the Treasury with respect to hold10 ing companies), or both, as the Cor11 poration determines to be appropriate. 

12 ‘‘(II) TREATMENT OF DEPOSI13 TORY INSTITUTION HOLDING COMPA14 NIES.—For purposes of this clause, 

15 sections 7(c)(2) and 18(h) shall apply 

16 to depository institution holding com17 panies as if they were insured deposi18 tory institutions. 

19 ‘‘(III) REGULATIONS.—The Cor20 poration shall prescribe such regula21 tions as it deems necessary to imple22 ment this clause. In prescribing such 

23 regulations, defining terms, and set24 ting the appropriate assessment rate 

25 or rates, the Corporation shall con-
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1 sider: the types of entities that benefit 

2 from any action taken or assistance 

3 provided under this subparagraph; 

4 economic conditions; the effects on the 

5 industry; and such other factors as 

6 the Corporation deems appropriate.’’. 

7 TITLE VIII—REPORTS ON THE 

8 GUARANTEE OF CERTAIN 

9 CITIGROUP ASSETS 

10 SEC. 801. REPORTS REQUIRED. 

11 (a) TREASURY REPORTS.—Not later than 30 days 

12 after the date of the enactment of this Act, the Secretary 

13 of the Treasury, in coordination with the Chairperson of 

14 the Board of Directors of the Federal Deposit Insurance 

15 Corporation, shall issue a report to the Committee on Fi16 nancial Services of the House of Representatives, the 

17 Committee on Banking of the Senate, and to the Comp18 troller General of the United States containing the fol19 lowing: 

20 (1) The authority under which the Citigroup 

21 guarantee and purchases were made. 

22 (2) A complete accounting of the specific loans, 

23 securities, and any other financial instruments in the 

24 asset pool covered by the Citigroup guarantee. 
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1 (b) GAO REPORT.—Not later than 60 days after the 

2 date the Secretary of the Treasury issues the report re3 quired by subsection (a), the Comptroller General of the 

4 United States shall issue a report to the Committee on 

5 Financial Services of the House of Representatives and 

6 the Committee on Banking of the Senate examining the 

7 probable long-term cost to the Federal Government of the 

8 Citigroup guarantee. 

9 (c) CITIGROUP GUARANTEE DEFINED.—For the pur10 pose of this section, the term ‘‘Citigroup guarantee’’ 

11 means the agreement announced November 23, 2008, be12 tween Citigroup and the Treasury and the Federal De13 posit Insurance Corporation to guarantee or purchase, 

14 partly through the use of funds authorized under the 

15 Emergency Economic Stabilization Act of 2008 (12 

16 U.S.C. 5201 et seq.), an asset pool of approximately $306 

17 billion of loans and securities backed by residential and 

18 commercial real estate and other such assets on 

19 Citigroup’s balance sheet. 

20 TITLE IX—GAO STUDY OF 

21 FINANCIAL CRISIS 

22 SEC. 901. STUDY REQUIRED. 

23 The Comptroller General of the United States shall— 

24 (1) conduct an in-depth study of the root 

25 causes of the financial crisis; and 
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1 (2) submit a report to the Congress and the 

2 President, and transmit a copy to the Secretary of 

3 the Treasury, containing the findings and conclu4 sions of the Comptroller General with respect to the 

5 study under paragraph (1), together with such rec6 ommendations for legislative and administrative ac7 tion as the Comptroller General may determine to be 

8 appropriate before the end of the 6-month period be9 ginning on the date of the enactment of this Act. 

10 SEC. 902. TREASURY STRATEGY AND TIMELINE. 

11 Using the findings and conclusions of the Comptroller 

12 General in the report under section 901(2), within 30 

13 days, the Secretary of the Treasury shall issue an overall 

14 strategy and timeline for implementing the recommenda15 tions contained in the report with the goal of financial sta16 bility and the well-being of taxpayers. 

17 TITLE X—AGENCY MBS PUR18 CHASE PROGRAM DISCLO19 SURE 

20 SEC. 1001. DISCLOSURE REQUIRED. 

21 Not later than 1 month after the date of the enact22 ment of this Act, the Chairman of the Board of Governors 

23 of the Federal Reserve System shall issue to the Congress 

24 a report disclosing— 
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1 (1) the details of the competitive request for 

2 proposal process that was used to select the invest3 ment managers of the Federal Reserve System’s 

4 Agency Mortgage-Backed Security Purchase Pro5 gram announced by the Federal Reserve System on 

6 November 25, 2008; 

7 (2) all details of the contracts, including con8 tract price, made between the Federal Reserve Sys9 tem and such investment managers; and 

10 (3) steps that each such investment manager 

11 has taken to ensure that the investment manager 

12 has appropriately segregated the investment man13 agement team that implements the Agency Mort14 gage-Backed Security Purchase Program from other 

15 advisory and propriety trading activities undertaken 

16 by the investment manager and the members of the 

17 investment management team. 

Passed the House of Representatives January 21, 

2009. 

Attest: 

Clerk. 
111TH CONGRESS 

1ST SESSION H. R. 384 

AN ACT 

To reform the Troubled Assets Relief Program of 

countability under such Program. the Secretary of the Treasury and ensure ac-