(2) ABILITY TO MODIFY MORTGAGES.— 
(A) ABILITY.—Notwithstanding any other 
provision of law, and notwithstanding any in-
vestment contract between a servicer and a 
securitization vehicle or investor, a servicer— 
(i) shall not be limited in the ability 
to modify mortgages, the number of mort-
gages that can be modified, the frequency 
of loan modifications, or the range of per-
missible modifications; and 
(ii) shall not be obligated to repur-
chase loans from or otherwise make pay-
ments to the securitization vehicle on ac-
count of a modification, workout, or other 
loss mitigation plan for a residential mort-
gage or a class of residential mortgages 
that constitute a part or all of the mort-
gages in the securitization vehicle, 
if any mortgage so modified meets all of the cri-
teria set forth in subparagraph (B). 
(B) CRITERIA.—The criteria under this 
subparagraph with respect to a mortgage are as 
follows: 
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(i) Default on the payment of such 
mortgage has occurred or is reasonably 
foreseeable. 
(ii) The property securing such mort-
gage is occupied by the mortgagor of such 
mortgage. 
(iii) The servicer reasonably and in 
good faith believes that the anticipated re-
covery on the principal outstanding obliga-
tion of the mortgage under the particular 
modification or workout plan or other loss 
mitigation action will exceed, on a net 
present value basis, the anticipated recov-
ery on the principal outstanding obligation 
of the mortgage to be realized through 
foreclosure. 
(3) 
APPLICABILITY.—This 
subsection 
shall 
apply only with respect to modifications, workouts, 
and other loss mitigation plans initiated before Jan-
uary 1, 2012. 
(b) REPORTING.—Each servicer that engages in loan 
modifications or workout plans subject to the safe harbor 
in subsection (a) shall report to the Secretary on a regular 
basis regarding the extent, scope and results of the 
servicer’s modification activities. The Secretary shall pre-
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scribe regulations specifying the form, content, and timing 
of such reports. 
(c) DEFINITION OF SECURITIZATION VEHICLES.— 
For purposes of this section, the term ‘‘securitization vehi-
cle’’ means a trust, corporation, partnership, limited liabil-
ity entity, special purpose entity, or other structure that— 
(1) is the issuer, or is created by the issuer, of 
mortgage pass-through certificates, participation cer-
tificates, mortgage-backed securities, or other similar 
securities backed by a pool of assets that includes 
residential mortgage loans; and 
(2) holds such mortgages. 
SEC. 7. AVAILABILITY OF TARP FUNDS TO SMALLER COM-
MUNITY INSTITUTIONS. 
(a) PROMPT ACTION.—The Secretary shall promptly 
take all necessary actions to provide assistance under title 
I of the Emergency Economic Stabilization Act of 2008 
to smaller community financial institutions, including such 
institutions that are privately held. 
(b) COMPARABLE TERMS.—An institution that re-
ceives assistance after the date of the enactment of the 
this Act, shall do so on terms comparable to the terms 
applicable to institutions that received assistance prior to 
the date of the enactment of this Act if the institution— 
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(1) has submitted an application on which no 
action has been taken, such as institutions that are 
C corporations (including privately held institutions) 
and community development financial institutions; 
or 
(2) is of a type for which the Secretary has not 
yet established an application deadline or for which 
any such deadline has not yet occurred as of the 
date of the enactment of this Act, such as institu-
tions that are non-stock corporations, S-corpora-
tions, mutually owned insured depository institutions 
(as defined in section 3 of the Federal Deposit In-
surance Act). 
(c) DEFINITIONS.—For purposes of this section, the 
terms ‘‘S Corporation’’ and ‘‘C Corporation’’ shall have 
the same meaning given to those terms in section 1361(a) 
of the Internal Revenue Code of 1986. 
Æ 
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