IB 
Union Calendar No. 7 
111TH CONGRESS 
1ST SESSION 
H. R. 200 
[Report No. 111–19] 
To amend title 11 of the United States Code with respect to modification 
of certain mortgages on principal residences, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 6, 2009 
Mr. CONYERS (for himself, Ms. LINDA T. SA´NCHEZ of California, Mr. NAD-
LER of New York, Mr. DELAHUNT, Mr. SCOTT of Virginia, and Ms. WA-
TERS) introduced the following bill; which was referred to the Committee 
on the Judiciary 
FEBRUARY 24, 2009 
Additional sponsors: Mr. GUTIERREZ, Mr. COHEN, Ms. EDWARDS of Mary-
land, Mr. GRIJALVA, Mr. JOHNSON of Georgia, Mr. WATT, Mr. KEN-
NEDY, Ms. JACKSON-LEE
of Texas, Mr. WU, Mr. BERMAN, Mr. 
KUCINICH, and Mr. LEWIS of Georgia 
FEBRUARY 24, 2009 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 6, 2009] 
A BILL 
To amend title 11 of the United States Code with respect 
to modification of certain mortgages on principal resi-
dences, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Helping Families Save 
Their Homes in Bankruptcy Act of 2009’’. 
SEC. 2. ELIGIBILITY FOR RELIEF. 
Section 109 of title 11, United States Code, is amend-
ed— 
(1) by adding at the end of subsection (e) the fol-
lowing: ‘‘For purposes of this subsection, the computa-
tion of debts shall not include the secured or unse-
cured portions of— 
‘‘(1) debts secured by the debtor’s principal resi-
dence if the current value of such residence is less 
than the secured debt limit; or 
‘‘(2) debts secured or formerly secured by real 
property that was the debtor’s principal residence 
that was sold in foreclosure or that the debtor surren-
dered to the creditor if the current value of such real 
property is less than the secured debt limit.’’, and 
(2) by adding at the end of subsection (h) the fol-
lowing: 
‘‘(5) The requirements of paragraph (1) shall not 
apply in a case under chapter 13 with respect to a debtor 
who submits to the court a certification that the debtor has 
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received notice that the holder of a claim secured by the 
debtor’s principal residence may commence a foreclosure on 
the debtor’s principal residence.’’. 
SEC. 3. PROHIBITING CLAIMS ARISING FROM VIOLATIONS 
OF THE TRUTH IN LENDING ACT. 
Section 502(b) of title 11, United States Code, is 
amended— 
(1) in paragraph (8) by striking ‘‘or’’ at the end, 
(2) in paragraph (9) by striking the period at 
the end and inserting ‘‘; or’’, and 
(3) by adding at the end the following: 
‘‘(10) the claim for a loan secured by a security 
interest in the debtor’s principal residence is subject 
to a remedy for rescission under the Truth in Lend-
ing Act notwithstanding the prior entry of a fore-
closure judgment, except that nothing in this para-
graph shall be construed to modify, impair, or super-
sede any other right of the debtor.’’. 
SEC. 4. AUTHORITY TO MODIFY CERTAIN MORTGAGES. 
Section 1322 of title 11, United States Code, is amend-
ed— 
(1) in subsection (b)— 
(A) by redesignating paragraph (11) as 
paragraph (12), 
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(B) in paragraph (10) by striking ‘‘and’’ at 
the end, and 
(C) by inserting after paragraph (10) the 
following: 
‘‘(11) notwithstanding paragraph (2) and other-
wise applicable nonbankruptcy law, with respect to a 
claim for a loan originated before the effective date of 
this paragraph and secured by a security interest in 
the debtor’s principal residence that is the subject of 
a notice that a foreclosure may be commenced with 
respect to such loan, modify the rights of the holder 
of such claim (and the rights of the holder of any 
claim secured by a subordinate security interest in 
such residence)— 
‘‘(A) by providing for payment of the 
amount of the allowed secured claim as deter-
mined under section 506(a)(1); 
‘‘(B) if any applicable rate of interest is ad-
justable under the terms of such security interest 
by prohibiting, reducing, or delaying adjust-
ments to such rate of interest applicable on and 
after the date of filing of the plan; 
‘‘(C) by modifying the terms and conditions 
of such loan— 
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‘‘(i) to extend the repayment period for 
a period that is no longer than the longer 
of 40 years (reduced by the period for which 
such loan has been outstanding) or the re-
maining term of such loan, beginning on 
the date of the order for relief under this 
chapter; and 
‘‘(ii) to provide for the payment of in-
terest accruing after the date of the order for 
relief under this chapter at a fixed annual 
rate equal to the currently applicable aver-
age prime offer rate as of the date of the 
order for relief under this chapter, cor-
responding to the repayment term deter-
mined under the preceding paragraph, as 
published by the Federal Financial Institu-
tions Examination Council in its table enti-
tled ‘Average Prime Offer Rates—Fixed’, 
plus a reasonable premium for risk; and 
‘‘(D) by providing for payments of such 
modified loan directly to the holder of the claim; 
and’’, and 
(2) by adding at the end the following: 
‘‘(g) A claim may be reduced under subsection 
(b)(11)(A) only on the condition that if the debtor sells the 
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principal residence securing such claim, before receiving a 
discharge under this chapter and receives net proceeds from 
the sale of such residence, then the debtor agrees to pay to 
such holder— 
‘‘(1) if such residence is sold in the 1st year oc-
curring after the effective date of the plan, 80 percent 
of the amount of the difference between the sales price 
and the amount of such claim (plus costs of sale and 
improvements), but not to exceed the amount of the 
allowed secured claim determined as if such claim 
had not been reduced under such subsection; 
‘‘(2) if such residence is sold in the 2d year oc-
curring after the effective date of the plan, 60 percent 
of the amount of the difference between the sales price 
and the amount of such claim (plus costs of sale and 
improvements), but not to exceed the amount of the 
allowed secured claim determined as if such claim 
had not been reduced under such subsection; 
‘‘(3) if such residence is sold in the 3d year oc-
curring after the effective date of the plan, 40 percent 
of the amount of the difference between the sales price 
and the amount of such claim (plus costs of sale and 
improvements), but not to exceed the amount of the 
allowed secured claim determined as if such claim 
had not been reduced under such subsection; and 
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‘‘(4) if such residence is sold in the 4th year oc-
curring after the effective date of the plan, 20 percent 
of the amount of the difference between the sales price 
and the amount of such claim (plus costs of sale and 
improvements), but not to exceed the amount of the 
allowed secured claim determined as if such claim 
had not been reduced under such subsection. 
‘‘(h) With respect to a claim of the kind described in 
subsection (b)(11), the plan may not contain a modification 
under the authority of subsection (b)(11)— 
‘‘(1) in a case commenced under this chapter 
after the expiration of the 15-day period beginning on 
the effective date of this subsection, unless— 
‘‘(A) the debtor certifies that the debtor at-
tempted, not less than 15 days before the com-
mencement of the case, to contact the holder of 
such claim (or the entity collecting payments on 
behalf of such holder) regarding modification of 
the loan that is the subject of such claim; or 
‘‘(B) a foreclosure sale is scheduled to occur 
on a date in the 30-day period beginning on the 
date the case is commenced; and 
‘‘(2) in any other case pending under this chap-
ter, unless the debtor certifies that the debtor at-
tempted to contact the holder of such claim (or the en-
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tity collecting payments on behalf of such holder) re-
garding modification of the loan that is the subject of 
such claim, before— 
‘‘(A) filing a plan under section 1321 that 
contains a modification under the authority of 
subsection (b)(11); or 
‘‘(B) modifying a plan under section 1323 
or 1329 to contain a modification under the au-
thority of subsection (b)(11).’’. 
SEC. 5. COMBATING EXCESSIVE FEES. 
Section 1322(c) of title 11, United States Code, is 
amended— 
(1) in paragraph (1) by striking ‘‘and’’ at the 
end, 
(2) in paragraph (2) by striking the period at 
the end and inserting a semicolon, and 
(3) by adding at the end the following: 
‘‘(3) the debtor, the debtor’s property, and prop-
erty of the estate are not liable for a fee, cost, or 
charge that is incurred while the case is pending and 
arises from a debt that is secured by the debtor’s prin-
cipal residence except to the extent that— 
‘‘(A) the holder of the claim for such debt 
files with the court (annually or, in order to per-
mit filing consistent with clause (ii), at such 
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more frequent periodicity as the court determines 
necessary) notice of such fee, cost, or charge be-
fore the earlier of— 
‘‘(i) 1 year after such fee, cost, or 
charge is incurred; or 
‘‘(ii) 60 days before the closing of the 
case; and 
‘‘(B) such fee, cost, or charge— 
‘‘(i) is lawful under applicable non-
bankruptcy law, reasonable, and provided 
for in the applicable security agreement; 
and 
‘‘(ii) is secured by property the value 
of which is greater than the amount of such 
claim, including such fee, cost, or charge; 
‘‘(4) the failure of a party to give notice de-
scribed in paragraph (3) shall be deemed a waiver of 
any claim for fees, costs, or charges described in para-
graph (3) for all purposes, and any attempt to collect 
such fees, costs, or charges shall constitute a violation 
of section 524(a)(2) or, if the violation occurs before 
the date of discharge, of section 362(a); and 
‘‘(5) a plan may provide for the waiver of any 
prepayment penalty on a claim secured by the debt-
or’s principal residence.’’. 
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SEC. 6. CONFIRMATION OF PLAN. 
Section 1325(a) of title 11, United States Code, is 
amended— 
(1) in paragraph (8) by striking ‘‘and’’ at the 
end, 
(2) in paragraph (9) by striking the period at 
the end and inserting a semicolon, and 
(3) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) notwithstanding subclause (I) of para-
graph (5)(B)(i), whenever the plan modifies a claim 
in accordance with section 1322(b)(11), the plan pro-
vides that the holder of such claim retain the lien 
until the later of— 
‘‘(A) the payment of such holder’s allowed 
secured claim; or 
‘‘(B) discharge under section 1328; and 
‘‘(11) whenever the plan modifies a claim in ac-
cordance with section 1322(b)(11), the court finds 
that such modification is in good faith and that the 
debtor did not obtain the extension, renewal, or refi-
nancing of credit that gives rise to a modified claim 
by the debtor’s material misrepresentation, false pre-
tenses, or actual fraud.’’. 
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SEC. 7. DISCHARGE. 
Section 1328 of title 11, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) by inserting ‘‘(other than payments to 
holders of claims whose rights are modified 
under section 1322(b)(11))’’ after ‘‘paid’’, and 
(B) in paragraph (1) by inserting ‘‘or, to 
the extent of the unpaid portion of an allowed se-
cured claim, provided for in section 1322(b)(11)’’ 
after ‘‘1322(b)(5)’’, and 
(2) in subsection (c)(1) by inserting ‘‘or, to the 
extent of the unpaid portion of an allowed secured 
claim, provided for in section 1322(b)(11)’’ after 
‘‘1322(b)(5)’’. 
SEC. 8. RULE OF CONSTRUCTION. 
Nothing in this Act or the amendments made by this 
Act shall be construed to modify any obligation of the Fed-
eral Housing Administration, the Veterans Administration, 
or the Department of Agriculture under a contract that 
guarantees or insures the payment of any part of a loan 
secured by a security interest in a principal residence. 
SEC. 9. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this Act 
shall take effect on the date of the enactment of this Act. 
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(b) APPLICATION OF AMENDMENTS.—The amendments 
made by this Act shall apply with respect to cases com-
menced under title 11 of the United States Code before, on, 
or after the date of the enactment of this Act. 
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Union Calendar No. 7 
111TH CONGRESS 
1ST SESSION 
H. R. 200 
[Report No. 111–19] 
A BILL 
To amend title 11 of the United States Code with 
respect to modification of certain mortgages on 
principal residences, and for other purposes. 
FEBRUARY 24, 2009 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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