I 
112TH CONGRESS 
2D SESSION 
H. R. 6395 
To provide homeowners with additional protections and safeguards against 
foreclosure, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2012 
Mr. BACA introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To provide homeowners with additional protections and 
safeguards against foreclosure, and for other purposes. 
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 ‘‘Foreclosure Account-
ability and Transparency Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ALTERNATIVE
TO
FORECLOSURE.—The 
term ‘‘alternative to foreclosure’’— 
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(A) means a course of action with respect 
to a mortgage offered to a borrower as an alter-
native to a foreclosure action; and 
(B) includes a short sale and deed in lieu 
of foreclosure. 
(2) BORROWER.—The term ‘‘borrower’’ means 
a mortgagor who is in default on their covered resi-
dential mortgage. 
(3) COVERED
RESIDENTIAL
MORTGAGE.—The 
term ‘‘covered residential mortgage’’ means a feder-
ally related mortgage loan, as defined in section 3(1) 
of the Real Estate Settlement Procedures Act of 
1974 (12 U.S.C. 2602(1)), that is secured by a first 
or subordinate lien on residential real property. 
(4) FORECLOSURE ACTION.—The term ‘‘fore-
closure action’’ means a judicial or nonjudicial fore-
closure. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
SEC. 3. HOMEOWNER BILL OF RIGHTS. 
(a) ACTION REQUIRED BEFORE COMMENCING FORE-
CLOSURE.—Notwithstanding any other provision of State 
or Federal law, no foreclosure action may be commenced 
with respect to a covered residential mortgage unless the 
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person commencing the foreclosure complies with the fol-
lowing requirements: 
(1) NOTICE.— 
(A) IN GENERAL.— 
(i) 
NOTIFICATION.—The 
borrower 
shall be notified of the foreclosure action 
that may be taken, and such notice shall 
provide detailed information that includes 
the following: 
(I) A statement of any rights of 
the borrower under the applicable 
laws governing the foreclosure action 
and consumer rights. 
(II) A statement of any deadlines 
for filing answers, defenses, or objec-
tions to the foreclosure action, includ-
ing those rights of the borrower under 
the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2601 
note) and any applicable State laws. 
(III) A statement of any pen-
alties and other consequences for the 
borrower if such borrower does not re-
spond or file answers to the fore-
closure action. 
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(IV) A statement of the amounts 
claimed to be in arrears under the 
covered 
residential 
mortgage 
and 
amounts needed to reinstate the ac-
count and all associated costs and 
fees, set forth in itemized and distinct 
categories. 
(V) A statement of current con-
tact information, including telephone 
numbers, electronic mail addresses, 
and postal addresses, at which the 
borrower can obtain further informa-
tion regarding the mortgage account. 
(VI) A description of— 
(aa) any additional options, 
such as a mortgage workout, 
modification, mitigation, redemp-
tion, and other alternatives to 
foreclosure that might be avail-
able to the borrower to prevent 
the foreclosure action from pro-
ceeding; and 
(bb) how the borrower can 
obtain additional information re-
garding such options. 
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(VII) A statement of the correct 
names, telephone numbers, electronic 
mail addresses, postal addresses, and 
any State licensing numbers of the 
mortgage 
holder, 
the 
mortgage 
servicer, and the person or persons 
authorized to take the actions de-
scribed pursuant to subclause (V). 
(ii) ACCEPTED MEANS OF NOTIFICA-
TION.—The notification given pursuant to 
clause (i) shall be made in writing, by elec-
tronic mail (if such information is known), 
by telephone, and by making an in-person 
visit to the property that secures the loan 
in connection with the covered residential 
mortgage. 
(B) APPEAL.— 
(i) FILING.—The borrower may file 
an appeal with the Secretary to dispute the 
accuracy of the information contained in 
the notice described in subparagraph (A). 
(ii) TIMING.—The person commencing 
the foreclosure shall have 30 days after an 
appeal is filed under clause (i) to submit to 
the Secretary documentation supporting 
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the information provided in the notification 
provided under subparagraph (A)(i). 
(iii) DETERMINATION.—The Secretary 
shall make a determination as to whether 
or not the information contained in the no-
tice described in subparagraph (A) is accu-
rate and if foreclosure action is permitted 
not later than 30 days after the docu-
mentation is submitted under clause (ii). 
(2) HUD CERTIFIED COUNSELORS.— 
(A) IN
GENERAL.—A borrower notified 
pursuant to paragraph (1)(A) may seek assist-
ance from a HUD-approved housing counseling 
agency described under section 106 of the 
Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x) to act as their agent in con-
nection with the foreclosure action. 
(B) 
DOCUMENTATION.—If 
a 
borrower 
seeks assistance from a HUD-approved housing 
counseling agency under subparagraph (A), all 
information and documentation in connection 
with the foreclosure action shall be provided to 
such counseling agency. 
(3) HOMEOWNER ACTION.— 
(A) APPLICATION.— 
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(i) IN
GENERAL.—A borrower shall 
have not less than the 60-day period after 
a notification under paragraph (1)(A) is 
received to apply for a loan modification or 
commence an alternative to foreclosure, 
and no foreclosure action shall be initiated 
before the end of such period. 
(ii) TOLLING.—The 60-day period de-
scribed in clause (i) shall be tolled during 
any period of time in which the borrower 
has filed an appeal pursuant to paragraph 
(1)(B) and the Secretary, with respect to 
such appeal, has not made a determination 
pursuant to clause (iii) of such paragraph. 
(B) HOMEOWNER
MODIFICATION
OR
AL-
TERNATIVES TO FORECLOSURE.—If a borrower 
applies for a loan modification or submits docu-
mentation indicating that such borrower is 
seeking an alternative to foreclosure during the 
60-day period described in subparagraph (A), 
the foreclosure action may not be initiated 
against such borrower until reasonable efforts 
have been made by the person commencing the 
foreclosure action to determine whether the bor-
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rower is eligible for a loan modification or an 
alternative to foreclosure. 
(C) EXPLANATION OF DENIAL.—If a bor-
rower is declared ineligible for a loan modifica-
tion or alternative to foreclosure, such borrower 
shall be given an explanation that includes the 
reasons why such borrower is ineligible. 
(b) BAR TO FORECLOSURE ACTIONS.—A violation of 
this section shall be a bar to a foreclosure action. 
(c) CERTIFICATION.—At the completion of a fore-
closure action, the person who commenced such action 
shall certify that all Federal, State, and local laws and 
regulations were followed with respect to the foreclosure 
action and submit all applicable documentation (as such 
term is defined in regulations promulgated by the Sec-
retary to carry out this Act) in connection with such action 
to the— 
(1) borrower who was a party to the foreclosure 
action; 
(2) recorder’s office in the municipality that the 
property that secures the loan in connection with the 
covered residential mortgage is located; and 
(3) Secretary. 
(d) RULE OF CONSTRUCTION.—Nothing in this Act 
may be construed as to require a person commencing a 
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foreclosure action under this section to comply with the 
requirements under subsection (a) in the case of a bor-
rower who— 
(1) was approved for a loan modification in con-
nection with a covered residential mortgage after ap-
plying for such modification pursuant to subsection 
(a)(3)(A); 
(2) had the terms of such mortgage modified 
after such approval; and 
(3) is in default on such mortgage. 
(e) RELATION TO STATE LAW.—This Act does not 
annul, alter, or affect, or exempt any person subject to 
the provisions of this Act from complying with, the laws 
of any State or subdivision thereof with respect to a fore-
closure action on a covered residential mortgage, except 
to the extent that those laws are inconsistent with any 
provision of this Act, and then only to the extent of the 
inconsistency. No provision of the laws of any State or 
subdivision thereof may be determined to be inconsistent 
with any provision of this Act if such law is determined 
to require greater disclosure or notice than is required 
under this Act or to provide greater protection to the bor-
rower than is required under this Act. 
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(f) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall issue 
regulations to carry out this Act. 
SEC. 4. EFFECTIVE DATE. 
This Act shall take effect upon the expiration of the 
90-day period beginning on the date of the enactment of 
this Act, and shall apply to covered residential mortgages 
in which foreclosure action has not commenced. 
Æ 
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