I 
111TH CONGRESS 
1ST SESSION 
H. R. 225 
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 7, 2009 
Mr. MILLER of North Carolina (for himself, Ms. LINDA T. SA´NCHEZ of Cali-
fornia, Mr. FRANK of Massachusetts, Mr. WATT, Mr. ELLISON, Ms. LEE 
of California, Mr. COURTNEY, Mr. BLUMENAUER, Mrs. CHRISTENSEN, 
Ms. EDDIE BERNICE JOHNSON of Texas, Mr. BUTTERFIELD, Mr. 
GRIJALVA, Ms. JACKSON-LEE of Texas, Mr. SIRES, Mr. CAPUANO, Mr. 
HINCHEY, Mr. GEORGE MILLER of California, Mr. STARK, Mr. JOHNSON 
of Georgia, Mr. DAVIS of Alabama, Mr. VAN HOLLEN, Ms. WASSERMAN 
SCHULTZ, Mr. COHEN, Ms. EDWARDS of Maryland, and Mr. LEWIS of 
Georgia) introduced the following bill; which was referred to the Com-
mittee on the Judiciary 
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. 
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 ‘‘Emergency Homeown-
ership and Equity Protection Act’’. 
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SEC. 3. AUTHORITY TO MODIFY CERTAIN MORTGAGES. 
Section 1322(b) of title 11, United States Code, is 
amended— 
(1) by redesignating paragraph (11) as para-
graph (12), 
(2) in paragraph (10) by striking ‘‘and’’ at the 
end, and 
(3) by inserting after paragraph (10) the fol-
lowing: 
‘‘(11) notwithstanding paragraph (2) and other-
wise applicable nonbankruptcy law, with respect to a 
claim for a loan made before the date of the enact-
ment of the Emergency Homeownership and Equity 
Protection Act secured by a security interest in the 
debtor’s principal residence that is the subject of a 
notice that a foreclosure may be commenced, modify 
the rights of the holder of such claim— 
‘‘(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 
adjustable under the terms of such security in-
terest by prohibiting, reducing, or delaying ad-
justments to such rate of interest applicable on 
and after the date of filing of the plan; 
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‘‘(C) by modifying the terms and condi-
tions of such loan— 
‘‘(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 remaining term of such loan, begin-
ning 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 an annual 
percentage rate calculated at a fixed an-
nual percentage rate, in an amount equal 
to the then most recently published annual 
yield on conventional mortgages published 
by the Board of Governors of the Federal 
Reserve System, as of the applicable time 
set forth in the rules of the Board, plus a 
reasonable premium for risk; and 
‘‘(D) by providing for payments of such 
modified loan directly to the holder of the 
claim; and’’. 
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SEC. 4. COMBATING EXCESSIVE FEES. 
Section 1322(c) of title 11, the 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 
property 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 debt-
or’s principal residence except to the extent that— 
‘‘(A) the holder of the claim for such debt 
files with the court (annually or, in order to 
permit filing consistent with clause (ii), at such 
more frequent periodicity as the court deter-
mines necessary) notice of such fee, cost, or 
charge before 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 
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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 
paragraph (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 oc-
curs 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.’’. 
SEC. 5. CONFIRMATION OF PLAN. 
Section 1325(a) of title 11, the 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 
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(3) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) notwithstanding subclause (I) of para-
graph (5)(B)(i), the plan provides that the holder of 
a claim whose rights are modified pursuant to sec-
tion 1322(b)(11) 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) the plan modifies a claim in accordance 
with section 1322(b)(11), and the court finds that 
such modification is in good faith.’’. 
SEC. 6. DISCHARGE. 
Section 1328 of title 11, the United States Code, is 
amended— 
(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’’ the 
1st place it appears, and 
(B) in paragraph (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)’’, and 
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