I 
113TH CONGRESS 
1ST SESSION H. R. 1706 
To establish an Independent Monitor to maintain oversight of the settlement 
by mortgage servicing companies that were subject to enforcement actions 
for unsafe and unsound practices related to residential mortgage loan 
servicing and foreclosure processing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 24, 2013 
Mr. CUMMINGS (for himself, Ms. WATERS, Mr. GEORGE MILLER of California, 
Mr. CONYERS, Mr. WAXMAN, Mr. TIERNEY, Ms. LOFGREN, and Ms. 
SCHAKOWSKY) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To establish an Independent Monitor to maintain oversight 
of the settlement by mortgage servicing companies that 
were subject to enforcement actions for unsafe and un-
sound practices related to residential mortgage loan serv-
icing and foreclosure processing, 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 ‘‘Mortgage Settlement 
Monitoring Act of 2013’’. 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
provide appropriate monetary relief to homeowners 
as a result of these business practice failures. Mort-
gage servicers contracted with third-party consult-
ants approved by the federal agencies to conduct 
these reviews. 
(4) During the tenure of the Independent Fore-
closure Review process, questions persisted con-
cerning the nature and adequacy of the reviews and 
expected remediation as well as the independence of 
the third-party reviewers. 
(5) On February 28, 2013, the Board of Gov-
ernors of the Federal Reserve System and the Office 
of the Comptroller of the Currency finalized amend-
ments to the April 2011 consent orders with 11 of 
the 14 mortgage servicers. Under the terms of these 
orders, mortgage servicers are to provide cash pay-
ments and other assistance to borrowers—including 
more than $3,000,000,000 in direct cash payments 
to borrowers who had homes in foreclosure in 2009 
or 2010—and the Independent Foreclosure Review 
process will cease for the mortgage servicers who 
agreed to enter into the amended consent orders. 
(6) On April 4, 2013, the Government Account-
ability Office (GAO) issued a report titled ‘‘Fore-
closure Review: Lessons Learned Could Enhance 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
Continuing Reviews and Activities Under Amended 
Consent Orders’’ which examined the Independent 
Foreclosure Review process. It found that the 
‘‘[c]omplexity of the reviews, overly broad guidance, 
and limited monitoring for consistency impeded the 
ability of the Office of the Comptroller of the Cur-
rency (OCC) and the Board of Governors of the 
Federal Reserve System (Federal Reserve) to 
achieve the goals of the foreclosure review’’. The re-
port also stated that ‘‘limited communication with 
borrowers and the public adversely impacted trans-
parency and public confidence,’’ and the GAO rec-
ommended that the Board of Governors of the Fed-
eral Reserve System and the Office of the Comp-
troller of the Currency ‘‘identify and apply lessons 
from the foreclosure review process, such as enhanc-
ing planning, and monitoring activities to achieve 
goals, as they develop and implement the activities 
under the amended consent orders’’. 
(7) In light of the significant harm caused by 
mortgage servicers’ unsafe and unsound business 
practices, and the lack of transparency surrounding 
the Independent Foreclosure Review process and the 
amended consent orders that replace this process, it 
is essential that thorough oversight be conducted 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
over these new orders to ensure that all terms are 
fully enforced. Creation of an Office of the Inde-
pendent Monitor, which will provide reports directly 
to Congress, will aid in meeting this objective. 
SEC. 3. SETTLEMENT DEFINED. 
For purposes of this Act, the term ‘‘settlement’’ 
means— 
(1) the amended consent orders finalized on 
February 28, 2013, between the Board of Governors 
of the Federal Reserve System and the Office of the 
Comptroller of the Currency and 11 mortgage serv-
icing companies that were subject to enforcement ac-
tions for unsafe and unsound practices related to 
residential mortgage loan servicing and foreclosure 
processing; and 
(2) any future agreement between the Board of 
Governors of the Federal Reserve System and the 
Office of the Comptroller of the Currency and a 
mortgage servicing company, the terms of which are 
similar to the agreement described in paragraph (1). 
SEC. 4. INDEPENDENT MONITOR. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is hereby established 
the Office of the Independent Monitor, to be headed 
by the Independent Monitor. The purpose of the 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
Independent Monitor shall be to determine the com-
pliance of all parties to the settlement with the 
terms of the settlement and to provide expanded 
transparency over the implementation of the amend-
ed consent orders to rebuild the confidence of the 
general public. 
(2) APPOINTMENT.— 
(A) IN GENERAL.—The President shall ap-
point, not later than the end of the 45-day pe-
riod beginning on the date of the enactment of 
this Act, the Independent Monitor from among 
individuals with extensive experience in con-
sumer protection laws and practices, particu-
larly in such areas as mortgage lending. 
(B) VACANCY.—If at any point the posi-
tion of Independent Monitor becomes vacant, 
the President shall appoint, not later than the 
end of the 60-day period beginning on the date 
such vacancy occurs, a new Independent Mon-
itor from among individuals described under 
subparagraph (A). 
(3) STAFF.—Upon request of the Independent 
Monitor, any executive agency, including the Board 
of Governors of the Federal Reserve System or the 
Comptroller of the Currency shall detail, on a reim-
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
bursable basis, any employee to the Office of the 
Independent Monitor to assist it in carrying out its 
duties under this Act, but under no circumstances 
may the Office of the Independent Monitor have 
more than 16 employees, not including the Inde-
pendent Monitor. 
(4) FUNDING.—The costs of the Office of the 
Independent Monitor shall be paid out of the funds 
paid by mortgage servicing companies under the set-
tlement, other than any funds designated for direct 
cash payments to borrowers who held loans during 
2009 or 2010. 
(b) DUTIES.—The Independent Monitor shall— 
(1) issue a quarterly report covering all actions 
taken to date, with the first such report detailing ac-
tions taken from the date of the execution of the set-
tlement, to the Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, 
and the Congress containing— 
(A) a detailed description of— 
(i) the eligibility criteria used to deter-
mine who will receive direct and indirect 
aid provided under the settlement, includ-
ing information detailing instances in 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
which the criteria are not transparent, cer-
tain, objective, or equitably applied; 
(ii) the methodologies used to cal-
culate and allocate direct and indirect aid 
provided under the settlement, including 
information detailing instances in which 
the methodologies are not transparent, cer-
tain, objective, or equitably applied; 
(iii) the proof requirements applied to 
recipients of direct and indirect aid pro-
vided under the settlement, including infor-
mation detailing instances in which the re-
quirements are not transparent, certain, 
objective, or equitably applied; and 
(iv) the extent to which those receiv-
ing direct and indirect aid under the settle-
ment receive procedural due process, in-
cluding information detailing instances in 
which such due process has been denied; 
(B) information on the total number of 
borrowers who held loans in 2009 or 2010 who 
receive direct compensation under the settle-
ment, disaggregated by each mortgage servicer 
subject to the settlement, including— 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
(ii) the number of each type of loan 
modification or other assistance provided 
to borrowers, including the amount of prin-
cipal reduction provided under modifica-
tions that include a principal reduction ele-
ment, the level of interest reductions pro-
vided to borrowers who receive an interest 
reduction, and the total amount of defi-
ciencies forgiven for each of the first, sec-
ond, or any subsequent loans, and the 
number of borrowers receiving each type of 
relief who were already in a trial modifica-
tion when offered assistance under the set-
tlement and the number who were not in 
a trial modification, and whether there has 
been disparate treatment of those bor-
rowers; 
(D) the credit that parties to the settle-
ment have been given through the provision of 
loan modifications and other types of assistance 
to borrowers, including principal reduction 
modifications, disaggregated by each mortgage 
servicer subject to the settlement, and a deter-
mination by the Independent Monitor of wheth-
er such credit reflects the real dollar value of 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
the modifications and has not been provided for 
modifications that have little or no economic 
value and that do not result in sustainable 
modifications; 
(E) a list of any instances in which the 
Independent Monitor has determined that a 
party to the settlement has substantially failed 
to comply with the terms of the settlement, in-
cluding a description of the nature of each in-
stance of noncompliance; 
(F) a list of any actions taken by the 
Board of Governors of the Federal Reserve Sys-
tem or the Comptroller of the Currency to com-
pel compliance with the terms of the settlement; 
(G) a review of the efforts undertaken by 
parties to the settlement to locate borrowers 
who held loans in 2009 or 2010, including the 
adequacy of outreach methods used to contact 
such borrowers and the response rate of such 
borrowers; 
(H) information on the extent to which any 
assistance provided to borrowers under the set-
tlement receives credit under both the settle-
ment and also another settlement; 
(I) a detailed description of— 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
(i) the dispute resolution procedures 
established by the Board of Governors of 
the Federal Reserve System and the 
Comptroller of the Currency, if any, to en-
able borrowers to seek either a formal re-
view of the direct or indirect relief provided 
to them under the terms of the settlement, 
or a formal review of a determination that 
they are not entitled to direct or indirect 
relief under the terms of the settlement, 
including a review of the adequacy of these 
procedures in responding to borrowers’ 
concerns and complaints and in fairly and 
equitably resolving these requests for re-
view; and 
(ii) if such procedures have been es-
tablished, the total number of borrowers 
who have requested a review under the dis-
pute resolution procedures, the number of 
outstanding requests awaiting adjudication 
and the number of fully adjudicated 
claims, the average time required to adju-
dicate claims under the dispute resolution 
procedures, the number of cases in which 
the arbiter recommended changing the ini-
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
tial determination of relief offered to a bor-
rower, and the number of cases in which 
the recommendations issued by the arbiter 
were affirmed and implemented by the 
Board of Governors of the Federal Reserve 
System and the Comptroller of the Cur-
rency; 
(J) the number of in-scope borrowers 
whose foreclosures are completed during the re-
porting period; and 
(K) any other information that the Inde-
pendent Monitor deems necessary to discharge 
the duties of the Independent Monitor and to 
determine compliance with the settlement; 
(2) make each report described under para-
graph (1) available to the public, including on a pub-
licly accessible website; and 
(3) hold, at a minimum, five public meetings in 
which members of the public may give testimony re-
garding the administration of the settlement, and 
where such meetings— 
(A) being announced at least two weeks in 
advance; and 
(B) held in five different States. 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
(c) POWER TO REQUIRE PRODUCTION.—Not with-
standing any other provision of law, the Independent Mon-
itor may require the production from any party to the set-
tlement of any documents, information, and data related 
to the settlement that the Independent Monitor deter-
mines necessary to carry out the duties of the Independent 
Monitor. 
(d) CONFIDENTIALITY OF INFORMATION.—In car-
rying out the requirements under this Act, including the 
report requirement under subsection (b)(1), the Inde-
pendent Monitor shall ensure that all personally identifi-
able information is kept confidential. 
(e) ENFORCEMENT.— 
(1) IN GENERAL.—If the Independent Monitor 
determines that a party to the settlement substan-
tially failed to comply with the terms of the settle-
ment or otherwise violates any provision of this Act, 
the Independent Monitor shall refer a finding of 
noncompliance to— 
(A) the Board of Governors of the Federal 
Reserve System and the Comptroller of the 
Currency, for noncompliance involving conduct 
of mortgage servicers subject to the settlement; 
(B) the Inspector General of the Board of 
Governors of the Federal Reserve System and 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS
the Bureau of Consumer Financial Protection, 
for noncompliance involving conduct of the 
Board of Governors of the Federal Reserve Sys-
tem; or 
(C) the Inspector General of the Depart-
ment of the Treasury, for noncompliance involv-
ing conduct of the Office of the Comptroller of 
the Currency. 
(2) HANDLING OF REFERRAL.—Upon receipt of 
a referral of noncompliance made under paragraph 
(1)(A), the Board of Governors of the Federal Re-
serve System and the Comptroller of the Currency 
shall, jointly— 
(A) within the 30-day period beginning on 
the date of receipt of the referral, issue a report 
to the Congress containing a plan of action to 
cure the noncompliance; and 
(B) within the 60-day period beginning on 
the date of receipt of the referral, take such ac-
tion to cure the noncompliance. 
(3) BACKUP AUTHORITY.—If the Board of Gov-
ernors of the Federal Reserve System and the 
Comptroller of the Currency fail to take the action 
required under subparagraph (A) or (B) of para-
graph (2), the Independent Monitor may take any 
VerDate Mar 15 2010 
02:26 Apr 30, 2013
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1706.IH
H1706
smartinez on DSK6TPTVN1PROD with BILLS