I 
110TH CONGRESS 
2D SESSION 
H. R. 7307 
To help struggling families stay in their homes and to ensure that taxpayers 
are protected when the Secretary of the Treasury purchases equity shares 
in financial institutions. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 20, 2008 
Mr. HODES (for himself, Mr. DELAHUNT, Ms. JACKSON-LEE of Texas, Mr. 
JOHNSON of Georgia, Mr. GUTIERREZ, Mr. MILLER of North Carolina, 
and Ms. ZOE LOFGREN of California) introduced the following bill; which 
was referred to the Committee on Financial Services, and in addition to 
theCommittee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To help struggling families stay in their homes and to ensure 
that taxpayers are protected when the Secretary of the 
Treasury purchases equity shares in financial institu-
tions. 
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 ‘‘Homeowner Assistance 
and Taxpayer Protection Act’’. 
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TITLE I—ASSISTING 
HOMEOWNERS 
SEC. 101. RESTRUCTURING LOANS OWNED BY THE GOV-
ERNMENT. 
(a) MORTGAGES ACQUIRED BY THE SECRETARY.— 
Section 109(a) of the Emergency Economic Stabilization 
Act of 2008 (division A of Public Law 110–343) is amend-
ed by striking ‘‘encourage’’ and inserting ‘‘require’’. 
(b) MORTGAGES HELD
BY FEDERAL PROPERTY 
MANAGERS.—Section 110(b)(1) of the Emergency Eco-
nomic Stabilization Act of 2008 (division A of Public Law 
110–343) is amended by striking ‘‘encourage’’ and insert-
ing ‘‘require’’. 
(c) OBLIGATIONS SECURED BY MORTGAGES HELD 
BY FEDERAL PROPERTY MANAGERS.—Section 110(c)(1) 
of the Emergency Economic Stabilization Act of 2008 (di-
vision A of Public Law 110–343) is amended by striking 
‘‘encourage’’ and inserting ‘‘require’’. 
SEC. 102. REQUIRING LENDERS TO PARTICIPATE IN HOPE 
FOR HOMEOWNERS PROGRAM WHEN HOME-
OWNERS ELECT TO PARTICIPATE. 
Section 257(b)(1) of the National Housing Act (12 
U.S.C. 1715z–23(b)(1)) is amended by striking ‘‘and ex-
isting loan holders’’ and inserting ‘‘, but required on the 
part of existing loan holders when homeowners apply,’’. 
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SEC. 103. HELPING FAMILIES SAVE THEIR HOMES IN BANK-
RUPTCY. 
(a) SPECIAL RULES FOR MODIFICATION OF LOANS 
SECURED BY RESIDENCES.— 
(1) IN GENERAL.—Section 1322(b) of title 11, 
United States Code, is amended— 
(A) in paragraph (10), by striking ‘‘and’’ 
at the end; 
(B) by redesignating paragraph (11) as 
paragraph (12); and 
(C) by inserting after paragraph (10) the 
following: 
‘‘(11) notwithstanding paragraph (2) and other-
wise applicable nonbankruptcy law— 
‘‘(A) modify an allowed secured claim se-
cured by the debtor’s principal residence, as de-
scribed in subparagraph (B), if, after deduction 
from the debtor’s current monthly income of 
the expenses permitted for debtors described in 
section 1325(b)(3) of this title (other than 
amounts contractually due to creditors holding 
such allowed secured claims and additional pay-
ments necessary to maintain possession of that 
residence), the debtor has insufficient remain-
ing income to retain possession of the residence 
by curing a default and maintaining payments 
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while the case is pending, as provided under 
paragraph (5); and 
‘‘(B) provide for payment of such claim— 
‘‘(i) in an amount equal to the 
amount of the allowed secured claim; 
‘‘(ii) for a period that is not longer 
than 40 years; and 
‘‘(iii) at a rate of interest accruing 
after such date calculated at a fixed an-
nual percentage rate, in an amount equal 
to the most recently published annual yield 
on conventional mortgages published by 
the Board of Governors of the Federal Re-
serve System, as of the applicable time set 
forth in the rules of the Board, plus a rea-
sonable premium for risk; and’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1325(a)(5) of title 11, United States Code, is 
amended by inserting before ‘‘with respect’’ the fol-
lowing: ‘‘except as otherwise provided in section 
1322(b)(11) of this title,’’. 
(b) WAIVER OF COUNSELING REQUIREMENT WHEN 
HOMES ARE IN FORECLOSURE.—Section 109(h) of title 
11, United States Code, is amended by adding at the end 
the following: 
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‘‘(5) The requirements of paragraph (1) shall 
not apply with respect to a debtor who files with the 
court a certification that a foreclosure sale of the 
debtor’s principal residence has been scheduled.’’. 
(c) 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 plan need not provide for the payment 
of, and the debtor, the debtor’s property, and prop-
erty of the estate shall not be liable for, any fee, 
cost, or charge, notwithstanding section 506(b), that 
arises in connection with a claim secured by the 
debtor’s principal residence if the event that gives 
rise to such fee, cost, or charge occurs while the case 
is pending but before the discharge order, except to 
the extent that— 
‘‘(A) notice of such fees, costs, or charges 
is filed with the court, and served on the debtor 
and the trustee, before the expiration of the 
earlier of— 
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‘‘(i) 1 year after the event that gives 
rise to such fee, cost, or charge occurs; or 
‘‘(ii) 60 days before the closing of the 
case; and 
‘‘(B) such fees, costs, or charges are law-
ful, reasonable, and provided for in the agree-
ment under which such claim or security inter-
est arose; 
‘‘(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) of this title or, if the 
violation occurs before the date of discharge, of sec-
tion 362(a) of this title; and 
‘‘(5) a plan may provide for the waiver of any 
prepayment penalty on a claim secured by the prin-
cipal residence of the debtor.’’. 
(d) PROHIBITING CLAIMS ARISING FROM VIOLA-
TIONS
OF
CONSUMER
PROTECTION
LAWS.—Section 
502(b) of title 11, United States Code, is amended— 
(1) in paragraph (8), by striking ‘‘or’’ at the 
end; 
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(2) in paragraph (9), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(10) such claim includes a request for dam-
ages or rescission based on a failure to comply with 
the Truth in Lending Act (15 U.S.C. 1601 et seq.), 
or any other provision of applicable State or Federal 
consumer protection law in force when the failure to 
comply occurred, notwithstanding a prior entry of a 
foreclosure judgment.’’. 
(e) APPLICATION OF AMENDMENTS.—The amend-
ments made to title 11, United States Code, by this sec-
tion shall apply with respect to cases commenced under 
that title 11 on or after the date of enactment of this Act, 
or pending on the date of enactment of this Act. 
TITLE II—PROTECTING 
TAXPAYERS 
SEC. 201. BARRING DIVIDEND INCREASES. 
Section 113(d) of the Emergency Economic Stabiliza-
tion Act of 2008 (division A of Public Law 110–343) is 
amended by adding at the end the following: 
‘‘(4) DIVIDENDS.—If the Secretary purchases 
troubled assets under the authority of this Act, the 
financial institutions from which such assets are 
purchased may not pay dividends in a cumulative 
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amount that is higher in the current or a future fis-
cal year than the cumulative dividends paid in the 
fiscal year immediately preceding the sale of the 
troubled assets until such time as the troubled as-
sets are no longer owned by the Secretary.’’. 
SEC. 202. REDUCING DIVIDENDS TO PAY FOR EXCESSIVE 
EXECUTIVE COMPENSATION. 
Section 111(b)(2) of the Emergency Economic Sta-
bilization Act of 2008 (Public Law 110–343) is amend-
ed— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(D) a reduction in dividends paid by the 
institution in its next fiscal year equal to the 
executive compensation paid to senior executive 
officers in excess of $500,000 per officer in the 
current fiscal year.’’. 
Æ 
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