HR 1106 RFS 
‘‘(i) not less than 30 days before the 
commencement of the case, contacted the 
holder of such claim (or the entity col-
lecting payments on behalf of such holder) 
regarding modification of the loan that is 
the subject of such claim; 
‘‘(ii) provided the holder of the claim 
(or the entity collecting payments on be-
half of such holder) a written statement of 
the debtor’s current income, expenses, and 
debt substantially conforming with the 
schedules required under section 521(a) or 
such other form as is promulgated by the 
Judicial Conference of the United States 
for such purpose; and 
‘‘(iii) considered any qualified loan 
modification offered to the debtor by the 
holder of the claim (or the entity collecting 
payments on behalf of such holder); or 
‘‘(B) a foreclosure sale is scheduled to 
occur on a date in the 30-day period beginning 
on the date of case is commenced; 
‘‘(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 
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entity collecting payments on behalf of such holder) 
regarding 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). 
‘‘(i) In determining the holder’s allowed secured claim 
under section 506(a)(1) for purposes of subsection 
(b)(11)(A), the value of the debtor’s principal residence 
shall be the fair market value of such residence on the 
date such value is determined and, if the issue of value 
is contested, the court shall determine such value in ac-
cordance with the appraisal rules used by the Federal 
Housing Administration.’’. 
SEC. 104. 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: 
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‘‘(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 and serves on the trustee, 
the debtor, and the debtor’s attorney (annually 
or, in order to permit filing consistent with 
clause (ii), at such more frequent periodicity as 
the court determines 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 
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; 
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‘‘(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. 105. CONFIRMATION OF PLAN. 
(a) Section 1325(a) of title 11, United States Code, 
is amended— 
(1) in the matter preceding paragraph (1) 
strike ‘‘subsection (b)’’ and insert ‘‘subsections (b) 
and (d)’’. 
(2) in paragraph (5)— 
(A) by inserting ‘‘except as otherwise pro-
vided in section 1322(b)(11),’’ after ‘‘(5)’’, and 
(B) in subparagraph (B)(iii)(I) by insert-
ing ‘‘(including payments of a claim modified 
under section 1322(b)(11))’’ after ‘‘payments’’ 
the 1st place it appears, 
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(3) in paragraph (8) by striking ‘‘and’’ at the 
end, 
(4) in paragraph (9) by striking the period at 
the end and inserting a semicolon, and 
(5) 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 holder 
of a claim whose rights are modified pursuant to 
section 1322(b)(11) shall retain the lien until the 
later of— 
‘‘(A) the payment of such holder’s allowed 
secured claim; or 
‘‘(B) completion of all payments under the 
plan (or, if applicable, receipt of a discharge 
under section 1328(b)); 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 (Lack of good 
faith exists if the debtor has no need for relief under 
this paragraph because the debtor can pay all of his 
or her debts and any future payment increases on 
such debts without difficulty for the foreseeable fu-
ture, including the positive amortization of mortgage 
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