datamatters24/research-document-archive huggingface dataset:
388 
203 as responsible and able to service mortgages re-
sponsibly. 
‘‘(2) BOARD.—The term ‘Board’ means the 
Board of Directors of the HOPE for Homeowners 
Program. The Board shall be composed of the Sec-
retary, the Secretary of the Treasury, the Chairperson 
of the Board of Governors of the Federal Reserve Sys-
tem, and the Chairperson of the Board of Directors of 
the Federal Deposit Insurance Corporation. 
‘‘(3) ELIGIBLE MORTGAGE.—The term ‘eligible 
mortgage’ means a mortgage— 
‘‘(A) the mortgagor of which— 
‘‘(i) occupies such property as his or 
her principal residence; and 
‘‘(ii) cannot, subject to subsection 
(e)(1)(B) and such other standards estab-
lished by the Board, afford his or her mort-
gage payments; and 
‘‘(B) originated on or before January 1, 
2008. 
‘‘(4) EXISTING
SENIOR
MORTGAGE.—The term 
‘existing senior mortgage’ means, with respect to a 
mortgage insured under this section, the existing 
mortgage that has superior priority.
110TH CONGRESS 
1ST SESSION H. R. 3297 
AN ACT 
To designate the facility of the United States Postal Service 
located at 950 West Trenton Avenue in Morrisville, 
Pennsylvania, as the ‘‘Nate DeTample Post Office Build-
ing’’. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
106TH CONGRESS
2D SESSION
H. R. 3591
AN ACT
To provide for the award of a gold medal on behalf
of the Congress to former President Ronald
Reagan and his wife Nancy Reagan in recogni-
tion of their service to the Nation.
106TH CONGRESS
2D SESSION
H. R. 3591
AN ACT
To provide for the award of a gold medal on behalf of
the Congress to former President Ronald Reagan and
his wife Nancy Reagan in recognition of their service
to the Nation.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
389 
‘‘(5) EXISTING SUBORDINATE MORTGAGE.—The 
term ‘existing subordinate mortgage’ means, with re-
spect to a mortgage insured under this section, an ex-
isting mortgage that has subordinate priority to the 
existing senior mortgage. 
‘‘(6) HOPE FOR HOMEOWNERS PROGRAM.—The 
term ‘HOPE for Homeowners Program’ means the 
program established under this section. 
‘‘(7) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Housing and Urban Development, ex-
cept where specifically provided otherwise. 
‘‘(t) REQUIREMENTS RELATED TO THE BOARD.— 
‘‘(1) COMPENSATION, ACTUAL, NECESSARY, AND 
TRANSPORTATION EXPENSES.— 
‘‘(A) FEDERAL EMPLOYEES.—A member of 
the Board who is an officer or employee of the 
Federal Government shall serve without addi-
tional pay (or benefits in the nature of com-
pensation) for service as a member of the Board. 
‘‘(B) TRAVEL EXPENSES.—Members of the 
Board shall be entitled to receive travel expenses, 
including per diem in lieu of subsistence, equiva-
lent to those set forth in subchapter I of chapter 
57 of title 5, United States Code.
390 
‘‘(2) 
BYLAWS.—The 
Board 
may 
prescribe, 
amend, and repeal such bylaws as may be necessary 
for carrying out the functions of the Board. 
‘‘(3) QUORUM.—A majority of the Board shall 
constitute a quorum. 
‘‘(4) STAFF; EXPERTS AND CONSULTANTS.— 
‘‘(A) DETAIL
OF
GOVERNMENT
EMPLOY-
EES.—Upon request of the Board, any Federal 
Government employee may be detailed to the 
Board without reimbursement, and such detail 
shall be without interruption or loss of civil serv-
ice status or privilege. 
‘‘(B) EXPERTS
AND
CONSULTANTS.—The 
Board shall procure the services of experts and 
consultants as the Board considers appropriate. 
‘‘(u) RULE
OF CONSTRUCTION RELATED
TO VOL-
UNTARY NATURE OF THE PROGRAM.—This section shall not 
be construed to require that any approved financial institu-
tion or mortgagee participate in any activity authorized 
under this section, including any activity related to the refi-
nancing of an eligible mortgage. 
‘‘(v) RULE OF CONSTRUCTION RELATED TO INSUR-
ANCE OF MORTGAGES.—Except as otherwise provided for 
in this section or by action of the Board, the provisions
391 
and requirements of section 203(b) shall apply with respect 
to the insurance of any eligible mortgage under this section. 
‘‘(w) HOPE BONDS.— 
‘‘(1) ISSUANCE AND REPAYMENT OF BONDS.— 
Notwithstanding section 504(b) of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661d(b)), the Secretary 
of the Treasury shall— 
‘‘(A) subject to such terms and conditions as 
the Secretary of the Treasury deems necessary, 
issue Federal credit instruments, to be known as 
‘HOPE Bonds’, that are callable at the discre-
tion of the Secretary of the Treasury and do not, 
in the aggregate, exceed the amount specified in 
subsection (m); 
‘‘(B) provide the subsidy amounts necessary 
for loan guarantees under the HOPE for Home-
owners Program, not to exceed the amount speci-
fied in subsection (m), in accordance with the 
provisions of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.), except as provided 
in this paragraph; and 
‘‘(C) use the proceeds from HOPE Bonds 
only to pay for the net costs to the Federal Gov-
ernment of the HOPE for Homeowners Program, 
including administrative costs.
106TH CONGRESS
2D SESSION
H. R. 3594
AN ACT
To repeal the modification of the installment method.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
392 
‘‘(2) REIMBURSEMENTS TO TREASURY.—Funds 
received pursuant to section 1338(b) of the Federal 
Housing Enterprises Regulatory Reform Act of 1992 
shall be used to reimburse the Secretary of the Treas-
ury for amounts borrowed under paragraph (1). 
‘‘(3) USE OF RESERVE FUND.—If the net cost to 
the Federal Government for the HOPE for Home-
owners Program exceeds the amount of funds received 
under paragraph (2), remaining debts of the HOPE 
for Homeowners Program shall be paid from amounts 
deposited into the fund established by the Secretary 
under section 1337(e) of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992, 
remaining amounts in such fund to be used to reduce 
the National debt. 
‘‘(4) REDUCTION OF NATIONAL DEBT.—Amounts 
collected under the HOPE for Homeowners Program 
in accordance with subsections (i) and (k) in excess 
of the net cost to the Federal Government for such 
Program shall be used to reduce the National debt.’’. 
SEC. 1403. FIDUCIARY DUTY OF SERVICERS OF POOLED 
RESIDENTIAL MORTGAGE LOANS. 
The Truth in Lending Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after section 129 the following new 
section:
393 
‘‘SEC. 129A. FIDUCIARY DUTY OF SERVICERS OF POOLED 
RESIDENTIAL MORTGAGES. 
‘‘(a) IN GENERAL.—Except as may be established in 
any investment contract between a servicer of pooled resi-
dential mortgages and an investor, a servicer of pooled resi-
dential mortgages— 
‘‘(1) owes any duty to maximize the net present 
value of the pooled mortgages in an investment to all 
investors and parties having a direct or indirect in-
terest in such investment, not to any individual party 
or group of parties; and 
‘‘(2) shall be deemed to act in the best interests 
of all such investors and parties if the servicer agrees 
to or implements a modification or workout plan, in-
cluding any modification or refinancing undertaken 
pursuant to the HOPE for Homeowners Act of 2008, 
for a residential mortgage or a class of residential 
mortgages that constitute a part or all of the pooled 
mortgages in such investment, provided that any 
mortgage so modified meets the following criteria: 
‘‘(A) Default on the payment of such mort-
gage has occurred or is reasonably foreseeable. 
‘‘(B) The property securing such mortgage 
is occupied by the mortgagor of such mortgage. 
‘‘(C) The anticipated recovery on the prin-
cipal outstanding obligation of the mortgage
394 
under the modification or workout plan exceeds, 
on a net present value basis, the anticipated re-
covery on the principal outstanding obligation of 
the mortgage through foreclosure. 
‘‘(b) DEFINITION.—As used in this section, the term 
‘servicer’ has the same meaning as in section 6(i)(2) of the 
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 
2605(i)(2)).’’. 
SEC. 1404. REVISED STANDARDS FOR FHA APPRAISERS. 
Section 202(e) of the National Housing Act (12 U.S.C. 
1708(e)) is amended by adding at the end the following: 
‘‘(5) ADDITIONAL APPRAISER STANDARDS.—Be-
ginning on the date of enactment of the Federal Hous-
ing Finance Regulatory Reform Act of 2008, any ap-
praiser chosen or approved to conduct appraisals for 
mortgages under this title shall— 
‘‘(A) be certified— 
‘‘(i) by the State in which the property 
to be appraised is located; or 
‘‘(ii) by a nationally recognized profes-
sional appraisal organization; and 
‘‘(B) have demonstrated verifiable education 
in the appraisal requirements established by the 
Federal Housing Administration under this sub-
section.’’.
395 
TITLE V—S.A.F.E. MORTGAGE 
LICENSING ACT 
SEC. 1501. SHORT TITLE. 
This title may be cited as the ‘‘Secure and Fair En-
forcement for Mortgage Licensing Act of 2008’’ or ‘‘S.A.F.E. 
Mortgage Licensing Act of 2008’’. 
SEC. 1502. PURPOSES AND METHODS FOR ESTABLISHING A 
MORTGAGE LICENSING SYSTEM AND REG-
ISTRY. 
In order to increase uniformity, reduce regulatory bur-
den, enhance consumer protection, and reduce fraud, the 
States, through the Conference of State Bank Supervisors 
and the American Association of Residential Mortgage Reg-
ulators, are hereby encouraged to establish a Nationwide 
Mortgage Licensing System and Registry for the residential 
mortgage industry that accomplishes all of the following ob-
jectives: 
(1) Provides uniform license applications and re-
porting requirements for State-licensed loan origina-
tors. 
(2) Provides a comprehensive licensing and su-
pervisory database. 
(3) Aggregates and improves the flow of informa-
tion to and between regulators.
396 
(4) Provides increased accountability and track-
ing of loan originators. 
(5) Streamlines the licensing process and reduces 
the regulatory burden. 
(6) Enhances consumer protections and supports 
anti-fraud measures. 
(7) Provides consumers with easily accessible in-
formation, offered at no charge, utilizing electronic 
media, including the Internet, regarding the employ-
ment history of, and publicly adjudicated discipli-
nary and enforcement actions against, loan origina-
tors. 
(8) Establishes a means by which residential 
mortgage loan originators would, to the greatest ex-
tent possible, be required to act in the best interests 
of the consumer. 
(9) Facilitates responsible behavior in the 
subprime mortgage market place and provides com-
prehensive training and examination requirements 
related to subprime mortgage lending. 
(10) Facilitates the collection and disbursement 
of consumer complaints on behalf of State and Fed-
eral mortgage regulators.
397 
SEC. 1503. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) FEDERAL
BANKING
AGENCIES.—The term 
‘‘Federal banking agencies’’ means the Board of Gov-
ernors of the Federal Reserve System, the Comptroller 
of the Currency, the Director of the Office of Thrift 
Supervision, the National Credit Union Administra-
tion, and the Federal Deposit Insurance Corporation. 
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the same meaning as in sec-
tion 3 of the Federal Deposit Insurance Act, and in-
cludes any credit union. 
(3) LOAN ORIGINATOR.— 
(A) IN GENERAL.—The term ‘‘loan origi-
nator’’— 
(i) means an individual who— 
(I) takes a residential mortgage 
loan application; and 
(II) offers or negotiates terms of a 
residential mortgage loan for com-
pensation or gain; 
(ii) does not include any individual 
who is not otherwise described in clause (i) 
and who performs purely administrative or
398 
clerical tasks on behalf of a person who is 
described in any such clause; 
(iii) does not include a person or enti-
ty that only performs real estate brokerage 
activities and is licensed or registered in ac-
cordance with applicable State law, unless 
the person or entity is compensated by a 
lender, a mortgage broker, or other loan 
originator or by any agent of such lender, 
mortgage broker, or other loan originator; 
and 
(iv) does not include a person or entity 
solely involved in extensions of credit relat-
ing to timeshare plans, as that term is de-
fined in section 101(53D) of title 11, United 
States Code. 
(B) OTHER
DEFINITIONS
RELATING
TO 
LOAN ORIGINATOR.—For purposes of this sub-
section, an individual ‘‘assists a consumer in ob-
taining or applying to obtain a residential mort-
gage loan’’ by, among other things, advising on 
loan terms (including rates, fees, other costs), 
preparing loan packages, or collecting informa-
tion on behalf of the consumer with regard to a 
residential mortgage loan.
399 
(C) 
ADMINISTRATIVE
OR
CLERICAL 
TASKS.—The term ‘‘administrative or clerical 
tasks’’ means the receipt, collection, and distribu-
tion of information common for the processing or 
underwriting of a loan in the mortgage industry 
and communication with a consumer to obtain 
information necessary for the processing or un-
derwriting of a residential mortgage loan. 
(D) REAL
ESTATE
BROKERAGE
ACTIVITY 
DEFINED.—The term ‘‘real estate brokerage ac-
tivity’’ means any activity that involves offering 
or providing real estate brokerage services to the 
public, including— 
(i) acting as a real estate agent or real 
estate broker for a buyer, seller, lessor, or 
lessee of real property; 
(ii) bringing together parties interested 
in the sale, purchase, lease, rental, or ex-
change of real property; 
(iii) negotiating, on behalf of any 
party, any portion of a contract relating to 
the sale, purchase, lease, rental, or exchange 
of real property (other than in connection 
with providing financing with respect to 
any such transaction);
400 
(iv) engaging in any activity for which 
a person engaged in the activity is required 
to be registered or licensed as a real estate 
agent or real estate broker under any appli-
cable law; and 
(v) offering to engage in any activity, 
or act in any capacity, described in clause 
(i), (ii), (iii), or (iv). 
(4) LOAN PROCESSOR OR UNDERWRITER.— 
(A) IN GENERAL.—The term ‘‘loan processor 
or underwriter’’ means an individual who per-
forms clerical or support duties at the direction 
of and subject to the supervision and instruction 
of— 
(i) a State-licensed loan originator; or 
(ii) a registered loan originator. 
(B) CLERICAL OR SUPPORT DUTIES.—For 
purposes of subparagraph (A), the term ‘‘clerical 
or support duties’’ may include— 
(i) the receipt, collection, distribution, 
and analysis of information common for the 
processing or underwriting of a residential 
mortgage loan; and 
(ii) communicating with a consumer to 
obtain the information necessary for the
401 
processing or underwriting of a loan, to the 
extent that such communication does not in-
clude offering or negotiating loan rates or 
terms, or counseling consumers about resi-
dential mortgage loan rates or terms. 
(5) NATIONWIDE MORTGAGE LICENSING SYSTEM 
AND REGISTRY.—The term ‘‘Nationwide Mortgage Li-
censing System and Registry’’ means a mortgage li-
censing system developed and maintained by the Con-
ference of State Bank Supervisors and the American 
Association of Residential Mortgage Regulators for the 
State licensing and registration of State-licensed loan 
originators and the registration of registered loan 
originators or any system established by the Secretary 
under section 1509. 
(6) NONTRADITIONAL MORTGAGE PRODUCT.—The 
term ‘‘nontraditional mortgage product’’ means any 
mortgage product other than a 30-year fixed rate 
mortgage. 
(7) REGISTERED LOAN ORIGINATOR.—The term 
‘‘registered loan originator’’ means any individual 
who— 
(A) meets the definition of loan originator 
and is an employee of— 
(i) a depository institution;
402 
(ii) a subsidiary that is— 
(I) owned and controlled by a de-
pository institution; and 
(II) regulated by a Federal bank-
ing agency; or 
(iii) an institution regulated by the 
Farm Credit Administration; and 
(B) is registered with, and maintains a 
unique identifier through, the Nationwide Mort-
gage Licensing System and Registry. 
(8) RESIDENTIAL MORTGAGE LOAN.—The term 
‘‘residential mortgage loan’’ means any loan pri-
marily for personal, family, or household use that is 
secured by a mortgage, deed of trust, or other equiva-
lent consensual security interest on a dwelling (as de-
fined in section 103(v) of the Truth in Lending Act) 
or residential real estate upon which is constructed or 
intended to be constructed a dwelling (as so defined). 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(10) STATE-LICENSED LOAN ORIGINATOR.—The 
term ‘‘State-licensed loan originator’’ means any in-
dividual who— 
(A) is a loan originator; 
(B) is not an employee of—
403 
(i) a depository institution; 
(ii) a subsidiary that is— 
(I) owned and controlled by a de-
pository institution; and 
(II) regulated by a Federal bank-
ing agency; or 
(iii) an institution regulated by the 
Farm Credit Administration; and 
(C) is licensed by a State or by the Sec-
retary under section 1508 and registered as a 
loan originator with, and maintains a unique 
identifier through, the Nationwide Mortgage Li-
censing System and Registry. 
(11) UNIQUE IDENTIFIER.— 
(A) IN GENERAL.—The term ‘‘unique iden-
tifier’’ means a number or other identifier that— 
(i) permanently identifies a loan origi-
nator; 
(ii) is assigned by protocols established 
by the Nationwide Mortgage Licensing Sys-
tem and Registry and the Federal banking 
agencies to facilitate electronic tracking of 
loan originators and uniform identification 
of, and public access to, the employment 
history of and the publicly adjudicated dis-
404 
ciplinary and enforcement actions against 
loan originators; and 
(iii) shall not be used for purposes 
other than those set forth under this title. 
(B) RESPONSIBILITY OF STATES.—To the 
greatest extent possible and to accomplish the 
purpose of this title, States shall use unique 
identifiers in lieu of social security numbers. 
SEC. 1504. LICENSE OR REGISTRATION REQUIRED. 
(a) IN GENERAL.—An individual may not engage in 
the business of a loan originator without first— 
(1) obtaining, and maintaining annually— 
(A) a registration as a registered loan origi-
nator; or 
(B) a license and registration as a State-li-
censed loan originator; and 
(2) obtaining a unique identifier. 
(b) LOAN PROCESSORS AND UNDERWRITERS.— 
(1) SUPERVISED LOAN PROCESSORS AND UNDER-
WRITERS.—A loan processor or underwriter who does 
not represent to the public, through advertising or 
other means of communicating or providing informa-
tion (including the use of business cards, stationery, 
brochures, signs, rate lists, or other promotional 
items), that such individual can or will perform any
405 
of the activities of a loan originator shall not be re-
quired to be a State-licensed loan originator. 
(2) INDEPENDENT
CONTRACTORS.—An inde-
pendent contractor may not engage in residential 
mortgage loan origination activities as a loan proc-
essor or underwriter unless such independent con-
tractor is a State-licensed loan originator. 
SEC. 1505. STATE LICENSE AND REGISTRATION APPLICA-
TION AND ISSUANCE. 
(a) BACKGROUND CHECKS.—In connection with an 
application to any State for licensing and registration as 
a State-licensed loan originator, the applicant shall, at a 
minimum, furnish to the Nationwide Mortgage Licensing 
System and Registry information concerning the appli-
cant’s identity, including— 
(1) fingerprints for submission to the Federal 
Bureau of Investigation, and any governmental agen-
cy or entity authorized to receive such information for 
a State and national criminal history background 
check; and 
(2) personal history and experience, including 
authorization for the System to obtain— 
(A) an independent credit report obtained 
from a consumer reporting agency described in
406 
section 603(p) of the Fair Credit Reporting Act; 
and 
(B) information related to any administra-
tive, civil or criminal findings by any govern-
mental jurisdiction. 
(b) ISSUANCE OF LICENSE.—The minimum standards 
for licensing and registration as a State-licensed loan origi-
nator shall include the following: 
(1) The applicant has never had a loan origi-
nator license revoked in any governmental jurisdic-
tion. 
(2) The applicant has not been convicted of, or 
pled guilty or nolo contendere to, a felony in a domes-
tic, foreign, or military court— 
(A) during the 7-year period preceding the 
date of the application for licensing and reg-
istration; or 
(B) at any time preceding such date of ap-
plication, if such felony involved an act of fraud, 
dishonesty, or a breach of trust, or money laun-
dering. 
(3) The applicant has demonstrated financial re-
sponsibility, character, and general fitness such as to 
command the confidence of the community and to 
warrant a determination that the loan originator will
407 
operate honestly, fairly, and efficiently within the 
purposes of this title. 
(4) The applicant has completed the pre-licens-
ing education requirement described in subsection (c). 
(5) The applicant has passed a written test that 
meets the test requirement described in subsection (d). 
(6) The applicant has met either a net worth or 
surety bond requirement, as required by the State 
pursuant to section 1508(d)(6). 
(c) PRE-LICENSING EDUCATION OF LOAN ORIGINA-
TORS.— 
(1) MINIMUM EDUCATIONAL REQUIREMENTS.—In 
order to meet the pre-licensing education requirement 
referred to in subsection (b)(4), a person shall com-
plete at least 20 hours of education approved in ac-
cordance with paragraph (2), which shall include at 
least— 
(A) 3 hours of Federal law and regulations; 
(B) 3 hours of ethics, which shall include 
instruction on fraud, consumer protection, and 
fair lending issues; and 
(C) 2 hours of training related to lending 
standards for the nontraditional mortgage prod-
uct marketplace.
408 
(2) APPROVED
EDUCATIONAL
COURSES.—For 
purposes of paragraph (1), pre-licensing education 
courses shall be reviewed, and approved by the Na-
tionwide Mortgage Licensing System and Registry. 
(3) LIMITATION AND STANDARDS.— 
(A) LIMITATION.—To maintain the inde-
pendence of the approval process, the Nationwide 
Mortgage Licensing System and Registry shall 
not directly or indirectly offer pre-licensure edu-
cational courses for loan originators. 
(B) STANDARDS.—In approving courses 
under this section, the Nationwide Mortgage Li-
censing System and Registry shall apply reason-
able standards in the review and approval of 
courses. 
(d) TESTING OF LOAN ORIGINATORS.— 
(1) IN GENERAL.—In order to meet the written 
test requirement referred to in subsection (b)(5), an 
individual shall pass, in accordance with the stand-
ards established under this subsection, a qualified 
written test developed by the Nationwide Mortgage 
Licensing System and Registry and administered by 
an approved test provider. 
(2) QUALIFIED TEST.—A written test shall not 
be treated as a qualified written test for purposes of
409 
paragraph (1) unless the test adequately measures the 
applicant’s knowledge and comprehension in appro-
priate subject areas, including— 
(A) ethics; 
(B) Federal law and regulation pertaining 
to mortgage origination; 
(C) State law and regulation pertaining to 
mortgage origination; 
(D) Federal and State law and regulation, 
including instruction on fraud, consumer protec-
tion, the nontraditional mortgage marketplace, 
and fair lending issues. 
(3) MINIMUM COMPETENCE.— 
(A) PASSING SCORE.—An individual shall 
not be considered to have passed a qualified 
written test unless the individual achieves a test 
score of not less than 75 percent correct answers 
to questions. 
(B) INITIAL RETESTS.—An individual may 
retake a test 3 consecutive times with each con-
secutive taking occurring at least 30 days after 
the preceding test. 
(C) SUBSEQUENT RETESTS.—After failing 3 
consecutive tests, an individual shall wait at 
least 6 months before taking the test again.