a loan modification or an alternative to 
foreclosure before the end of the applicable 
period under paragraph (3). 
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this section may be construed to require a 
servicer to delay an unavoidable foreclosure, 
such as foreclosure that results from a borrower 
abandoning the residential real property secur-
ing the mortgage of such borrower. 
‘‘(3) REASONABLE
EFFORT
TO
OBTAIN
NEC-
ESSARY INFORMATION.—A servicer shall be deemed 
to have made a reasonable effort to obtain informa-
tion necessary to determine whether the borrower is 
eligible for a loan modification or an alternative to 
foreclosure if such servicer takes the following steps: 
‘‘(A) 
30-DAY
PERIOD
AFTER
DELIN-
QUENCY.— 
‘‘(i) IN GENERAL.—During the 30-day 
period beginning on the date of delin-
quency of the borrower, the servicer shall 
attempt to establish contact with the bor-
rower by— 
‘‘(I) making not fewer than 4 
telephone calls to the telephone num-
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ber on record for the borrower, at dif-
ferent times of the day; and 
‘‘(II) sending not fewer than 2 
written notices to the borrower at the 
address on record for the borrower, at 
least 1 of which shall be delivered by 
certified mail, requesting that the bor-
rower contact the servicer. 
‘‘(ii) CONTACT NOT ESTABLISHED.— 
In the case that a servicer is not able to 
establish contact with the borrower by tele-
phone under subclause (I) of clause (i) or 
such borrower does not respond to the no-
tices sent under subclause (II) of such 
clause, such servicer shall, following a 
third party review under subsection (d), 
notify the borrower that the servicer in-
tends to initiate or continue a covered fore-
closure action. 
‘‘(B) CONTACT ESTABLISHED WITH BOR-
ROWER.—In the case that a servicer is able to 
establish contact with the borrower under sub-
paragraph (A)(i), the servicer shall— 
‘‘(i) notify the borrower, in writing, 
that the servicer lacks information nec-
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emcdonald on DSK67QTVN1PROD with BILLS
essary to determine whether the borrower 
is eligible for a loan modification or an al-
ternative to foreclosure; and 
‘‘(ii) send the borrower a written re-
quest that the borrower transmit to the 
servicer, not later than 30 days after the 
date on which such request sent by the 
servicer is postmarked, all information nec-
essary to determine whether the borrower 
is eligible for a loan modification or an al-
ternative to foreclosure. 
‘‘(C) NECESSARY INFORMATION NOT RE-
CEIVED.—In the case that the servicer does not 
receive from the borrower all information re-
quested under clause (ii) of subparagraph (B) 
within the time period described in such sub-
paragraph, the servicer shall send the borrower 
an additional written request that the borrower 
transmit to the servicer, not later than 15 days 
after the date on which such request sent by 
the servicer is postmarked, all information nec-
essary to determine whether the borrower is eli-
gible for a loan modification or an alternative to 
foreclosure. 
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‘‘(D) NOTIFICATION OF FORECLOSURE.— 
In the case that the servicer does not receive 
from the borrower all information requested 
under subparagraph (C) within the time period 
described in such subparagraph, the servicer 
shall, following a third party review under sub-
section (d), notify the borrower that the servicer 
intends to initiate or continue a covered fore-
closure action. 
‘‘(d) THIRD PARTY REVIEW.— 
‘‘(1) IN GENERAL.—Unless otherwise provided 
for in this subsection, before a servicer notifies a 
borrower that the borrower is not eligible for a loan 
modification or an alternative to foreclosure, the 
servicer shall obtain the services of an independent 
reviewer to— 
‘‘(A) review the file of the borrower; and 
‘‘(B) determine whether the borrower is el-
igible for a loan modification or an alternative 
to foreclosure. 
‘‘(2) EXEMPTION.—Paragraph (1) shall not 
apply to a servicer that is a community financial in-
stitution, as defined in section 2(10) of the Federal 
Home Loan Bank Act (12 U.S.C. 1422(10)). 
‘‘(e) BAR TO FORECLOSURE ACTIONS.— 
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‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
violation of this Act shall be a bar to a covered fore-
closure action. 
‘‘(2) EFFECT OF SUBSEQUENT COMPLIANCE.— 
If a servicer is in compliance with this section, the 
servicer may bring or proceed with a covered fore-
closure action, without regard to a prior violation of 
this section by the servicer. 
‘‘(f) LIABILITY.— 
‘‘(1) IN
GENERAL.—A servicer that fails to 
comply with any requirement imposed under this 
section shall be liable to a borrower in the same 
manner that a creditor who fails to comply with any 
requirement under this chapter is liable to a person 
under section 130. 
‘‘(2) JOINT AND SEVERAL LIABILITY.—A cred-
itor or assignee that is connected to a mortgage 
serviced by a servicer that fails to comply with any 
requirement imposed under this section shall, with 
respect to that mortgage, have joint and several li-
ability with such servicer for such failure to com-
ply.’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
chapter 2 of such Act is amended by inserting after the 
item relating to section 129H the following new item: 
‘‘129I. Standards for servicers of residential mortgages.’’. 
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SEC. 3. REGULATIONS. 
Not later than 90 days after the date of enactment 
of this Act, the Director of the Bureau of Consumer Fi-
nancial Protection, in consultation with the Secretary of 
Housing and Urban Development and the Secretary of the 
Treasury, shall issue regulations to carry out the amend-
ments made by this Act. 
SEC. 4. REPORT. 
Not later than 1 year after the date of enactment 
of this Act, the Director of the Bureau of Consumer Fi-
nancial Protection shall submit to Congress a report that 
contains— 
(1) an evaluation of the effect of the amend-
ments made by this Act on— 
(A) State law; and 
(B) communication between servicers and 
borrowers; and 
(2) a description of any problems concerning 
the implementation of this Act. 
Æ 
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