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respect to any such mortgage that meets all of the 
criteria set forth in paragraph (2)(B) to— 
(A) any person, based on that person’s 
ownership of a residential mortgage loan or any 
interest in a pool of residential mortgage loans 
or in securities that distribute payments out of 
the principal, interest and other payments in 
loans on the pool; 
(B) any person who is obligated pursuant 
to a derivatives instrument to make payments 
determined in reference to any loan or any in-
terest referred to in subparagraph (A); or 
(C) any person that insures any loan or 
any interest referred to in subparagraph (A) 
under any law or regulation of the United 
States or any law or regulation of any State or 
political subdivision of any State. 
(2) ABILITY TO MODIFY MORTGAGES.— 
(A) ABILITY.—Notwithstanding any other 
provision of law, and notwithstanding any in-
vestment contract between a servicer and a 
securitization vehicle or investor, a servicer— 
(i) shall not be limited in the ability 
to modify mortgages, the number of mort-
gages that can be modified, the frequency
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of loan modifications, or the range of per-
missible modifications; and 
(ii) shall not be obligated to repur-
chase loans from or otherwise make pay-
ments to the securitization vehicle on ac-
count of a modification, workout, or other 
loss mitigation plan for a residential mort-
gage or a class of residential mortgages 
that constitute a part or all of the mort-
gages in the securitization vehicle, 
if any mortgage so modified meets all of the cri-
teria set forth in subparagraph (B). 
(B) CRITERIA.—The criteria under this 
subparagraph with respect to a mortgage are as 
follows: 
(i) Default on the payment of such 
mortgage has occurred or is reasonably 
foreseeable. 
(ii) The property securing such mort-
gage is occupied by the mortgagor of such 
mortgage. 
(iii) The servicer reasonably and in 
good faith believes that the anticipated re-
covery on the principal outstanding obliga-
tion of the mortgage under the particular
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modification or workout plan or other loss 
mitigation action will exceed, on a net 
present value basis, the anticipated recov-
ery on the principal outstanding obligation 
of the mortgage to be realized through 
foreclosure. 
(3) 
APPLICABILITY.—This 
subsection 
shall 
apply only with respect to modifications, workouts, 
and other loss mitigation plans initiated before Jan-
uary 1, 2012. 
(b) REPORTING.—Each servicer that engages in loan 
modifications or workout plans subject to the safe harbor 
in subsection (a) shall report to the Secretary on a regular 
basis regarding the extent, scope and results of the 
servicer’s modification activities. The Secretary shall pre-
scribe regulations specifying the form, content, and timing 
of such reports. 
(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(2) 
SECURITIZATION
VEHICLE.—The 
term 
‘‘securitization vehicle’’ means a trust, corporation, 
partnership, limited liability entity, special purpose 
entity, or other structure that—
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(A) is the issuer, or is created by the 
issuer, of mortgage pass-through certificates, 
participation certificates, mortgage-backed secu-
rities, or other similar securities backed by a 
pool of assets that includes residential mortgage 
loans; and 
(B) holds such mortgages. 
SEC. 202. CHANGES TO HOPE FOR HOMEOWNERS PRO-
GRAM. 
(a) PROGRAM CHANGES.—Section 257 of the Na-
tional Housing Act (12 U.S.C. 1715z–23) is amended— 
(1) in subsection (c)— 
(A) in the heading for paragraph (1), by 
striking ‘‘THE
BOARD’’ and inserting ‘‘SEC-
RETARY’’; 
(B) in paragraph (1), by striking ‘‘Board’’ 
inserting ‘‘Secretary, after consultation with the 
Board,’’; and 
(C) by adding after paragraph (2) the fol-
lowing: 
‘‘(3) DUTIES OF BOARD.—The Board shall ad-
vise the Secretary regarding the establishment and 
implementation of the HOPE for Homeowners Pro-
gram.’’.
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(2) by striking ‘‘Board’’ each place such term 
appears in subsections (e), (h)(1), (h)(3), (j), (l), 
(n), (s)(3), and (v) and inserting ‘‘Secretary’’; 
(3) in subsection (e)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) BORROWER CERTIFICATION.— 
‘‘(A) NO
INTENTIONAL
DEFAULT
OR 
FALSE
INFORMATION.—The mortgagor shall 
provide a certification to the Secretary that the 
mortgagor has not intentionally defaulted on 
the existing mortgage or mortgages and has not 
knowingly, or willfully and with actual knowl-
edge, furnished material information known to 
be false for the purpose of obtaining the eligible 
mortgage to be insured and has not been con-
victed under Federal or State law for fraud 
during the 10-year period ending upon the in-
surance of the mortgage under this section. 
‘‘(B) LIABILITY
FOR
REPAYMENT.—The 
mortgagor shall agree in writing that the mort-
gagor shall be liable to repay to the Secretary 
any direct financial benefit achieved from the 
reduction of indebtedness on the existing mort-
gage or mortgages on the residence refinanced