the laws of the State in which the property is lo-
cated, under which the proceeds of such sale are ap-
plied to such obligation. 
(3) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ has the meaning given such term in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)). 
(4) MORTGAGE.— 
(A) IN GENERAL.—The term ‘‘mortgage’’ 
means a deed of trust, mortgage, deed to secure 
debt, security agreement, or any other form of 
instrument under which any property (real, per-
sonal, or mixed), or any interest in property 
(including leaseholds, life estates, reversionary 
interests, and any other estates under applica-
ble State law), is conveyed in trust, mortgaged, 
encumbered, pledged, or otherwise rendered 
subject to a lien for the purpose of securing the 
payment of money or the performance of an ob-
ligation. 
(B) 
CONDOMINIUMS
AND
COOPERA-
TIVES.—Such term includes a first mortgage 
given to secure— 
(i) the unpaid purchase price of a fee 
interest in, or a long-term leasehold inter-
VerDate Mar 15 2010 
02:33 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3566.IH
H3566
smartinez on DSK6TPTVN1PROD with BILLS
est in, a one-family unit in a multifamily 
project, including a project in which the 
dwelling units are attached or are manu-
factured housing units, semi-detached, or 
detached, and an undivided interest in the 
common areas and facilities that serve the 
project; or 
(ii) repayment of a loan made to fi-
nance the purchase of stock or membership 
in a cooperative housing corporation the 
permanent occupancy of dwelling units of 
which is restricted to members of such cor-
poration, where the purchase of such stock 
or membership entitles the purchaser to 
the permanent occupancy of one of such 
units. 
(5) RESIDENTIAL MORTGAGE.— 
(A) IN GENERAL.—The term ‘‘residential 
mortgage’’ means a mortgage the primary pur-
pose of which is the purchase or financing of a 
permanent 1- to 4-family dwelling that is used 
as the principal residence of the mortgagor. 
(B) DETERMINATION.—A determination of 
whether a mortgage is a residential mortgage 
for purposes of this Act shall be made based on 
VerDate Mar 15 2010 
02:33 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3566.IH
H3566
smartinez on DSK6TPTVN1PROD with BILLS
the purpose of the mortgage as of the time the 
loan was made, as determined based upon infor-
mation obtained during the application process 
for the mortgage. 
SEC. 8. APPLICABILITY AND PREEMPTION. 
(a) APPLICABILITY.—This Act shall apply with re-
spect to any action for a deficiency judgment arising from 
an obligation under a residential mortgage brought in any 
State or Federal court. 
(b) PREEMPTION.—The provisions of this Act shall 
preempt any State law to the extent that such law is in-
consistent with the limitations contained in such provi-
sions. The provisions of this Act shall not preempt any 
State law that provides for defenses or places limitations 
on a person’s liability in addition to those contained in 
this Act or otherwise imposes greater restrictions that 
those provided in this Act. 
Æ 
VerDate Mar 15 2010 
02:33 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H3566.IH
H3566
smartinez on DSK6TPTVN1PROD with BILLS