I 
113TH CONGRESS 
2D SESSION 
H. R. 5553 
To provide access to information and loan modifications for successors in 
interest, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2014 
Mrs. BEATTY (for herself and Mr. HECK of Washington) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To provide access to information and loan modifications for 
successors in interest, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preventing Improper 
Foreclosures Act of 2014’’. 
SEC. 2. ACCESS TO INFORMATION AND LOAN MODIFICA-
TIONS. 
Section 341 of the Garn-St Germain Depository In-
stitutions Act of 1982 (12 U.S.C. 1701j–3) is amended 
by adding at the end the following: 
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‘‘(h) ACCESS TO INFORMATION AND LOAN MODI-
FICATIONS.— 
‘‘(1) IN GENERAL.—In the case of a transfer 
described under paragraph (3), (5), (6), (7), (8), or 
(9) of subsection (d), a lender shall— 
‘‘(A) provide the successor homeowner with 
information about the mortgage loan, including 
the outstanding amount due, monthly payment, 
if any, and available loan modification options; 
and 
‘‘(B) with respect to a transfer involving a 
real property loan other than a reverse mort-
gage— 
‘‘(i) promptly evaluate the successor 
homeowner for a loan modification on the 
same terms as if the successor homeowner 
had been the original borrower and mort-
gagor; and 
‘‘(ii) perform such evaluation and 
offer any available loss mitigation prior to 
any assumption of the obligations under 
the note. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to— 
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‘‘(A) limit or interfere with the inde-
pendent rights of a successor homeowner to as-
sume a mortgage under State law; or 
‘‘(B) empower a lender to place any re-
strictions on the right of successor homeowners 
protected by subsection (d) to assume a mort-
gage. 
‘‘(3) DEFENSE IN FORECLOSURE.—If a lender 
fails to comply with paragraph (1), such failure may 
be asserted as a defense to any judicial or non-judi-
cial foreclosure. 
‘‘(4) RECOVERY OF STATUTORY DAMAGES, AC-
TUAL DAMAGES, AND COSTS.—In any successful ac-
tion brought by a successor homeowner under this 
subsection, the homeowner shall be entitled to re-
cover statutory damages not to exceed $1,000 per 
violation, actual damages, costs, and attorneys 
fees.’’. 
SEC. 3. PROTECTION OF HOME EQUITY CONVERSION 
MORTGAGORS. 
(a) SAFEGUARD TO PREVENT DISPLACEMENT OF 
HOMEOWNER.—Subsection (j) of section 255 of the Na-
tional Housing Act (12 U.S.C. 1715z–20(j)) is amended— 
(1) in the first sentence by striking ‘‘the home-
owner’s obligation to satisfy the loan obligation is 
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deferred until the homeowner’s death’’ and inserting 
‘‘maturity of the loan obligation is deferred until the 
death of the homeowner and the homeowner’s 
spouse, the permanent relocation of the homeowner 
and the homeowner’s spouse’’; and 
(2) by striking the second sentence. 
(b) SALE TERMS OF ELIGIBLE MORTGAGES.—Para-
graph (7) of section 255(d) of the National Housing Act 
(12 U.S.C. 1715z–20(d)(7)) is amended— 
(1) by redesignating subparagraphs (A) and 
(B) as clauses (i) and (ii), respectively, and realign-
ing such subparagraphs, as so redesignated, so as to 
be indented 6 ems from the left margin; and 
(2) by striking the matter that precedes clause 
(i) (as so redesignated by paragraph (1) of this sub-
section) and inserting the following: 
‘‘(7)(A) provide that— 
‘‘(i) the mortgagor may sell the dwelling 
that is subject to the mortgage for at least the 
lesser of the remaining balance on the mortgage 
or the appraised value of such dwelling; 
‘‘(ii) if the loan is due and payable, the 
mortgagor may sell the dwelling that is subject 
to the mortgage for the lesser of the remaining 
balance on the mortgage or the amount that is 
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equal to 5 percent less than the appraised value 
of such dwelling; and 
‘‘(iii) upon the death of the mortgagor, the 
estate or heirs of the mortgagor may satisfy the 
loan obligation by paying the lesser of the re-
maining balance on the mortgage or the 
amount that is equal to 5 percent less than the 
appraised value of the dwelling that is subject 
to the mortgage; and 
‘‘(B) provide that the mortgagor, the estate of 
the mortgagor, or the heirs of the mortgagor shall 
not be liable for any difference between the amount 
of indebtedness under the mortgage and the amount 
recovered by the mortgagee from—’’. 
Æ 
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