I 
113TH CONGRESS 
1ST SESSION 
H. R. 101 
To amend title 11 of the United States Code with respect to modification 
of certain mortgages on principal residences, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2013 
Mr. CONYERS (for himself, Mr. COHEN, Mr. NADLER, Mr. MCDERMOTT, Mr. 
SCOTT of Virginia, Mr. JOHNSON of Georgia, and Ms. JACKSON LEE) in-
troduced the following bill; which was referred to the Committee on the 
Judiciary 
A BILL 
To amend title 11 of the United States Code with respect 
to modification of certain mortgages on principal resi-
dences, 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 ‘‘Home Foreclosure Re-
duction Act of 2013’’. 
SEC. 2. DEFINITION. 
Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (43) the following 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
(and make such technical and conforming changes as may 
be appropriate): 
‘‘(43A) The term ‘qualified loan modification’ 
means a loan modification agreement made in ac-
cordance with the guidelines of the Obama Adminis-
tration’s Homeowner Affordability and Stability 
Plan as implemented March 4, 2009, that— 
‘‘(A) reduces the debtor’s payment (includ-
ing principal and interest, and payments for 
real estate taxes, hazard insurance, mortgage 
insurance premium, homeowners’ association 
dues, ground rent, and special assessments) on 
a loan secured by a senior security interest in 
the principal residence of the debtor, to a per-
centage of the debtor’s income in accordance 
with such guidelines, without any period of neg-
ative amortization or under which the aggregate 
amount of the regular periodic payments would 
not fully amortize the outstanding principal 
amount of such loan; 
‘‘(B) requires no fees or charges to be paid 
by the debtor in order to obtain such modifica-
tion; and 
‘‘(C) permits the debtor to continue to 
make payments under the modification agree-
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
ment notwithstanding the filing of a case under 
this title, as if such case had not been filed.’’. 
SEC. 3. ELIGIBILITY FOR RELIEF. 
Section 109 of title 11, United States Code, is 
amended— 
(1) by adding at the end of subsection (e) the 
following: ‘‘For purposes of this subsection, the com-
putation of debts shall not include the secured or 
unsecured portions of— 
‘‘(1) debts secured by the debtor’s principal res-
idence if the value of such residence as of the date 
of the order for relief under chapter 13 is less than 
the applicable maximum amount of noncontingent, 
liquidated, secured debts specified in this subsection; 
or 
‘‘(2) debts secured or formerly secured by what 
was the debtor’s principal residence that was sold in 
foreclosure or that the debtor surrendered to the 
creditor if the value of such real property as of the 
date of the order for relief under chapter 13 was less 
than the applicable maximum amount of noncontin-
gent, liquidated, secured debts specified in this sub-
section.’’, and 
(2) by adding at the end of subsection (h) the 
following: 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
‘‘(5) Notwithstanding the 180-day period speci-
fied in paragraph (1), with respect to a debtor in a 
case under chapter 13 who submits to the court a 
certification that the debtor has received notice that 
the holder of a claim secured by the debtor’s prin-
cipal residence may commence a foreclosure on the 
debtor’s principal residence, the requirements of 
paragraph (1) shall be considered to be satisfied if 
the debtor satisfies such requirements not later than 
the expiration of the 30-day period beginning on the 
date of the filing of the petition.’’. 
SEC. 4. PROHIBITING CLAIMS ARISING FROM VIOLATIONS 
OF THE TRUTH IN LENDING ACT. 
Section 502(b) of title 11, United States Code, is 
amended— 
(1) in paragraph (8) by striking ‘‘or’’ at the 
end, 
(2) in paragraph (9) by striking the period at 
the end and inserting ‘‘; or’’, and 
(3) by adding at the end the following: 
‘‘(10) the claim for a loan secured by a security 
interest in the debtor’s principal residence is subject 
to a remedy for rescission under the Truth in Lend-
ing Act notwithstanding the prior entry of a fore-
closure judgment, except that nothing in this para-
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
tled ‘Average Prime Offer Rates—Fixed’, 
plus a reasonable premium for risk; and 
‘‘(D) by providing for payments of such 
modified loan directly to the holder of the claim 
or, at the discretion of the court, through the 
trustee during the term of the plan; and’’, and 
(2) by adding at the end the following: 
‘‘(g) A claim may be reduced under subsection 
(b)(11)(A) only on the condition that if the debtor sells 
the principal residence securing such claim, before com-
pleting all payments under the plan (or, if applicable, be-
fore receiving a discharge under section 1328(b)) and re-
ceives net proceeds from the sale of such residence, then 
the debtor agrees to pay to such holder not later than 15 
days after receiving such proceeds— 
‘‘(1) if such residence is sold in the 1st year oc-
curring after the effective date of the plan, 90 per-
cent of the amount of the difference between the 
sales price and the amount of such claim as origi-
nally determined under subsection (b)(11) (plus 
costs of sale and improvements), but not to exceed 
the unpaid amount of the allowed secured claim de-
termined as if such claim had not been reduced 
under such subsection; 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
‘‘(2) if such residence is sold in the 2d year oc-
curring after the effective date of the plan, 70 per-
cent of the amount of the difference between the 
sales price and the amount of such claim as origi-
nally determined under subsection (b)(11) (plus 
costs of sale and improvements), but not to exceed 
the unpaid amount of the allowed secured claim de-
termined as if such claim had not been reduced 
under such subsection; 
‘‘(3) if such residence is sold in the 3d year oc-
curring after the effective date of the plan, 50 per-
cent of the amount of the difference between the 
sales price and the amount of such claim as origi-
nally determined under subsection (b)(11) (plus 
costs of sale and improvements), but not to exceed 
the unpaid amount of the allowed secured claim de-
termined as if such claim had not been reduced 
under such subsection; 
‘‘(4) if such residence is sold in the 4th year oc-
curring after the effective date of the plan, 30 per-
cent of the amount of the difference between the 
sales price and the amount of such claim as origi-
nally determined under subsection (b)(11) (plus 
costs of sale and improvements), but not to exceed 
the unpaid amount of the allowed secured claim de-
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
termined as if such claim had not been reduced 
under such subsection; and 
‘‘(5) if such residence is sold in the 5th year oc-
curring after the effective date of the plan, 10 per-
cent of the amount of the difference between the 
sales price and the amount of such claim as origi-
nally determined under subsection (b)(11) (plus 
costs of sale and improvements), but not to exceed 
the unpaid amount of the allowed secured claim de-
termined as if such claim had not been reduced 
under such subsection. 
‘‘(h) With respect to a claim of the kind described 
in subsection (b)(11), the plan may not contain a modi-
fication under the authority of subsection (b)(11)— 
‘‘(1) in a case commenced under this chapter 
after the expiration of the 30-day period beginning 
on the effective date of this subsection, unless— 
‘‘(A) the debtor certifies that the debtor— 
‘‘(i) not less than 30 days before the 
commencement of the case, contacted the 
holder of such claim (or the entity col-
lecting payments on behalf of such holder) 
regarding modification of the loan that is 
the subject of such claim; 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
‘‘(ii) provided the holder of the claim 
(or the entity collecting payments on be-
half of such holder) a written statement of 
the debtor’s current income, expenses, and 
debt substantially conforming with the 
schedules required under section 521(a) or 
such other form as is promulgated by the 
Judicial Conference of the United States 
for such purpose; and 
‘‘(iii) considered any qualified loan 
modification offered to the debtor by the 
holder of the claim (or the entity collecting 
payments on behalf of such holder); or 
‘‘(B) a foreclosure sale is scheduled to 
occur on a date in the 30-day period beginning 
on the date of case is commenced; and 
‘‘(2) in any other case pending under this chap-
ter, unless the debtor certifies that the debtor at-
tempted to contact the holder of such claim (or the 
entity collecting payments on behalf of such holder) 
regarding modification of the loan that is the subject 
of such claim, before— 
‘‘(A) filing a plan under section 1321 that 
contains a modification under the authority of 
subsection (b)(11); or 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with
‘‘(B) modifying a plan under section 1323 
or 1329 to contain a modification under the au-
thority of subsection (b)(11). 
‘‘(i) In determining the holder’s allowed secured claim 
under section 506(a)(1) for purposes of subsection 
(b)(11)(A), the value of the debtor’s principal residence 
shall be the fair market value of such residence on the 
date such value is determined and, if the issue of value 
is contested, the court shall determine such value in ac-
cordance with the appraisal rules used by the Federal 
Housing Administration.’’. 
SEC. 6. COMBATING EXCESSIVE FEES. 
Section 1322(c) of title 11, United States Code, is 
amended— 
(1) in paragraph (1) by striking ‘‘and’’ at the 
end, 
(2) in paragraph (2) by striking the period at 
the end and inserting a semicolon, and 
(3) by adding at the end the following: 
‘‘(3) the debtor, the debtor’s property, and 
property of the estate are not liable for a fee, cost, 
or charge that is incurred while the case is pending 
and arises from a debt that is secured by the debt-
or’s principal residence except to the extent that— 
VerDate Mar 15 2010 
02:25 Jan 09, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H101.IH
H101
tjames on DSK6SPTVN1PROD with