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structured under the amendments made by this 
subtitle that were appealed, 
(E) the number of cases presented to the 
bankruptcy courts where mortgages were re-
structured under the amendments made by the 
subtitle that were overturned on appeal, and 
(F) the number of bankruptcy judges dis-
ciplined as a result of actions taken to restruc-
ture mortgages under the amendments made by 
this subtitle, and 
(2) a recommendation as to whether such 
amendments should be amended to include a sunset 
clause. 
SEC. 110. REPORT TO CONGRESS. 
Not later than 18 months after the date of the enact-
ment of this Act, the Comptroller General, in consultation 
with the Federal Housing Administration, shall submit to 
the Congress, a report containing— 
(1) a comprehensive review of the effects of the 
amendments made by this subtitle on bankruptcy 
court, 
(2) a survey of whether the program should 
limit the types of homeowners eligible for the pro-
gram, and
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(3) a recommendation on whether such amend-
ments should remain in effect. 
Subtitle B—Related Mortgage 
Modification Provisions 
SEC. 121. ADJUSTMENTS AS A RESULT OF MODIFICATION 
IN BANKRUPTCY OF HOUSING LOANS GUAR-
ANTEED BY THE DEPARTMENT OF VETERANS 
AFFAIRS. 
(a) IN GENERAL.—Section 3732 of title 38, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraph (2) as sub-
paragraph (A) of paragraph (2), and 
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) In the event that a housing loan 
guaranteed under this chapter is modified 
under the authority provided under section 
1322(b) of title 11, United States Code, the 
Secretary may pay the holder of the obligation 
the unpaid balance of the obligation due as of 
the date of the filing of the petition under title 
11, United States Code, plus accrued interest, 
but only upon the assignment, transfer, and de-
livery to the Secretary (in a form and manner
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satisfactory to the Secretary) of all rights, in-
terest, claims, evidence, and records with re-
spect to the housing loan.’’. 
(b) MATURITY OF HOUSING LOANS.—Paragraph (1) 
of section (d) of section 3703 of title 38, United States 
Code, is amended by inserting ‘‘at the time of origination’’ 
after ‘‘loan’’. 
(c) IMPLEMENTATION.—The Secretary of Veterans 
Affairs may implement the amendments made by this sec-
tion through notice, procedure notice, or administrative 
notice. 
SEC. 122. PAYMENT OF FHA MORTGAGE INSURANCE BENE-
FITS. 
(a) IN GENERAL.—Subsection (a) of section 204 of 
the National Housing Act (12 U.S.C. 1710(a)) is amend-
ed— 
(1) in paragraph (1), by adding at the end the 
following new subparagraph: 
‘‘(E) MODIFICATION
OF
MORTGAGE
IN 
BANKRUPTCY.— 
‘‘(i) AUTHORITY.—If an order is en-
tered under the authority provided under 
section 1322(b) of title 11, United States 
Code, that (a) determines the amount of 
an allowed secured claim under a mortgage
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in accordance with section 506(a)(1) of 
title 11, United States Code, and the 
amount of such allowed secured claim is 
less than the amount due under the mort-
gage as of the date of the filing of the peti-
tion under title 11, United States Code, or 
(b) reduces the interest to be paid under a 
mortgage in accordance with section 1325 
of such title, the Secretary may pay insur-
ance benefits for the mortgage as follows: 
‘‘(I) FULL
PAYMENT
AND
AS-
SIGNMENT.—The Secretary may pay 
the insurance benefits for the mort-
gage, but only upon the assignment, 
transfer, and delivery to the Secretary 
of all rights, interest, claims, evidence, 
and records with respect to the mort-
gage specified in clauses (i) through 
(iv) of paragraph (1)(A). The insur-
ance benefits shall be paid in the 
amount equal to the original principal 
obligation of the mortgage (with such 
additions and deductions as the Sec-
retary determines are appropriate) 
which was unpaid upon the date of
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the filing of by the mortgagor of the 
petition under title 11 of the United 
States Code. Nothing in this Act may 
be construed to prevent the Secretary 
from providing insurance under this 
title for a mortgage that has pre-
viously been assigned to the Secretary 
under this subclause. The decision of 
whether to utilize the authority under 
this subclause for payment and as-
signment shall be at the election of 
the mortgagee, subject to such terms 
and conditions as the Secretary may 
establish. 
‘‘(II) ASSIGNMENT
OF
UNSE-
CURED
CLAIM.—The Secretary may 
make a partial payment of the insur-
ance benefits for any unsecured claim 
under the mortgage, but only upon 
the assignment to the Secretary of 
any unsecured claim of the mortgagee 
against the mortgagor or others aris-
ing out of such order. Such assign-
ment shall be deemed valid irrespec-
tive of whether such claim has been or