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‘‘(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— 
‘‘(A) the holder of the claim for such debt 
files with the court and serves on the trustee, 
the debtor, and the debtor’s attorney (annually 
or, in order to permit filing consistent with 
clause (ii), at such more frequent periodicity as 
the court determines necessary) notice of such 
fee, cost, or charge before the earlier of— 
‘‘(i) 1 year after such fee, cost, or 
charge is incurred; or 
‘‘(ii) 60 days before the closing of the 
case; and 
‘‘(B) such fee, cost, or charge— 
‘‘(i) is lawful under applicable non-
bankruptcy law, reasonable, and provided 
for in the applicable security agreement; 
and 
‘‘(ii) is secured by property the value 
of which is greater than the amount of 
such claim, including such fee, cost, or 
charge;
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‘‘(4) the failure of a party to give notice de-
scribed in paragraph (3) shall be deemed a waiver 
of any claim for fees, costs, or charges described in 
paragraph (3) for all purposes, and any attempt to 
collect such fees, costs, or charges shall constitute a 
violation of section 524(a)(2) or, if the violation oc-
curs before the date of discharge, of section 362(a); 
and 
‘‘(5) a plan may provide for the waiver of any 
prepayment penalty on a claim secured by the debt-
or’s principal residence.’’. 
SEC. 105. CONFIRMATION OF PLAN. 
(a) Section 1325(a) of title 11, United States Code, 
is amended— 
(1) in the matter preceding paragraph (1) 
strike ‘‘subsection (b)’’ and insert ‘‘subsections (b) 
and (d)’’. 
(2) in paragraph (5)— 
(A) by inserting ‘‘except as otherwise pro-
vided in section 1322(b)(11),’’ after ‘‘(5)’’, and 
(B) in subparagraph (B)(iii)(I) by insert-
ing ‘‘(including payments of a claim modified 
under section 1322(b)(11))’’ after ‘‘payments’’ 
the 1st place it appears,
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(3) in paragraph (8) by striking ‘‘and’’ at the 
end, 
(4) in paragraph (9) by striking the period at 
the end and inserting a semicolon, and 
(5) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) notwithstanding subclause (I) of para-
graph (5)(B)(i), whenever the plan modifies a claim 
in accordance with section 1322(b)(11), the holder 
of a claim whose rights are modified pursuant to 
section 1322(b)(11) shall retain the lien until the 
later of— 
‘‘(A) the payment of such holder’s allowed 
secured claim; or 
‘‘(B) completion of all payments under the 
plan (or, if applicable, receipt of a discharge 
under section 1328(b)); and 
‘‘(11) whenever the plan modifies a claim in ac-
cordance with section 1322(b)(11), the court finds 
that such modification is in good faith (Lack of good 
faith exists if the debtor has no need for relief under 
this paragraph because the debtor can pay all of his 
or her debts and any future payment increases on 
such debts without difficulty for the foreseeable fu-
ture, including the positive amortization of mortgage
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debt. In determining whether a reduction of the 
principal amount of the loan resulting from a modi-
fication made under the authority of section 
1322(b)(11) is made in good faith, the court shall 
consider whether the holder of such claim (or the en-
tity collecting payments on behalf of such holder) 
has offered to the debtor a qualified loan modifica-
tion that would enable the debtor to pay such debts 
and such loan without reducing such principal 
amount.) and does not find that the debtor has been 
convicted of obtaining by actual fraud the extension, 
renewal, or refinancing of credit that gives rise to a 
modified claim.’’. 
(b) Section 1325 of title 11, United States Code, is 
amended by adding at the end the following (and make 
such technical and conforming changes as may be appro-
priate): 
‘‘(d) Notwithstanding section 1322(b)(11)(C)(ii), the 
court, on request of the debtor or the holder of a claim 
secured by a senior security interest in the debtor’s prin-
cipal residence, may confirm a plan proposing a reduction 
in the interest rate on the loan secured by such security 
interest and that does not reduce the principal, provided 
the total monthly mortgage payment is reduced to a per-
centage of the debtor’s income in accordance with the