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(b) INSURED RURAL HOUSING LOANS.—Subsection 
(j) of section 517 of the Housing Act of 1949 (42 U.S.C. 
1487(j)) is amended— 
(1) by redesignating paragraphs (2) through 
(7) as paragraphs (3) through (8), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) to pay for losses incurred by holders or 
servicers in the event of a modification pursuant to 
a bankruptcy proceeding;’’. 
(c) IMPLEMENTATION.—The Secretary of Agriculture 
may implement the amendments made by this section 
through notice, procedure notice, or administrative notice. 
SEC. 124. UNENFORCEABILITY OF CERTAIN PROVISION AS 
BEING CONTRARY TO PUBLIC POLICY. 
No provision in any investment contract between a 
servicer and a securitization vehicle or investor in effect 
as of the date of enactment of this Act that requires excess 
bankruptcy losses that exceed a certain dollar amount on 
residential mortgages to be borne by classes of certificates 
on a pro rata basis that refers to types of bankruptcy 
losses that could not have been incurred under the law 
in effect at the time such contract was entered into shall 
be enforceable, as such provision shall be contrary to pub-
lic policy. Notwithstanding this section, such reference to
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types of bankruptcy losses that could have been incurred 
under the law in effect at the time such contract was en-
tered into shall be enforceable. 
SEC. 125. MORTGAGE MODIFICATION DATA COLLECTING 
AND REPORTING. 
(a) REPORTING REQUIREMENTS.—Not later than 
120 days after the date of the enactment of this Act, and 
quarterly thereafter, the Comptroller of the Currency, in 
coordination with the Director of the Office of Thrift Su-
pervision, shall submit a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate, the 
Committee on Financial Services of the House of Rep-
resentatives, and the Joint Economic Committee on the 
volume of mortgage modifications reported to the Office 
of the Comptroller of the Currency and the Office of 
Thrift Supervision, under the mortgage metrics program 
of each such Office, during the previous quarter, including 
the following: 
(1) A copy of the data collection instrument 
currently used by the Office of the Comptroller of 
the Currency and the Office of Thrift Supervision to 
collect data on loan modifications. 
(2) The total number of mortgage modifications 
resulting in each of the following:
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(A) Additions of delinquent payments and 
fees to loan balances. 
(B) Interest rate reductions and freezes. 
(C) Term extensions. 
(D) Reductions of principal. 
(E) Deferrals of principal. 
(F) Combinations of modifications de-
scribed in subparagraph (A), (B), (C), (D), or 
(E). 
(3) The total number of mortgage modifications 
in which the total monthly principal and interest 
payment resulted in the following: 
(A) An increase. 
(B) Remained the same. 
(C) Decreased less than 10 percent. 
(D) Decreased between 10 percent and 20 
percent. 
(E) Decreased 20 percent or more. 
(4) The total number of loans that have been 
modified and then entered into default, where the 
loan modification resulted in— 
(A) higher monthly payments by the home-
owner; 
(B) equivalent monthly payments by the 
homeowner;
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(C) lower monthly payments by the home-
owner of up to 10 percent; 
(D) lower monthly payments by the home-
owner of between 10 percent to 20 percent; or 
(E) lower monthly payments by the home-
owner of more than 20 percent. 
(b) DATA COLLECTION.— 
(1) REQUIRED.— 
(A) IN GENERAL.—Not later than 60 days 
after the date of the enactment of this Act, the 
Comptroller of the Currency and the Director 
of the Office of Thrift Supervision, shall issue 
mortgage modification data collection and re-
porting requirements to institutions covered 
under the reporting requirement of the mort-
gage metrics program of the Comptroller or the 
Director. 
(B) INCLUSIVENESS
OF
COLLECTIONS.— 
The requirements under subparagraph (A) shall 
provide for the collection of all mortgage modi-
fication data needed by the Comptroller of the 
Currency and the Director of the Office of 
Thrift Supervision to fulfill the reporting re-
quirements under subsection (a).