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(b) REPEAL
OF
CERTAIN
EXCEPTION.—Section 
113(d)(3) of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5223(d)(3)) is amended by striking 
subparagraph (A). 
SEC. 105. AVAILABILITY OF TARP FUNDS TO SMALLER COM-
MUNITY INSTITUTIONS. 
(a) PROMPT ACTION.—The Secretary shall promptly 
take all necessary actions to provide assistance under title 
I of the Emergency Economic Stabilization Act of 2008 
to smaller community financial institutions, including such 
institutions that are privately held. 
(b) COMPARABLE TERMS.—An institution that re-
ceives assistance after the date of the enactment of the 
TARP Reform and Accountability Act of 2009, shall do 
so on terms comparable to the terms applicable to institu-
tions that received assistance prior to the date of the en-
actment of such Act of 2009: Provided, That the institu-
tion— 
(1) has submitted an application on which no 
action has been taken, such as institutions that are 
C corporations (including privately held institutions) 
and community development financial institutions; 
or 
(2) is of a type for which the Secretary has not 
yet established an application deadline or for which 
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any such deadline has not yet occurred as of the 
date of the enactment of this Act, such as institu-
tions that are non-stock corporations, S-corpora-
tions, mutually-owned insured depository institutions 
(as defined in section 3 of the Federal Deposit In-
surance Act). 
(c) DEFINITIONS.—For purposes of this section, the 
terms ‘‘S Corporation’’ and ‘‘C Corporation’’ shall have 
the same meaning given to those terms in section 1361(a) 
of the Internal Revenue Code of 1986. 
SEC. 106. INCREASE IN SIZE AND AUTHORITY OF FINAN-
CIAL STABILITY OVERSIGHT BOARD. 
(a) AUTHORITY.—Section 104 of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 2514) is 
amended— 
(1) by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively; and 
(2) by inserting after subsection (f) the fol-
lowing new subsection: 
‘‘(g) REVIEW
AND DECISIONMAKING.—After con-
ducting any review under this section of a policy deter-
mination made by the Secretary, the Financial Stability 
Oversight Board may overturn any such policy determina-
tion by a two-thirds vote of all members of such board.’’. 
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(b) APPOINTMENT OF 3 ADDITIONAL MEMBERS.— 
Section 104(b) of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 2514(b)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) the Chairperson of the Board of Directors 
of the Federal Deposit Insurance Corporation; and 
‘‘(7) two members appointed by the President, 
by and with the consent of the Senate, from among 
individuals who are not officers or employees of the 
United States Government.’’. 
SEC. 107. INCLUSION OF WOMEN AND MINORITIES. 
(a) OFFICE
OF MINORITY
AND WOMEN INCLU-
SION.—The Secretary of the Treasury shall establish an 
Office of Minority and Women Inclusion, or designate an 
office of the entity, that shall be responsible for carrying 
out this section and ensuring compliance by the Secretary 
and each assisted institution (as such term is defined in 
section 3 of the Emergency Economic Stabilization Act of 
2008) with the requirements of this section. The Office 
shall be responsible for all matters of the entity relating 
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to diversity in management, employment, and business ac-
tivities in accordance with such standards and require-
ments as the Secretary shall establish regarding the use 
of assistance provided under title I of such Act. 
(b) INCLUSION IN ALL LEVELS OF BUSINESS ACTIVI-
TIES.—The Secretary and each assisted institution shall 
develop and implement standards and procedures to en-
sure, to the maximum extent possible, the inclusion and 
utilization of minorities (as such term is defined in section 
1204(c) of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and 
women, and minority- and women-owned businesses (as 
such terms are defined in section 21A(r)(4) of the Federal 
Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including 
financial institutions, investment banking firms, mortgage 
banking firms, asset management firms, broker-dealers, fi-
nancial services firms, underwriters, accountants, brokers, 
investment consultants, and providers of legal services) in 
all business and activities of the Secretary and each as-
sisted institution at all levels, including in procurement, 
insurance, and all types of contracts (including contracts 
for the issuance or guarantee of any debt, equity, or mort-
gage-related securities, the management of its mortgage 
and securities portfolios, the making of its equity invest-
ments, the purchase, sale and servicing of single- and 
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multi-family mortgage loans, and the implementation of 
its affordable housing program and initiatives). The proc-
esses established by the Secretary and each assisted insti-
tution for review and evaluation for contract proposals and 
to hire service providers shall include a component that 
gives consideration to the diversity of the applicant. 
(c) APPLICABILITY.—This section shall apply to all 
contracts of the Secretary of the Treasury and assisted 
institutions for services of any kind, including services 
that require the services of investment banking, asset 
management entities, broker-dealers, financial services en-
tities, underwriters, accountants, investment consultants, 
and providers of legal services. 
(d) REPORTS TO CONGRESS.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary shall report to the Congress detailed information 
describing the actions taken by the Office and assisted in-
stitutions pursuant to this section, which shall include a 
statement of the total amounts provided by the Secretary 
and assisted institutions under title I of the Emergency 
Economic Stabilization Act of 2008 to third party contrac-
tors since the last such report and the percentage of such 
amounts paid to businesses described in subsection (b) of 
this section. 
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SEC. 108. ANALYSIS OF USE OF ASSISTANCE. 
(a) REQUIREMENT.—The Secretary of the Treasury 
shall regularly analyze timely and detailed information 
concerning the use of assistance provided under title I of 
the Emergency Economic Stabilization Act of 2008 by as-
sisted institutions to ensure that the program established 
under title I of such Act is meeting the goals of the pro-
gram. 
(b) AGENCY COLLECTION.—The Secretary of the 
Treasury shall require the Federal banking agencies (as 
defined in section 3 of the Federal Deposit Insurance Act) 
and any other Federal agency the Secretary chooses to 
report detailed information to the Secretary on the use 
of assistance provided by the Secretary under the Emer-
gency Economic Stabilization Act of 2008 in a standard 
electronic form on no less than a quarterly basis. 
(c) SOURCE OF INFORMATION.—The data collected 
and analyzed under subsections (a) and (b)— 
(1) shall come from existing reports filed by all 
assisted institutions where possible, including deposi-
tory institutions and nondepository institutions, with 
the principal Federal regulator of each such institu-
tion, if any; and 
(2) and should be sufficiently detailed and time-
ly to enable the Secretary to determine the effective-
ness of the program established under title I of the 
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Emergency Economic Stabilization Act of 2008 in 
stimulating prudent lending and strengthening bank 
capital. 
(d) ADJUSTMENTS AND RECOMMENDATIONS.—If the 
Secretary of the Treasury determines that— 
(1) the goals of the program established under 
title I of the Emergency Economic Stabilization Act 
of 2008 are not being met, the Secretary shall work 
with the Federal agencies supplying the information 
under subsection (b) to encourage such agencies to 
provide the recipients of assistance under such title 
with recommendations for better meeting the goals 
of the program; and 
(2) the goals of the program are not being met 
following the recommendations and adjustments 
made in accordance with paragraph (1), the Sec-
retary shall adjust the future uses of assistance pro-
vided under such title. 
SEC. 109. DATABASE OF USE OF TARP FUNDS. 
The Secretary of the Treasury shall create and main-
tain a fully searchable database, accessible on the Internet 
at no cost to the public, that contains the name of each 
entity receiving funds made available under section 115(a) 
of the Emergency Economic Stabilization Act of 2008 (12 
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U.S.C. 5225(a)) and the purpose for which such entity 
is receiving such funds. 
SEC. 110. CLARIFICATION. 
Section 101 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 2514(b)) is amended by adding 
at the end the following new subsections: 
‘‘(f) CLARIFICATION.—Any provision of capital to, 
purchase of equity in, or assistance provided to any insti-
tution under this title shall be considered to be a purchase 
of troubled assets for purposes of this title. 
‘‘(g) QUALIFIED PROPERTY.— 
‘‘(1) GUARANTEE.—Upon the request of a les-
see of qualified property in leases where the lessee 
economically defeased its rent and purchase option 
payments, the Secretary may serve as a guarantor 
with respect to all payment obligations of such lessee 
with respect to any defeased lease transaction that 
is in technical default because of a downgrade of a 
financial guarantor. Such guarantee shall be on such 
terms and conditions as are determined by the Sec-
retary. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
‘‘(A) QUALIFIED
PROPERTY.—The term 
‘qualified property’ means domestic property 
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subject to a lease entered into prior to Novem-
ber 1, 2007, in which a State or local govern-
ment authority (as defined in section 5302(a) 
of title 49, United States Code) is the lessee. 
‘‘(B) GUARANTOR.—The term ‘guarantor’ 
includes any guarantor, surety, and payment 
undertaker.’’. 
SEC. 111. INVESTMENT OF TARP FUNDS IN CREDIT UNIONS 
TAKEN INTO ACCOUNT IN DETERMINATION 
OF NET WORTH. 
(a) IN GENERAL.—Section 216(o)(2) of the Federal 
Credit Union Act (12 U.S.C. 1790d(o)(2)) is amended by 
striking subparagraph (A) and inserting the following new 
subparagraph: 
‘‘(A) with respect to any insured credit 
union, means— 
‘‘(i) the retained earnings balance of 
the credit union, as determined under gen-
erally accepted accounting principles, to-
gether with any amounts that were pre-
viously the retained earnings of any other 
credit union with which the credit union 
has combined; and 
‘‘(ii) any donated equity, permanent, 
and perpetual capital deposits, or other 
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primary capital made available under Title 
I of the Emergency Economic Stabilization 
Act of 2008, as determined by regulation 
or order of the Board with due regard for 
the accepted capital standards for United 
States depository institutions generally; 
and’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect at the end of the 30-day 
period beginning on the date of the enactment of this Act. 
SEC. 112. TREASURY FACILITATED AUCTION. 
Section 113(b) of the Emergency Economic Stabiliza-
tion Act of 2008 (12 U.S.C. 5223(b)) is amended to read 
as follows: 
‘‘(b) USE OF MARKET MECHANISMS.— 
‘‘(1) IN GENERAL.—In making purchases under 
this Act, the Secretary shall— 
‘‘(A) make such purchases at the lowest 
price that the Secretary determines to be con-
sistent with the purposes of this Act; and 
‘‘(B) maximize the efficiency of the use of 
taxpayer resources by using market mecha-
nisms, including auctions or reverse auctions, 
where appropriate. 
‘‘(2) AUCTION FACILITATION.— 
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‘‘(A) IN GENERAL.—The Secretary shall, 
in coordination with institutions that volunteer 
to participate, and not using any funds under 
this title for purchases, facilitate an auction of 
troubled assets owned by such institutions to 
third party purchasers. 
‘‘(B) REPORT.—If the auction described in 
subparagraph (A) does not take place within 
the 3 month period following the date of the en-
actment of the TARP Reform and Account-
ability Act of 2009, the Secretary shall issue a 
report to the Congress stating— 
‘‘(i) why such auction has not taken 
place; and 
‘‘(ii) by what mechanism the Sec-
retary feels that troubled assets could most 
expeditiously be valued and liquidated.’’. 
SEC. 113. BROADENED INSPECTOR GENERAL AUTHORITY. 
Section 121(c) of the Emergency Economic Stabiliza-
tion Act (12 U.S.C. 5231(c)) is amended by striking ‘‘the 
purchase, management, and sale of assets’’ and all that 
follows through ‘‘under section 102’’ and inserting ‘‘any 
action taken by the Secretary of the Treasury under this 
title (except sections 115, 116, 117, and 125), as the Spe-
cial Inspector General determines appropriate’’. 
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TITLE II—FORECLOSURE 
RELIEF 
SEC. 201. TARP FORECLOSURE MITIGATION PLAN AND IM-
PLEMENTATION. 
(a) COMMITMENT OF RESOURCES.—Notwithstanding 
any provision of title I of the Emergency Economic Sta-
bilization Act of 2008, not later than seven days after the 
date of the enactment of the TARP Reform and Account-
ability Act of 2009, the Secretary of the Treasury (in this 
title referred to as the ‘‘Secretary’’) shall commit funds 
made available to the Secretary under title I of the Emer-
gency Economic Stabilization Act of 2008 in an amount 
of at least $100,000,000,000, unless the Secretary cer-
tifies otherwise under subsection (d), but in no case less 
than $40,000,000,000, for the purposes of foreclosure 
mitigation. Not less than $20,000,000,000 of this amount 
shall be dedicated to the program described under section 
204 of this Act. The Secretary shall consult with the 
Chairperson of the Board of Directors of the Federal De-
posit Insurance Corporation regarding the administration 
of the program. 
(b) PLAN REQUIRED.—Notwithstanding any provi-
sion of title I of the Emergency Economic Stabilization 
Act of 2008, none of the funds otherwise available to the 
Secretary pursuant to section 115(a)(3) of such Act shall 
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be available to the Secretary after March 15, 2009, unless 
a comprehensive plan to use the funds committed under 
subparagraph (a) to prevent and mitigate foreclosures on 
residential properties, in accordance with the requirements 
of this title, has been developed by the Secretary and ap-
proved by the Financial Stability Oversight Board by such 
date. 
(c) IMPLEMENTATION REQUIRED.—The Secretary 
shall begin to implement the comprehensive plan estab-
lished pursuant to subsection (b) by not later than April 
1, 2009. 
(d) CERTIFICATION.—If the Secretary does not com-
mit at least $100,000,000,000 in the plan established 
under subsection (b), the Secretary shall certify to the 
Congress in the plan the specific reasons that such 
amounts have not been committed. 
(e) CLARIFICATION.—For purposes of this title, the 
term ‘‘residential properties’’ shall include 1- to 4-family 
residential properties. 
SEC. 202. ELEMENTS OF PLAN. 
(a) REQUIRED ELEMENTS.—The comprehensive plan 
established pursuant to section 201(b) shall comply with 
the following requirements: 
(1) OWNER-OCCUPIED
RESIDENCES
ONLY.— 
The programs implemented under the plan shall pre-
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vent and mitigate foreclosures specifically on owner- 
occupied residential properties. 
(2) LEVERAGING
OF
PRIVATE
CAPITAL.—The 
plan shall leverage private capital to the maximum 
extent possible consistent with the purpose of pre-
venting and mitigating foreclosures on such prop-
erties. 
(3) USE OF PROGRAM ALTERNATIVES.—The ac-
tions to be taken under the plan shall consist of the 
systematic foreclosure prevention and mortgage 
modification program under section 204 and a com-
bination of the program alternatives set forth in sec-
tion 203. 
(4) WORKFORCE
AND
OUTREACH.—The plan 
shall set forth how the Secretary intends to develop, 
second, or contract for appropriate staffing to carry 
out the plan and the component programs and to en-
sure that private mortgage servicers utilizing the 
programs established by the Secretary will provide 
sufficient staffing and resources to engage in the 
outreach, loss mitigation activities, and homeowner 
education necessary for successful foreclosure miti-
gation. 
(b) CONCENTRATIONS
OF
FORECLOSURES.—The 
comprehensive plan established pursuant to section 201(b) 
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may include provisions designed to prevent and mitigate 
foreclosures on residential properties located in areas that 
are most seriously affected by such foreclosures. 
SEC. 203. PROGRAM ALTERNATIVES. 
The program alternatives set forth in this section are 
as follows: 
(1) REDUCTION OF HOPE FOR HOMEOWNERS 
PROGRAM COSTS.—A program under which the Sec-
retary— 
(A) provides coverage for fees under the 
HOPE for Homeowners Program under section 
257 of the National Housing Act (12 U.S.C. 
1715z–23), as amended by title V of this Act; 
or 
(B) ensures the affordability of interest 
rates of mortgages insured under such Pro-
gram. 
(2) BUY-DOWN
OF
SECOND
LIEN
MORT-
GAGES.—A program under which the Secretary 
makes available to owners of owner-occupied residen-
tial properties a direct mortgage loan the proceeds 
of which shall be used only to reduce the out-
standing debt of such owner under an existing sec-
ond lien mortgage on such residential property, for 
the purpose of facilitating loan modification, subject 
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to such reductions in the principal of such existing 
second lien mortgages as the Secretary may require. 
(3) SERVICER INCENTIVES AND ASSISTANCE.— 
A program under which the Secretary may make 
payments to servicers, including servicers that are 
not affiliated with a depository institution, who im-
plement modifications to mortgages that result in 
mortgages that meet such requirements as the Sec-
retary shall establish. 
(4) LOAN
PURCHASES.—A program under 
which the Secretary, or one or more entities that the 
Secretary, in consultation with the Secretary of 
Housing and Urban Development, enters into a con-
tract with to carry out the program under this para-
graph, which may include the Federal Deposit Insur-
ance Corporation, regional public-private partner-
ships, and entities selected as contractors under sec-
tion 107 of the Emergency Economic Stabilization 
Act of 2008, purchases whole loans for the purpose 
of modifying or refinancing the loans. 
(5) SUBSTITUTION
OF
TRUST.—A program 
under which modifications are allowed to the 
securitization trust agreements with respect to secu-
rities secured by pools of mortgages to allow a new 
qualified buyer to be substituted on a foreclosed 
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property or a delinquent mortgage without seeking 
new financing. 
SEC. 204. SYSTEMATIC FORECLOSURE PREVENTION AND 
MORTGAGE 
MODIFICATION 
PLAN 
ESTAB-
LISHED. 
(a) IN GENERAL.—The systematic foreclosure pre-
vention and mortgage modification program under this 
section shall be a program established by the Secretary, 
in consultation with the Chairperson of the Board of Di-
rectors of the Federal Deposit Insurance Corporation and 
the Secretary of Housing and Urban Development, that— 
(1) provides lenders and loan servicers with cer-
tain compensation to cover administrative costs for 
each loan modified according to the required stand-
ards; and 
(2) provides loss sharing or guarantees for cer-
tain losses incurred if a modified loan should subse-
quently re-default. 
(b) PROGRAM ADMINISTRATION.—The Secretary, in 
consultation with the Chairperson of the Federal Deposit 
Insurance Corporation and the Secretary of Housing and 
Urban Development, may contract with one or more enti-
ties, including the Federal Deposit Insurance Corporation 
and entities selected as contractors under section 107 of 
the Emergency Economic Stabilization Act of 2008, to 
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conduct the program activities required under the pro-
gram under this section. 
(c) PROGRAM COMPONENTS.—The program estab-
lished under subsection (a) may include the following com-
ponents: 
(1) ELIGIBLE BORROWERS.—The program shall 
be limited to loans secured by owner-occupied prop-
erties. 
(2) EXCLUSION
FOR
EARLY
PAYMENT
DE-
FAULT.—To promote sustainable mortgages, loss 
sharing or guarantees shall be available only after 
the borrower has made a specified minimum number 
of payments on the modified mortgage. 
(3) STANDARD NET PRESENT VALUE TEST.—In 
order to promote consistency and simplicity in imple-
mentation and audit, the Secretary shall prescribe a 
standardized net present value analysis for partici-
pating lenders and servicers comparing the expected 
net present value of modifying past due loans com-
pared to the net present value of foreclosing on them 
will be applied. Under this test, standard assump-
tions shall be used to ensure that a consistent stand-
ard for affordability is provided based on a ratio of 
the borrower’s mortgage-related expenses for the 
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first priority mortgage-to-gross income specified by 
the Secretary. 
(4) SYSTEMATIC
LOAN
REVIEW
BY
PARTICI-
PATING
LENDERS
AND
SERVICERS.—Participating 
lenders and servicers shall be required to undertake 
a systematic review of all of the loans under their 
management, to subject each loan to a standard net 
present value test to determine whether it is a suit-
able candidate for modification, and to offer modi-
fications for all loans that pass this test. The pen-
alty for failing to undertake such a systematic re-
view and to carry out modifications where they are 
justified would be disqualification from further par-
ticipation in the program until such a systematic 
program was introduced. 
(5) MODIFICATIONS.—Modifications may in-
clude any of the following: 
(A) Reduction in interest rates and fees. 
(B) Term or amortization extensions. 
(C) Forbearance or forgiveness of prin-
cipal. 
(D) Other similar modifications. 
(6) SIMPLIFIED LOSS SHARE CALCULATION.— 
In order to ensure the administrative efficiency and 
effective operation of the program, the Secretary 
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shall define appropriate measures for loss sharing or 
guarantees designed to reduce the risk and loss upon 
redefault of modified mortgages in order to provide 
adequate incentives to lenders, servicers, and inves-
tors to modify eligible mortgages and avoid unneces-
sary foreclosures. Interim modifications shall be al-
lowed. 
(7) DE MINIMIS TEST.—To lower administra-
tive costs, a de minimis test shall be used to exclude 
from loss sharing any modification that does not 
lower the monthly payment at least 10 percent. 
(8) 8 YEAR
LIMIT
ON
LOSS
SHARING
PAY-
MENT.—The loss sharing guarantee shall terminate 
at the end of the 8-year period beginning on the 
date the modification was consummated. 
(d) ALTERNATIVE
COMPONENTS.—The Secretary 
may, with the approval of the Board, implement fore-
closure prevention and mitigation actions other than those 
included pursuant to subsection (c) in the comprehensive 
plan initially approved by the Board pursuant to section 
201(b) that the Secretary believes would provide equiva-
lent or greater impact on foreclosure mitigation. 
(e) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to implement this 
section and prevent evasions thereof. 
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(f) TROUBLED ASSETS.—The costs incurred by the 
Federal Government in carrying out the loan modification 
program established under this section shall be covered 
out of the funds made available to the Secretary of the 
Treasury under title I of the Emergency Economic Sta-
bilization Act of 2008 or such other funds as may be avail-
able to the Secretary. 
(g) REPORT.—Before the end of the 6-month period 
beginning on the date of the enactment of this Act, the 
Secretary shall submit a progress report to the Congress 
containing such findings and such recommendations for 
legislative or administrative action as the Secretary may 
determine to be appropriate. 
SEC. 205. MODIFICATION OF PLAN. 
(a) IN GENERAL.—If the Secretary, in consultation 
with the Chairperson of the Board of Directors of the Fed-
eral Deposit Insurance Corporation and the Secretary of 
Housing and Urban Development, determines at any time 
that modification of the comprehensive plan initially ap-
proved by the Board pursuant to section 201(b) (as such 
plan may subsequently have been modified pursuant to 
this section), or that modification of any component pro-
gram element, is necessary to maximize the prevention of 
foreclosures on residential properties or minimize costs to 
taxpayers of such foreclosure mitigation, the Secretary 
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may modify the plan or program element, but only to the 
extent such modifications are approved by the Board. 
SEC. 206. SERVICER SAFE HARBOR. 
(a) SAFE HARBOR.— 
(1) LOAN
MODIFICATIONS
AND
WORKOUT 
PLANS.—Notwithstanding any other provision of 
law, and notwithstanding any investment contract 
between a servicer and a securitization vehicle or in-
vestor, a servicer that acts consistent with the duty 
set forth in section 129A(a) of Truth in Lending Act 
(15 U.S.C. 1639a) shall not be liable for entering 
into a loan modification or workout plan with re-
spect to any such mortgage that meets all of the cri-
teria set forth in paragraph (2)(B) to— 
(A) any person, based on that person’s 
ownership of a residential mortgage loan or any 
interest in a pool of residential mortgage loans 
or in securities that distribute payments out of 
the principal, interest and other payments in 
loans on the pool; 
(B) any person who is obligated to make 
payments determined in reference to any loan 
or any interest referred to in subparagraph (A); 
or 
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(C) any person that insures any loan or 
any interest referred to in subparagraph (A) 
under any law or regulation of the United 
States or any law or regulation of any State or 
political subdivision of any State. 
(2) ABILITY TO MODIFY MORTGAGES.— 
(A) ABILITY.—Notwithstanding any other 
provision of law, and notwithstanding any in-
vestment contract between a servicer and a 
securitization vehicle or investor, a servicer— 
(i) shall not be limited in the ability 
to modify mortgages, the number of mort-
gages that can be modified, the frequency 
of loan modifications, or the range of per-
missible modifications; and 
(ii) shall not be obligated to repur-
chase loans from or otherwise make pay-
ments to the securitization vehicle on ac-
count of a modification, workout, or other 
loss mitigation plan for a residential mort-
gage or a class of residential mortgages 
that constitute a part or all of the mort-
gages in the securitization vehicle, 
if any mortgage so modified meets all of the cri-
teria set forth in subparagraph (B). 
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(B) CRITERIA.—The criteria under this 
subparagraph with respect to a mortgage are as 
follows: 
(i) Default on the payment of such 
mortgage has occurred or is reasonably 
foreseeable. 
(ii) The property securing such mort-
gage is occupied by the mortgagor of such 
mortgage. 
(iii) The servicer reasonably and in 
good faith believes that the anticipated re-
covery on the principal outstanding obliga-
tion of the mortgage under the particular 
modification or workout plan or other loss 
mitigation action will exceed, on a net 
present value basis, the anticipated recov-
ery on the principal outstanding obligation 
of the mortgage to be realized through 
foreclosure. 
(3) 
APPLICABILITY.—This 
subsection 
shall 
apply only with respect to modifications, workouts, 
and other loss mitigation plans initiated before Jan-
uary 1, 2012. 
(b) REPORTING.—Each servicer that engages in loan 
modifications or workout plans subject to the safe harbor 
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in subsection (a) shall report to the Secretary on a regular 
basis regarding the extent, scope and results of the 
servicer’s modification activities. The Secretary shall pre-
scribe regulations specifying the form, content, and timing 
of such reports. 
(c) DEFINITION OF SECURITIZATION VEHICLES.— 
For purposes of this section, the term ‘‘securitization vehi-
cle’’ means a trust, corporation, partnership, limited liabil-
ity entity, special purpose entity, or other structure that— 
(1) is the issuer, or is created by the issuer, of 
mortgage pass-through certificates, participation cer-
tificates, mortgage-backed securities, or other similar 
securities backed by a pool of assets that includes 
residential mortgage loans; and 
(2) holds such mortgages. 
SEC. 207. FORECLOSURE MORATORIUM RECOMMENDA-
TION. 
(a) FORECLOSURE DEFERMENT.—It is the sense of 
the Congress that any institution which becomes an as-
sisted institution on or after the date of the enactment 
of this Act should not initiate, or allow to continue, a fore-
closure proceeding or a foreclosure sale on any with re-
spect to any principal homeowner mortgage, until the ear-
liest of the following: 
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(F) Combinations of modifications de-
scribed in subparagraph (A), (B), (C), (D), or 
(E). 
(2) 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 10 percent or more. 
(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 
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rectly or through the Board of Governors of the Federal 
Reserve System or any Federal reserve bank.’’. 
SEC. 404. SMALL BUSINESS LOANS. 
Title I of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 
after section 138 (as added by section 403 of this title) 
the following new section: 
‘‘SEC. 139. CLARIFICATION OF AUTHORITY REGARDING 
SMALL BUSINESS LOANS. 
‘‘The authority of the Secretary to take any action 
under this title includes the authority to establish or sup-
port facilities to support the availability of small business 
loans, including farm loans, loans to minority and dis-
advantaged businesses, debtor-in-possession financing, 
dealer floor plan financing, and any other small business 
loans, including through purchase of asset-backed securi-
ties, directly or through the Board or any Federal reserve 
bank.’’. 
SEC. 405. COMMERCIAL LOANS. 
Title I of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5211 et seq.) is amended by adding 
after section 139 (as added by section 404 of this title) 
the following new section: 
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