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AMDT. NO. 570 
in such clause and that is wholly or 
partially contingent on the perform-
ance of services in the taxable year so 
described shall be disregarded, and 
(II) any condition on a bonus 
payment for services performed in the 
taxable year so described that the em-
ployee perform services in taxable 
years after the taxable year so de-
scribed shall be disregarded. 
(C) BONUS PAYMENT.—The term ‘‘bonus 
payment’’ means any payment which— 
(i) is a discretionary payment to a 
covered individual by a financial institution 
(or any member of a controlled group de-
scribed in subparagraph (D)) for services 
rendered, 
(ii) is in addition to any amount pay-
able to such individual for services per-
formed by such individual at a regular 
hourly, daily, weekly, monthly, or similar 
periodic rate, and 
(iii) is paid or payable in cash or 
other property other than— 
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AMDT. NO. 570 
(I) stock in such institution or 
member, or 
(II) an interest in a troubled 
asset (within the meaning of the 
Emergency 
Economic 
Stabilization 
Act of 2008) held directly or indi-
rectly by such institution or member. 
Such term does not include payments to an em-
ployee as commissions, welfare and fringe bene-
fits, or expense reimbursements. 
(D) COVERED
INDIVIDUAL.—The term 
‘‘covered individual’’ means, with respect to any 
financial institution, any director or officer or 
other employee of such financial institution or 
of any member of a controlled group of corpora-
tions (within the meaning of section 52(a) of 
the Internal Revenue Code of 1986) that in-
cludes such financial institution. 
(2) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ has the same meaning as in sec-
tion 3 of the Emergency Economic Stabilization Act 
of 2008 (12 U.S.C. 5252). 
(d) EXCISE TAX ON TARP COMPANIES THAT FAIL 
TO
REDEEM
CERTAIN
SECURITIES
FROM
UNITED 
STATES.— 
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AMDT. NO. 570 
(1) IN GENERAL.—Chapter 46 of the Internal 
Revenue Code of 1986 (relating to excise tax on 
golden parachute payments) is amended by adding 
at the end the following new section: 
‘‘SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES 
FROM UNITED STATES. 
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 
a tax on any financial institution which— 
‘‘(1) is required to redeem an amount of its 
preferred stock from the United States pursuant to 
section 1903(a) of the American Recovery and Rein-
vestment Tax Act of 2009, and 
‘‘(2) fails to redeem all or any portion of such 
amount within the period prescribed for such re-
demption. 
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) shall be equal to 35 percent of 
the amount which the financial institution failed to redeem 
within the time prescribed under 1903(b) of the American 
Recovery and Reinvestment Tax Act of 2009. 
‘‘(c) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) IN GENERAL.—For purposes of subtitle F, 
any tax imposed by this section shall be treated as 
a tax imposed by subtitle A for the taxable year in 
which a deduction is allowed for any excessive bonus 
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AMDT. NO. 570 
with respect to which the redemption described in 
subsection (a)(1) is required to be made. 
‘‘(2) EXTENSION OF TIME.—The due date for 
payment of tax imposed by this section shall in no 
event be earlier than the 150th day following the 
date of the enactment of this section.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for chapter 46 of such 
Code are amended to read as follows: 
‘‘CHAPTER 46-TAXES ON CERTAIN EXCESSIVE REMUNERATION 
‘‘Sec. 4999. Golden parachute payments. 
‘‘Sec. 4999A. Failure to redeem certain securities from United States.’’. 
(B) The item relating to chapter 46 in the 
table of chapters for subtitle D of such Code is 
amended to read as follows: 
‘‘Chapter 46. Taxes on excessive remuneration.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to failures described in 
section 4999A(a)(2) of the Internal Revenue Code of 
1986 occurring after the date of the enactment of 
this Act. 
TITLE VII—FORECLOSURE 
PREVENTION 
TITLE VII—FORECLOSURE PREVENTION 
Sec. 7001. Mandatory loan modifications. 
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AMDT. NO. 570 
SEC. 7001. MANDATORY LOAN MODIFICATIONS. 
Section 109(a) of the Emergency Economic Stabiliza-
tion Act of 2008 (12 U.S.C. 5219) is amended— 
(1) by striking the last sentence; 
(2) by striking ‘‘To the extent’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—To the extent’’; and 
(3) by adding at the end the following: 
‘‘(2) LOAN MODIFICATIONS REQUIRED.— 
‘‘(A) IN GENERAL.—In addition to actions 
required under paragraph (1), the Secretary 
shall, not later than 15 days after the date of 
enactment of this paragraph, develop and im-
plement a plan to facilitate loan modifications 
to prevent avoidable mortgage loan foreclosures. 
‘‘(B) FUNDING.—Of amounts made avail-
able under section 115 and not otherwise obli-
gated, not less than $50,000,000,000, shall be 
made available to the Secretary for purposes of 
carrying out the mortgage loan modification 
plan required to be developed and implemented 
under this paragraph. 
‘‘(C) CRITERIA.—The loan modification 
plan required by this paragraph may incor-
porate the use of— 
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AMDT. NO. 570 
‘‘(i) loan guarantees and credit en-
hancements; 
‘‘(ii) the reduction of loan principal 
amounts and interest rates; 
‘‘(iii) extension of mortgage loan 
terms; and 
‘‘(iv) any other similar mechanisms or 
combinations thereof, as determined appro-
priate by the Secretary. 
‘‘(D) DESIGNATION AUTHORITY.— 
‘‘(i) FDIC.—The Secretary may des-
ignate the Corporation, on a reimbursable 
basis, to carry out the loan modification 
plan developed under this paragraph. 
‘‘(ii) CONTRACTING
AUTHORITY.—If 
designated under clause (i), the Corpora-
tion may use its contracting authority 
under section 9 of the Federal Deposit In-
surance Act. 
‘‘(E) CONSULTATION
REQUIRED.—In de-
veloping the loan modification plan under this 
paragraph, the Secretary shall consult with the 
Chairperson of the Board of Directors of the 
Corporation, the Board, and the Secretary of 
Housing and Urban Development. 
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AMDT. NO. 570 
‘‘(F) REPORTS TO CONGRESS.—The Sec-
retary shall provide to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
House of Representatives— 
‘‘(i) upon development of the plan re-
quired by this paragraph, a report describ-
ing such plan; and 
‘‘(ii) a monthly report on the number 
and types of loan modifications occurring 
during the reporting period, and the per-
formance of the loan modification plan 
overall.’’. 
TITLE VIII—FORECLOSURE 
MITIGATION 
TITLE VIII—FORECLOSURE MITIGATION 
Sec. 8001. Short Title. 
Sec. 8002. Definitions. 
Sec. 8003. Payments to eligible servicers authorized. 
Sec. 8004. Authorization of appropriations. 
Sec. 8005. Sunset of authority. 
SEC. 8001. SHORT TITLE. 
This title may be cited as the ‘‘Help Families Keep 
Their Homes Act of 2009’’. 
SEC. 8002. DEFINITIONS. 
For purposes of this title— 
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770 
AMDT. NO. 570 
(1) the term ‘‘securitized mortgages’’ means 
residential mortgages that have been pooled by a 
securitization vehicle; 
(2) the term ‘‘securitization vehicle’’ means a 
trust, corporation, partnership, limited liability enti-
ty, special purpose entity, or other structure that— 
(A) is the issuer, or is created by the 
issuer, of mortgage pass-through certificates, 
participation certificates, mortgage-backed secu-
rities, or other similar securities backed by a 
pool of assets that includes residential mortgage 
loans; 
(B) holds all of the mortgage loans which 
are the basis for any vehicle described in sub-
paragraph (A); and 
(C) has not issued securities that are guar-
anteed by the Federal National Mortgage Asso-
ciation, the Federal Home Loan Mortgage Cor-
poration, or the Government National Mortgage 
Association; 
(3) the term ‘‘servicer’’ means a servicer of 
securitized mortgages; 
(4) the term ‘‘eligible servicer’’ means a servicer 
of pooled and securitized residential mortgages; 
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AMDT. NO. 570 
(5) the term ‘‘eligible mortgage’’ means a resi-
dential mortgage, the principal amount of which did 
not exceed the conforming loan size limit that was 
in existence at the time of origination for a com-
parable dwelling, as established by the Federal Na-
tional Mortgage Association; 
(6) the term ‘‘Secretary’’ means the Secretary 
of the Treasury; 
(7) the term ‘‘effective term of the Act’’ means 
the period beginning on the effective date of this 
title and ending on December 31, 2011; 
(8) the term ‘‘incentive fee’’ means the monthly 
payment to eligible servicers, as determined under 
section 7003; and 
(9) the term ‘‘prepayment fee’’ means the pay-
ment to eligible servicers, as determined under sec-
tion 7003(b). 
SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHOR-
IZED. 
(a) AUTHORITY.—The Secretary is authorized to 
make payments to eligible servicers, subject to the terms 
and conditions established under this title. 
(b) FEES PAID TO ELIGIBLE SERVICERS.— 
(1) IN GENERAL.—An eligible servicer may col-
lect reasonable incentive fee payments, as estab-
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772 
AMDT. NO. 570 
lished by the Secretary, not to exceed $2,000 per 
loan. 
(2) CONSULTATION.—The fees permitted under 
this section shall be subject to standards established 
by the Secretary, in consultation with the Secretary 
of Housing and Urban Development and the Chair-
man of the Board of Directors of the Federal De-
posit 
Insurance 
Corporation, 
which 
standards 
shall— 
(A) include an evaluation of whether an el-
igible mortgage is affordable for the remainder 
of its term; and 
(B) identify a reasonable fee to be paid to 
the servicer in the event that an eligible mort-
gage is prepaid. 
(3) FORM OF PAYMENT.—Fees permitted under 
this section may be paid in a lump sum or on a 
monthly basis. If paid on a monthly basis, the fee 
may only be remitted as long as the loan performs. 
(c) SAFE HARBOR.—Notwithstanding any other pro-
vision of law, and notwithstanding any investment con-
tract between a servicer and a securitization vehicle, a 
servicer— 
(1) owes any duty to maximize the net present 
value of the pooled mortgages in the securitization 
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773 
AMDT. NO. 570 
vehicle to all investors and parties having a direct or 
indirect interest in such vehicle, and not to any indi-
vidual party or group of parties; and 
(2) shall be deemed to act in the best interests 
of all such investors and parties if the servicer 
agrees to or implements a modification, workout, or 
other loss mitigation plan for a residential mortgage 
or a class of residential mortgages that constitutes 
a part or all of the pooled mortgages in such 
securitization vehicle, if— 
(A) default on the payment of such mort-
gage has occurred or is reasonably foreseeable; 
(B) the property securing such mortgage is 
occupied by the mortgagor of such mortgage or 
the homeowner; and 
(C) the servicer reasonably and in good 
faith believes that the anticipated recovery on 
the principal outstanding obligation of the 
mortgage under the modification or workout 
plan exceeds, on a net present value basis, the 
anticipated recovery on the principal out-
standing obligation of the mortgage through 
foreclosure; 
(3) shall not be obligated to repurchase loans 
from, 
or 
otherwise 
make 
payments 
to, 
the 
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AMDT. NO. 570 
securitization vehicle on account of a modification, 
workout, or other loss mitigation plan that satisfies 
the conditions of paragraph (2); and 
(4) if it acts in a manner consistent with the 
duties set forth in paragraphs (1) and (2), shall not 
be liable for entering into a modification or workout 
plan to any person— 
(A) based on ownership by that person of 
a residential mortgage loan or any interest in a 
pool of residential mortgage loans, or in securi-
ties that distribute payments out of the prin-
cipal, interest, and other payments in loans in 
the pool; 
(B) who is obligated pursuant to a deriva-
tive instrument to make payments determined 
in reference to any loan or any interest referred 
to in subparagraph (A); or 
(C) that insures any loan or any interest 
referred to in subparagraph (A) under any pro-
vision of law or regulation of the United States 
or any State or political subdivision thereof. 
(d) REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—Each servicer shall report 
regularly, not less frequently than monthly, to the 
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AMDT. NO. 570 
Secretary on the extent and scope of the loss mitiga-
tion activities of the mortgage owner. 
(2) CONTENT.—Each report required by this 
subsection shall include— 
(A) the number and percent of residential 
mortgage loans receiving loss mitigation that 
have become performing loans; 
(B) the number and percent of residential 
mortgage loans receiving loss mitigation that 
have proceeded to foreclosure; 
(C) the total number of foreclosures initi-
ated during the reporting period; 
(D) data on loss mitigation activities, in-
cluding the performance of mitigated loans, 
disagreggated for each form of loss mitigation, 
which forms may include— 
(i) a waiver of any late payment 
charge, penalty interest, or any other fees 
or charges, or any combination thereof; 
(ii) the establishment of a repayment 
plan under which the homeowner resumes 
regularly scheduled payments and pays ad-
ditional amounts at scheduled intervals to 
cure the delinquency; 
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AMDT. NO. 570 
(iii) forbearance under the loan that 
provides for a temporary reduction in or 
cessation of monthly payments, followed by 
a reamortization of the amounts due under 
the loan, including arrearage, and a new 
schedule of repayment amounts; 
(iv) waiver, modification, or variation 
of any material term of the loan, including 
short-term, long-term, or life-of-loan modi-
fications that change the interest rate, for-
give or forbear with respect to the payment 
of principal or interest, or extend the final 
maturity date of the loan; 
(v) short refinancing of the loan con-
sisting of acceptance of payment from or 
on behalf of the homeowner of an amount 
less than the amount alleged to be due and 
owing under the loan, including principal, 
interest, and fees, in full satisfaction of the 
obligation under such loan and as part of 
a refinance transaction in which the prop-
erty is intended to remain the principal 
residence of the homeowner; 
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AMDT. NO. 570 
(vi) acquisition of the property by the 
owner or servicer by deed in lieu of fore-
closure; 
(vii) short sale of the principal resi-
dence that is subject to the lien securing 
the loan; 
(viii) assumption of the obligation of 
the homeowner under the loan by a third 
party; 
(ix) cancellation or postponement of a 
foreclosure sale to allow the homeowner 
additional time to sell the property; or 
(x) any other loss mitigation activity 
not covered; and 
(E) such other information as the Sec-
retary determines to be relevant. 
(3) PUBLIC AVAILABILITY OF REPORTS.—After 
removing information that would compromise the 
privacy interests of mortgagors, the Secretary shall 
make public the reports required by this subsection 
and summary data. 
SEC. 8004. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary, such sums as may be necessary to carry out this 
title. 
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AMDT. NO. 570 
SEC. 8005. SUNSET OF AUTHORITY. 
The authority of the Secretary to provide assistance 
under this title shall terminate on December 31, 2011. 
Æ 
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