To provide a safe harbor for mortgage servicers who engage in specified mortgage loan modifications, and for other purposes.

Bill: 111-hr-788
Sponsor: Rep. Kanjorski, Paul E. [D-PA-11]
Introduced: 2009-02-02 in the House
Policy area: Housing and Community Development
Subjects: Civil actions and liability
Contracts and agency
Financial services and investments
Housing finance and home ownership
Securities

Summary:
action_date: 2009-02-02
text: 
Shields a servicer of pooled residential mortgages acting in compliance with certain fiduciary duties under the Truth in Lending Act from liability for entering into a loan modification or workout plan in connection with any such mortgages initiated before January 1, 2012.
 
Requires the property securing such a mortgage to be occupied by its mortgagor.

action_date: 2009-02-10
text: 
Shields a servicer of pooled residential mortgages acting in compliance with certain fiduciary duties under the Truth in Lending Act from liability for entering into a loan modification or workout plan in connection with any such mortgages initiated before January 1, 2012.
 
Specifies that such servicers shall not be liable to: (1) 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 payments in loans on the pool; (2) any person obligated pursuant to a derivatives instrument to make payments determined in reference to any such loans or interest; or (3) any person that insures any such loans or interest under federal, state, or local law.
 
States that such servicers shall not be: (1) limited in loan modification ability, the number of mortgages that can be modified, the frequency of loan modifications, or the range of permissible modifications; or (2) obligated to repurchase loans from or otherwise make payments to the securitization vehicle on account of a loss mitigation workout, or other loss mitigation plan for a residential mortgage or a class of them that constitute a part or all of the mortgages in the securitization vehicle.
 
Makes a mortgage eligible under this Act only if: (1) mortgage default has occurred or is reasonably foreseeable; (2) the property securing the mortgage is occupied by the mortgagor; and (3) the servicer reasonably and in good faith believes that recovery of outstanding principal under the particular modification or workout plan or other loss mitigation action will exceed, on a net present value basis, the anticipated recovery to be realized through foreclosure.


Legislative actions:
action_date: 2009-02-10
text: Placed on the Union Calendar, Calendar No. 5.
action_date: 2009-02-10
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 111-13.
action_date: 2009-02-10
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 111-13.
action_date: 2009-02-04
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2009-02-04
text: Committee Consideration and Mark-up Session Held.
action_date: 2009-02-02
text: Referred to the House Committee on Financial Services.
action_date: 2009-02-02
text: Introduced in House
action_date: 2009-02-02
text: Introduced in House