I 113th CONGRESS 2d Session H. R. 5553 IN THE HOUSE OF REPRESENTATIVES September 18, 2014 Mrs. Beatty (for herself and Mr. Heck of Washington ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide access to information and loan modifications for successors in interest, and for other purposes.

1. Short title This Act may be cited as the Preventing Improper Foreclosures Act of 2014 . 2. Access to information and loan modifications Section 341 of the Garn-St Germain Depository Institutions Act of 1982 ( 12 U.S.C. 1701j–3 ) is amended by adding at the end the following: (h) Access to information and loan modifications (1) In general In the case of a transfer described under paragraph (3), (5), (6), (7), (8), or (9) of subsection (d), a lender shall— (A) provide the successor homeowner with information about the mortgage loan, including the outstanding amount due, monthly payment, if any, and available loan modification options; and (B) with respect to a transfer involving a real property loan other than a reverse mortgage— (i) promptly evaluate the successor homeowner for a loan modification on the same terms as if the successor homeowner had been the original borrower and mortgagor; and (ii) perform such evaluation and offer any available loss mitigation prior to any assumption of the obligations under the note. (2) Rule of Construction Nothing in this subsection shall be construed to— (A) limit or interfere with the independent rights of a successor homeowner to assume a mortgage under State law; or (B) empower a lender to place any restrictions on the right of successor homeowners protected by subsection (d) to assume a mortgage. (3) Defense in foreclosure If a lender fails to comply with paragraph (1), such failure may be asserted as a defense to any judicial or non-judicial foreclosure. (4) Recovery of statutory damages, actual damages, and costs In any successful action brought by a successor homeowner under this subsection, the homeowner shall be entitled to recover statutory damages not to exceed $1,000 per violation, actual damages, costs, and attorneys fees. . 3. Protection of home equity conversion mortgagors (a) Safeguard To prevent displacement of homeowner Subsection (j) of section 255 of the National Housing Act ( 12 U.S.C. 1715z–20(j) ) is amended— (1) in the first sentence by striking the homeowner’s obligation to satisfy the loan obligation is deferred until the homeowner’s death and inserting maturity of the loan obligation is deferred until the death of the homeowner and the homeowner’s spouse, the permanent relocation of the homeowner and the homeowner’s spouse ; and (2) by striking the second sentence. (b) Sale terms of eligible mortgages Paragraph (7) of section 255(d) of the National Housing Act ( 12 U.S.C. 1715z–20(d)(7) ) is amended— (1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and realigning such subparagraphs, as so redesignated, so as to be indented 6 ems from the left margin; and (2) by striking the matter that precedes clause (i) (as so redesignated by paragraph (1) of this subsection) and inserting the following: (7) (A) provide that— (i) the mortgagor may sell the dwelling that is subject to the mortgage for at least the lesser of the remaining balance on the mortgage or the appraised value of such dwelling; (ii) if the loan is due and payable, the mortgagor may sell the dwelling that is subject to the mortgage for the lesser of the remaining balance on the mortgage or the amount that is equal to 5 percent less than the appraised value of such dwelling; and (iii) upon the death of the mortgagor, the estate or heirs of the mortgagor may satisfy the loan obligation by paying the lesser of the remaining balance on the mortgage or the amount that is equal to 5 percent less than the appraised value of the dwelling that is subject to the mortgage; and (B) provide that the mortgagor, the estate of the mortgagor, or the heirs of the mortgagor shall not be liable for any difference between the amount of indebtedness under the mortgage and the amount recovered by the mortgagee from— .