Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. SHORT TITLE.

This Act may be cited as the ''Foreclosure Rescue Fraud Act of
2008''.

SEC. 2. DEFINITIONS.

In this title:
(1) Commission.--The term ''Commission'' means the Federal
Trade Commission.
(2) Foreclosure consultant.--The term ''foreclosure
consultant''--
(A) means a person who directly or indirectly makes
any solicitation, representation, or offer to a
homeowner facing foreclosure on residential real
property to perform, with or without compensation, or
who performs, with or without compensation, any service
that such person represents will prevent, postpone, or
reverse the effect of such foreclosure; and
(B) does not include--
(i) an attorney licensed to practice law in
the State in which the property is located who
has established an attorney-client relationship
with the homeowner;
(ii) a person licensed as a real estate
broker or salesperson in the State where the
property is located, and such person engages in
acts permitted under the licensure laws of such
State;
(iii) a housing counseling agency approved
by the Secretary;
(iv) a depository institution (as defined
in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813));
(v) a Federal credit union or a State
credit union (as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)); or
(vi) an insurance company organized under
the laws of any State.
(3) Homeowner.--The term ''homeowner'', with respect to
residential real property for which an action to foreclose on
the mortgage or deed of trust on such real property is filed,
means the person holding record title to such property as of
the date on which such action is filed.
(4) Loan servicer.--The term ''loan servicer'' has the same
meaning as the term ''servicer'' in section 6(i)(2) of the Real
Estate Settlement Procedures Act of 1974 (12 U.S.C.
2605(i)(2)).
(5) Residential mortgage loan.--The term ''residential
mortgage loan'' means any loan primarily for personal, family,
or household use that is secured by a mortgage, deed of trust,
or other equivalent consensual security interest on a dwelling
(as defined in section 103(v) of the Truth in Lending Act (15
U.S.C. 1602)(v)) or residential real estate upon which is
constructed or intended to be constructed a dwelling (as so
defined).
(6) Residential real property.--The term ''residential real
property'' has the meaning given the term ''dwelling'' in
section 103 of the Consumer Credit Protection Act (15 U.S.C.
1602).
(7) Secretary.--The term ''Secretary'' means the Secretary
of Housing and Urban Development.

SEC. 3. MORTGAGE RESCUE FRAUD PROTECTION.

(a) Limits on Foreclosure Consultants.--A foreclosure consultant
may not--
(1) claim, demand, charge, collect, or receive any
compensation from a homeowner for services performed by such
foreclosure consultant with respect to residential real
property until such foreclosure consultant has fully performed
each service that such foreclosure consultant contracted to
perform or represented would be performed with respect to such
residential real property;
(2) hold any power of attorney from any homeowner, except
to inspect documents, as provided by applicable law;
(3) receive any consideration from a third party in
connection with services rendered to a homeowner by such third
party with respect to the foreclosure of residential real
property, unless such consideration is fully disclosed to such
homeowner in writing before such services are rendered;
(4) accept any wage assignment, any lien of any type on
real or personal property, or other security to secure the
payment of compensation with respect to services provided by
such foreclosure consultant in connection with the foreclosure
of residential real property; or
(5) acquire any interest, directly or indirectly, in the
residence of a homeowner with whom the foreclosure consultant
has contracted.
(b) Contract Requirements.--
(1) Written contract required.--Notwithstanding any other
provision of law, a foreclosure consultant may not provide to a
homeowner a service related to the foreclosure of residential
real property--
(A) unless--
(i) a written contract for the purchase of
such service has been signed and dated by the
homeowner; and
(ii) such contract complies with the
requirements described in paragraph (2); and
(B) before the end of the 3-business-day period
beginning on the date on which the contract is signed.
(2) Terms and conditions of contract.--The requirements
described in this paragraph, with respect to a contract, are as
follows:
(A) The contract includes, in writing--
(i) a full and detailed description of the
exact nature of the contract and the total
amount and terms of compensation;
(ii) the name, physical address, phone
number, email address, and facsimile number, if
any, of the foreclosure consultant to whom a
notice of cancellation can be mailed or sent
under subsection (d); and
(iii) a conspicuous statement in at least
12 point bold face type in immediate proximity
to the space reserved for the homeowner's
signature on the contract that reads as
follows: ''You may cancel this contract without
penalty or obligation at any time before
midnight of the 3rd business day after the date
on which you sign the contract. See the
attached notice of cancellation form for an
explanation of this right.''.
(B) The contract is written in the principal
language used by the homeowner.
(C) The contract is accompanied by the form
required by subsection (c)(2).
(c) Right To Cancel Contract.--
(1) In general.--With respect to a contract between a
homeowner and a foreclosure consultant regarding the
foreclosure on the residential real property of such homeowner,
such homeowner may cancel such contract without penalty or
obligation by mailing a notice of cancellation not later than
midnight of the 3rd business day after the date on which such
contract is executed or would become enforceable against the
parties to such contract.
(2) Cancellation form and other information.--Each contract
described in paragraph (1) shall be accompanied by a form, in
duplicate, that--
(A) has the heading ''Notice of Cancellation'' in
boldface type; and
(B) contains in boldface type the following
statement:
''You may cancel this contract, without any penalty or
obligation, at any time before midnight of the 3rd day after
the date on which the contract is signed by you.
''To cancel this contract, mail or deliver a signed and
dated copy of this cancellation notice or any other equivalent
written notice to [insert name of foreclosure consultant] at
[insert address of foreclosure consultant] before midnight on
[insert date].
''I hereby cancel this transaction on [insert date] [insert
homeowner signature].''.
(d) Waiver of Rights and Protections Prohibited.--
(1) In general.--A waiver by a homeowner of any protection
provided by this section or any right of a homeowner under this
section--
(A) shall be treated as void; and
(B) may not be enforced by any Federal or State
court or by any person.
(2) Attempt to obtain a waiver.--Any attempt by any person
to obtain a waiver from any homeowner of any protection
provided by this section or any right of the homeowner under
this section shall be treated as a violation of this section.
(3) Contracts not in compliance.--Any contract that does
not comply with the applicable provisions of this title shall
be void and may not be enforceable by any party.

SEC. 4. WARNINGS TO HOMEOWNERS OF FORECLOSURE RESCUE SCAMS.

(a) In General.--If a loan servicer finds that a homeowner has
failed to make 2 consecutive payments on a residential mortgage loan
and such loan is at risk of being foreclosed upon, the loan servicer
shall notify such homeowner of the dangers of fraudulent activities
associated with foreclosure.
(b) Notice Requirements.--Each notice provided under subsection (a)
shall--
(1) be in writing;
(2) be included with a mailing of account information;
(3) have the heading ''Notice Required by Federal Law'' in
a 14-point boldface type in English and Spanish at the top of
such notice; and
(4) contain the following statement in English and Spanish:
''Mortgage foreclosure is a complex process. Some people may
approach you about saving your home. You should be careful
about any such promises. There are government and nonprofit
agencies you may contact for helpful information about the
foreclosure process. Contact your lender immediately at [____],
call the Department of Housing and Urban Development Housing
Counseling Line at (800) 569-4287 to find a housing counseling
agency certified by the Department to assist you in avoiding
foreclosure, or visit the Department's Tips for Avoiding
Foreclosure website at http://www.hud.gov/foreclosure for
additional assistance.'' (the blank space to be filled in by
the loan servicer).

SEC. 5. CIVIL LIABILITY.

(a) Liability Established.--Any foreclosure consultant who fails to
comply with any provision of section 3 or 4 with respect to any other
person shall be liable to such person in an amount equal to the sum of
the amounts determined under each of the following paragraphs:
(1) Actual damages.--The greater of--
(A) the amount of any actual damage sustained by
such person as a result of such failure; or
(B) any amount paid by the person to the
foreclosure consultant.
(2) Punitive damages.--In the case of any action by an
individual, such amount (in addition to damages described in
paragraph (1)) as the court may allow.
(3) Attorneys' fees.--In the case of any successful action
to enforce any liability under paragraph (1) or (2), the costs
of the action, together with reasonable attorneys' fees.
(b) Factors To Be Considered in Awarding Punitive Damages.--In
determining the amount of any liability of any foreclosure consultant
under subsection (a)(2), the court shall consider, among other relevant
factors--
(1) the frequency and persistence of noncompliance by the
foreclosure consultant;
(2) the nature of the noncompliance; and
(3) the extent to which such noncompliance was intentional.

SEC. 6. ADMINISTRATIVE ENFORCEMENT.

(a) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive act or practice.--A violation of a
prohibition described in section 3 or a failure to comply with
any provision of section 3 or 4 shall be treated as a violation
of a rule defining an unfair or deceptive act or practice
described under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Actions by the federal trade commission.--The Federal
Trade Commission shall enforce the provisions of sections 3 and
4 in the same manner, by the same means, and with the same
jurisdiction, powers, and duties as though all applicable terms
and provisions of the Federal Trade Commission Act (15 U.S.C.
41 et seq.) were incorporated into and made part of this title.
(b) State Action for Violations.--
(1) Authority of states.--In addition to such other
remedies as are provided under State law, whenever the chief
law enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person
has violated or is violating the provisions of section 3 or 4,
the State--
(A) may bring an action to enjoin such violation;
(B) may bring an action on behalf of its residents
to recover damages for which the person is liable to
such residents under section 5 as a result of the
violation; and
(C) in the case of any successful action under
subparagraph (A) or (B), shall be awarded the costs of
the action and reasonable attorney fees, as determined
by the court.
(2) Rights of federal trade commission.--
(A) Notice to commission.--The State shall serve
prior written notice of any civil action under
paragraph (1) upon the Commission and provide the
Commission with a copy of its complaint, except in any
case in which such prior notice is not feasible, in
which case the State shall serve such notice
immediately upon instituting such action.
(B) Intervention.--The Commission shall have the
right--
(i) to intervene in any action referred to
in subparagraph (A);
(ii) upon so intervening, to be heard on
all matters arising in the action; and
(iii) to file petitions for appeal in such
actions.
(3) Investigatory powers.--For purposes of bringing any
action under this subsection, nothing in this subsection shall
prevent the chief law enforcement officer, or an official or
agency designated by a State, from exercising the powers
conferred on the chief law enforcement officer or such official
by the laws of such State to conduct investigations or to
administer oaths or affirmations, or to compel the attendance
of witnesses or the production of documentary and other
evidence.
(4) Limitation.--Whenever the Federal Trade Commission has
instituted a civil action for a violation of section 3 or 4, no
State may, during the pendency of such action, bring an action
under this section against any defendant named in the complaint
of the Commission for any violation of section 3 or 4 that is
alleged in that complaint.

SEC. 7. PREEMPTION.

Nothing in this title affects any provision of State or local law
respecting any foreclosure consultant, residential mortgage loan, or
residential real property that provides equal or greater protection to
homeowners than what is provided under this title.
Solution:
Foreclosure Rescue Fraud Act of 2008 - Prohibits a foreclosure consultant from: (1) receiving compensation from a homeowner for services performed regarding residential real property until such consultant has fully performed each service contracted for; (2) holding power of attorney from any homeowner, except to inspect documents; (3) receiving consideration from a third party in connection with services rendered to a homeowner by such third party with respect to the foreclosure, unless such consideration is fully disclosed in writing before such services are rendered; (4) accepting any wage assignment, lien, or other security to secure compensation for services rendered regarding foreclosure of the residential real property; or (5) acquiring any interest in the residence of a homeowner with whom the consultant has contracted.

Sets forth contract requirements. Permits a homeowner to cancel such contract without penalty or obligation.

Declares void and unenforceable: (1) any waiver by a homeowner of the protections provided in this Act; and (2) any contract that does not comply with this Act.

Requires a loan servicer to notify a homeowner of the dangers of fraudulent activities associated with foreclosure if the servicer finds that the homeowner has failed to make two consecutive payments on a residential mortgage loan and such loan is at risk of foreclosure.

Subjects any foreclosure consultant who fails to comply with this Act to liability for actual and punitive damages and attorneys' fees.

Empowers the Federal Trade Commission (FTC) and the states to enforce this Act.