Page:United States Statutes at Large Volume 122.djvu/2832

 12 2 STA T . 2 809PUBLIC LA W 110 – 289 —J UL Y3 0, 2008 Treasu r y a nd d o no t,i nt h ea g gregate, e xc eed the a m ount s p eci f ied in su b section ( m );‘ ‘( B ) pro v ide the subsidy amounts necessary for l oan guarantees under the HOPE for Homeo w ners Program, not to exceed the amount specified in subsection (m), in accordance with the provisions of the F ederal C redit R eform A ct of 19 9 0 ( 2U.S .C. 6 61etse q .), except as provided in this paragraph; and ‘‘(C) use the proceeds from HOPE Bonds only to pay for the net costs to the Federal G overnment of the HOPE for Homeowners Program, including administrative costs. ‘‘(2) R EIMBURS EME NT ST O TRE A SUR Y . — Funds received pursuant to section 1 3 3 8 (b) of the Federal Housing Enterprises Regulatory Reform Act of 1992 shall be used to reimburse the Secretary of the Treasury for amounts borrowed under paragraph (1). ‘‘(3) USE O F RESER V E FUN D .— I f the net cost to the Federal Government for the HOPE for Homeowners Program exceeds the amount of funds received under paragraph (2), remaining debts of the HOPE for Homeowners Program shall be paid from amounts deposited into the fund established by the Sec - retary under section 133 7 (e) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, remaining amounts in such fund to be used to reduce the N ational debt. ‘‘( 4 ) REDU C TION OF NATIONA L DEBT.—Amounts collected under the HOPE for Homeowners Program in accordance with subsections (i) and ( k ) in excess of the net cost to the Federal Government for such Program shall be used to reduce the National debt. ’ ’. SEC.1403 . FIDU CI ARY DU T Y O F SER V ICERS OF P OO L ED RESIDE N TIAL M ORT G AGE LOANS. The Truth in L ending Act (1 5 U.S.C. 1601 et seq.) is amended by inserting after section 129 the following new section

‘SEC. 1 29 A. FIDUCIARY DUTY OF SERVICERS OF POOLED RESIDENTIAL MORTGAGES. ‘‘(a) IN GENERAL.—Except as may be established in any invest- ment contract between a servicer of pooled residential mortgages and an investor, a servicer of pooled residential mortgages— ‘‘(1) owes any duty to maximi z e the net present value of the pooled mortgages in an investment to all investors and parties having a direct or indirect interest in such investment, not to any individual 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 imple- ments a modification or workout plan, including any modifica- tion or refinancing undertaken pursuant to the HOPE for Homeowners Act of 2008, for a residential mortgage or a class of residential mortgages that constitute a part or all of the pooled mortgages in such investment, provided that any mort- gage so modified meets the following criteria: ‘‘(A) D efault on the payment of such mortgage has occurred or is reasonably foreseeable. ‘‘(B) The property securing such mortgage is occupied by the mortgagor of such mortgage. ‘‘(C) The anticipated recovery on the principal out- standing obligation of the mortgage under the modification 15USC 1 639a.

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