Page:United States Statutes at Large Volume 123.djvu/1653

 123STA T . 1 6 33 PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9TI T LEV I — E NHA N C E DO VE RS I G HTO F THE TRO UB LED ASSET RELIEF P ROGRA M S ec.601 . E nha nce dov e rsig h t o f the Tro ubl ed Asset Relief Progra m . TITLE VII—PROTECTING TENANTS AT FORECLOSURE ACT Sec. 7 01. Short title. Sec. 70 2 . Effect of foreclosure on p ree x isting tenanc y . Sec. 70 3 . Effect of foreclosure on section 8 tenancies. Sec. 70 4 . Sunset. TITLE VIII—COMPTROLLER GENERAL ADDITIONAL AUDIT AUTHORITIES Sec. 801. Comptroller General additional audit authorities. TI T LE I —PR E V E N TI O NO FM ORT GA GE FORE C LO SU RES SEC.10 1. GUAR A NT EE D RURA LHO US I NG LOANS. (a)GUAR A NTE E DR URA LHO U SI N GL OANS .—Section502 ( h )o f the Ho us in gA ct of 194 9 (42 U .S. C .14 7 2(h)) is a m en d ed— (1) byr edesignating p aragraphs (1 3 ) and (14) as paragraphs (1 6 ) and (17) , respecti v e l y and (2) by inserting after paragraph (12) the follo w ing new paragraphs

‘(13) LOSS M ITIGATION.—Upon default or imminent default of any mortgage guaranteed under this subsection, mortgagees shall engage in loss mitigation actions for the purpose of pro - viding an alternative to foreclosure (including actions such as special forbearance, loan modification, pre-foreclosure sale, deed in lieu of foreclosure, as re q uired, support for borrower housing counseling, subordinate lien resolution, and borrower relocation), as provided for by the Secretary. ‘‘(14) P A Y MENT O FP ARTIAL C LAIMS AND MORTGAGE MODI- FICATIONS.— T he Secretary may authori z e the modification of mortgages, and establish a program for payment of a partial claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage on a 1- to 4-family residence, for mortgages that are in default or face imminent default, as defined by the Secretary. Any payment under such program directed to the mortgagee shall be made at the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary, e x cept that— ‘‘(A) the amount of the partial claim payment shall be in an amount determined by the Secretary, and shall not exceed an amount equivalent to 30 percent of the unpaid principal balance of the mortgage and any costs that are approved by the Secretary; ‘‘( B ) the amount of the partial claim payment shall be applied first to any outstanding indebtedness on the mortgage, including any arrearage, but may also include principal reduction; ‘‘(C) the mortgagor shall agree to repay the amount of the partial claim to the Secretary upon terms and condi- tions acceptable to the Secretary; ‘‘( D ) expenses related to a partial claim or modification are not to be charged to the borrower; ‘‘( E ) the Secretary may authorize compensation to the mortgagee for lost income on monthly mortgage payments due to interest rate reduction;