Page:United States Statutes at Large Volume 123.djvu/1654

 123STA T . 1 6 3 4PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9‘ ‘ (F)theS e cr et a r ym ay re i m bu r s ethem o rt g agee f rom the a p propriate guara n ty fun d in connection w ith any acti v ities that the mortgagee is re q uired to underta k e con - cerning repayment by the mortgagor of the amount owed to the Secretary ‘‘( G ) the Secretary may authori z e payments to the mortgagee on beha l f of the borrower , under such terms and conditions as are defined by the Secretary, based on successful performance under the terms of the mortgage modification, which shall be used to reduce the principal obligation under the modified mortgage; and ‘‘( H ) the Secretary may authorize the modification of mortgages with terms e x tended up to 40 years from the date of modification . ‘‘( 15 ) AS S IGNME N T . — ‘‘(A) PRO GR A MA U T H ORIT Y .— T he Secretary may estab- lish a program for assignment to the Secretary, upon request of the mortgagee, of a mortgage on a 1- to 4- family residence guaranteed under this chapter. ‘‘( B ) PROGRAM RE Q UIREMENTS.— ‘‘(i) I N GENERA L .—The Secretary may encourage loan modifications for eligible delinquent mortgages or mortgages facing imminent default, as defined by the Secretary, through the payment of the guaranty and assignment of the mortgage to the Secretary and the subsequent modification of the terms of the mort- gage according to a loan modification approved under this section. ‘‘(ii) A C CE P TANCE O F ASSIGNMENT.—The Secretary may accept assignment of a mortgage under a program under this subsection only if— ‘‘(I) the mortgage is in default or facing imminent default; ‘‘(II) the mortgagee has modified the mortgage or qualified the mortgage for modification suffi- cient to cure the default and provide for mortgage payments the mortgagor is reasonably able to pay, at interest rates not exceeding current market interest rates; and ‘‘(III) the Secretary arranges for servicing of the assigned mortgage by a mortgagee (which may include the assigning mortgagee) through proce- dures that the Secretary has determined to be in the best interests of the appropriate guaranty fund. ‘‘( C ) PAYMENT OF GUARANTY.— U nder the program under this paragraph, the Secretary may pay the guaranty for a mortgage, in the amount determined in accordance with paragraph ( 2 ), without reduction for any amounts modified, but only upon the assignment, transfer, and delivery to the Secretary of all rights, interest, claims, evidence, and records with respect to the mortgage, as defined by the Secretary. ‘‘( D ) DISPOSITION.—After modification of a mortgage pursuant to this paragraph, and assignment of the mort- gage, the Secretary may provide guarantees under this