Page:United States Statutes at Large Volume 123.djvu/1665

 123STA T . 1 645PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9(2)byinsert in g‘ ‘s up p o rt f or borro w er h ousing c ounse l ing , p a rtial clai m s, borrower incenti v es, preforeclosure sale, ’ ’ after ‘‘loan mo d ification,’’ and ( 3 ) by stri k ing ‘‘2 04 (a)( 1 )( A )’’ and inserting ‘‘subsection (a)(1)(A) or section 230(c)’’ . (d) PAYMENTOFFH A M O R T G AGE I N SU RAN C E B ENEF I TS. — (1) A D DITIONA L LOSS MITIGATION ACTIONS.— S ection 230(a) of the N ational Housing Act (12 U .S. C .1 7 1 5 u(a)) is amended— (A) by inserting ‘‘or imminent default, as defined by the Secretary’’ after ‘‘default’’; (B) by striking ‘‘loss’’ and inserting ‘‘loan’’; (C) by inserting ‘‘preforeclosure sale, support for bor - rower housing counseling, subordinate lien resolution, bor- rower incentives,’’ after ‘‘loan modification,’’; ( D ) by inserting ‘‘as re q uired,’’ after ‘‘deeds in lieu of foreclosure,’’; and ( E ) by inserting ‘‘or section 230(c),’’ before ‘‘as pro- vided’’. (2) AMENDMENT TO P ARTIAL CLAIM AUT H ORITY.—Section 230(b) of the National Housing Act (12 U.S.C. 1715u(b)) is amended to read as follows ‘‘(b) PAYMENT OF PARTIAL CLAIM.— ‘‘(1) ESTA B LISHMENT OF PROGRAM.— T he Secretary may establish a program for payment of a partial claim to a mort- gagee that agrees to apply the claim amount to payment of a mortgage on a 1- to 4-family residence that is in default or faces imminent default, as defined by the Secretary. ‘‘(2) PAYMENTS AND E X CEPTIONS.—Any payment of a partial claim under the program established in paragraph (1) to a mortgagee shall be made in the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary, e x cept that— ‘‘(A) the amount of the payment shall be in an amount determined by the Secretary, not to 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 first be applied to any arrearage on the mortgage, and may also be applied to achieve principal reduction; ‘‘(C) the mortgagor shall agree to repay the amount of the insurance claim to the Secretary upon terms and conditions acceptable to the Secretary; ‘‘(D) the Secretary may permit compensation to the mortgagee for lost income on monthly payments, due to a reduction in the interest rate charged on the mortgage; ‘‘(E) expenses related to the partial claim or modifica- tion may not be charged to the borrower; ‘‘(F) loans may be modified to extend the term of the mortgage to a maximum of 40 years from the date of the modification; and ‘‘( G ) the Secretary may permit incentive payments to the mortgagee, on the borrower’s behalf, based on success- ful performance of a modified mortgage, which shall be used to reduce the amount of principal indebtedness. ‘‘(3) PAYMENTS IN CONNECTION W ITH CERTAIN ACTI V ITIES.— The Secretary may pay the mortgagee, from the appropriate