Page:United States Statutes at Large Volume 123.djvu/1666

 123STA T . 1 64 6 PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9insura n cef un d, inc o nnec t ion w it h an y acti v ities that the m ort -g agee is re q uired to underta k e concerning re p ayment b y the mortgagor of the amount owed to the S ecretary .’ ’. (3)AS S IGNME N T . — Section 2 3 0 (c) of the N ationa lH ousing Act ( 1 2 U .S. C .1 7 1 5 u(c)) is amended— (A) by inserting ‘ ‘(1)’’ after ‘‘(c)’’ ( B ) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (C) in paragraph (1)(B) (as so redesignated)— (i) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively; (ii) in the matter preceding clause (i) (as so redesig- nated), by striking ‘‘under a program under this sub- section’’ and inserting ‘‘under this paragraph’’; and (iii) in clause (i) (as so redesignated), by inserting ‘‘or facing imminent default, as defined by the Sec- retary’’ after ‘‘default’’; ( D ) in paragraph (1)(C) (as so redesignated), by striking ‘‘under a program under this subsection’’ and inserting ‘‘under this paragraph’’; and ( E ) by adding at the end the following ‘‘(2) ASSIGNMENT A N DLO AN MODI F I C ATION.— ‘‘(A) A U T H O R IT Y .— T he Secretary may encourage loan modifications for eligible delinquent mortgages or mort- gages facing imminent default, as defined by the Secretary, through the payment of insurance benefits and assignment of the mortgage to the Secretary and the subsequent modi- fication of the terms of the mortgage according to a loan modification approved by the mortgagee. ‘‘(B) P AYMENT OF B ENEFITS AND ASSIGNMENT.— I n car- rying out this paragraph, the Secretary may pay insurance benefits for a mortgage, in the amount determined in accordance with section 20 4 (a)(5), 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 specified in clauses (i) through (iv) of section 204(a)(1)(A). ‘‘(C) DIS P OSITION.—After modification of a mortgage pursuant to this paragraph, the Secretary may provide insurance under this title for the mortgage. The Secretary may subsequently— ‘‘(i) re-assign the mortgage to the mortgagee under terms and conditions as are agreed to by the mortgagee and the Secretary; ‘‘(ii) act as a G overnment National M ortgage Association issuer, or contract with an entity for such purpose, in order to pool the mortgage into a Govern- ment National Mortgage Association security; or ‘‘(iii) re-sell the mortgage in accordance with any program that has been established for purchase by the F ederal Government of mortgages insured under this title, and the Secretary may coordinate standards for interest rate reductions available for loan modifica- tion with interest rates established for such purchase. ‘‘(D) L OAN SER V ICING.—In carrying out this paragraph, the Secretary may require the e x isting servicer of a mort- gage assigned to the Secretary to continue servicing the