Page:United States Statutes at Large Volume 124.djvu/2174

 124 STAT. 2148 PUBLIC LAW 111–203—JULY 21, 2010 account all applicable taxes, insurance, and assess- ments; and ‘‘(iv) that is extended by a creditor that— ‘‘(I) operates predominantly in rural or under- served areas; ‘‘(II) together with all affiliates, has total annual residential mortgage loan originations that do not exceed a limit set by the Board; ‘‘(III) retains the balloon loans in portfolio; and ‘‘(IV) meets any asset size threshold and any other criteria as the Board may establish, con- sistent with the purposes of this subtitle. ‘‘(3) REGULATIONS.— ‘‘(A) IN GENERAL.—The Board shall prescribe regula- tions to carry out the purposes of this subsection. ‘‘(B) REVISION OF SAFE HARBOR CRITERIA.— ‘‘(i) IN GENERAL.—The Board may prescribe regula- tions that revise, add to, or subtract from the criteria that define a qualified mortgage upon a finding that such regulations are necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section, necessary and appropriate to effectuate the purposes of this section and section 129B, to prevent circumvention or evasion thereof, or to facilitate compliance with such sections. ‘‘(ii) LOAN DEFINITION.—The following agencies shall, in consultation with the Board, prescribe rules defining the types of loans they insure, guarantee, or administer, as the case may be, that are qualified mortgages for purposes of paragraph (2)(A), and such rules may revise, add to, or subtract from the criteria used to define a qualified mortgage under paragraph (2)(A), upon a finding that such rules are consistent with the purposes of this section and section 129B, to prevent circumvention or evasion thereof, or to facili- tate compliance with such sections: ‘‘(I) The Department of Housing and Urban Development, with regard to mortgages insured under the National Housing Act (12 U.S.C. 1707 et seq.). ‘‘(II) The Department of Veterans Affairs, with regard to a loan made or guaranteed by the Sec- retary of Veterans Affairs. ‘‘(III) The Department of Agriculture, with regard loans guaranteed by the Secretary of Agri- culture pursuant to 42 U.S.C. 1472(h). ‘‘(IV) The Rural Housing Service, with regard to loans insured by the Rural Housing Service.’’. SEC. 1413. DEFENSE TO FORECLOSURE. Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is amended by adding at the end the following new subsection: ‘‘(k) DEFENSE TO FORECLOSURE.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of law, when a creditor, assignee, or other holder of a residential