12 U.S.C. § 5220 — Assistance to homeowners

Page 1807 TITLE 12—BANKS AND BANKING § 5220 1 See References in Text note below. 2 So in original. Probably should be ‘‘mortgage-backed’’. level. The Secretary shall issue regulations prescribing— (A) the procedures for disclosing such data to the public; and (B) such deletions as the Secretary may determine to be appropriate to protect any privacy interest of any mortgage modifica- tion applicant, including the deletion or al- teration of the applicant’s name and identi- fication number. (Pub. L. 111–203, title XIV, § 1483, July 21, 2010, 124 Stat. 2203.) Editorial Notes REFERENCES IN TEXT The Emergency Economic Stabilization Act of 2008, referred to in subsec. (a), is div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, which is classified prin- cipally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5201 of this title and Tables. CODIFICATION Section was enacted as part of the Mortgage Reform and Anti-Predatory Lending Act, and also as part of the Dodd-Frank Wall Street Reform and Consumer Pro- tection Act, and not as part of the Emergency Eco- nomic Stabilization Act of 2008 which comprises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the date on which final regula- tions implementing such section take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1601 of Title 15, Commerce and Trade. § 5220. Assistance to homeowners (a) Definitions As used in this section— (1) the term ‘‘Federal property manager’’ means— (A) the Federal Housing Finance Agency, in its capacity as conservator of the Federal National Mortgage Association and the Fed- eral Home Loan Mortgage Corporation; (B) the Corporation, with respect to resi- dential mortgage loans and mortgage- backed securities held by any bridge deposi- tory institution pursuant to section 1821(n) of this title; and (C) the Board, with respect to any mort- gage or mortgage-backed securities or pool of securities held, owned, or controlled by or on behalf of a Federal reserve bank, other than mortgages or securities held, owned, or controlled in connection with open market operations under sections 348a and 353 to 359 of this title,1 or as collateral for an advance or discount that is not in default; (2) the term ‘‘consumer’’ has the same mean- ing as in section 1602 of title 15; (3) the term ‘‘insured depository institution’’ has the same meaning as in section 1813 of this title; and (4) the term ‘‘servicer’’ has the same mean- ing as in section 2605(i)(2) of this title. (b) Homeowner assistance by agencies (1) In general To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed 2 securities, and other assets secured by residential real estate, including multifamily housing, the Federal property manager shall implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advan- tage of the HOPE for Homeowners Program under section 1715z–23 of this title or other available programs to minimize foreclosures. (2) Modifications In the case of a residential mortgage loan, modifications made under paragraph (1) may include— (A) reduction in interest rates; (B) reduction of loan principal; and (C) other similar modifications. (3) Tenant protections In the case of mortgages on residential rent- al properties, modifications made under para- graph (1) shall ensure— (A) the continuation of any existing Fed- eral, State, and local rental subsidies and protections; and (B) that modifications take into account the need for operating funds to maintain de- cent and safe conditions at the property. (4) Timing Each Federal property manager shall de- velop and begin implementation of the plan re- quired by this subsection not later than 60 days after October 3, 2008. (5) Reports to Congress Each Federal property manager shall, 60 days after October 3, 2008, and every 30 days thereafter, report to Congress specific infor- mation on the number and types of loan modi- fications made and the number of actual fore- closures occurring during the reporting period in accordance with this section. (6) Consultation In developing the plan required by this sub- section, the Federal property managers shall consult with one another and, to the extent possible, utilize consistent approaches to im- plement the requirements of this subsection. (c) Actions with respect to servicers In any case in which a Federal property man- ager is not the owner of a residential mortgage loan, but holds an interest in obligations or pools of obligations secured by residential mort- gage loans, the Federal property manager shall— (1) encourage implementation by the loan servicers of loan modifications developed under subsection (b); and (2) assist in facilitating any such modifica- tions, to the extent possible. Page 1808 TITLE 12—BANKS AND BANKING § 5220a (d) Limitation The requirements of this section shall not su- persede any other duty or requirement imposed on the Federal property managers under other- wise applicable law. (Pub. L. 110–343, div. A, title I, § 110, Oct. 3, 2008, 122 Stat. 3775.) Editorial Notes REFERENCES IN TEXT Sections 348a and 353 to 359 of this title, referred to in subsec. (a)(1)(C), was in the original a reference to ‘‘section 14 of the Federal Reserve Act (12 U.S.C. 353)’’. For classification of section 14 to the Code, see Codi- fication note set out under section 353 of this title. Statutory Notes and Related Subsidiaries EFFECT OF FORECLOSURE ON PREEXISTING TENANCY Pub. L. 111–22, div. A, title VII, § 702, May 20, 2009, 123 Stat. 1660, as amended by Pub. L. 111–203, title XIV, § 1484(1), July 21, 2010, 124 Stat. 2204, provided that: ‘‘(a) IN GENERAL.—In the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property after the date of enactment of this title [May 20, 2009], any immediate successor in in- terest in such property pursuant to the foreclosure shall assume such interest subject to— ‘‘(1) the provision, by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and ‘‘(2) the rights of any bona fide tenant— ‘‘(A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, ex- cept that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or ‘‘(B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90 day notice under subsection (1), except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants. ‘‘(b) BONA FIDE LEASE OR TENANCY.—For purposes of this section, a lease or tenancy shall be considered bona fide only if— ‘‘(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant; ‘‘(2) the lease or tenancy was the result of an arms- length transaction; and ‘‘(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State, or local subsidy. ‘‘(c) DEFINITION.—For purposes of this section, the term ‘federally-related mortgage loan’ has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602). For purposes of this section, the date of a notice of foreclosure shall be deemed to be the date on which complete title to a property is transferred to a successor entity or person as a result of an order of a court or pursuant to provi- sions in a mortgage, deed of trust, or security deed.’’ [Section 704 of Pub. L. 111–22, as amended, formerly set out as a Termination Date of 2009 Amendment note under section 1437f of Title 42, The Public Health and Welfare, which provided that title VII of div. A of Pub. L. 111–22, and the amendments made such title, are re- pealed, and the requirements under such title termi- nated, effective Dec. 31, 2014, was repealed by Pub. L. 115–174, title III, § 304(a), (c), May 24, 2018, 132 Stat. 1339, effective 30 days after May 24, 2018.] [Section 702 of Pub. L. 111–22, provisions of law amended by such section, and any regulations promul- gated pursuant to such section, as in effect on Dec. 30, 2014, restored and revived, see section 304(b) of Pub. L. 115–174, set out as a note under section 1437f of Title 42, The Public Health and Welfare.] § 5220a. Application of GSE conforming loan limit to mortgages assisted with TARP funds In making any assistance available to prevent and mitigate foreclosures on residential prop- erties, including any assistance for mortgage modifications, using any amounts made avail- able to the Secretary of the Treasury under title I of the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5211 et seq.], the Secretary shall provide that the limitation on the max- imum original principal obligation of a mort- gage that may be modified, refinanced, made, guaranteed, insured, or otherwise assisted, using such amounts shall not be less than the dollar amount limitation on the maximum original principal obligation of a mortgage that may be purchased by the Federal Home Loan Mortgage Corporation that is in effect, at the time that the mortgage is modified, refinanced, made, guaranteed, insured, or otherwise assisted using such amounts, for the area in which the prop- erty involved in the transaction is located. (Pub. L. 111–22, div. A, title II, § 205, May 20, 2009, 123 Stat. 1654.) Editorial Notes REFERENCES IN TEXT The Emergency Economic Stabilization Act of 2008, referred to in text, is div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765. Title I of the Act is classified prin- cipally to this subchapter. For complete classification of this Act to the Code, see Short Title note set out under section 5201 of this title and Tables. CODIFICATION Section was enacted as part of the Helping Families Save Their Homes Act of 2009, and not as part of the Emergency Economic Stabilization Act of 2008 which comprises this chapter. § 5220b. Multifamily mortgage resolution pro- gram (a) Establishment The Secretary of Housing and Urban Develop- ment shall develop a program under this sub- section to ensure the protection of current and future tenants and at-risk multifamily prop- erties, where feasible, based on criteria that may include— (1) creating sustainable financing of such properties, that may take into consideration such factors as— (A) the rental income generated by such properties; and (B) the preservation of adequate operating reserves; (2) maintaining the level of Federal, State, and city subsidies in effect as of July 21, 2010; (3) providing funds for rehabilitation; and (4) facilitating the transfer of such prop- erties, when appropriate and with the agree- ment of owners, to responsible new owners and ensuring affordability of such properties.