12 U.S.C. § 5219 — Foreclosure mitigation efforts

Page 1805 TITLE 12—BANKS AND BANKING § 5219 1 So in original. Probably should be ‘‘mortgage-backed’’. Section 1441a(r)(4) of this title, referred to in subsec. (b), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. AMENDMENTS 2009—Subsec. (b). Pub. L. 111–5 inserted ‘‘and individ- uals with disabilities and businesses owned by individ- uals with disabilities (for purposes of this subsection the term ‘individual with disability’ has the same meaning as the term ‘handicapped individual’ as that term is defined in section 632(f) of title 15),’’ after ‘‘sec- tion 1441a(r)(4) of this title),’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Con- gress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representa- tives by House Resolution No. 5, One Hundred Eight- eenth Congress, Jan. 9, 2023. § 5218. Conflicts of interest (a) Standards required The Secretary shall issue regulations or guide- lines necessary to address and manage or to pro- hibit conflicts of interest that may arise in con- nection with the administration and execution of the authorities provided under this chapter, including— (1) conflicts arising in the selection or hiring of contractors or advisors, including asset managers; (2) the purchase of troubled assets; (3) the management of the troubled assets held; (4) post-employment restrictions on employ- ees; and (5) any other potential conflict of interest, as the Secretary deems necessary or appro- priate in the public interest. (b) Timing Regulations or guidelines required by this sec- tion shall be issued as soon as practicable after October 3, 2008. (Pub. L. 110–343, div. A, title I, § 108, Oct. 3, 2008, 122 Stat. 3774.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this Act’’ and was translated as reading ‘‘this division’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Sta- bilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables. § 5219. Foreclosure mitigation efforts (a) Residential mortgage loan servicing stand- ards (1) In general To the extent that the Secretary acquires mortgages, mortgage backed 1 securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the author- ity of the Secretary to encourage the servicers of the underlying mortgages, 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. In addition, the Secretary may use loan guar- antees and credit enhancements to facilitate loan modifications to prevent avoidable fore- closures and to remediate lead and asbestos hazards in residential properties. (2) Waiver of certain provisions in connection with loan modifications The Secretary shall not be required to apply executive compensation restrictions under section 5221 of this title, or to receive war- rants or debt instruments under section 5223 of this title, solely in connection with any loan modification under this section. (b) Coordination The Secretary shall coordinate with the Cor- poration, the Board (with respect to any mort- gage or mortgage-backed securities or pool of securities held, owned, or controlled by or on be- half of a Federal reserve bank, as provided in section 5220(a)(1)(C) of this title), the Federal Housing Finance Agency, the Secretary of Hous- ing and Urban Development, and other Federal Government entities that hold troubled assets to attempt to identify opportunities for the ac- quisition of classes of troubled assets that will improve the ability of the Secretary to improve the loan modification and restructuring process and, where permissible, to permit bona fide ten- ants who are current on their rent to remain in their homes under the terms of the lease. In the case of a mortgage on a residential rental prop- erty, the plan required under this section shall include protecting Federal, State, and local rental subsidies and protections, and ensuring any modification takes into account the need for operating funds to maintain decent and safe conditions at the property. (c) Consent to reasonable loan modification re- quests Upon any request arising under existing in- vestment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term exten- sions, rate reductions, principal write downs, in- creases in the proportion of loans within a trust or other structure allowed to be modified, or re- moval of other limitation on modifications. (Pub. L. 110–343, div. A, title I, § 109, Oct. 3, 2008, 122 Stat. 3774; Pub. L. 111–5, div. B, title VII, § 7002, Feb. 17, 2009, 123 Stat. 521; Pub. L. 115–174, title III, § 305, May 24, 2018, 132 Stat. 1339.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–174 inserted before pe- riod at end ‘‘and to remediate lead and asbestos hazards in residential properties’’. Page 1806 TITLE 12—BANKS AND BANKING § 5219a 2009—Subsec. (a). Pub. L. 111–5 designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2). § 5219a. Home Affordable Modification Program guidelines (a) Net present value input data The Secretary of the Treasury (in this section referred to as the ‘‘Secretary’’) shall revise the supplemental directives and other guidelines for the Home Affordable Modification Program of the Making Home Affordable initiative of the Secretary of the Treasury, authorized under the Emergency Economic Stabilization Act of 2008 (Public Law 110–343) [12 U.S.C. 5201 et seq.], to require each mortgage servicer participating in such program to provide each borrower under a mortgage whose request for a mortgage modi- fication under the Program is denied with all borrower-related and mortgage-related input data used in any net present value (NPV) anal- yses performed in connection with the subject mortgage. Such input data shall be provided to the borrower at the time of such denial. (b) Web-based site for NPV calculator and appli- cation (1) NPV calculator In carrying out the Home Affordable Modi- fication Program, the Secretary shall estab- lish and maintain a site on the World Wide Web that provides a calculator for net present value analyses of a mortgage, based on the Secretary’s methodology for calculating such value, that mortgagors can use to enter infor- mation regarding their own mortgages and that provides a determination after entering such information regarding a mortgage of whether such mortgage would be accepted or rejected for modification under the Program, using such methodology. (2) Disclosure Such Web site shall also prominently dis- close that each mortgage servicer partici- pating in such Program may use a method for calculating net present value of a mortgage that is different than the method used by such calculator. (3) Application The Secretary shall make a reasonable ef- fort to include on such World Wide Web site a method for homeowners to apply for a mort- gage modification under the Home Affordable Modification Program. (c) Public availability of NPV methodology, com- puter model, and variables The Secretary shall make publicly available, including by posting on a World Wide Web site of the Secretary— (1) the Secretary’s methodology and com- puter model, including all formulae used in such computer model, used for calculating net present value of a mortgage that is used by the calculator established pursuant to sub- section (b); and (2) all non-proprietary variables used in such net present value analysis. (Pub. L. 111–203, title XIV, § 1482, 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. § 5219b. Public availability of information of Making Home Affordable Program (a) Revisions to Program guidelines The Secretary of the Treasury (in this section referred to as the ‘‘Secretary’’) shall revise the guidelines for the Home Affordable Modification Program of the Making Home Affordable initia- tive of the Secretary of the Treasury, authorized under the Emergency Economic Stabilization Act of 2008 (Public Law 110–343) [12 U.S.C. 5201 et seq.], to provide that the data being collected by the Secretary from each mortgage servicer and lender participating in the Program is made public in accordance with subsection (b). (b) Public availability Data shall be made available according to the following guidelines: (1) Not more than 14 days after each month- ly deadline for submission of data by mortgage servicers and lenders participating in the Pro- gram, reports shall be made publicly available by means of a World Wide Web site of the Sec- retary, and by submitting a report to the Con- gress, that shall includes the following infor- mation: (A) The number of requests for mortgage modifications under the Program that the servicer or lender has received. (B) The number of requests for mortgage modifications under the Program that the servicer or lender has processed. (C) The number of requests for mortgage modifications under the Program that the servicer or lender has approved. (D) The number of requests for mortgage modifications under the Program that the servicer or lender has denied. (2) Not more than 60 days after each month- ly deadline for submission of data by mortgage servicers and lenders participating in the Pro- gram, the Secretary shall make data tables available to the public at the individual record