Homeowner Assistance and Taxpayer Protection Act - Amends the Emergency Economic Stabilization Act of 2008 (EESA), with respect to mortgages acquired by the Secretary of the Treasury, to direct the Secretary to use authority to require (currently, encourage) the servicers of the underlying mortgages to take advantage of the HOPE for Homeowners Program under the National Housing Act or other available programs to minimize foreclosures. Requires federal property managers holding, owning, or controlling mortgages, mortgage backed securities, and other assets secured by residential real estate to do likewise.
Directs a federal property manager to require (currently, encourage) loan servicers to implement specified loan modifications in any case in which the property manager does not own a residential mortgage loan, but holds an interest in obligations or pools of obligations secured by residential mortgage loans.
Requires lenders to participate in HOPE for Homeowners Program when homeowners elect to participate.
Amends Chapter 13 (Adjustment of Debts of an Individual with Regular Income) of the federal bankruptcy code to allow a debtor's plan to modify an allowed secured claim secured by the debtor's principal residence (mortgage), if, after deduction of permitted expenses, the debtor has insufficient remaining current monthly income to retain possession of the residence by curing a default and maintaining payments while the case is pending.
Waives the credit counseling requirement for a debtor whose home is in foreclosure.
Waives the liaibility of the debtor and the debtor's estate for certain fees arising in connection with a claim secured by the debtor's principal residence.
Amends EESA to prohibit financial institutions from which troubled assets are purchased by the Secretary from paying increased dividends until such time as the troubled assets are no longer owned by the Secretary.
Requires that dividends be reduced to pay for excessive executive compensation in the case of any such financial institution.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7307 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 7307
To help struggling families stay in their homes and to ensure that
taxpayers are protected when the Secretary of the Treasury purchases
equity shares in financial institutions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 20, 2008
Mr. Hodes (for himself, Mr. Delahunt, Ms. Jackson-Lee of Texas, Mr.
Johnson of Georgia, Mr. Gutierrez, Mr. Miller of North Carolina, and
Ms. Zoe Lofgren of California) introduced the following bill; which was
referred to the Committee on Financial Services, and in addition to
theCommittee on the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To help struggling families stay in their homes and to ensure that
taxpayers are protected when the Secretary of the Treasury purchases
equity shares in financial institutions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeowner Assistance and Taxpayer
Protection Act''.
TITLE I--ASSISTING HOMEOWNERS
SEC. 101. RESTRUCTURING LOANS OWNED BY THE GOVERNMENT.
(a) Mortgages Acquired by the Secretary.--Section 109(a) of the
Emergency Economic Stabilization Act of 2008 (division A of Public Law
110-343) is amended by striking ``encourage'' and inserting
``require''.
(b) Mortgages Held by Federal Property Managers.--Section 110(b)(1)
of the Emergency Economic Stabilization Act of 2008 (division A of
Public Law 110-343) is amended by striking ``encourage'' and inserting
``require''.
(c) Obligations Secured by Mortgages Held by Federal Property
Managers.--Section 110(c)(1) of the Emergency Economic Stabilization
Act of 2008 (division A of Public Law 110-343) is amended by striking
``encourage'' and inserting ``require''.
SEC. 102. REQUIRING LENDERS TO PARTICIPATE IN HOPE FOR HOMEOWNERS
PROGRAM WHEN HOMEOWNERS ELECT TO PARTICIPATE.
Section 257(b)(1) of the National Housing Act (12 U.S.C. 1715z-
23(b)(1)) is amended by striking ``and existing loan holders'' and
inserting ``, but required on the part of existing loan holders when
homeowners apply,''.
SEC. 103. HELPING FAMILIES SAVE THEIR HOMES IN BANKRUPTCY.
(a) Special Rules for Modification of Loans Secured by
Residences.--
(1) In general.--Section 1322(b) of title 11, United States
Code, is amended--
(A) in paragraph (10), by striking ``and'' at the
end;
(B) by redesignating paragraph (11) as paragraph
(12); and
(C) by inserting after paragraph (10) the
following:
``(11) notwithstanding paragraph (2) and otherwise
applicable nonbankruptcy law--
``(A) modify an allowed secured claim secured by
the debtor's principal residence, as described in
subparagraph (B), if, after deduction from the debtor's
current monthly income of the expenses permitted for
debtors described in section 1325(b)(3) of this title
(other than amounts contractually due to creditors
holding such allowed secured claims and additional
payments necessary to maintain possession of that
residence), the debtor has insufficient remaining
income to retain possession of the residence by curing
a default and maintaining payments while the case is
pending, as provided under paragraph (5); and
``(B) provide for payment of such claim--
``(i) in an amount equal to the amount of
the allowed secured claim;
``(ii) for a period that is not longer than
40 years; and
``(iii) at a rate of interest accruing
after such date calculated at a fixed annual
percentage rate, in an amount equal to the most
recently published annual yield on conventional
mortgages published by the Board of Governors
of the Federal Reserve System, as of the
applicable time set forth in the rules of the
Board, plus a reasonable premium for risk;
and''.
(2) Conforming amendment.--Section 1325(a)(5) of title 11,
United States Code, is amended by inserting before ``with
respect'' the following: ``except as otherwise provided in
section 1322(b)(11) of this title,''.
(b) Waiver of Counseling Requirement When Homes Are in
Foreclosure.--Section 109(h) of title 11, United States Code, is
amended by adding at the end the following:
``(5) The requirements of paragraph (1) shall not apply
with respect to a debtor who files with the court a
certification that a foreclosure sale of the debtor's principal
residence has been scheduled.''.
(c) Combating Excessive Fees.--Section 1322(c) of title 11, the
United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(3) the plan need not provide for the payment of, and the
debtor, the debtor's property, and property of the estate shall
not be liable for, any fee, cost, or charge, notwithstanding
section 506(b), that arises in connection with a claim secured
by the debtor's principal residence if the event that gives
rise to such fee, cost, or charge occurs while the case is
pending but before the discharge order, except to the extent
that--
``(A) notice of such fees, costs, or charges is
filed with the court, and served on the debtor and the
trustee, before the expiration of the earlier of--
``(i) 1 year after the event that gives
rise to such fee, cost, or charge occurs; or
``(ii) 60 days before the closing of the
case; and
``(B) such fees, costs, or charges are lawful,
reasonable, and provided for in the agreement under
which such claim or security interest arose;
``(4) the failure of a party to give notice described in
paragraph (3) shall be deemed a waiver of any claim for fees,
costs, or charges described in paragraph (3) for all purposes,
and any attempt to collect such fees, costs, or charges shall
constitute a violation of section 524(a)(2) of this title or,
if the violation occurs before the date of discharge, of
section 362(a) of this title; and
``(5) a plan may provide for the waiver of any prepayment
penalty on a claim secured by the principal residence of the
debtor.''.
(d) Prohibiting Claims Arising From Violations of Consumer
Protection Laws.--Section 502(b) of title 11, United States Code, is
amended--
(1) in paragraph (8), by striking ``or'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(10) such claim includes a request for damages or
rescission based on a failure to comply with the Truth in
Lending Act (15 U.S.C. 1601 et seq.), or any other provision of
applicable State or Federal consumer protection law in force
when the failure to comply occurred, notwithstanding a prior
entry of a foreclosure judgment.''.
(e) Application of Amendments.--The amendments made to title 11,
United States Code, by this section shall apply with respect to cases
commenced under that title 11 on or after the date of enactment of this
Act, or pending on the date of enactment of this Act.
TITLE II--PROTECTING TAXPAYERS
SEC. 201. BARRING DIVIDEND INCREASES.
Section 113(d) of the Emergency Economic Stabilization Act of 2008
(division A of Public Law 110-343) is amended by adding at the end the
following:
``(4) Dividends.--If the Secretary purchases troubled
assets under the authority of this Act, the financial
institutions from which such assets are purchased may not pay
dividends in a cumulative amount that is higher in the current
or a future fiscal year than the cumulative dividends paid in
the fiscal year immediately preceding the sale of the troubled
assets until such time as the troubled assets are no longer
owned by the Secretary.''.
SEC. 202. REDUCING DIVIDENDS TO PAY FOR EXCESSIVE EXECUTIVE
COMPENSATION.
Section 111(b)(2) of the Emergency Economic Stabilization Act of
2008 (Public Law 110-343) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) a reduction in dividends paid by the
institution in its next fiscal year equal to the
executive compensation paid to senior executive
officers in excess of $500,000 per officer in the
current fiscal year.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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