,i #aacth ,,congress #ast ,session ,h4 ,r4 #agjf ,,in ,,the ,,house ,,of ,,representatives ,april #bd1 #bjac ,mr4 ,cummings 7for himself1 ,ms4 ,waters1 ,mr4 ,george ,miller of ,california1 ,mr4 ,conyers1 ,mr4 ,waxman1 ,mr4 ,tierney1 ,ms4 ,lofgren1 and ,ms4 ,schakowsky7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to establish an ,independent ,monitor to maintain oversight of the settlement by mortgage servicing companies that were subject to enforcement actions for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,mortgage ,settlement ,monitoring ,act of #bjac4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,in ,april #bjaa1 the ,federal ,reserve ,system1 the ,office of the ,comptroller of the ,currency1 and the then-,office of ,thrift ,supervision issued a joint report titled ,interagency ,review of ,foreclosure ,policies and ,practices summarizing the results of horizontal reviews of the ,nation's #ad largest mortgage servicers finding critical weaknesses in servicers' foreclosures governance practices1 foreclosure document preparation processes1 and oversight and monitoring of third-party vendors1 including foreclosure attorneys1 resulting in unsafe and unsound practices and violations of applicable ,federal and ,state law requirements4 7#b7 ,as part of federal enforcement actions addressing these unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing1 fourteen mortgage servicing companies entered into consent orders with the ,board of ,governors of the ,federal ,reserve ,system and the ,office of the ,comptroller of the ,currency beginning on ,april #ac1 #bjaa4 7#c7 ,the consent orders required these mortgage servicers to undertake an ,independent ,foreclosure ,review in order to ascertain individual harms and provide appropriate monetary relief to homeowners as a result of these business practice failures4 ,mortgage servicers contracted with third-party consultants approved by the federal agencies to conduct these reviews4 7#d7 ,during the tenure of the ,independent ,foreclosure ,review process1 questions persisted concerning the nature and adequacy of the reviews and expected remediation as well as the independence of the third-party reviewers4 7#e7 ,on ,february #bh1 #bjac1 the ,board of ,governors of the ,federal ,reserve ,system and the ,office of the ,comptroller of the ,currency finalized amendments to the ,april #bjaa consent orders with #aa of the #ad mortgage servicers4 ,under the terms of these orders1 mortgage servicers are to provide cash payments and other assistance to borrowers--including more than #c1jjj1jjj1jjj in direct cash payments to borrowers who had homes in foreclosure in #bjji or #bjaj--;and the ,independent ,foreclosure ,review process will cease for the mortgage servicers who agreed to enter into the amended consent orders4 7#f7 ,on ,april #d1 #bjac1 the ,government ,accountability ,office 7,,gao7 issued a report titled ,foreclosure ,review3 ,lessons ,learned ,could ,enhance ,continuing ,reviews and ,activities ,under ,amended ,consent ,orders which examined the ,independent ,foreclosure ,review process4 ,it found that the complexity of the reviews1 overly broad guidance1 and limited monitoring for consistency impeded the ability of the ,office of the ,comptroller of the ,currency 7,,occ7 and the ,board of ,governors of the ,federal ,reserve ,system 7,federal ,reserve7 to achieve the goals of the foreclosure review4 ,the report also stated that limited communication with borrowers and the public adversely impacted transparency and public confidence1 and the ,,gao recommended that the ,board of ,governors of the ,federal ,reserve ,system and the ,office of the ,comptroller of the ,currency identify and apply lessons from the foreclosure review process1 such as enhancing planning1 and monitoring activities to achieve goals1 as they develop and implement the activities under the amended consent orders4 7#g7 ,in light of the significant harm caused by mortgage servicers' unsafe and unsound business practices1 and the lack of transparency surrounding the ,independent ,foreclosure ,review process and the amended consent orders that replace this process1 it is essential that thorough oversight be conducted over these new orders to ensure that all terms are fully enforced4 ,creation of an ,office of the ,independent ,monitor1 which will provide reports directly to ,congress1 will aid in meeting this objective4 #c4 ,settlement defined ,for purposes of this ,act1 the term settlement means-- 7#a7 the amended consent orders finalized on ,february #bh1 #bjac1 between the ,board of ,governors of the ,federal ,reserve ,system and the ,office of the ,comptroller of the ,currency and #aa mortgage servicing companies that were subject to enforcement actions for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing2 and 7#b7 any future agreement between the ,board of ,governors of the ,federal ,reserve ,system and the ,office of the ,comptroller of the ,currency and a mortgage servicing company1 the terms of which are similar to the agreement described in paragraph 7#a74 #d4 ,independent monitor 7a7 ,establishment 7#a7 ,in general ,there is hereby established the ,office of the ,independent ,monitor1 to be headed by the ,independent ,monitor4 ,the purpose of the ,independent ,monitor shall be to determine the compliance of all parties to the settlement with the terms of the settlement and to provide expanded transparency over the implementation of the amended consent orders to rebuild the confidence of the general public4 7#b7 ,appointment 7,a7 ,in general ,the ,president shall appoint1 not later than the end of the #de-;day period beginning on the date of the enactment of this ,act1 the ,independent ,monitor from among individuals with extensive experience in consumer protection laws and practices1 particularly in such areas as mortgage lending4 7,b7 ,vacancy ,if at any point the position of ,independent ,monitor becomes vacant1 the ,president shall appoint1 not later than the end of the #fj-;day period beginning on the date such vacancy occurs1 a new ,independent ,monitor from among individuals described under subparagraph 7,a74 7#c7 ,staff ,upon request of the ,independent ,monitor1 any executive agency1 including the ,board of ,governors of the ,federal ,reserve ,system or the ,comptroller of the ,currency shall detail1 on a reimbursable basis1 any employee to the ,office of the ,independent ,monitor to assist it in carrying out its duties under this ,act1 but under no circumstances may the ,office of the ,independent ,monitor have more than #af employees1 not including the ,independent ,monitor4 7#d7 ,funding ,the costs of the ,office of the ,independent ,monitor shall be paid out of the funds paid by mortgage servicing companies under the settlement1 other than any funds designated for direct cash payments to borrowers who held loans during #bjji or #bjaj4 7b7 ,duties ,the ,independent ,monitor shall-- 7#a7 issue a quarterly report covering all actions taken to date1 with the first such report detailing actions taken from the date of the execution of the settlement1 to the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,congress containing-- 7,a7 a detailed description of-- 7i7 the eligibility criteria used to determine who will receive direct and indirect aid provided under the settlement1 including information detailing instances in which the criteria are not transparent1 certain1 objective1 or equitably applied2 7ii7 the methodologies used to calculate and allocate direct and indirect aid provided under the settlement1 including information detailing instances in which the methodologies are not transparent1 certain1 objective1 or equitably applied2 7iii7 the proof requirements applied to recipients of direct and indirect aid provided under the settlement1 including information detailing instances in which the requirements are not transparent1 certain1 objective1 or equitably applied2 and 7iv7 the extent to which those receiving direct and indirect aid under the settlement receive procedural due process1 including information detailing instances in which such due process has been denied2 7,b7 information on the total number of borrowers who held loans in #bjji or #bjaj who receive direct compensation under the settlement1 disaggregated by each mortgage servicer subject to the settlement1 including-- 7i7 demographic and other data related to such borrowers1 including race1 gender1 geography1 and the property value of the property securing such loans2 7ii7 the level of direct compensation provided to similarly situated borrowers1 including a review of the methods used to determine the level of direct compensation provided and the adequacy of such direct compensation2 and 7iii7 total direct compensation provided to date2 7,c7 information on the total number of borrowers with mortgage loans who receive loan modifications or other types of assistance1 such as the forgiveness of a deficiency judgment1 short sale1 deed in lieu1 or forbearance agreement1 under the settlement1 disaggregated by each mortgage servicer subject to the settlement1 including-- 7i7 demographic and other data related to such borrowers1 including race1 gender1 geography1 and the property value of the property securing such loans2 and 7ii7 the number of each type of loan modification or other assistance provided to borrowers1 including the amount of principal reduction provided under modifications that include a principal reduction element1 the level of interest reductions provided to borrowers who receive an interest reduction1 and the total amount of deficiencies forgiven for each of the first1 second1 or any subsequent loans1 and the number of borrowers receiving each type of relief who were already in a trial modification when offered assistance under the settlement and the number who were not in a trial modification1 and whether there has been disparate treatment of those borrowers2 7,d7 the credit that parties to the settlement have been given through the provision of loan modifications and other types of assistance to borrowers1 including principal reduction modifications1 disaggregated by each mortgage servicer subject to the settlement1 and a determination by the ,independent ,monitor of whether such credit reflects the real dollar value of the modifications and has not been provided for modifications that have little or no economic value and that do not result in sustainable modifications2 7,e7 a list of any instances in which the ,independent ,monitor has determined that a party to the settlement has substantially failed to comply with the terms of the settlement1 including a description of the nature of each instance of noncompliance2 7,f7 a list of any actions taken by the ,board of ,governors of the ,federal ,reserve ,system or the ,comptroller of the ,currency to compel compliance with the terms of the settlement2 7,g7 a review of the efforts undertaken by parties to the settlement to locate borrowers who held loans in #bjji or #bjaj1 including the adequacy of outreach methods used to contact such borrowers and the response rate of such borrowers2 7,h7 information on the extent to which any assistance provided to borrowers under the settlement receives credit under both the settlement and also another settlement2 7,i7 a detailed description of-- 7i7 the dispute resolution procedures established by the ,board of ,governors of the ,federal ,reserve ,system and the ,comptroller of the ,currency1 if any1 to enable borrowers to seek either a formal review of the direct or indirect relief provided to them under the terms of the settlement1 or a formal review of a determination that they are not entitled to direct or indirect relief under the terms of the settlement1 including a review of the adequacy of these procedures in responding to borrowers' concerns and complaints and in fairly and equitably resolving these requests for review2 and 7ii7 if such procedures have been established1 the total number of borrowers who have requested a review under the dispute resolution procedures1 the number of outstanding requests awaiting adjudication and the number of fully adjudicated claims1 the average time required to adjudicate claims under the dispute resolution procedures1 the number of cases in which the arbiter recommended changing the initial determination of relief offered to a borrower1 and the number of cases in which the recommendations issued by the arbiter were affirmed and implemented by the ,board of ,governors of the ,federal ,reserve ,system and the ,comptroller of the ,currency2 7,j7 the number of in-scope borrowers whose foreclosures are completed during the reporting period2 and 7,k7 any other information that the ,independent ,monitor deems necessary to discharge the duties of the ,independent ,monitor and to determine compliance with the settlement2 7#b7 make each report described under paragraph 7#a7 available to the public1 including on a publicly accessible website2 and 7#c7 hold1 at a minimum1 five public meetings in which members of the public may give testimony regarding the administration of the settlement1 and where such meetings-- 7,a7 being announced at least two weeks in advance2 and 7,b7 held in five different ,states4 7c7 ,power ,to require production ,not withstanding any other provision of law1 the ,independent ,monitor may require the production from any party to the settlement of any documents1 information1 and data related to the settlement that the ,independent ,monitor determines necessary to carry out the duties of the ,independent ,monitor4 7d7 ,confidentiality of information ,in carrying out the requirements under this ,act1 including the report requirement under subsection 7b77#a71 the ,independent ,monitor shall ensure that all personally identifiable information is kept confidential4 7e7 ,enforcement 7#a7 ,in general ,if the ,independent ,monitor determines that a party to the settlement substantially failed to comply with the terms of the settlement or otherwise violates any provision of this ,act1 the ,independent ,monitor shall refer a finding of noncompliance to-- 7,a7 the ,board of ,governors of the ,federal ,reserve ,system and the ,comptroller of the ,currency1 for noncompliance involving conduct of mortgage servicers subject to the settlement2 7,b7 the ,inspector ,general of the ,board of ,governors of the ,federal ,reserve ,system and the ,bureau of ,consumer ,financial ,protection1 for noncompliance involving conduct of the ,board of ,governors of the ,federal ,reserve ,system2 or 7,c7 the ,inspector ,general of the ,department of the ,treasury1 for noncompliance involving conduct of the ,office of the ,comptroller of the ,currency4 7#b7 ,handling of referral ,upon receipt of a referral of noncompliance made under paragraph 7#a77;,a71 the ,board of ,governors of the ,federal ,reserve ,system and the ,comptroller of the ,currency shall1 jointly-- 7,a7 within the #cj-;day period beginning on the date of receipt of the referral1 issue a report to the ,congress containing a plan of action to cure the noncompliance2 and 7,b7 within the #fj-;day period beginning on the date of receipt of the referral1 take such action to cure the noncompliance4 7#c7 ,backup authority ,if the ,board of ,governors of the ,federal ,reserve ,system and the ,comptroller of the ,currency fail to take the action required under subparagraph 7,a7 or 7,b7 of paragraph 7#b71 the ,independent ,monitor may take any action available to the ,board of ,governors of the ,federal ,reserve ,system or the ,comptroller of the ,currency in order to cure the noncompliance4 7#d7 ,referral of criminal violations ,if the ,independent ,monitor determines that evidence exists to suggest that a party to the settlement may have committed a violation of any ,federal or ,state criminal statute1 the ,independent ,monitor shall refer such determination to the appropriate law enforcement agency4 #e4 ,savings clause ,nothing in this ,act shall be construed as-- 7#a7 limiting the ability of any ,federal or ,state entity to examine or bring action pertaining to any aspect of the settlement2 or 7#b7 limiting the ability of any borrower to take any action arising under ,state or ,federal law4 #f4 ,sunset 7a7 ,in general ,this ,act shall cease to have any force or effect on and after the date that is the day after the end of the #ij-;day period beginning on the date that all parties fully satisfy the terms of the settlement4 7b7 ,final report ,within the #ij-;day period described under paragraph 7#a71 the ,independent ,monitor shall submit a final report to the ,congress containing the information described under subsection 7b77#a7 and any other information the ,independent ,monitor feels is appropriate4