,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #agjf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #bd1 #bjac ,mr4
 ,cumm+s 7= himself1 ,ms4 ,wat]s1 ,mr4  
,george ,mill] ( ,cali=nia1 ,mr4        
,cony]s1 ,mr4 ,waxman1 ,mr4 ,ti]ney1    
,ms4 ,l(gr51 & ,ms4 ,s*ak[sky7 introduc$
 ! foll[+ bill2 :i* 0 ref]r$ to !       
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to e/abli% an ,indep5d5t       
,monitor to ma9ta9 ov]sight ( !         
settlem5t by mortgage s]vic+ companies t
 7 subject to en=cem5t actions = unsafe 
& uns\nd practices relat$ to resid5tial 
mortgage loan s]vic+ & =eclosure        
process+1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z !         
,mortgage ,settlem5t ,monitor+ ,act (   
#bjac4  #b4 ,f9d+s ,! ,congress f9ds !  
foll[+3  7#a7 ,9 ,april #bjaa1 ! ,f$]al 
,res]ve ,sy/em1 ! ,(fice ( ! ,comptroll]
 ( ! ,curr5cy1 & ! !n-,(fice ( ,?rift   
,sup]vision issu$ a jo9t report titl$   
,int]ag5cy ,review ( ,=eclosure         
,policies & ,practices summ>iz+ !       

results ( horizontal reviews ( !        
,nation's #ad l>ge/ mortgage s]vic]s    
f9d+ critical weaknesses 9 s]vic]s'     
=eclosures gov]nance practices1         
=eclosure docum5t prep>ation processes1 
& ov]sight & monitor+ ( ?ird-p>ty       
v5dors1 includ+ =eclosure attorneys1    
result+ 9 unsafe & uns\nd practices &   
violations ( applicable ,f$]al & ,/ate  
law requirem5ts4  7#b7 ,z "p ( f$]al    
en=cem5t actions address+ ^! unsafe &   
uns\nd practices relat$ to resid5tial   
mortgage loan s]vic+ & =eclosure        
process+1 f\rte5 mortgage s]vic+        
companies ent]$ into cons5t ord]s ) !   
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em & ! ,(fice ( ! ,comptroll] ( !   
,curr5cy beg9n+ on ,april #ac1 #bjaa4   
7#c7 ,! cons5t ord]s requir$ ^! mortgage
 s]vic]s to und]take an ,indep5d5t      
,=eclosure ,review 9 ord] to asc]ta9    
individual h>ms & provide appropriate   
monet>y relief to home[n]s z a result ( 
^! bus9ess practice failures4 ,mortgage 
s]vic]s contract$ ) ?ird-p>ty           

consultants approv$ by ! f$]al ag5cies  
to conduct ^! reviews4  7#d7 ,dur+ !    
t5ure ( ! ,indep5d5t ,=eclosure ,review 
process1 que/ions p]si/$ conc]n+ !      
nature & adequacy ( ! reviews & expect$ 
rem$iation z well z ! indep5d5ce ( !    
?ird-p>ty review]s4  7#e7 ,on ,febru>y  
#bh1 #bjac1 ! ,bo>d ( ,gov]nors ( !     
,f$]al ,res]ve ,sy/em & ! ,(fice ( !    
,comptroll] ( ! ,curr5cy f9aliz$        
am5dm5ts to ! ,april #bjaa cons5t ord]s 
) #aa ( ! #ad mortgage s]vic]s4 ,"u !   
t]ms ( ^! ord]s1 mortgage s]vic]s are to
 provide ca% paym5ts & o!r assi/ance to 
borr[]s--includ+ m ?an #c1jjj1jjj1jjj 9 
direct ca% paym5ts to borr[]s :o _h     
homes 9 =eclosure 9 #bjji or #bjaj--;& !
 ,indep5d5t ,=eclosure ,review process w
 cease = ! mortgage s]vic]s :o agre$ to 
ent] into ! am5d$ cons5t ord]s4  7#f7   
,on ,april #d1 #bjac1 ! ,gov]nm5t       
,acc\ntability ,(fice 7,,gao7 issu$ a   
report titl$ ,=eclosure ,review3        
,lessons ,le>n$ ,c\ld ,enhance ,cont9u+ 
,reviews & ,activities ,"u ,am5d$       

,cons5t ,ord]s :i* exam9$ ! ,indep5d5t  
,=eclosure ,review process4 ,x f\nd t ! 
complexity ( ! reviews1 ov]ly broad     
guidance1 & limit$ monitor+ = consi/5cy 
imp$$ ! ability ( ! ,(fice ( !          
,comptroll] ( ! ,curr5cy 7,,occ7 & !    
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em 7,f$]al ,res]ve7 to a*ieve !     
goals ( ! =eclosure review4 ,! report   
also /at$ t limit$ communication )      
borr[]s & ! public adv]sely impact$     
transp>5cy & public confid5ce1 & ! ,,gao
 recomm5d$ t ! ,bo>d ( ,gov]nors ( !    
,f$]al ,res]ve ,sy/em & ! ,(fice ( !    
,comptroll] ( ! ,curr5cy id5tify & apply
 lessons f ! =eclosure review process1  
su* z enhanc+ plann+1 & monitor+        
activities to a*ieve goals1 z !y develop
 & implem5t ! activities "u ! am5d$     
cons5t ord]s4  7#g7 ,9 light ( !        
significant h>m caus$ by mortgage       
s]vic]s' unsafe & uns\nd bus9ess        
practices1 & ! lack ( transp>5cy        
surr\nd+ ! ,indep5d5t ,=eclosure ,review
 process & ! am5d$ cons5t ord]s t       

replace ?is process1 x is ess5tial t    
?or\gh ov]sight be conduct$ ov] ^! new  
ord]s to ensure t all t]ms are fully    
en=c$4 ,creation ( an ,(fice ( !        
,indep5d5t ,monitor1 :i* w provide      
reports directly to ,congress1 w aid 9  
meet+ ?is objective4  #c4 ,settlem5t    
def9$ ,= purposes ( ?is ,act1 ! t]m     
settlem5t means--  7#a7 ! am5d$ cons5t  
ord]s f9aliz$ on ,febru>y #bh1 #bjac1   
betwe5 ! ,bo>d ( ,gov]nors ( ! ,f$]al   
,res]ve ,sy/em & ! ,(fice ( !           
,comptroll] ( ! ,curr5cy & #aa mortgage 
s]vic+ companies t 7 subject to en=cem5t
 actions = unsafe & uns\nd practices    
relat$ to resid5tial mortgage loan      
s]vic+ & =eclosure process+2 &  7#b7 any
 future agreem5t betwe5 ! ,bo>d (       
,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! 
,(fice ( ! ,comptroll] ( ! ,curr5cy & a 
mortgage s]vic+ company1 ! t]ms ( :i*   
are simil> to ! agreem5t describ$ 9     
p>agraph 7#a74  #d4 ,indep5d5t monitor  
7a7 ,e/abli%m5t  7#a7 ,9 g5]al ,!re is  
h]eby e/abli%$ ! ,(fice ( ! ,indep5d5t  

,monitor1 to be head$ by ! ,indep5d5t   
,monitor4 ,! purpose ( ! ,indep5d5t     
,monitor %all be to det]m9e ! compliance
 ( all p>ties to ! settlem5t ) ! t]ms ( 
! settlem5t & to provide exp&$          
transp>5cy ov] ! implem5tation ( ! am5d$
 cons5t ord]s to rebuild ! confid5ce ( !
 g5]al public4  7#b7 ,appo9tm5t  7,a7 ,9
 g5]al ,! ,presid5t %all appo9t1 n lat] 
?an ! end ( ! #de-;day p]iod beg9n+ on !
 date ( ! enactm5t ( ?is ,act1 !        
,indep5d5t ,monitor f among individuals 
) ext5sive exp]i5ce 9 consum] protection
 laws & practices1 p>ticul>ly 9 su*     
areas z mortgage l5d+4  7,b7 ,vacancy   
,if at any po9t ! position ( ,indep5d5t 
,monitor becomes vacant1 ! ,presid5t    
%all appo9t1 n lat] ?an ! end ( !       
#fj-;day p]iod beg9n+ on ! date su*     
vacancy occurs1 a new ,indep5d5t        
,monitor f among individuals describ$ "u
 subp>agraph 7,a74  7#c7 ,/aff ,^u      
reque/ ( ! ,indep5d5t ,monitor1 any     
executive ag5cy1 includ+ ! ,bo>d (      
,gov]nors ( ! ,f$]al ,res]ve ,sy/em or !

 ,comptroll] ( ! ,curr5cy %all detail1  
on a reimbursable basis1 any employee to
 ! ,(fice ( ! ,indep5d5t ,monitor to    
assi/ x 9 c>ry+ out its duties "u ?is   
,act1 b "u no circum/ances may ! ,(fice 
( ! ,indep5d5t ,monitor h m ?an #af     
employees1 n includ+ ! ,indep5d5t       
,monitor4  7#d7 ,fund+ ,! co/s ( !      
,(fice ( ! ,indep5d5t ,monitor %all be  
paid out ( ! funds paid by mortgage     
s]vic+ companies "u ! settlem5t1 o!r ?an
 any funds designat$ = direct ca%       
paym5ts to borr[]s :o held loans dur+   
#bjji or #bjaj4  7b7 ,duties ,!         
,indep5d5t ,monitor %all--  7#a7 issue a
 qu>t]ly report cov]+ all actions tak5  
to date1 ) ! fir/ su* report detail+    
actions tak5 f ! date ( ! execution ( ! 
settlem5t1 to ! ,bo>d ( ,gov]nors ( !   
,f$]al ,res]ve ,sy/em1 ! ,comptroll] ( !
 ,curr5cy1 & ! ,congress conta9+--  7,a7
 a detail$ description (--  7i7 !       
eligibility crit]ia us$ to det]m9e :o w 
receive direct & indirect aid provid$ "u
 ! settlem5t1 includ+ in=mation detail+ 

in/ances 9 :i* ! crit]ia are n          
transp>5t1 c]ta91 objective1 or         
equitably appli$2  7ii7 ! me?odologies  
us$ to calculate & allocate direct &    
indirect aid provid$ "u ! settlem5t1    
includ+ in=mation detail+ in/ances 9 :i*
 ! me?odologies are n transp>5t1 c]ta91 
objective1 or equitably appli$2  7iii7 !
 pro( requirem5ts appli$ to recipi5ts ( 
direct & indirect aid provid$ "u !      
settlem5t1 includ+ in=mation detail+    
in/ances 9 :i* ! requirem5ts are n      
transp>5t1 c]ta91 objective1 or         
equitably appli$2 &  7iv7 ! ext5t to :i*
 ^? receiv+ direct & indirect aid "u !  
settlem5t receive proc$ural due process1
 includ+ in=mation detail+ in/ances 9   
:i* su* due process has be5 d5i$2  7,b7 
in=mation on ! total numb] ( borr[]s :o 
held loans 9 #bjji or #bjaj :o receive  
direct comp5sation "u ! settlem5t1      
disaggregat$ by ea* mortgage s]vic]     
subject to ! settlem5t1 includ+--  7i7  
demographic & o!r data relat$ to su*    
borr[]s1 includ+ race1 g5d]1 geography1 

& ! prop]ty value ( ! prop]ty secur+ su*
 loans2  7ii7 ! level ( direct          
comp5sation provid$ to simil>ly situat$ 
borr[]s1 includ+ a review ( ! me?ods us$
 to det]m9e ! level ( direct comp5sation
 provid$ & ! adequacy ( su* direct      
comp5sation2 &  7iii7 total direct      
comp5sation provid$ to date2  7,c7      
in=mation on ! total numb] ( borr[]s )  
mortgage loans :o receive loan          
modifications or o!r types ( assi/ance1 
su* z ! =giv5ess ( a defici5cy judgm5t1 
%ort sale1 de$ 9 lieu1 or =be>ance      
agreem5t1 "u ! settlem5t1 disaggregat$  
by ea* mortgage s]vic] subject to !     
settlem5t1 includ+--  7i7 demographic & 
o!r data relat$ to su* borr[]s1 includ+ 
race1 g5d]1 geography1 & ! prop]ty value
 ( ! prop]ty secur+ su* loans2 &  7ii7 !
 numb] ( ea* type ( loan modification or
 o!r assi/ance provid$ to borr[]s1      
includ+ ! am\nt ( pr9cipal r$uction     
provid$ "u modifications t include a    
pr9cipal r$uction elem5t1 ! level (     
int]e/ r$uctions provid$ to borr[]s :o  

receive an int]e/ r$uction1 & ! total   
am\nt ( defici5cies =giv5 = ea* ( !     
fir/1 second1 or any subsequ5t loans1 & 
! numb] ( borr[]s receiv+ ea* type (    
relief :o 7 already 9 a trial           
modification :5 (f]$ assi/ance "u !     
settlem5t & ! numb] :o 7 n 9 a trial    
modification1 & :e!r !re has be5        
disp>ate treatm5t ( ^? borr[]s2  7,d7 ! 
cr$it t p>ties to ! settlem5t h be5 giv5
 ?r\gh ! provision ( loan modifications 
& o!r types ( assi/ance to borr[]s1     
includ+ pr9cipal r$uction modifications1
 disaggregat$ by ea* mortgage s]vic]    
subject to ! settlem5t1 & a det]m9ation 
by ! ,indep5d5t ,monitor ( :e!r su*     
cr$it reflects ! real doll> value ( !   
modifications & has n be5 provid$ =     
modifications t h little or no economic 
value & t d n result 9 su/a9able        
modifications2  7,e7 a li/ ( any        
in/ances 9 :i* ! ,indep5d5t ,monitor has
 det]m9$ t a p>ty to ! settlem5t has    
sub/antially fail$ to comply ) ! t]ms ( 
! settlem5t1 includ+ a description ( !  

nature ( ea* in/ance ( noncompliance2   
7,f7 a li/ ( any actions tak5 by ! ,bo>d
 ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em  
or ! ,comptroll] ( ! ,curr5cy to compel 
compliance ) ! t]ms ( ! settlem5t2  7,g7
 a review ( ! ef=ts und]tak5 by p>ties  
to ! settlem5t to locate borr[]s :o held
 loans 9 #bjji or #bjaj1 includ+ !      
adequacy ( outrea* me?ods us$ to contact
 su* borr[]s & ! response rate ( su*    
borr[]s2  7,h7 in=mation on ! ext5t to  
:i* any assi/ance provid$ to borr[]s "u 
! settlem5t receives cr$it "u bo? !     
settlem5t & also ano!r settlem5t2  7,i7 
a detail$ description (--  7i7 ! dispute
 resolution proc$ures e/abli%$ by !     
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em & ! ,comptroll] ( ! ,curr5cy1 if 
any1 to enable borr[]s to seek ei!r a   
=mal review ( ! direct or indirect      
relief provid$ to !m "u ! t]ms ( !      
settlem5t1 or a =mal review ( a         
det]m9ation t !y are n entitl$ to direct
 or indirect relief "u ! t]ms ( !       
settlem5t1 includ+ a review ( ! adequacy

 ( ^! proc$ures 9 respond+ to borr[]s'  
conc]ns & compla9ts & 9 fairly &        
equitably resolv+ ^! reque/s = review2 &
  7ii7 if su* proc$ures h be5 e/abli%$1 
! total numb] ( borr[]s :o h reque/$ a  
review "u ! dispute resolution          
proc$ures1 ! numb] ( out/&+ reque/s     
await+ adjudication & ! numb] ( fully   
adjudicat$ claims1 ! av]age "t requir$  
to adjudicate claims "u ! dispute       
resolution proc$ures1 ! numb] ( cases 9 
:i* ! arbit] recomm5d$ *ang+ ! initial  
det]m9ation ( relief (f]$ to a borr[]1 &
 ! numb] ( cases 9 :i* ! recomm5dations 
issu$ by ! arbit] 7 affirm$ & implem5t$ 
by ! ,bo>d ( ,gov]nors ( ! ,f$]al       
,res]ve ,sy/em & ! ,comptroll] ( !      
,curr5cy2  7,j7 ! numb] ( 9-scope       
borr[]s ^: =eclosures are complet$ dur+ 
! report+ p]iod2 &  7,k7 any o!r        
in=mation t ! ,indep5d5t ,monitor deems 
necess>y to dis*>ge ! duties ( !        
,indep5d5t ,monitor & to det]m9e        
compliance ) ! settlem5t2  7#b7 make ea*
 report describ$ "u p>agraph 7#a7       

available to ! public1 includ+ on a     
publicly accessible website2 &  7#c7    
hold1 at a m9imum1 five public meet+s 9 
:i* memb]s ( ! public may give te/imony 
reg>d+ ! adm9i/ration ( ! settlem5t1 &  
:]e su* meet+s--  7,a7 be+ ann\nc$ at   
lea/ two weeks 9 advance2 &  7,b7 held 9
 five diff]5t ,/ates4  7c7 ,p[] ,to     
require production ,n )/&+ any o!r      
provision ( law1 ! ,indep5d5t ,monitor  
may require ! production f any p>ty to !
 settlem5t ( any docum5ts1 in=mation1 & 
data relat$ to ! settlem5t t !          
,indep5d5t ,monitor det]m9es necess>y to
 c>ry out ! duties ( ! ,indep5d5t       
,monitor4  7d7 ,confid5tiality (        
in=mation ,9 c>ry+ out ! requirem5ts "u 
?is ,act1 includ+ ! report requirem5t "u
 subsection 7b77#a71 ! ,indep5d5t       
,monitor %all ensure t all p]sonally    
id5tifiable in=mation is kept           
confid5tial4  7e7 ,en=cem5t  7#a7 ,9    
g5]al ,if ! ,indep5d5t ,monitor det]m9es
 t a p>ty to ! settlem5t sub/antially   
fail$ to comply ) ! t]ms ( ! settlem5t  

or o!rwise violates any provision ( ?is 
,act1 ! ,indep5d5t ,monitor %all ref] a 
f9d+ ( noncompliance to--  7,a7 ! ,bo>d 
( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & 
! ,comptroll] ( ! ,curr5cy1 =           
noncompliance involv+ conduct ( mortgage
 s]vic]s subject to ! settlem5t2  7,b7 !
 ,inspector ,g5]al ( ! ,bo>d ( ,gov]nors
 ( ! ,f$]al ,res]ve ,sy/em & ! ,bureau (
 ,consum] ,f9ancial ,protection1 =      
noncompliance involv+ conduct ( ! ,bo>d 
( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em2  
or  7,c7 ! ,inspector ,g5]al ( !        
,dep>tm5t ( ! ,treasury1 = noncompliance
 involv+ conduct ( ! ,(fice ( !         
,comptroll] ( ! ,curr5cy4  7#b7 ,h&l+ ( 
ref]ral ,^u receipt ( a ref]ral (       
noncompliance made "u p>agraph          
7#a77;,a71 ! ,bo>d ( ,gov]nors ( !      
,f$]al ,res]ve ,sy/em & ! ,comptroll] ( 
! ,curr5cy %all1 jo9tly--  7,a7 )9 !    
#cj-;day p]iod beg9n+ on ! date (       
receipt ( ! ref]ral1 issue a report to !
 ,congress conta9+ a plan ( action to   
cure ! noncompliance2 &  7,b7 )9 !      

#fj-;day p]iod beg9n+ on ! date (       
receipt ( ! ref]ral1 take su* action to 
cure ! noncompliance4  7#c7 ,backup     
au?ority ,if ! ,bo>d ( ,gov]nors ( !    
,f$]al ,res]ve ,sy/em & ! ,comptroll] ( 
! ,curr5cy fail to take ! action requir$
 "u subp>agraph 7,a7 or 7,b7 ( p>agraph 
7#b71 ! ,indep5d5t ,monitor may take any
 action available to ! ,bo>d ( ,gov]nors
 ( ! ,f$]al ,res]ve ,sy/em or !         
,comptroll] ( ! ,curr5cy 9 ord] to cure 
! noncompliance4  7#d7 ,ref]ral (       
crim9al violations ,if ! ,indep5d5t     
,monitor det]m9es t evid5ce exi/s to    
sugge/ t a p>ty to ! settlem5t may h    
committ$ a violation ( any ,f$]al or    
,/ate crim9al /atute1 ! ,indep5d5t      
,monitor %all ref] su* det]m9ation to ! 
appropriate law en=cem5t ag5cy4  #e4    
,sav+s clause ,no?+ 9 ?is ,act %all be  
con/ru$ z--  7#a7 limit+ ! ability ( any
 ,f$]al or ,/ate entity to exam9e or br+
 action p]ta9+ to any aspect ( !        
settlem5t2 or  7#b7 limit+ ! ability (  
any borr[] to take any action aris+ "u  

,/ate or ,f$]al law4  #f4 ,sunset  7a7  
,9 g5]al ,?is ,act %all cease to h any  
=ce or effect on & aft] ! date t is !   
day aft] ! end ( ! #ij-;day p]iod beg9n+
 on ! date t all p>ties fully satisfy ! 
t]ms ( ! settlem5t4  7b7 ,f9al report   
,)9 ! #ij-;day p]iod describ$ "u        
p>agraph 7#a71 ! ,indep5d5t ,monitor    
%all submit a f9al report to ! ,congress
 conta9+ ! in=mation describ$ "u        
subsection 7b77#a7 & any o!r in=mation !
 ,indep5d5t ,monitor feels is           
appropriate4