,,ii #aadth ,,congress #b;d ,session ,s4 #cadf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #g1 #bjaf ,mr4 ,menendez 7for himself1 ,mr4 ,booker1 and ,mr4 ,merkley7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to require servicers to provide certain notices relating to foreclosure proceedings1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,preventing ,abandoned ,foreclosures and ,preserving ,communities ,act of #bjaf4 #b4 ,notification requirements for servicers that initiate foreclosure proceedings ,the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfja et seq47 is amended-- 7#a7 in section #c 7#ab ,u4,s4,c4 #bfjb7-- 7,a7 in paragraph 7#h71 by striking and at the end2 7,b7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#aj7 the term enterprise has the meaning given the term in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb74 2 and 7#b7 in section #f 7#ab ,u4,s4,c4 #bfje71 by adding at the end the following3 7n7 ,notices relating to foreclosure 7#a7 ,definition ,in this subsection1 the term covered loan means-- 7,a7 a federally related mortgage loan2 or 7,b7 a non-performing loan purchased from a ,federal agency or an enterprise4 7#b7 ,initial notice requirement 7,a7 ,in general ,a servicer of a covered loan that makes the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process against a borrower and any other record owners shall notify the borrower and any other record owners in writing that1 until the date on which the deed and title for the property for which the covered loan was made are transferred to another person1 the borrower and any other record owners-- 7i7 may remain in the property until such time as the borrower and any other record owners are required to vacate the property under ,state law2 and 7ii7 shall1 to the extent required under ,state law1 be responsible for the payment of any taxes1 assessments1 and other fees associated with the property4 7,b7 ,state law requirements ,a servicer of a covered loan is not required to provide the written notice described in subparagraph 7,a7 if the servicer provides notice to the borrower and any other record owners1 under applicable ,state law1 of the information described in subparagraph 7,a74 7#c7 ,notice of charge-off and release of lien 7,a7 ,in general ,if a servicer of a covered loan makes the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process against a borrower and any other record owners and subsequently charges off the covered loan and releases the lien on the property for which the covered loan was made1 the servicer shall provide prompt notice1 in writing1 of the charge-off and release to-- 7i7 the borrower and any other record owners1 which shall include a statement that-- 7,i7 the title to the property is no longer encumbered by the lien2 7,,ii7 the covered loan has been discharged2 7,,iii7 the borrower and any other record owners may face income tax consequences related to the discharged covered loan2 and 7,,iv7 the borrower and any other record owners may want to consult a tax advisor2 and 7ii7 the taxing district in which the property is located4 7,b7 ,required attempts ,a servicer that is required to provide notice to a borrower and any other record owners under subparagraph 7,a77i7-- 7i7 shall make not less than #c attempts to provide the notice1 where the servicer makes-- 7,i7 not less than #b attempts to provide the notice by telephone2 and 7,,ii7 not less than #a attempt to provide the notice in writing2 and 7ii7 shall attempt to locate the borrower and any other record owners and provide the notice if the servicer has information that the borrower and any other record owners no longer reside at the property4 7,c7 ,language ,a servicer shall provide the notice under subparagraph 7,a77i7 in the preferred language of the borrower if the servicer has information that the borrower has indicated a preferred language other than ,english4 7#d7 ,standard notification forms ,the ,bureau may develop and issue standard forms1 which may be submitted in paper or electronic format1 for the provision of the notices required under paragraphs 7#b7 and 7#c74 7#e7 ,database of abandoned foreclosures 7,a7 ,definition ,in this paragraph1 the term abandoned foreclosure means a covered loan-- 7i7 that is secured by a property that was the principal residence of the borrower-- 7,i7 at the time of the origination of the covered loan2 or 7,,ii7 when the servicer of the covered loan made the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 7ii7 that is not an open-end credit or reverse mortgage loan2 and 7iii7 where the servicer of the covered loan-- 7,i7 has made the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 and 7,,ii7 has-- 7aa7 ceased to pursue additional action in the foreclosure process2 or 7bb7 charged off the covered loan and released the lien on the property for which the covered loan was made4 7,b7 ,database ,not later than #c years after the date of enactment of this subsection1 the ,bureau shall establish1 maintain1 and periodically update a database of abandoned foreclosures4 7,c7 ,contents ,the database established under subparagraph 7,b7 shall include1 for each abandoned foreclosure-- 7i7 the address information for the property2 7ii7 the status of the deed or title to the property2 7iii7 the number of days the borrower was delinquent before the servicer initiated the foreclosure2 7iv7 the outstanding amount of the covered loan at the time the servicer initiated the foreclosure2 7v7 the date on which the servicer initiated the foreclosure2 7vi7 the date on which the servicer charged off the covered loan and released the lien2 and 7vii7 the amount of the covered loan charged off by the servicer4 7,d7 ,accessibility ,the ,bureau may1 at the discretion of the ,director of the ,bureau1 provide access to the database established under subparagraph 7,b7 to taxing districts4 7,e7 ,protection of information ,the ,bureau shall take appropriate and necessary steps to ensure the protection of personally identifiable information in the database established under subparagraph 7,b74 7#f7 ,rule of construction ,nothing in this section shall be construed to preempt or prohibit any provision of ,state law with respect to notice provided to borrowers relating to a foreclosure1 except to the extent that the requirements of this section provide greater notice to such a borrower4 4 #c4 ,seller and servicer eligibility 7a7 ,enterprises 7#a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,federal ,housing ,finance ,agency shall promulgate a rule that provides that a seller or servicer of a mortgage loan held by the ,federal ,national ,mortgage ,association or the ,federal ,home ,loan ,mortgage ,corporation 7or an affiliate thereof7-- 7,a7 may not1 with respect to the mortgage loan-- 7i7 make the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 and 7ii7 following the notice or filing1 cease to pursue additional action in the foreclosure process or charge off the mortgage loan unless the seller or servicer contemporaneously records a release of the mortgage loan in the registry of deeds in which the mortgage is recorded1 which release shall include a discharge of the debt secured by the mortgage loan2 and 7,b7 with respect to the servicer of the mortgage loan1 is required to comply with the notice requirements under paragraphs 7#a7 and 7#b7 of section #f7n7 of the ,real ,estate ,settlement ,procedures ,act of #aigd1 as added by section #b of this ,act4 7#b7 ,rule of construction ,nothing in paragraph 7#a7 shall be construed to inhibit or preclude a seller or servicer of a mortgage loan described in paragraph 7#a7 from continuing or initiating loss mitigation during the foreclosure process1 including participating in any available mediation program or process under ,state law4 7b7 ,federal ,housing ,administration ,section #bjc of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agji7 is amended by adding at the end the following3 7y7 ,prohibition on abandoned foreclosures 7#a7 ,in general ,to be eligible to service a mortgage insured under this section1 a servicer may not1 with respect to the mortgage-- 7,a7 make the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 and 7,b7 following the notice or filing1 cease to pursue additional action in the foreclosure process or charge off the mortgage unless the servicer contemporaneously records a release of the mortgage in the registry of deeds in which the mortgage is recorded1 which release shall include a discharge of the debt secured by the mortgage4 7#b7 ,required notice ,a servicer of a mortgage insured under this section shall comply with the notice requirements under paragraphs 7#b7 and 7#c7 of section #f7n7 of the ,real ,estate ,settlement ,procedures ,act of #aigd4 7#c7 ,rule of construction ,nothing in paragraph 7#a7 shall be construed to inhibit or preclude a servicer of a mortgage from continuing or initiating loss mitigation during the foreclosure process1 including participating in any available mediation program or process under ,state law4 4 #d4 ,,gao study on abandoned foreclosures 7a7 ,definitions ,in this section3 7#a7 ,abandoned foreclosure ,the term abandoned foreclosure means a covered loan-- 7,a7 that is secured by a property that was the principal residence of the borrower-- 7i7 at the time of the origination of the covered loan2 or 7ii7 when the servicer of the covered loan made the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 7,b7 that is not an open-end credit or reverse mortgage loan2 and 7,c7 where the servicer of the covered loan-- 7i7 has made the first notice or filing required by applicable ,state law for a judicial or non-judicial foreclosure process2 and 7ii7 has-- 7,i7 ceased to pursue additional action in the foreclosure process2 or 7,,ii7 charged off the covered loan and released the lien on the property for which the covered loan was made4 7#b7 ,covered loan ,the term covered loan means-- 7,a7 a federally related mortgage loan2 or 7,b7 a non-performing loan purchased from a ,federal agency or an enterprise4 7#c7 ,enterprise ,the term enterprise has the meaning given the term in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb74 7#d7 ,federally related mortgage loan ,the term federally related mortgage loan has the meaning given the term in section #c of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfjb74 7b7 ,study ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 and the ,committee on ,financial ,services of the ,house of ,representatives a report on-- 7#a7 the incidence and concentration of abandoned foreclosures2 7#b7 the impact of abandoned foreclosures on neighborhood and community property values1 including the propensity of abandoned foreclosures to lead to foreclosures on neighboring properties2 and 7#c7 the best available methods to collect information on abandoned foreclosures1 taking into account the cost of collecting that information4 7c7 ,recommendations ,the report submitted under subsection 7b7 may include recommendations for additional requirements or conditions for servicers with respect to charging off covered loans or releasing liens on abandoned foreclosures4 #e4 ,rule of construction ,nothing in this ,act or the amendments made by this ,act shall be construed to limit the rights of a tenant to remain in a property during a foreclosure process that are in effect under ,federal or ,state law as of the date of enactment of this ,act4