,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #cjae  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bb1 #bjag,ms4  
,mi*elle ,lujan ,gri%am ( ,new ,mexico  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,f9ancial ,s]vices  ,a 
,,bill  ,to am5d ! ,real ,e/ate         
,settlem5t ,proc$ures ,act ( #aigd to   
provide protections to borr[]s1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,national ,home[n]s ,bill (
 ,rights ,act ( #bjag4  #b4 ,s]vic]     
treatm5t ( borr[]s  7a7 ,9 g5]al        
,section #f ( ! ,real ,e/ate ,settlem5t 
,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4  
#bfje7 is am5d$ by add+ at ! end !      
foll[+3  7n7 ,s]vic] treatm5t ( borr[]s 
7#a7 ,s]vic] requirem5ts  7,a7 ,s+le    
electronic record & s+le po9t ( contact 
,ea* s]vic] ( a f$]ally relat$ mortgage 
loan1 or ag5ts ( su* s]vic]1 %all1 )    
respect to ! borr[]1 e/abli% a s+le     
electronic record = ea* acc\nt1 !       
cont5ts ( :i* %all be accessible ?r\gh\t
 ! s]vic]1 or ag5ts ( su* s]vic]1       

includ+ to all af=dable loan            
modification /aff1 all =eclosure /aff1 &
 all bankruptcy /aff4  7,b7             
,availability ( net pres5t value        
in=mation ,s]vic]s %all ma9ta9 a free & 
publicly accessible website :]e borr[]s 
may *eck _! e/imat$ net pres5t value4   
7#b7 ,protections = home[n]s ) limit$   
,engli% pr(ici5cy  7,a7 ,free oral      
int]pretation ,s]vic]s %all provide free
 oral int]pretation s]vices = borr[]s ^:
 files include a notation ( a pref]r$   
language o!r ?an ,engli% or :o reque/   
su* s]vices & su* s]vices may be provid$
 by contract+ ) h\s+ c\nsel+ ag5cies t  
are approv$ by ! ,dep>tm5t ( ,h\s+ &    
,urban ,developm5t & t h appropriate    
language capacity4 ,! s]vic] %all ensure
 t ! p]son provid+ ! oral int]pretation 
s]vices has specific k ( loss mitigation
 & mortgage t]ms4  7,b7 ,notification ( 
available assi/ance  7i7 ,9 g5]al       
,s]vic]s %all provide ea* borr[] ) a    
notice-- 7,i7 /at+ t ! borr[] may       
receive assi/ance 9 a language o!r ?an  

,engli%2 &  7,,ii7 conta9+ in=mation on 
h[ to reque/ su* assi/ance4  7ii7 ,=m ( 
notice ,! ,bureau may issue regulations 
to provide = ! =m1 cont5t1 & mann] (    
s]vice ( ! notice describ$ "u clause    
7i74  7iii7 ,notice on transf] ,ea*     
transf]ee s]vic] to :om ! s]vic+ ( any  
f$]ally relat$ mortgage loan is assign$1
 sold1 or transf]r$ %all include !      
notice requir$ "u ?is p>agraph 9 !      
notice requir$ "u subsection 7c74  7,c7 
,notation 9 file ,s]vic]s %all-- 7i7    
note a reque/ = translation s]vices 9 ! 
borr[]'s file & make su* note available 
to all relevant s]vic] p]sonnel2 &  7ii7
 note 9 ! borr[]'s file any "t ! borr[] 
has communicat$ or s\ght to communicate 
) ! s]vic] 9 a language o!r ?an ,engli%1
 & %all include su* o!r language4  7,d7 
,translat$ docum5ts  7i7 ,provid+       
docum5ts  7,i7 ,9 g5]al ,s]vic]s %all1  
if a borr[] asks = translat$ docum5ts or
 if ! borr[]'s file conta9s a notation t
 ! borr[] has a language pref]5ce o!r   
?an ,engli% or if ! borr[] has already  

reque/$ oral int]pretation s]vices1     
provide key docum5ts to ! borr[]        
translat$ into ! language ( ! borr[]1   
includ+--  7aa7 p]iodic /atem5ts2  7bb7 
af=dable loan modification applications1
 includ+ h>d%ip affidavits2  7cc7 d5ial 
notices2  7dd7 loan modification (f]s1  
includ+ any trial p]iod plan2 &  7ee7   
su* o!r docum5ts z ! ,bureau may det]m9e
 appropriate4  7,,ii7 ,exception        
,subclause 7,i7 %all only require       
provid+ docum5ts 9--  7aa7 commonly     
spok5 languages 9 ! ,unit$ ,/ates1 z    
det]m9$ by ! ,bureau2 &  7bb7 ) respect 
to a p>ticul> s]vic]1 languages spok5 by
 a significant numb] ( individuals liv+ 
9 any m>kets 9 :i* ! s]vic] does        
bus9ess1 z det]m9$ by ! ,bureau4        
7,,iii7 ,bureau consid]ation ( c5sus    
data ,9 mak+ det]m9ations "u ?is clause1
 ! ,bureau %all take into consid]ation  
data f ! ,bureau ( ! ,c5sus on p]c5tages
 ( individuals :o report$ !y speak      
,engli% less ?an v well4  7ii7 ,accept+ 
docum5ts ,s]vic]s %all only be requir$  

to accept docum5ts 9 languages 9 :i* !  
s]vic] already provides docum5ts1 t are 
consid]$ to be "p ( r\t9e bus9ess       
transactions 9 ! m>ket 9 :i* ! mortgage 
loan 0 made1 or t are us$ 9 docum5ts    
provid$ to ! public by any dep>tm5t or  
ag5cy ( ! ,f$]al ,gov]nm5t4  7iii7      
,exception ,clause 7i7 %all n apply to  
small s]vic]s1 z def9$ "u section       
#ajbf4da7;e77#d77;ii7 ( title #ab1 ,code
 ( ,f$]al ,regulations4  7iv7           
,developm5t ( gloss>y ( t]ms ,! ,bureau 
%all develop a gloss>y ( mortgage loan &
 loss mitigation t]ms 9 ea* commonly    
spok5 language 9 ! ,unit$ ,/ates1 & make
 su* gloss>y available to s]vic]s & !   
public4  7,e7 ,cont9u+ requirem5t ,once 
a s]vic] has begun to communicate ) a   
borr[] 9 a p>ticul> language1 ! s]vic]  
%all cont9ue to communicate ) ! borr[] 9
 t language unless o!rwise reque/$ by ! 
borr[]4  7#c7 ,requirem5ts dur+ af=dable
 loan modification process  7,a7        
,borr[]s fac+ imm95t default ,s]vic]s   
%all evaluate a borr[] fac+ imm95t      

default 7z su* t]m is def9$ by !        
,bureau71 z well z ^? 9 default1 =      
af=dable loan modification assi/ance1 z 
describ$ 9 ?is subsection4  7,b7        
,assi/ance to borr[]s  7i7 ,assi/ance 9 
apply+ = af=dable loan modification     
,s]vic]s %all-- 7,i7 h available &      
suffici5t /aff to answ] que/ions borr[]s
 may h ab\t fill+ out docum5ts2 &       
7,,ii7 provide borr[]s a li/ ( nonpr(it 
legal s]vices organizations & h\s+      
ag5cies approv$ by ! ,dep>tm5t ( ,h\s+ &
 ,urban ,developm5t1 t c assi/ ! borr[]s
 ) docum5ts4  7ii7 ,treatm5t (          
successors 9 int]e/ ,s]vic]s %all-- 7,i7
 provide full in=mation & complete loss 
mitigation options to successor home[n]s
 protect$ f an accel]ation ( a mortgage 
loan "u ! ,g>n-,/ ,g]ma9 ,depository    
,in/itutions ,act ( #aihb1 if reque/$ by
 ! successor home[n]2 &  7,,ii7 review a
 mortgage loan = loss mitigation1 z ?\gh
 ! successor home[n] 0 ! borr[]1 &      
provide a decision on available loss    
mitigation prior to an assumption ( !   

mortgage loan1 if reque/$ by ! succe$+  
home[n]4  7,c7 ,simultane\s review = all
 loss mitigation options ,a s]vic] %all 
simultane\sly evaluate a borr[] = all   
available loss mitigation options1      
includ+ an af=dable loan modification4  
7,d7 ,rule ( con/ruction ,no?+ 9 ?is    
subsection %all be con/ru$ z prohibit+ a
 s]vic] f consid]+ a borr[] = o!r loss  
mitigation options1 s long z ! s]vic]   
fir/ (f]s ! borr[] an af=dable loan     
modification if ! borr[] is eligible =  
su* a modification4  7,e7 ,requirem5ts  
relat$ to transf] ( loans  7i7 ,9 g5]al 
,= any transf] ( s]vic+ to a successor  
s]vic] ( a f$]ally relat$ mortgage loan 
or subs]vic]1 ! transf]r+ s]vic] %all-- 
7,i7 in=m ! successor s]vic] 7includ+ a 
subs]vic]7 :e!r a loan modification     
reque/ is p5d+2  7,,ii7 provide !       
successor s]vic] ) all docum5tation     
relat$ to ! mortgage loan1 includ+ any  
docum5tation relat+ to a loan           
modification or loss mitigation process2
  7,,iii7 ensure t ! successor s]vic]   

has ! op]ational capacity to manage !   
transf]r$ loan2  7,,iv7 ensure t !      
successor s]vic] %all accept & cont9ue  
process+ prior loan modification        
reque/s1 by includ+ su* requirem5t 9 !  
agreem5t made betwe5 ! s]vic]s :5       
transf]r+ ! loan2  7,v7 ensure t        
successor s]vic] %all honor trial &     
p]man5t loan modification agreem5ts     
ent]$ into by ! transf]r+ s]vic] by     
includ+ su* requirem5t 9 ! agreem5t made
 betwe5 ! s]vic]s :5 transf]r+ ! loan2 &
  7,,vi7 notify ! borr[] ( ! transf]r$  
loan t ! new s]vic] is requir$ to accept
 & cont9ue process+ prior loan          
modification reque/s1 if any1 & is      
requir$ to honor trial & p]man5t loan   
modification agreem5ts ent]$ into by !  
transf]r+ s]vic]1 if any4  7ii7 ,honor+ 
( exi/+ loan modifications &            
applications 9 process ,! successor     
s]vic] %all agree to honor & accept any 
exi/+ loan modification & cont9ue any   
loan modification applications4  7iii7  
,prohibition on =eclosure ,dur+ !       

#fj-;day p]iod beg9n+ on ! effective    
date ( transf] ( ! s]vic+ ( any f$]ally 
relat$ mortgage loan1 ! mortgage loan   
subject to su* transf] may n be subject 
to initiation ( a judicial or           
nonjudicial =eclosure or be subject to a
 =eclosure sale4  7#d7 ,subsequ5t       
applications = af=dable loan            
modification ,if a borr[] has submitt$  
an application or reque/ 9 ! pa/1 !     
s]vic] %all all[ su* borr[] to make a   
subsequ5t af=dable loan modification    
application if ! borr[] exp]i5ces a     
mat]ial *ange 9 circum/ances1 z def9$ by
 ! ,bureau4  7#e7 ,limitation on        
=eclosure proce$+s  7,a7 ,halt to       
=eclosure & cancellation ( s*$ul$ sale  
p5d+ application  7i7 ,9 g5]al ,if a    
borr[] submits an initial application = 
af=dable loan modification assi/ance m  
?an #g bus9ess days be=e a s*$ul$       
=eclosure sale1 ! s]vic] mu/ /op &      
cancel ! =eclosure sale & may n cont9ue 
a nonjudicial =eclosure or a judicial   
=eclosure aga9/ ! mortgagor4  7ii7      

,treatm5t if no =eclosure has be5       
initiat$ ,= purposes ( clause 7i71 if no
 =eclosure has be5 initiat$ at ! "t ( a 
mortgagor's initial application =       
af=dable loan modification assi/ance1 !n
 an initial application is deem$ to h   
be5 submitt$ m ?an #g bus9ess days be=e 
a s*$ul$ =eclosure sale4  7iii7         
,treatm5t if a =eclosure has be5        
initiat$ b no sale s*$ul$ ,= purposes ( 
clause 7i71 if a =eclosure has be5      
initiat$ at ! "t ( ! mortgagor's initial
 application = af=dable loan            
modification assi/ance1 b a =eclosure   
sale has n be5 s*$ul$1 !n an initial    
application is deem$ to h be5 submitt$ m
 ?an #g bus9ess days be=e a s*$ul$      
=eclosure sale4  7,b7 ,=eclosure        
proce$+s p]mitt$ ,not)/&+ subp>agraph   
7,a71 a s]vic] may initiate or cont9ue a
 judicial or nonjudicial =eclosure "u   
,/ate law aga9/ a borr[]1 if--  7i7 !   
s]vic]-- 7,i7 det]m9es t ! borr[] is n  
eligible = a modification2  7,,ii7      
notifies ! borr[] ( ! det]m9ation "u    

subclause 7,i72 &  7,,iii7 provides !   
borr[]--  7aa7 a copy ( any net pres5t  
value calculation made by ! s]vic] 9    
relation to an af=dable loan            
modification1 includ+ any in=mation     
provid+ a basis = su* net pres5t value  
calculation2  7bb7 a copy ( any note1   
de$ ( tru/1 or o!r docum5t necess>y to  
e/abli% ! "r ( ! s]vic] to =eclose on ! 
mortgage1 includ+ pro( ( assignm5t ( !  
mortgage to ! s]vic] & ! "r ( ! s]vic]  
to en=ce ! relevant note "u ! law ( !   
,/ate 9 :i* ! real prop]ty secur+ !     
mortgage is locat$2  7cc7 a copy ( any  
language 9 ! pool+ or s]vic+ agreem5t ) 
respect to ! mortgage t ! s]vic] relies 
^u 9 ass]t+ t x is prohibit$ or limit$ 9
 provid+ a modification ( ! mortgage    
note2  7dd7 a copy ( all correspond5ce  
betwe5 ! s]vic] & ! borr[]s & inve/ors 9
 :i* ! s]vic] attempts to obta9         
p]mission to make a modification2 &     
7ee7 ! alt]natives to =eclosure         
available to ! borr[]1 includ+ de$ 9    
lieu ( =eclosures & %ort sales2 or  7ii7

 a borr[]-- 7,i7 decl9es to be consid]$ 
= a loan modification 9 writ+ or decl9es
 an af=dable modification 9 writ+2 or   
7,,ii7 does n respond to ! s]vic]'s     
outrea* activities 7z def9$ by !        
,bureau7 to obta9 und]ly+ in=mation to  
complete an application or fails to make
 a trial or p]man5t loan modification   
paym5t4  ,= purposes ( clause 7i71 a    
pool+ & s]vic+ agreem5t is any contract 
e/abli%+ ! transaction rights & duties (
 ! p>ties to any mortgage-back$         
securitization transaction4  7,c7 ,b> to
 =eclosure ,failure to comply ) !       
requirem5ts ( ?is p>agraph %all be a b> 
to ! =eclosure ( a mortgage1 de$ ( tru/1
 or sub/antially simil> in/rum5t4  7,d7 
,fees  7i7 ,waiv] ( late fees ,if a     
borr[]'s application = af=dable loan    
modification assi/ance is accept$1 !    
s]vic] %all waive any =eclosure fees &  
any late fees relat$ to ! del9qu5cy 9   
paym5t4  7ii7 ,no fee accrual :ile      
application is p5d+ ,a borr[] %all n    
accrue additional late or =eclosure fees

 dur+ ! p]iod beg9n+ on ! date t !      
borr[] submits an af=dable loan         
modification application & ! date on :i*
 ! s]vic] makes a det]m9ation on su*    
application4  7,e7 ,notification ,)     
respect to a =eclosure sale t is po/pon$
 by reason ( ?is subsection1 ! s]vic]   
%all notify ! borr[] 9 writ+ ( su*      
po/ponem5t &1 if a date = su* =eclosure 
sale is res*$ul$1 %all notify ! borr[] 9
 writ+ ( ! new =eclosure sale date4     
7,f7 ,c]tification ( det]m9ation (      
eligibility requir$ = sale  7i7 ,sale ( 
prop]ty prohibit$ ,if ! s]vic] ( a      
mortgage does n file a c]tification ) ! 
appropriate l& records (fice 9 !        
jurisdiction :]e ! prop]ty secur+ !     
mortgage is locat$1 /at+ t ! s]vic] has 
det]m9$ ! eligibility ( ! mortgagor = an
 af=dable loan modification 9 compliance
 ) ?is subsection--  7,i7 ! mortgagee   
may n sell ! prop]ty secur+ ! mortgage2 
&  7,,ii7 no p]son t pur*ases ! prop]ty 
secur+ ! mortgage may initiate an action
 to recov] possession ( ! prop]ty4  7ii7

 ,violations ,a sale ( prop]ty 9        
violation ( ?is subp>agraph %all be     
void4  7,g7 ,initial application def9$  
,= purposes ( ?is p>agraph1 ! t]m       
initial application means a complet$    
,uni=m ,borr[] ,assi/ance ,=m #gaj ( !  
,f$]al ,national ,mortgage ,association 
or ! ,f$]al ,home ,loan ,mortgage       
,corporation1 a ,reque/ = ,modification 
& ,affidavit ( ! ,mak+ ,home ,af=dable  
,program1 or o!r equival5t =m t sets =? 
! borr[]'s f9ancial1 income1 & h>d%ip   
in=mation & ,=m #dejf-,t ( ! ,int]nal   
,rev5ue ,s]vice4  7#f7 ,af=dable loan   
modifications  7,a7 ,af=dable loan      
modification def9$ ,= purposes ( ?is    
subsection1 ! t]m af=dable loan         
modification means an agreem5t to r$uce 
! am\nt ( s*$ul$ regul> paym5ts1 det]m9$
 by ! borr[]'s debt-to-income ratio or  
residual income1 & subject to su* t]ms &
 conditions z may be set by ! ,bureau1  
includ+ any r$uction ( ! pr9cipal am\nt 
( ! mortgage note z describ$ 9 p>agraph 
7#d71 t is reflect$ 9 a p]man5t *ange to

 ! t]ms ( ! mortgage note "u su* t]ms z 
! ,bureau %all def9e4  7,b7 ,calculation
 ( t>get af=dable regul> mortgage paym5t
 ,= purposes ( ?is p>agraph1 ! t>get    
af=dable regul> mortgage paym5t %all be 
an am\nt det]m9$ by ! borr[]'s          
debt-to-income ratio or residual income1
 & subject to su* t]ms & conditions z   
may be set by ! ,bureau1 subject to su* 
t]ms & conditions z may be set by !     
,bureau4 ,su* t]ms %all be bas$ on a    
fully amortiz+ pr9cipal & int]e/ paym5t 
ov] ! rema9d] ( ! t]m ( ! mortgage1 z   
modifi$ by any r$uction 9 pr9cipal4     
7,c7 ,eligibility ,a mortgagor %all be  
eligible to p>ticipate 9 an af=dable    
loan modification if-- 7i7 su* p]son is 
a borr[] "u a f$]ally relat$ loan secur$
 by ! pr9cipal resid5ce ( ! borr[] or a 
p]son eligible to assume su* a loan z a 
successor home[n] protect$ f an         
accel]ation ( a mortgage loan "u !      
,g>n-,/ ,g]ma9 ,depository ,in/itutions 
,act ( #aihb1 :o is unable to make      
paym5ts on a f$]ally relat$ mortgage    

loan "u su* crit]ia z ! ,director ( !   
,bureau %all def9e1 9 consultation ) !  
,secret>y ( ,h\s+ & ,urban ,developm5t &
 ! ,secret>y ( ! ,treasury2  7ii7 su*   
resid5ce is occupi$ by ! mortgagor2 &   
7iii7 ! loan modification has a positive
 net pres5t value 7z def9$ "u           
subp>agraph 7,d77ii77,,iv77bb774  7,d7  
,e>n$ pr9cipal =giv5ess  7i7 ,9 g5]al   
,if1 aft] r$uc+ mortgage note pr9cipal  
"u e>n$ pr9cipal =giv5ess provid$ 9     
clause 7ii71 a t>get af=dable regul>    
mortgage paym5t has n be5 a*iev$1 !     
s]vic] ( ! mortgage %all comply ) !     
af=dable loan modification plan wat]fall
 /eps z set out by ! ,bureau ( int]e/   
rate r$uction1 t]m ext5sion1 & pr9cipal 
=be>ance1 z necess>y to a*ieve a t>get  
af=dable regul> mortgage paym5t4  7ii7  
,e>n$ pr9cipal =giv5ess  7,i7 ,pr9cipal 
r$uction ,! ,bureau %all det]m9e /&>ds  
by :i* a mortgagor :o has receiv$ an    
af=dable loan modification %all rema9 9 
good /&+ 9 ord] to p>ticipate 9 a       
r$uction 9 mortgage note pr9cipal "u ?is

 p>agraph4  7,,ii7 ,pr9cipal r$uction   
requir$ ,except z provid$ "u subclause  
7,,iii71 a s]vic] %all (f] a borr[] an  
af=dable loan modification hav+ !       
maximum am\nt ( pr9cipal r$uction t     
results 9 a positive net pres5t value   
calculation4 ,= purposes ( calculat+ net
 pres5t value1 a s]vic] may use _! own  
=mula1 if x has be5 approv$ by !        
,bureau1 or may use a default =mula     
det]m9$ by ! ,bureau4  7,,iii7          
,exceptions  7aa7 ,great] pr9cipal      
r$uction ,a s]vic] may (f] a great]     
pr9cipal r$uction1 if su* a r$uction is 
consi/5t ) ! t]ms ( any contract )      
respect to ! mortgage4  7bb7            
,loan-to-value ratio ,a s]vic] is n     
requir$ to (f] a pr9cipal r$uction t    
w\ld result 9 a loan-to-value ratio (   
less ?an #ajj p]c5t4  7,,iv7 ,rules (   
con/ruction  7aa7 ,maximum am\nt (      
pr9cipal r$uction ,a pr9cipal r$uction  
am\nt may be consid]$ ! maximum am\nt if
 x is )9 #a1jjj ( ! actual maximum      
am\nt4  7bb7 ,positive net pres5t value 

calculation ,a net pres5t value         
calculation %all be deem$ to be positive
 = ! mortgage inve/ors if ! net pres5t  
value result = an af=dable loan         
modification sc5>io is great] ?an ! net 
pres5t value result if no af=dable loan 
modification is made4 ,net pres5t value 
%all be calculat$ z ! b5efit ( all      
inve/ors 9 a securitization r ?an !     
b5efit ( any p>ticul> class ( inve/ors4 
7,v7 ,pr9cipal =giv5ess  7aa7 ,treatm5t 
( pr9cipal r$uction am\nt ,any am\nt (  
pr9cipal r$uction "u subclause 7,,ii7   
%all be treat$ z non9t]e/-be>+ pr9cipal 
=be>ance until ! dates describ$ "u item 
7bb74 ,! pr9cipal r$uction describ$ 9   
?is clause %all be deem$ to be sep>ate f
 & exclusive ( any o!r =be>ance t may be
 (f]$ 9 conjunction ) a modification "u 
an af=dable loan modification program4  
7bb7 ,r$uction ( pr9cipal ,! s]vic] ( a 
mortgage modifi$ "u an af=dable loan    
modification plan %all r$uce ! unpaid   
balance ( ! pr9cipal ( ! mortgage by an 
am\nt equal to #ac ( ! total am\nt ( !  

pr9cipal r$uction "u subclause 7,,ii7 on
 ea* ( ! foll[+ dates3 7,,aa7 ,! date t 
is #a ye> aft] ! date on :i* ! af=dable 
loan modification beg9s4 7,,bb7 ,! date 
t is #b ye>s aft] ! date on :i* !       
af=dable loan m$ication beg9s4 7,,cc7 ,!
 date t is #c ye>s aft] ! date on :i* ! 
af=dable loan modification beg9s4       
7,,vi7 ,c]ta9 modifications ,) respect  
to a borr[] t is n und]wat] & does n    
qualify = pr9ciple r$uction1 ! s]vic]   
%all (f] su* borr[] an af=dable loan    
modification to rea* ! t>get af=dable   
regul> mortgage paym5t am\nt1 if !      
borr[] qualifies4  7,e7 ,treatm5t (     
junior li5s ,) respect to a borr[]1 if a
 prim>y mortgage loan is modifi$        
pursuant to ?is p>agraph1 ! s]vic] ( any
 junior mortgage loan %all (f] to modify
 or ext+ui% ! second li5 accord+ to     
requirem5ts e/abli%$ by ! ,bureau4  7,f7
 ,rule ( con/ruction ,no?+ 9 ?is        
subsection %all be con/ru$ z prohibit+ a
 s]vic] f provid+ a loan modification t 
does n produce a positive net pres5t    

value 7z def9$ "u subp>agraph           
7,d77ii77,,iv77bb774  7#g7 ,b> to       
=eclosure ,9 any judicial or nonjudicial
 =eclosure proce$+1 x %all be a b> to   
=eclosure t ! s]vic] ( ! f$]ally relat$ 
mortgage loan on ! prop]ty to be =eclos$
 violat$ any provision ( ?is subsection4
  7o7 ,mortgage ,s]vic] ,ombudsman  7#a7
 ,9 g5]al ,! ,director ( ! ,bureau %all 
appo9t a ,mortgage ,s]vic] ,ombudsman 7!
 ,ombudsman7 )9 ! ,bureau4  7#b7 ,duties
 ,! ,ombudsman %all provide assi/ance to
 s]vic]s & borr[]s 9 comply+ ) ,f$]al   
law ) respect to ! s]vic+ ( mortgage    
loans & (f] resolution to borr[]s :o are
 fac+ noncompliance4  7#c7 ,focus on    
l[-,income borr[]s ,9 c>ry+ out ?is     
subsection1 ! ,ombudsman %all focus on  
provid+ assi/ance to l[-income borr[]s4 
7#d7 ,consultation ,! ,ombudsman %all   
consult )-- 7,a7 attorneys g5]al (      
,/ates 9 c>ry+ out ?is section2 &  7,b7 
o!r (fices ( ! ,bureau t engage 9       
dispute resolution4  7#e7               
,nonduplication ,! ,ombudsman may n c>ry

 out any activities t w\ld be           
duplicative ) activities ( o!r ,bureau  
(fices4  7p7 ,p5alties = robo-,sign+    
,any s]vic] :o records or files ) a l&  
records (fice or a c\rt m ?an "o docum5t
 ) mat]ial defici5cies ) respect to a   
mortgage loan %all be subject to a f9e (
 n m ?an #g1ejj = ea* su* loan4  4  7b7 
,damages & co/s ,section #f7;f7 ( !     
,real ,e/ate ,settlem5t ,proc$ures ,act 
( #aigd 7#ab ,u4,s4,c4 #bfje7;f77 is    
am5d$ by /rik+ a patt]n or practice (   
ea* place su* t]m appe>s4  #c4 ,pref]r$ 
language ( consum] ,section #abi;,b ( ! 
,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4       
#afci;b7 is am5d$ by add+ at ! end !    
foll[+3  7g7 ,pref]r$ language ( consum]
  7#a7 ,application "q ,9 any           
application us$ by a mortgage orig9ator 
= a resid5tial mortgage loan1 !         
orig9ator %all ask ! consum] to /ate !  
consum]'s pref]r$ language4  7#b7       
,lett]s ( explanation = orig9ation ,a   
mortgage orig9ator = a resid5tial       
mortgage loan %all-- 7,a7 accept lett]s 

( explanation = orig9ation 9 ! consum]'s
 pref]r$ language2 &  7,b7 include any  
su* lett]s 9 ! consum]'s file4  7#c7    
,%>+ ( in=mation ,any "t a mortgage     
orig9ator assigns a resid5tial mortgage 
loan or contracts ) a s]vic] ) respect  
to a resid5tial mortgage loan1 !        
orig9ator %all in=m ! assignee or s]vic]
 ( ! consum]'s pref]r$ language report$ 
"u p>agraph 7#a7 & provide ! assignee or
 s]vic] ) any lett]s ( explanation =    
orig9ation describ$ "u p>agraph 7#b74  4
  #d4 ,protect+ t5ants at =eclosure  7a7
 ,effect ( =eclosure on preexi/+ t5ancy 
7#a7 ,9 g5]al ,9 ! case ( any =eclosure 
on a f$]ally-relat$ mortgage loan or on 
any dwell+ or resid5tial real prop]ty   
aft] ! date ( enactm5t ( ?is section1   
any imm$iate successor 9 int]e/ 9 su*   
prop]ty pursuant to ! =eclosure %all    
assume su* int]e/ subject to--  7,a7 !  
provision1 by su* successor 9 int]e/ ( a
 notice to vacate to any bona fide t5ant
 at lea/ #ij days be=e ! effective date 
( su* notice2 &  7,b7 ! rights ( any    

bona fide t5ant1 z ( ! date ( su* notice
 ( =eclosure-- 7i7 "u any bona fide     
lease ent]$ into be=e ! notice (        
=eclosure to occupy ! premises until !  
end ( ! rema9+ t]m ( ! lease1 except t a
 successor 9 int]e/ may t]m9ate a lease 
effective on ! date ( sale ( ! unit to a
 pur*as] :o w occupy ! unit z a prim>y  
resid5ce1 subject to ! receipt by !     
t5ant ( ! #ij-;day notice "u subp>agraph
 7,a72 or  7ii7 )\t a lease or ) a lease
 t]m9able at w "u ,/ate law1 subject to 
! receipt by ! t5ant ( ! #ij-;day notice
 "u subp>agraph 7,a71 except t no?+ "u  
?is subsection %all affect ! requirem5ts
 = t]m9ation ( any ,f$]al- or           
,/ate-subsidiz$ t5ancy or ( any ,/ate or
 local law t provides long] "t p]iods or
 o!r additional protections = t5ants4   
7#b7 ,bona ,fide ,lease or ,t5ancy ,=   
purposes ( ?is subsection1 a lease or   
t5ancy %all be consid]$ bona fide only  
if-- 7,a7 ! mortgagor or ! *ild1 sp\se1 
or p>5t ( ! mortgagor "u ! contract is n
 ! t5ant2  7,b7 ! lease or t5ancy 0 !   

result ( an arms-l5g? transaction2 &    
7,c7 ! lease or t5ancy requires !       
receipt ( r5t t is n sub/antially less  
?an fair m>ket r5t = ! prop]ty or !     
unit's r5t is r$uc$ or subsidiz$ due to 
a ,f$]al1 ,/ate1 or local subsidy4  7#c7
 ,def9ition ,= purposes ( ?is           
subsection1 ! t]m f$]ally-relat$        
mortgage loan has ! same mean+ z 9      
section #c ( ! ,real ,e/ate ,settlem5t  
,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4  
#bfjb74  7b7 ,effect ( =eclosure on     
section #h t5ancies ,section #h7o77#g7 (
 ! ,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db
 ,u4,s4,c4 #adcg;f7o77#g77 is am5d$--   
7#a7 by ins]t+ be=e ! semicolon 9       
subp>agraph 7,c7 ! foll[+3  & 9 ! case (
 an own] :o is an imm$iate successor 9  
int]e/ pursuant to =eclosure dur+ ! t]m 
( ! lease vacat+ ! prop]ty prior to sale
 %all n con/itute o!r good cause1 except
 t ! own] may t]m9ate ! t5ancy effective
 on ! date ( transf] ( ! unit to ! own] 
if ! own]-- 7i7 w occupy ! unit z a     
prim>y resid5ce2 &  7ii7 has provid$ !  

t5ant a notice to vacate at lea/ #ij    
days be=e ! effective date ( su* notice4
  2 &  7#b7 by ins]t+ at ! end (        
subp>agraph 7,f7 ! foll[+3 ,9 ! case (  
any =eclosure on any f$]ally-relat$     
mortgage loan 7z t t]m is def9$ 9       
section #c ( ! ,real ,e/ate ,settlem5t  
,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4  
#bfjb77 or on any resid5tial real       
prop]ty 9 :i* a recipi5t ( assi/ance "u 
?is subsection resides1 ! imm$iate      
successor 9 int]e/ 9 su* prop]ty        
pursuant to ! =eclosure %all assume su* 
int]e/ subject to ! lease betwe5 ! prior
 own] & ! t5ant & to ! h\s+ assi/ance   
paym5ts contract betwe5 ! prior own] & !
 public h\s+ ag5cy = ! occupi$ unit1    
except t ?is provision & ! provisions   
relat$ to =eclosure 9 subp>agraph 7,c7  
%all n %all n affect any ,/ate or local 
law t provides long] "t p]iods or o!r   
additional protections = t5ants44  7c7  
,rulemak+ ,! ,secret>y ( ,h\s+ & ,urban 
,developm5t %all1 n lat] ?an ! end ( !  
#ab-mon? p]iod beg9n+ on ! date ( !     

enactm5t ( ?is ,act1 issue regulations  
to c>ry out ?is section & ! am5dm5ts    
made by ?is section1 & ! ,secret>y %all 
provide t su* regulations take effect n 
lat] ?an ! end ( ! #f-mon? p]iod beg9n+ 
on ! date ! regulations are issu$4  #e4 
,rule ( ,con/ruction ,no?+ 9 ?is ,act1  
or ! am5dm5ts made by ?is ,act1 %all be 
con/ru$ z preempt+ any ,/ate or local   
law ) respect to =eclosures t provides  
great] protections = consum]s4  #f4     
,rulemak+ ,except ) respect to section  
#d1 ! ,bureau ( ,consum] ,f9ancial      
,protection %all1 n lat] ?an ! end ( !  
#ab-mon? p]iod beg9n+ on ! date ( !     
enactm5t ( ?is ,act1 issue regulations  
to c>ry out ?is ,act & ! am5dm5ts made  
by ?is ,act1 & ! ,bureau %all provide t 
su* regulations take effect n lat] ?an !
 end ( ! #f-mon? p]iod beg9n+ on ! date 
! regulations are issu$4