,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #dafj  ,,in ,,the ,,house ,,of  
,,representatives  ,october #bf1        
#bjag,ms4 ,maxine ,waters of ,california
 7for herself and ,mr4 ,heck7 introduced
 the following bill2 which was referred 
to the ,committee on ,financial         
,services  ,a ,,bill  ,to revise the    
,,fha program for home equity conversion
 mortgages for elderly homeowners to add
 safeguards to prevent the displacement 
of homeowners1 and for other purposes4  
#a4 ,short title ,this ,act may be cited
 as the ,preventing ,foreclosures on    
,seniors ,act of #bjag4  #b4 ,safeguards
 to prevent displacement of homeowner   
,subsection 7j7 of section #bee of the  
,national ,housing ,act 7#ab ,u4,s4,c4  
#agaez-#bj7;j77 is amended--  7#a7 by   
striking the subsection designation and 
all that follows through ,the ,secretary
 and inserting the following3  7j7      
,safeguards ,to prevent displacement of 
homeowner  7#a7 ,deferral of homeowner's
 obligation ,the ,secretary  2 and  7#b7

 by adding at the end the following new 
paragraphs3  7#b7 ,assignment of        
mortgage to ,,hud upon death of         
borrowing spouse with surviving         
non-borrowing spouse  7,a7 ,assignment2 
notice ,the ,secretary shall require the
 mortgagee of a mortgage insured under  
this section1 upon the death of the last
 surviving borrower under such mortgage 
who is survived by an eligible          
non-borrowing spouse--  7i7 to assign   
the mortgage to the ,secretary2 and     
7ii7 not later than the expiration of   
the #g-;day period beginning upon notice
 to the mortgagee of the death of the   
borrower1 to notify the eligible        
non-borrowing spouse in writing--  7,i7 
of the opportunity1 pursuant to         
subparagraph 7,b71 for the eligible     
non-borrowing spouse to remain in the   
property that is subject to the         
mortgage2 and  7,,ii7 that the eligible 
non-borrowing spouse should contact the 
mortgagee regarding such assignment4    
7,b7 ,treatment of eligible             

non-borrowing spouse ,after assignment  
of a mortgage to the ,secretary pursuant
 to subparagraph 7,a71 the ,secretary   
shall provide the eligible non-borrowing
 spouse with a deferral of the due and  
payable status due to the death of the  
borrowing spouse as long as the eligible
 non-borrowing spouse qualifies as such 
pursuant to paragraph 7#d77;,b74  7#c7  
,loss mitigation in cases of delinquent 
taxes or insurance  7,a7 ,requirement   
,the ,secretary shall require that1 in  
the case of a mortgage insured under    
this section that is in default by      
reason of failure to make payment of    
taxes or insurance required under the   
mortgage or homeowners association fees1
 the mortgagee shall1 as a precondition 
of sending a due and payable request to 
the ,secretary1 take the following      
actions3  7i7 ,loss mitigation ,the     
mortgagee shall take appropriate loss   
mitigation actions1 which may include   
the following actions3  7,i7            
,establishing a realistic repayment plan

 for the delinquent property charges4   
7,,ii7 ,assisting the borrower in       
contacting a ,,hud-approved ,housing    
,counseling ,agency 7,,hca7 to obtain   
free assistance in finding some viable  
resolution to the delinquency1 or in    
identifying local resources available to
 provide funds or homestead exemptions4 
7,,iii7 ,refinancing the delinquent     
mortgage into a new home equity         
conversion mortgage if-- 7aa7 there is  
sufficient equity to satisfy the        
existing mortgage and outstanding       
property charges2 and  7bb7 the         
applicant for refinancing meets the     
financial assessment guidelines of the  
,secretary4  7,,iv7 ,extending the      
deadlines for foreclosure in cases in   
which the youngest living borrower or   
spouse is at least #hj years of age and 
has critical circumstances such as a    
terminal illness1 long-term physical    
disability1 or a unique occupancy need4 
7,v7 ,refraining from submitting a due  
and payable request to the ,secretary in

 cases in which the total arrearage for 
property taxes and hazard insurance is  
less than #b1jjj4  7,,vi7 ,such other   
loss mitigation actions as the          
,secretary considers appropriate in such
 cases4  7ii7 ,treatment of             
non-borrowing spouse ,the mortgagee     
shall treat any non-borrowing spouse as 
a borrowing spouse for the purposes of  
loss mitigation4  7,b7 ,failure to      
comply ,in any case of claim for        
insurance benefits for a mortgage       
insured under this section made by a    
mortgagee who has failed to comply with 
the requirements under subparagraph     
7,a71 the ,secretary may reduce or deny 
such benefits based upon such failure4  
7#d7 ,definitions ,for purposes of this 
subsection1 the following definitions   
shall apply3 7,a7 ,borrower ,the term   
borrower means1 with respect to a       
mortgage insured under this section1 the
 original borrower under the note and   
mortgage4 ,such term does not include   
successors or assigns of a borrower4    

7,b7 ,eligible non-borrowing spouse ,the
 term eligible non-borrowing spouse     
means a non-borrowing spouse of a       
borrower under a mortgage insured under 
this section that was assigned an ,,fha 
,case ,number before ,august #d1 #bjad1 
who--  7i7  7,i7 was legally married1 as
 determined by the law of the ,state in 
which the spouse and borrower reside or 
resided or the ,state of celebration1 to
 the borrower at the time of loan       
closing and who remained married to the 
borrower until the borrower's death2 or 
7,,ii7 engaged in a committed           
relationship with the borrower akin to  
marriage but was prohibited1 at the time
 of the mortgage loan origination1 from 
legally marrying the borrower based on  
the gender of both the borrower and     
non-borrowing spouse1 but was legally   
married before the death of the         
borrower1 as determined by the law of   
the ,state in which the spouse and      
borrower reside or resided or the ,state
 of celebration1 to the borrower and    

remained married until the death of the 
borrower2  7ii7 currently resides and   
resided in the property secured by the  
mortgage insured under this section as  
his or her principal residence at       
origination of the mortgage and         
throughout the duration of the          
borrower's life2 and  7iii7 has obtained
 or is able to obtain1 before the date  
of foreclosure on the mortgage pursuant 
to the death of the last surviving      
borrower--  7,i7 good1 marketable title 
to or an ownership interest in the      
property subject to the mortgage2 or    
7,,ii7 a legal or other right 7including
 a will1 an executed lease1 or court    
order7 to remain in the property for    
life4  7,c7 ,non-borrowing spouse ,for  
purposes of this subsection1 the term   
non-borrowing spouse means1 with respect
 to a borrower under a mortgage insured 
under this section1 the spouse of such  
borrower who is not also a borrower4    
7#e7 ,mortgagee optional election       
assignment ,in implementing the         

,mortgagee ,optional ,election          
,assignment for home equity conversion  
mortgages insured under this section1   
the ,secretary shall use the definition 
of eligible non-borrowing spouse under  
paragraph 7#d7 of this subsection in    
lieu of the definition of eligible      
surviving non-borrowing spouse under the
 definition provisions of ,mortgagee    
,letter #bjae-ae 7,june #ab1 #bjae7 or  
any other definition4  4  #c4           
,consultation with ,bureau of ,consumer 
,financial ,protection ,section #bee of 
the ,national ,housing ,act 7#ab        
,u4,s4,c4 #agaez-#bj7 is amended-- 7#a7 
by redesignating subsection 7r7 as      
subsection 7q72 and  7#b7 by adding at  
the end the following new subsection3   
7r7 ,consultation with ,,cfpb ,in       
carrying out the program for insuring   
mortgages under this section1 the       
,secretary shall consult with the       
,bureau of ,consumer ,financial         
,protection of the ,federal ,reserve    
,system on matters involving consumer   

protections4  4