,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #fajb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #ad1 #bjah,ms4  
,max9e ,wat]s ( ,cali=nia introduc$ !   
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,a    
,,bill  ,to provide = ! ,director ( !   
,f$]al ,h\s+ ,f9ance ,ag5cy to e/abli%  
prud5tial managem5t & op]ations /&>ds = 
mortgage s]vic]s1 & = o!r purposes4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,home[n] ,mortgage ,s]vic+ ,fairness    
,act ( #bjah4  #b4 ,f9d+s & purpose  7a7
 ,f9d+s ,! ,congress f9ds t--  7#a7     
mortgage s]vic+ plays a critical role 9 
det]m9+ ! likelihood t a del9qu5t borr[]
 w be able to save _! home f =eclosure1 
b home[n]s d n h ! ability to *oose _!  
mortgage s]vic]s2  7#b7 a #bjaa ,yale   
,j\rnal on ,regulation article writt5 by
 ,adam ,levit9 & ,t>a ,twomey1 entitl$  
,mortgage ,s]vic+1 confirm$ t borr[]s h 
no control ov] :at bank or non-bank     
entity s]vices _! mortgage loan1 :e!r ! 
s]vic+ rights on _! mortgage are        

transf]r$ to a new entity1 or :at       
contractual provisions gov]n ! s]vic+ ( 
_! mortgage loan2  7#c7 a #bjaa report  
entitl$ ,int]ag5cy ,review ( ,=eclosure 
,policies & ,practices conduct$ by !    
,f$]al ,res]ve ,sy/em1 ! ,(fice ( !     
,comptroll] ( ! ,curr5cy1 & ! ,(fice (  
,?rift ,sup]vision ackn[l$g$ t a numb] (
 sup]visory actions & indu/ry re=ms are 
requir$ to address weaknesses 9         
=eclosure process gov]nance 9 a way t w 
hold s]vic]s acc\ntable = e/abli%+      
necess>y gov]nance & controls2  7#d7 !re
 has be5 abundant evid5ce s9ce !        
f9ancial crisis ( #bjjg to #bjji t has  
indicat$ t "s s+le-family h\s+ mortgage 
s]vic]s are fail+ to provide mortgage   
borr[]s ) ! protections aga9/ =eclosure 
t !y are entitl$ to by law1 includ+     
failure to provide mortgage borr[]s )   
critical in=mation ab\t ! process (     
apply+ = =eclosure relief & loan        
modifications2  7#e7 multiple           
congressional he>+s h uncov]$ additional
 evid5ce ( failures 9 mortgage s]vic+1  

includ+--  7,a7 ! he>+ ( ! ,committee on
 ,f9ancial ,s]vices ( ! ,h\se (         
,repres5tatives entitl$ ,a ,review (    
,mortgage ,s]vic+ ,practices &          
,=eclosure ,mitigation1 ,july #be1 #bjjh
 7,s]ial ,no4 #aaj-acb72  7,b7 ! he>+ ( 
! ,subcommittee on ,insurance1 ,h\s+1 & 
,community ,opportunity ( ! ,committee  
on ,f9ancial ,s]vices ( ! ,h\se (       
,repres5tatives entitl$ ,robo-,sign+1   
,*a9 ( ,title1 ,loss ,mitigation & ,o!r 
,issues 9 ,mortgage ,s]vic+1 ,novemb]   
#ah1 #bjaj 7,s]ial ,no4 #aaa-aff72 &    
7,c7 ! jo9t he>+ ( ! ,subcommittee on   
,f9ancial ,in/itutions & ,consum] ,cr$it
 & ! ,subcommittee on ,ov]sight &       
,inve/igations ( ! ,committee on        
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives entitl$ ,mortgage       
,s]vic+3 ,an ,exam9ation ( ! ,role (    
,f$]al ,regulators 9 ,settlem5t         
,negotiations & ! ,future ( ,mortgage   
,s]vic+ ,/&>ds1 ,july #g1 #bjaa 7,s]ial 
,no4 #aab-dd72  7#f7 9 view ( ! height5$
 reliance by ! ,f$]al ,national         

,mortgage ,association 7,fannie ,mae7 & 
! ,f$]al ,home ,loan ,mortgage          
,corporation 7,fr$die ,mac7 on unilat]al
 reviews ( borr[]s = loss mitigation 9  
place ( reviews ( applications initiat$ 
by borr[]s1 !re is an increas$ ne$ =    
ov]sight to br+ acc\ntability to ! loss 
mitigation review process2  7#g7        
mortgage borr[]s h also fac$ o!r        
wide-rang+ problems ) _! mortgage       
s]vic]s1 includ+ errors t h co/ "s      
borr[]s money & h co/ o!rs _! homes2    
7#h7 su* problems h includ$ lapses 9    
basic mortgage s]vic+ functions1 su* z  
inaccurate mon?ly /atem5ts1 improp]ly   
cr$it$ paym5ts1 improp] escr[ h&l+1     
ignor$ cu/om] compla9ts1 & improp]      
s]vic+ transf]s2  7#i7 ^! failures 9    
mortgage s]vic+ are fur!r evid5c$ by    
en=cem5t actions initiat$ by ! ,consum] 
,f9ancial ,protection ,bureau aga9/ n9e 
diff]5t bank & non-bank mortgage s]vic]s
 f #bjac ?r\gh #bjag = mismanag+ ! loss 
mitigation process1 mi/reat+ mortgage   
borr[]s :o 7 try+ to save _! homes f    

=eclosure1 & fail+ borr[]s at e /age ( !
 mortgage s]vic+ process2  7#aj7 al?\gh 
"s ,f$]al regulators1 9 p>ticul> !      
,f$]al ,h\s+ ,f9ance ,ag5cy & ! ,consum]
 ,f9ancial ,protection ,bureau1 h !     
au?ority to take en=cem5t & sup]visory  
action aga9/ mortgage s]vic]s t h>m     
borr[]s1 ,f$]al regulators %\ld take    
additional action t w protect home[n]s f
 ! types ( abuses t h l$ to /all$       
modifications1 excess fees1 & ev5       
=eclosure2 &  7#aa7 to ensure m>ket     
confid5ce 9 ! ,unit$ ,/ates h\s+ sy/em &
 improve acc\ntability & transp>5cy1    
,f$]al regulators %\ld be emp[]$ to     
fully ex]cise all /atutorily m&at$ &    
impli$ p[]s to protect consum]s f h>mful
 mortgage s]vic]s4  7b7 ,purpose ,x is !
 purpose ( ?is ,act to ensure t mortgage
 borr[]s are protect$ f abusive s]vic+  
practices1 to end engagem5t by mortgage 
s]vic]s 9 illegal s]vic+ practices1 to  
keep m p 9 _! homes :5ev] possible1 to  
promote s]vic]s' compliance ) ! loss    
mitigation guidel9es ( ,fannie ,mae &   

,fr$die ,mac1 & to m9imize losses to    
companies & taxpay]s4  #c4 ,regulation &
 ov]sight ( mortgage s]vic]s  7a7 ,9    
g5]al ,subp>t ,a ( "p #b ( subtitle ,a (
 ! ,f$]al ,h\s+ ,ent]prises ,f9ancial   
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #deda et seq47 is am5d$ by    
add+ at ! end ! foll[+ new section3     
#acbg4 ,prud5tial managem5t & op]ations 
/&>ds = cov]$ s]vic]s  7a7 ,def9itions  
,= purposes ( ?is section1 ! foll[+     
def9itions %all apply3 7#a7 ,director ,!
 t]m ,director has ! mean+ giv5 su* t]m 
9 section #acjc4  7#b7 ,cov]$ s]vic] ,! 
t]m cov]$ s]vic] means a s]vic]1 z su*  
t]m is def9$ 9 section #f7;i7 ( ! ,real 
,e/ate ,settlem5t ,proc$ures ,act (     
#aigd 7#ab ,u4,s4,c4 #bfje7;i771 t      
conducts mortgage s]vic+ ) respect to   
any s+le-family mortgage loans own$ or  
gu>ante$ by any ent]prise4  7b7 ,/&>ds  
,! ,director %all e/abli% /&>ds1 by     
regulation1 = cov]$ s]vic]s relat+ to   
ea* ( ! foll[+3  7#a7 ,adequacy (       
int]nal controls & in=mation sy/ems1    

tak+ into acc\nt ! nature & scale (     
bus9ess op]ations4  7#b7 ,indep5d5ce &  
adequacy ( int]nal audit sy/ems4  7#c7  
,ov]all risk managem5t processes1       
includ+ adequacy ( ov]sight by s5ior    
managem5t & policies to id5tify1        
measure1 monitor1 & control material    
risks1 includ+ data protection &        
reputational risks4  7#d7 ,compliance ) 
! mortgage s]vic+ requirem5ts "u ! ,real
 ,e/ate ,settlem5t ,proc$ures ,act (    
#aigd 7#ab ,u4,s4,c4 #bfja et seq47 & ! 
regulations implem5t+ su* ,act 7#ab     
,c4,f4,r4 ,"p #ajbd2 ,regulation ,x71 9 
consultation ) ! ,bureau ( ,consum]     
,f9ancial ,protection1 includ+ a sy/em =
 solicitation & review ( borr[]         
compla9ts involv+ s]vic+ ( s+le-family  
h\s+ mortgage loans own$ or gu>ante$ by 
an ent]prise4  7#e7 ,docum5tation &     
ret5tion ( records relat$ to borr[]     
int]actions t enable ! ,director to     
evaluate ! quality ( s]vice giv5 to     
borr[]s1 includ+ borr[] contact1        
del9qu5cy managem5t practices1 loan     

modifications & =eclosure alt]natives1 &
 =eclosure timel9es1 :i* %all provide t 
9 ea* in/ance involv+ a default "u a    
loan1 ! cov]$ s]vic] %all docum5t &     
reta9 a detail$ description ( ! actions 
su* s]vic] took to comply ) !           
ent]prises' loss mitigation review      
requirem5ts1 includ+ ef=ts to e/abli%   
borr[] contact1 solicit a loss          
mitigation application1 review !        
application "u ! appropriate guidel9es1 
& in=m ! borr[] ( ! s]vic]'s decisions4 
7#f7 ,su* o!r op]ational & managem5t    
/&>ds z ! ,director det]m9es to be      
appropriate to c>ry out ! purposes ( ?is
 ,act4  7c7 ,failure ,to meet /&>ds     
7#a7 ,plan requirem5t  7,a7 ,9 g5]al ,if
 ! ,director det]m9es t a cov]$ s]vic]  
fails to meet any /&>d e/abli%$ "u      
subsection 7b71 ! ,director %all require
 ! cov]$ s]vic] to submit an acceptable 
plan1 9 writ+1 to ! ,director )9 ! "t   
all[$ "u subp>agraph 7,c74  7,b7        
,cont5ts ,any plan requir$ or au?oriz$  
"u subp>agraph 7,a7 %all specify !      

actions t ! cov]$ s]vic] w take to      
correct ! defici5cy4  7,c7 ,deadl9es =  
submission & review ,! ,director %all by
 regulation e/abli% deadl9es t-- 7i7    
require a cov]$ s]vic] to submit a plan 
requir$ "u ?is subp>agraph n lat] ?an   
#cj days aft] ! ,director det]m9es t !  
cov]$ s]vic] fails to meet any /&>d     
e/abli%$ "u subsection 7a72 &  7ii7     
require ! ,director to approve1 d5y1 or 
o!rwise respond to ! plan n lat] ?an #cj
 days aft] ! plan is submitt$4  7#b7    
,requir$ ord] ^u failure to submit or   
implem5t plan ,if a cov]$ s]vic] fails  
to submit an acceptable plan )9 ! "t    
all[$ "u p>agraph 7#a77;,c71 or fails 9 
any mat]ial respect to implem5t a plan  
accept$ by ! ,director1 ! foll[+ %all   
apply3  7,a7 ,requir$ correction (      
defici5cy ,! ,director %all1 by ord]1   
require ! cov]$ s]vic] to correct !     
defici5cy4  7,b7 ,o!r au?ority ,!       
,director may1 by ord]1 take "o or m ( !
 foll[+ actions until ! defici5cy is    
correct$3  7i7 ,impose a civil monet>y  

p5alty ^u ! cov]$ s]vic] 9 an am\nt n to
 exce$ #aj1jjj = ea* day dur+ :i* su*   
defici5cy cont9ues4  7ii7 ,m&ate !      
transf] ( loan s]vic+ rights )\t provid+
 comp5sation to ! cov]$ s]vic]4  7iii7  
,limit or prohibit ! cov]$ s]vic] f     
conduct+ bus9ess ) ! ent]prises4  7iv7  
,require ! cov]$ s]vic] to take any o!r 
action t ! ,director det]m9es w bett]   
c>ry out ! purposes ( ?is section ?an   
any ( ! actions describ$ 9 ?is          
subp>agraph4  7#c7 ,m&atory re/rictions 
,9 comply+ ) p>agraph 7#b71 ! ,director 
%all take "o or m ( ! actions describ$ 9
 clauses 7i7 ?r\gh 7iv7 ( p>agraph      
7#b77;,b7 if--  7,a7 ! ,director        
det]m9es t ! cov]$ s]vic] fails to meet 
any /&>d prescrib$ "u subsection 7b72 & 
7,b7 ! cov]$ s]vic] has n correct$ !    
defici5cy )9 a reasonable p]iod or )9 a 
p]iod e/abli%$ by ! ,director4  7d7 ,o!r
 en=cem5t au?ority n affect$ ,! au?ority
 ( ! ,director "u ?is section is 9      
addition to any o!r au?ority ( !        
,director & does n limit ! additional or

 concurr5t au?ority ( ! ,bureau (       
,consum] ,f9ancial ,protection z        
e/abli%$ 9 title ,x ( ! ,dodd-,frank    
,wall ,/reet ,re=m & ,consum]           
,protection ,act 7#ab ,u4,s4,c4 #edha et
 seq474  7e7 ,ov]sight ,! ,director %all
 conduct ov]sight ( cov]$ s]vic]s on a  
regul> & ongo+ basis & 9 a mann] design$
 to ensure t su* s]vic]s comply ) !     
requirem5ts ( ?is ,act & ! regulations  
e/abli%$ by ! ,director = s]vic+ ( su*  
mortgages & to id5tify sy/emic problems 
& tr5ds ) su* compliance4  7f7          
,exam9ations  7#a7 ,au?ority ,!         
,director %all h p[] to make a ?or\gh   
exam9ation ( any cov]$ s]vic] :5ev] !   
,director det]m9es an exam9ation ( any  
su* s]vic] is necess>y to c>ry out !    
purposes ( ?is section4  7#b7 ,manuals  
,! ,director may issue & revise         
exam9ation manuals z necess>y to c>ry   
out p>agraph 7#a74  7g7 ,regulatory fees
  7#a7 ,au?orization ,! ,director may   
assess & collect f cov]$ s]vic]s a      
reasonable fee1 9 an am\nt n exce$+ !   

am\nt suffici5t to provide = reasonable 
co/s 7includ+ adm9i/rative co/s7 &      
exp5ses incurr$ by ! ,director 9        
connection ) c>ry+ out !                
responsibilities ( ! ,director "u ?is   
section4  7#b7 ,e/abli%m5t ,! ,director 
%all e/abli% ! am\nt ( fees "u ?is      
subsection = a fiscal ye> s z to g5]ate 
a total rev5ue am\nt n exce$+ !         
,director's e/imate ( #ajj p]c5t ( !    
co/s ( ! ,ag5cy 9 c>ry+ out !           
responsibilities "u ?is section dur+ su*
 ye>4  7#c7 ,availability ,fees au?oriz$
 "u p>agraph 7#a7 = a fiscal ye> %all be
 available = obligation only-- 7,a7 to !
 ext5t & 9 ! am\nt provid$ 9 advance 9  
appropriations ,acts2 &  7,b7 to pay !  
co/s ( ! ,ag5cy 9 c>ry+ out !           
responsibilities "u ?is section dur+ su*
 fiscal ye>4  7h7 ,issuance (           
regulations ,! ,director %all issue su* 
regulations z may be necess>y to enable 
! ,director to adm9i/] or to c>ry out ! 
purposes ( ?is section & to prev5t      
evasions !re(4  4  7b7 ,tim+ ,!         

,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy %all issue f9al regulations1 z   
requir$ by section #acbg ( ! ,f$]al     
,h\s+ ,ent]prises ,f9ancial ,safety &   
,s\ndness ,act ( #aiib 7z add$ by       
subsection 7a7 ( ?is section71 n lat]   
?an ! expiration ( ! #ab-mon? p]iod     
beg9n+ on ! date ( ! enactm5t ( ?is     
,act4