,i #aafth ,,congress #ast ,session ,h4 ,r4 #cieh ,,in ,,the ,,house ,,of ,,representatives ,july #be1 #bjai,ms4 ,waters 7for herself1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 ,mr4 ,clay1 ,ms4 ,tlaib1 ,mr4 ,foster1 and ,mr4 ,cleaver7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to make necessary reforms to improve compliance with loss mitigation requirements by servicers of mortgages for single family housing insured by the ,,fha and to prevent foreclosures on ,,fha borrowers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,fha ,foreclosure ,prevention ,act of #bjai4 #b4 ,documentation of loss mitigation efforts ,subsection 7a7 of section #bjd of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaj7;a77 is amended by adding at the end the following new paragraph3 7#aj7 ,documentation of loss mitigation efforts ,notwithstanding any other provision of this title1 the ,secretary may not pay insurance benefits to any mortgagee of a single family mortgage insured under this ,act unless the mortgagee or other servicer for the mortgage has provided documentation to the ,secretary that is sufficient to demonstrate compliance with any requirements of the ,secretary applicable to such mortgage relating to loss mitigation4 ,this paragraph may not be construed to limit the authority of the ,secretary to impose civil monetary penalties4 4 #c4 ,,hud oversight of servicers ,section #ecc of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agce;f-#aa7 is amended by adding at the end the following new subsection3 7d7 ,oversight of mortgage servicers 7#a7 ,oversight 7,a7 ,in general ,the ,secretary shall conduct oversight of servicers of single family mortgages insured under this ,act on a regular and ongoing basis and in a manner designed to ensure that such servicers comply with the requirements of this ,act and the standards and guidelines established by the ,secretary for servicing of such mortgages and to identify systemic problems and trends with such compliance4 7,b7 ,loss mitigation requirements ,such oversight shall include oversight designed to ensure that such servicers comply with the requirements under this ,act1 and the standards and guidelines established by the ,secretary1 for loss mitigation1 and shall include appropriate sampling and review of such servicer compliance1 including direct information collection through generally accepted means from borrowers whose files were sampled1 such as surveys1 focus groups1 interview1 or other similar measures4 7#b7 ,corrective action ,the ,secretary shall take such actions as may be necessary to remedy failures by servicers of single family mortgages insured under this ,act to comply with the requirements of this ,act and the standards and guidelines established by the ,secretary for servicing of such mortgages1 including ordering non-compliant servicers to take corrective actions1 including barring foreclosure and cancelling from the borrowers account balance and from any insurance claim any interest and other fees that accrued during periods of noncompliance4 4 #d4 ,complaint procedure regarding loss mitigation ,title ,v of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agca;a et seq47 is amended by adding at the end the following new section3 #edc4 ,complaint procedure regarding loss mitigation 7a7 ,complaint procedure for borrowers 7#a7 ,features ,the ,secretary shall establish and maintain a procedure for mortgagors under single family mortgages insured under this ,act to register complaints with the ,secretary regarding servicing1 including loss mitigation actions1 which shall include making available to the public a website of the ,department1 an e-mail address1 a phone number1 and a mailing address for such purpose4 ,such procedure shall provide an opportunity for servicers to respond to such complaints and submit information regarding complaints4 7#b7 ,attempt to resolve ,for each complaint registered under the procedure established pursuant to this subsection1 the ,secretary shall review the complaint and any response by the servicer and shall seek to resolve any dispute between the mortgagor and the servicer and make a determination with regard to complaint4 7#c7 ,use of information ,in making any determinations regarding servicers' compliance with the requirements1 standards1 and guidelines for servicing1 including in identifying systemic problems and trends with servicing1 the ,secretary shall take into consideration information obtained under the complaint procedure under this subsection4 7b7 ,notification of opportunity ,to appeal ,upon making a determination with respect to a complaint1 the ,secretary shall notify the complainant of such determination1 of the opportunity for the complainant to appeal an adverse determination under the procedure established pursuant to subsection 7a71 and the requirements for and how to initiate such an appeal4 7c7 ,appeals procedure 7#a7 ,establishment ,the ,secretary shall provide a procedure for mortgagors to appeal an adverse determination by the ,secretary regarding a complaint registered under the procedure established pursuant to subsection 7a71 and1 if appropriate1 may take action pursuant to section #ecc7;d77#b7 pursuant to a decision on such an appeal4 7#b7 ,limitation ,the ,secretary shall provide that the procedure established pursuant to this subsection may not provide an appeal for any complaint that was previously appealed under such procedure4 7d7 ,prohibition on foreclosure ,the ,secretary shall prohibit the foreclosure of a mortgage during any period that a complaint or appeal regarding such mortgage is pending under the procedures established pursuant to this section and during a reasonable period after a complainant is notified of a determination regarding a complaint that provides the complainant an opportunity to appeal such decision4 7e7 ,reporting ,the ,secretary shall submit a report to the ,congress annually regarding complaints received under the procedure maintained pursuant to subsection 7a71 which shall specify the number of complaints received1 disaggregated by types of complaints1 status of complaints1 geographic distribution of complaints1 and average times for resolution of complaints1 shall include relevant information submitted by servicers1 and shall include any other information that the ,secretary considers relevant4 ,such report shall comply with any applicable privacy protections4 4 #e4 ,notice to borrowers of loss mitigation status and decisions ,subsection 7a7 of section #bjd of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaj7;a771 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new paragraph3 7#aa7 ,notice to borrowers of loss mitigation status and decisions 7,a7 ,required notice ,the ,secretary shall require that before any acceleration of the indebtedness due under a mortgage1 the servicer for the mortgage shall provide written notice to the mortgagor that includes-- 7i7 a summary explaining how the servicer applied the loss mitigation option priority analysis established by the ,secretary1 including the loss mitigation review waterfall under section ,,iii4,a4#b4;j4iii of the ,secretary's ,handbook #djjj4a or any successor provision1 and setting forth the actual information entered in applying such analysis2 7ii7 with respect to any mortgage for which the servicer did not conduct the analysis referred to in clause 7i7 because the servicer determined that the mortgagor did not express any interest in loss mitigation or provide appropriate documents-- 7,i7 a statement of such determination2 7,,ii7 a description of the actions that the servicer took to solicit the borrower for loss mitigation review and obtain appropriate documents2 and 7,,iii7 a statement of the dates that the servicer took such actions2 and 7iii7 a statement setting forth the results of the servicers' monthly loss mitigation evaluations for the mortgage required under section #bjc4fje7;a7 of the ,secretary's regulations 7#bd ,c4,f4,r4 #bjc4fje7;a77 or any successor provision2 7iv7 with respect to any loss mitigation action for which the mortgagor was determined to be ineligible1 an explanation of1 and documentation showing1 why the mortgagor was determined to be ineligible2 7v7 a statement informing the borrower that1 upon the request of the borrower1 the ,secretary will provide the borrower with all loss mitigation evaluation documentation required by the ,secretary with respect to the mortgage1 including monthly evaluations referred to in clause 7iii72 and 7vi7 information describing the procedure under section #edc7;a7 for registering complaints regarding loss mitigation and the procedure under section #edc7;c7 for appealing a servicer's decisions regarding loss mitigation actions4 7,b7 ,references ,such notice shall contain references to the applicable provisions of applicable handbook of the ,secretary regarding ongoing loss mitigation reviews and standards for such reviews and shall identify how such provisions may be accessed on a publicly accessible website of the ,department4 4 #f4 ,rule of construction ,nothing in this ,act may be construed to supercede1 or exempt any person from complying with1 any provision of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfja et seq47 or the regulations issued under such ,act4