,,ii #aafth ,,congress #ast ,session ,s4 #bbgi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #be1 #bjai,ms4 ,cortez ,masto 7for herself and ,mr4 ,van ,hollen7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to make necessary reforms to improve compliance with loss mitigation requirements by servicers of mortgages for single family housing insured by the ,,fha1 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 ,section #bjd7;a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaj7;a77 is amended by adding at the end the following3 7#aj7 ,documentation of loss mitigation efforts 7,a7 ,in general ,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 the mortgage relating to loss mitigation4 7,b7 ,rule of construction ,nothing in this paragraph may 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 following3 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-- 7i7 ensure that the servicers comply with the requirements of this ,act and the standards and guidelines established by the ,secretary for the servicing of those mortgages2 and 7ii7 identify systemic problems and trends with the compliance described in clause 7i74 7,b7 ,loss mitigation requirements ,the oversight conducted under subparagraph 7,a7 shall include-- 7i7 oversight designed to ensure that the servicers comply with the requirements under this ,act1 and the standards and guidelines established by the ,secretary1 for loss mitigation2 and 7ii7 appropriate sampling and review of the compliance described in clause 7i71 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 the servicing of those mortgages1 including ordering noncompliant servicers to take corrective actions1 including barring foreclosure and cancelling from the borrower's 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 following3 #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-- 7,a7 include making available to the public a website of the ,department of ,housing and ,urban ,development1 an e-mail address1 a phone number1 and a mailing address for registering complaints2 and 7,b7 provide an opportunity for servicers to respond to complaints and submit information regarding complaints4 7#b7 ,attempt to resolve ,for each complaint registered under the procedure established under this subsection1 the ,secretary shall-- 7,a7 review the complaint and any response by the servicer2 and 7,b7 seek to resolve any dispute between the mortgagor and the servicer and make a determination regarding the complaint4 7#c7 ,use of information ,in making any determination regarding the compliance of a servicer 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 procedure established under this subsection4 7b7 ,notification of opportunity ,to appeal ,upon making a determination with respect to a complaint regarding servicing1 the ,secretary shall notify the complainant of-- 7#a7 the determination2 7#b7 the opportunity for the complainant to appeal an adverse determination under the procedure established under subsection 7a72 and 7#c7 the requirements for and how to initiate an appeal described in paragraph 7#b74 7c7 ,appeals procedure 7#a7 ,establishment ,the ,secretary-- 7,a7 shall provide a procedure for mortgagors to appeal an adverse determination by the ,secretary regarding a complaint registered under the procedure established under subsection 7a72 and 7,b7 if appropriate1 may take action pursuant to section #ecc7;d77#b7 with respect to a decision on an appeal described in subparagraph 7,a74 7#b7 ,limitation ,the procedure established under this subsection may not provide an appeal for any complaint that was previously appealed under the procedure4 7d7 ,prohibition on foreclosure ,the ,secretary shall prohibit the foreclosure of a mortgage during any period that a complaint or appeal regarding the mortgage is pending under the procedures established under 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 the decision4 7e7 ,reporting ,the ,secretary shall submit an annual report to ,congress regarding complaints received under the procedure maintained under subsection 7a71 which shall-- 7#a7 specify the number of complaints received1 disaggregated by types of complaints1 status of complaints1 geographic distribution of complaints1 and average times for resolution of complaints2 7#b7 include relevant information submitted by servicers and any other information that the ,secretary considers relevant2 and 7#c7 comply with any applicable privacy protections4 4 #e4 ,notice to borrowers of loss mitigation status and decisions ,section #bjd7;a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaj7;a771 as amended by section #b1 is amended by adding at the end the following3 7#aa7 ,notice to borrowers of loss mitigation status and decisions 7,a7 ,required notice ,the ,secretary shall require that1 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 ,,fha ,single ,family ,housing ,policy ,handbook #djjj4a1 or any successor provision1 and setting forth the actual information entered in applying the analysis2 7ii7 if the servicer did not conduct the analysis described 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 that 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 the actions described in subclause 7,,ii72 7iii7 a statement setting forth the results of the monthly loss mitigation evaluations of the servicer for the mortgage required under section #bjc4fje7;a7 of title #bd1 ,code of ,federal ,regulations1 or any successor regulation2 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 shall provide the borrower with all loss mitigation evaluation documentation required by the ,secretary with respect to the mortgage1 including the monthly evaluations described 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 the decision of a servicer regarding loss mitigation actions4 7,b7 ,references ,the notice required under subparagraph 7,a7 shall-- 7i7 contain references to the applicable provisions of the applicable handbook of the ,department of ,housing and ,urban ,development regarding ongoing loss mitigation reviews and the standards for those reviews2 and 7ii7 identify how the provisions described in clause 7i7 may be accessed on a publicly accessible website of the ,department of ,housing and ,urban ,development4 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 any regulations issued under that ,act4