,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bbgi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #be1 #bjai,ms4   
,cortez ,ma/o 7= h]self & ,mr4 ,van     
,holl57 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to make necess>y re=ms to      
improve compliance ) loss mitigation    
requirem5ts by s]vic]s ( mortgages =    
s+le family h\s+ insur$ by ! ,,fha1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,,fha ,=eclosure       
,prev5tion ,act ( #bjai4  #b4           
,docum5tation ( loss mitigation ef=ts   
,section #bjd7;a7 ( ! ,national ,h\s+   
,act 7#ab ,u4,s4,c4 #agaj7;a77 is am5d$ 
by add+ at ! end ! foll[+3  7#aj7       
,docum5tation ( loss mitigation ef=ts   
7,a7 ,9 g5]al ,not)/&+ any o!r provision
 ( ?is title1 ! ,secret>y may n pay     
insurance b5efits to any mortgagee ( a  
s+le family mortgage insur$ "u ?is ,act 
unless ! mortgagee or o!r s]vic] = !    
mortgage has provid$ docum5tation to !  

,secret>y t is suffici5t to demon/rate  
compliance ) any requirem5ts ( !        
,secret>y applicable to ! mortgage      
relat+ to loss mitigation4  7,b7 ,rule (
 con/ruction ,no?+ 9 ?is p>agraph may be
 con/ru$ to limit ! au?ority ( !        
,secret>y to impose civil monet>y       
p5alties4  4  #c4 ,,hud ov]sight (      
s]vic]s ,section #ecc ( ! ,national     
,h\s+ ,act 7#ab ,u4,s4,c4 #agce;f-#aa7  
is am5d$ by add+ at ! end ! foll[+3  7d7
 ,ov]sight ( mortgage s]vic]s  7#a7     
,ov]sight  7,a7 ,9 g5]al ,! ,secret>y   
%all conduct ov]sight ( s]vic]s ( s+le  
family mortgages insur$ "u ?is ,act on a
 regul> & ongo+ basis & 9 a mann]       
design$ to--  7i7 ensure t ! s]vic]s    
comply ) ! requirem5ts ( ?is ,act & !   
/&>ds & guidel9es e/abli%$ by !         
,secret>y = ! s]vic+ ( ^? mortgages2 &  
7ii7 id5tify sy/emic problems & tr5ds ) 
! compliance describ$ 9 clause 7i74     
7,b7 ,loss mitigation requirem5ts ,!    
ov]sight conduct$ "u subp>agraph 7,a7   
%all include-- 7i7 ov]sight design$ to  

ensure t ! s]vic]s comply ) !           
requirem5ts "u ?is ,act1 & ! /&>ds &    
guidel9es e/abli%$ by ! ,secret>y1 =    
loss mitigation2 &  7ii7 appropriate    
sampl+ & review ( ! compliance describ$ 
9 clause 7i71 includ+ direct in=mation  
collection ?r\gh g5]ally accept$ means f
 borr[]s ^: files 7 sampl$1 su* z       
surveys1 focus gr\ps1 int]view1 or o!r  
simil> measures4  7#b7 ,corrective      
action ,! ,secret>y %all take su*       
actions z may be necess>y to rem$y      
failures by s]vic]s ( s+le family       
mortgages insur$ "u ?is ,act to comply )
 ! requirem5ts ( ?is ,act & ! /&>ds &   
guidel9es e/abli%$ by ! ,secret>y = !   
s]vic+ ( ^? mortgages1 includ+ ord]+    
noncompliant s]vic]s to take corrective 
actions1 includ+ b>r+ =eclosure &       
cancell+ f ! borr[]'s acc\nt balance & f
 any insurance claim any int]e/ & o!r   
fees t accru$ dur+ p]iods (             
noncompliance4  4  #d4 ,compla9t        
proc$ure reg>d+ loss mitigation ,title  
,v ( ! ,national ,h\s+ ,act 7#ab        

,u4,s4,c4 #agca;a et seq47 is am5d$ by  
add+ at ! end ! foll[+3  #edc4 ,compla9t
 proc$ure reg>d+ loss mitigation  7a7   
,compla9t proc$ure = borr[]s  7#a7      
,features ,! ,secret>y %all e/abli% &   
ma9ta9 a proc$ure = mortgagors "u s+le  
family mortgages insur$ "u ?is ,act to  
regi/] compla9ts ) ! ,secret>y reg>d+   
s]vic+1 includ+ loss mitigation actions1
 :i* %all--  7,a7 include mak+ available
 to ! public a website ( ! ,dep>tm5t (  
,h\s+ & ,urban ,developm5t1 an e-mail   
address1 a phone numb]1 & a mail+       
address = regi/]+ compla9ts2 &  7,b7    
provide an opportunity = s]vic]s to     
respond to compla9ts & submit in=mation 
reg>d+ compla9ts4  7#b7 ,attempt to     
resolve ,= ea* compla9t regi/]$ "u !    
proc$ure e/abli%$ "u ?is subsection1 !  
,secret>y %all--  7,a7 review ! compla9t
 & any response by ! s]vic]2 &  7,b7    
seek to resolve any dispute betwe5 !    
mortgagor & ! s]vic] & make a           
det]m9ation reg>d+ ! compla9t4  7#c7    
,use ( in=mation ,9 mak+ any det]m9ation

 reg>d+ ! compliance ( a s]vic] ) !     
requirem5ts1 /&>ds1 & guidel9es =       
s]vic+1 includ+ 9 id5tify+ sy/emic      
problems & tr5ds ) s]vic+1 ! ,secret>y  
%all take into consid]ation in=mation   
obta9$ "u ! proc$ure e/abli%$ "u ?is    
subsection4  7b7 ,notification (        
opportunity ,to appeal ,^u mak+ a       
det]m9ation ) respect to a compla9t     
reg>d+ s]vic+1 ! ,secret>y %all notify !
 compla9ant (--  7#a7 ! det]m9ation2    
7#b7 ! opportunity = ! compla9ant to    
appeal an adv]se det]m9ation "u !       
proc$ure e/abli%$ "u subsection 7a72 &  
7#c7 ! requirem5ts = & h[ to initiate an
 appeal describ$ 9 p>agraph 7#b74  7c7  
,appeals proc$ure  7#a7 ,e/abli%m5t ,!  
,secret>y--  7,a7 %all provide a        
proc$ure = mortgagors to appeal an      
adv]se det]m9ation by ! ,secret>y reg>d+
 a compla9t regi/]$ "u ! proc$ure       
e/abli%$ "u subsection 7a72 &  7,b7 if  
appropriate1 may take action pursuant to
 section #ecc7;d77#b7 ) respect to a    
decision on an appeal describ$ 9        

subp>agraph 7,a74  7#b7 ,limitation ,!  
proc$ure e/abli%$ "u ?is subsection may 
n provide an appeal = any compla9t t 0  
previ\sly appeal$ "u ! proc$ure4  7d7   
,prohibition on =eclosure ,! ,secret>y  
%all prohibit ! =eclosure ( a mortgage  
dur+ any p]iod t a compla9t or appeal   
reg>d+ ! mortgage is p5d+ "u ! proc$ures
 e/abli%$ "u ?is section & dur+ a       
reasonable p]iod aft] a compla9ant is   
notifi$ ( a det]m9ation reg>d+ a        
compla9t t provides ! compla9ant an     
opportunity to appeal ! decision4  7e7  
,report+ ,! ,secret>y %all submit an    
annual report to ,congress reg>d+       
compla9ts receiv$ "u ! proc$ure ma9ta9$ 
"u subsection 7a71 :i* %all--  7#a7     
specify ! numb] ( compla9ts receiv$1    
disaggregat$ by types ( compla9ts1 /atus
 ( compla9ts1 geographic di/ribution (  
compla9ts1 & av]age times = resolution (
 compla9ts2  7#b7 include relevant      
in=mation submitt$ by s]vic]s & any o!r 
in=mation t ! ,secret>y consid]s        
relevant2 &  7#c7 comply ) any          

applicable privacy protections4  4  #e4 
,notice to borr[]s ( loss mitigation    
/atus & decisions ,section #bjd7;a7 ( ! 
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agaj7;a771 z am5d$ by section #b1 is   
am5d$ by add+ at ! end ! foll[+3  7#aa7 
,notice to borr[]s ( loss mitigation    
/atus & decisions  7,a7 ,requir$ notice 
,! ,secret>y %all require t1 be=e any   
accel]ation ( ! indebt$ness due "u a    
mortgage1 ! s]vic] = ! mortgage %all    
provide writt5 notice to ! mortgagor t  
includes--  7i7 a summ>y expla9+ h[ !   
s]vic] appli$ ! loss mitigation option  
priority analysis e/abli%$ by !         
,secret>y1 includ+ ! loss mitigation    
review wat]fall "u section              
,,iii4,a4#b4;j4iii ( ! ,,fha ,s+le      
,family ,h\s+ ,policy ,h&book #djjj4a1  
or any successor provision1 & sett+ =? !
 actual in=mation ent]$ 9 apply+ !      
analysis2  7ii7 if ! s]vic] did n       
conduct ! analysis describ$ 9 clause 7i7
 because ! s]vic] det]m9$ t ! mortgagor 
did n express any int]e/ 9 loss         

mitigation or provide appropriate       
docum5ts--  7,i7 a /atem5t ( t          
det]m9ation2  7,,ii7 a description ( !  
actions t ! s]vic] took to solicit !    
borr[] = loss mitigation review & obta9 
appropriate docum5ts2 &  7,,iii7 a      
/atem5t ( ! dates t ! s]vic] took !     
actions describ$ 9 subclause 7,,ii72    
7iii7 a /atem5t sett+ =? ! results ( !  
mon?ly loss mitigation evaluations ( !  
s]vic] = ! mortgage requir$ "u section  
#bjc4fje7;a7 ( title #bd1 ,code ( ,f$]al
 ,regulations1 or any successor         
regulation2  7iv7 ) respect to any loss 
mitigation action = :i* ! mortgagor 0   
det]m9$ to be ineligible1 an explanation
 (1 & docum5tation %[+1 :y ! mortgagor 0
 det]m9$ to be ineligible2  7v7 a       
/atem5t in=m+ ! borr[] t1 ^u ! reque/ ( 
! borr[]1 ! ,secret>y %all provide !    
borr[] ) all loss mitigation evaluation 
docum5tation requir$ by ! ,secret>y )   
respect to ! mortgage1 includ+ ! mon?ly 
evaluations describ$ 9 clause 7iii72 &  
7vi7 in=mation describ+ ! proc$ure "u   

section #edc7;a7 = regi/]+ compla9ts    
reg>d+ loss mitigation & ! proc$ure "u  
section #edc7;c7 = appeal+ ! decision ( 
a s]vic] reg>d+ loss mitigation actions4
  7,b7 ,ref]5ces ,! notice requir$ "u   
subp>agraph 7,a7 %all-- 7i7 conta9      
ref]5ces to ! applicable provisions ( ! 
applicable h&book ( ! ,dep>tm5t ( ,h\s+ 
& ,urban ,developm5t reg>d+ ongo+ loss  
mitigation reviews & ! /&>ds = ^?       
reviews2 &  7ii7 id5tify h[ ! provisions
 describ$ 9 clause 7i7 may be access$ on
 a publicly accessible website ( !      
,dep>tm5t ( ,h\s+ & ,urban ,developm5t4 
4  #f4 ,rule ( con/ruction ,no?+ 9 ?is  
,act may be con/ru$ to sup]c$e1 or      
exempt any p]son f comply+ )1 any       
provision ( ! ,real ,e/ate ,settlem5t   
,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4  
#bfja et seq47 or any regulations issu$ 
"u t ,act4