US Congress House Bill 788 (Prior Session Legislation)

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Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: Introduced on February 2 2009 - 25% progression, died in chamber
Action: 2009-02-10 - Placed on the Union Calendar, Calendar No. 5.
Text: Latest bill text (Introduced) [PDF]

Shields a servicer of pooled residential mortgages acting in compliance with certain fiduciary duties under the Truth in Lending Act from liability for entering into a loan modification or workout plan in connection with any such mortgages initiated before January 1, 2012. Specifies that such servicers shall not be liable to: (1) any person based on that person's ownership of a residential mortgage loan or any interest in a pool of residential mortgage loans or in securities that distribute payments out of payments in loans on the pool; (2) any person obligated pursuant to a derivatives instrument to make payments determined in reference to any such loans or interest; or (3) any person that insures any such loans or interest under federal, state, or local law. States that such servicers shall not be: (1) limited in loan modification ability, the number of mortgages that can be modified, the frequency of loan modifications, or the range of permissible modifications; or (2) obligated to repurchase loans from or otherwise make payments to the securitization vehicle on account of a loss mitigation workout, or other loss mitigation plan for a residential mortgage or a class of them that constitute a part or all of the mortgages in the securitization vehicle. Makes a mortgage eligible under this Act only if: (1) mortgage default has occurred or is reasonably foreseeable; (2) the property securing the mortgage is occupied by the mortgagor; and (3) the servicer reasonably and in good faith believes that recovery of outstanding principal under the particular modification or workout plan or other loss mitigation action will exceed, on a net present value basis, the anticipated recovery to be realized through foreclosure.

To provide a safe harbor for mortgage servicers who engage in specified mortgage loan modifications, and for other purposes.

Rep. Michael Capuano [D-MA]

Rep. Michael Castle [R-DE]

Rep. Barney Frank [D-MA]

Rep. Paul Kanjorski [D-PA]

Date	Chamber	Action
2009-02-10		Placed on the Union Calendar, Calendar No. 5.
2009-02-10		Reported (Amended) by the Committee on Financial Services. H. Rept. 111-13.
2009-02-04		Ordered to be Reported (Amended) by Voice Vote.
2009-02-04		Committee Consideration and Mark-up Session Held.
2009-02-02		Referred to the House Committee on Financial Services.

Type	Source
Summary	https://www.congress.gov/bill/111th-congress/house-bill/788/all-info
Text	https://www.congress.gov/111/bills/hr788/BILLS-111hr788ih.pdf
Text	https://www.congress.gov/111/bills/hr788/BILLS-111hr788rh.pdf