2008 U.S. Code
Title 12 - BANKS AND BANKING
CHAPTER 52 - EMERGENCY ECONOMIC STABILIZATION
SUBCHAPTER I - TROUBLED ASSETS RELIEF PROGRAM
Sec. 5219 - Foreclosure mitigation efforts

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§5219. Foreclosure mitigation efforts (a) Residential mortgage loan servicing standards

To the extent that the Secretary acquires mortgages, mortgage backed 1 securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 1715z–23 2 of this title or other available programs to minimize foreclosures. In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.

(b) Coordination

The Secretary shall coordinate with the Corporation, the Board (with respect to any mortgage or mortgage-backed securities or pool of securities held, owned, or controlled by or on behalf of a Federal reserve bank, as provided in section 5220(a)(1)(C) of this title), the Federal Housing Finance Agency, the Secretary of Housing and Urban Development, and other Federal Government entities that hold troubled assets to attempt to identify opportunities for the acquisition of classes of troubled assets that will improve the ability of the Secretary to improve the loan modification and restructuring process and, where permissible, to permit bona fide tenants who are current on their rent to remain in their homes under the terms of the lease. In the case of a mortgage on a residential rental property, the plan required under this section shall include protecting Federal, State, and local rental subsidies and protections, and ensuring any modification takes into account the need for operating funds to maintain decent and safe conditions at the property.

(c) Consent to reasonable loan modification requests

Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.

(Pub. L. 110–343, div. A, title I, §109, Oct. 3, 2008, 122 Stat. 3774.)

References in Text

Section 1715z–23 of this title, referred to in subsec. (a), was in the original “section 257 of the National Housing Act”, and was translated as meaning the section 257 of the National Housing Act as added by Pub. L. 110–289, div. A, title IV, §1402, July 30, 2008, 122 Stat. 2800, relating to HOPE for Homeowners Program, to reflect the probable intent of Congress. Another section 257 of the National Housing Act, relating to pilot program for automated process for borrowers without sufficient credit history, is classified to section 1715z–24 of this title.

1 So in original. Probably should be “mortgage-backed”.

2 See References in Text note below.