HR 1618
112th CONGRESS
1st Session
H. R. 1618
To require the filing of certain information regarding a residential
mortgage in any proceeding for foreclosure of the mortgage.
IN THE HOUSE OF REPRESENTATIVES
April 15, 2011
Ms. KAPTUR (for herself and Mr. CONYERS) introduced the following bill; which
was referred to the Committee on Financial Services
A BILL
To require the filing of certain information regarding a residential
mortgage in any proceeding for foreclosure of the mortgage.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Produce the Note Act of 2011'.
SEC. 2. REQUIRED INFORMATION AND NOTICE.
Notwithstanding any other provision of State or Federal law, no foreclosure,
whether judicial or nonjudicial, may be commenced with respect to a covered
residential mortgage unless the person commencing the foreclosure complies
with all of the following requirements:
(1) SUBMISSION OF INFORMATION- The person commencing the foreclosure shall
submit to the court, in the case of a judicial foreclosure, or to the office
of the State or other subdivision of the State to which notice of default,
foreclosure, or sale of the foreclosed property is required under State
law to be submitted, in the case of a nonjudicial foreclosure, a report
prepared by an independent party that includes the following information:
(A) A statement of findings as to whether the covered residential mortgage
was made and serviced in compliance with the terms of, and regulations
under, the following laws:
(i) The Truth in Lending Act (15 U.S.C. 1601) and Regulation Z of the
Board of Governors of the Federal Reserve System under such Act.
(ii) The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) and Regulation
B of the Board of Governors of the Federal Reserve System under such
Act.
(iii) The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.).
(iv) The Federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
(v) The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601
et seq.) and Regulation X of the Secretary of Housing and Urban Development
under such Act.
(vi) The Flood Disaster Protection Act of 1973 (42 U.S.C. 2002 et seq.).
(vii) The Fair Housing Act (42 U.S.C. 3601 et seq.).
(viii) The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.).
(ix) The Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 (Public Law 101-73).
(x) Any applicable provisions of State and local law relating to real
estate lending or consumer protection.
(B) Certification of any mortgage modification efforts that were employed
and any offers made to the mortgagor by the person commencing the foreclosure.
(C) If any noncompliance is found pursuant to subparagraph (A), a statement
as to whether the violations are such that the mortgagor should be afforded
an extended right, beyond the period permitted under State law--
(i) to rescind the mortgage in defense of the foreclosure; or
(ii) to redeem the mortgage.
(i) the actual holder of the mortgage note, the originating lender for
the mortgage and all subsequent assignees, and other all parties who
have an interest in the real estate that is subject to the mortgage
or in the mortgage or the proceeds of the mortgage; and
(ii) any parties identified pursuant to clause (i) that received any
assistance pursuant to title I of the Emergency Economic Stabilization
Act of 2008 (12 U.S.C. 5211 et seq.) and the amount of any such assistance
received.
(E) A statement of whether a bona fide default on the covered mortgage
has occurred.
(F) A description of any hardship circumstances regarding the economic
circumstances of the mortgagor that would be relevant to a determination
by the mortgagee of whether to modify the mortgage.
(G) A statement of whether the mortgage is insured under title II of the
National Housing Act (12 U.S.C. 1707 et seq.).
(H) A statement of whether the mortgage is, or any terms of the mortgage
are, unfair or constitute an unfair or deceptive act or practice violating
the Federal Trade Commission Act (15 U.S.C. 41 et seq.), and if so, a
description of the unfairness or the unfair or deceptive act or practice.
(I) A statement of whether any material misrepresentations were made that
fraudulently induced the mortgagor to enter into the transaction to his
or her detriment, and if so, a description of such misrepresentation.
(J) Identification of any offsets to the creditor claim on the mortgage.
(K) A statement of the racial characteristics, gender, census tract, and
income level of the mortgagor, as such terms are used for purposes of
compliance with the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801
et seq.).
(2) REQUIRED NOTIFICATION- The person commencing the foreclosure shall provide
notice to the mortgagor, in writing, not less than 5 days before any action
is taken to commence the proceeding or action for foreclosure, and shall
certify to the court, in the case of a judicial foreclosure, or to the office
of the State or other subdivision of the State to which notice of default,
foreclosure, or sale of the foreclosed property is required under State
law to be submitted in the case of a nonjudicial foreclosure, that such
notice has been provided, that includes the following information:
(A) A statement of any rights of the mortgagor under the applicable laws
governing the foreclosure and consumer rights.
(B) A statement of any deadlines for filing answers, defenses, or objections
to the foreclosure, including those rights of the mortgagor under the
Real Estate Settlement Procedures Act of 1974 and any applicable State
laws.
(C) A statement of any penalties and other consequences for the mortgagor
if the mortgagor does not respond or file answers to the foreclosure.
(D) A statement of the amounts claimed to be in arrears under the mortgage
and needed to reinstate the account and all associated costs and fees,
set forth in itemized and distinct categories, and current and correct
contact information, including telephone numbers, electronic mail addresses,
and postal addresses, at which the mortgagor can obtain further information
regarding the mortgage account.
(E) A description of any additional options, such as mortgage workout,
modification, mitigation, and redemption, that might be available to the
mortgagor to prevent the foreclosure from proceeding and a description
of how the mortgagor can obtain additional information regarding such
options.
(F) A statement of the correct names, telephone numbers, electronic mail
addresses, postal addresses, and any State licensing numbers of the mortgage
holder, the mortgage servicer, and the person or persons authorized to
take the actions described pursuant to subparagraph (E).
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) INDEPENDENT PARTY- The term `independent party' means, with respect
to foreclosure on a covered residential mortgage, an individual who has
no interest in, or affiliation with, any party involved in such foreclosure
or with the covered residential mortgage involved in such foreclosure, including
any party that owns, manages, controls, or directs such an involved party,
any party that is owned, managed, controlled, or directed by such an involved
party, or any party that is under common ownership, management, control,
or direction with such an involved party.
(2) COVERED RESIDENTIAL MORTGAGE- The term `covered residential mortgage'
means a mortgage that meets the following requirements:
(A) The property securing the obligation under the mortgage shall be a
one- to four-family dwelling, including a condominium or a share in a
cooperative ownership housing association.
(B) The mortgagor under the mortgage shall occupy the property securing
the obligation under the mortgage as his or her principal residence.
(A) IN GENERAL- The term `mortgage' means a deed of trust, mortgage, deed
to secure debt, security agreement, or any other form of instrument under
which any property (real, personal, or mixed), or any interest in property
(including leaseholds, life estates, reversionary interests, and any other
estates under applicable State law), is conveyed in trust, mortgaged,
encumbered, pledged, or otherwise rendered subject to a lien for the purpose
of securing the payment of money or the performance of an obligation.
(B) CONDOMINIUMS AND COOPERATIVES- Such term includes a first mortgage
given to secure--
(i) the unpaid purchase price of a fee interest in, or a long-term leasehold
interest in, a one-family unit in a multifamily project, including a
project in which the dwelling units are attached or are manufactured
housing units, semi-detached, or detached, and an undivided interest
in the common areas and facilities that serve the project; or
(ii) repayment of a loan made to finance the purchase of stock or membership
in a cooperative housing corporation the permanent occupancy of dwelling
units of which is restricted to members of such corporation, where the
purchase of such stock or membership entitles the purchaser to the permanent
occupancy of one of such units.
SEC. 4. RELATION TO STATE LAW.
This Act does not annul, alter, or affect, or exempt any person subject to
the provisions of this Act from complying with, the laws of any State or subdivision
thereof with respect to foreclosure on a residential mortgage, except to the
extent that those laws are inconsistent with any provision of this Act, and
then only to the extent of the inconsistency. No provision of the laws of
any State or subdivision thereof may be determined to be inconsistent with
any provision of this Act if such law is determined to require greater disclosure
or notice than is required under this Act or to provide greater protection
to the mortgagee than is required under this Act.
END
