S.Amdt. 1005

1. Adds SEC. 5. WARNINGS TO HOMEOWNERS OF FINANCIAL SCAMS at the end of the bill

   Adds a section

   In S. 386 · Reported to Senate

   (b) Effective Date and Application.--The amendments made by this section shall take effect on the date of enactment of this Act and shall apply to conduct on or after the date of enactment, except that subparagraph (B) of section 3729(a)(1) of title 31, United States Code, as added by subsection (a)(1), shall take effect as if enacted on June 7, 2008, and apply to all claims under the False Claims Act (31 U.S.C. 3729 et seq.) that are pending on or after that date.

   Inserted: SEC. 5. WARNINGS TO HOMEOWNERS OF FINANCIAL SCAMS.

   Inserted: (a) In General.--If a loan servicer finds that a homeowner has failed to make 2 consecutive payments on a residential mortgage loan and such loan is at risk of being foreclosed upon, the loan servicer shall notify such homeowner of the dangers of fraudulent activities associated with foreclosure.

   Inserted: (b) Notice Requirements.--Each notice provided under subsection (a) shall--

   Inserted: (1) be in writing;

   Inserted: (2) be included with a mailing of account information;

   Inserted: (3) have the heading "Notice Required by Federal Law" in a 14-point boldface type in English and Spanish at the top of such notice; and

   Inserted: (4) contain the following statement in English and Spanish: "Mortgage foreclosure is a complex process. Some people may approach you about saving your home. You should be careful about any such promises. There are government and nonprofit agencies you may contact for helpful information about the foreclosure process. Contact your lender immediately at [____], call the Department of Housing and Urban Development Housing Counseling Line at (800) 569-4287 to find a housing counseling agency certified by the Department to assist you in avoiding foreclosure, or visit the Department's Tips for Avoiding Foreclosure website at <a href='http://www.hud.gov/ '>http://www.hud.gov/ </a> foreclosure for additional assistance." (the blank space to be filled in by the loan servicer and successor telephone numbers and Uniform Resource Locators (URLs) for the Department of Housing and Urban Development Housing Counseling Line and Tips for Avoiding Foreclosure website, respectively.).

   Inserted: (c) Loan Servicer.--As used in this section, the term "loan servicer" has the same meaning as the term "servicer" in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)(2)).

   Inserted: (d) Enforcement by Federal Trade Commission.--

   Inserted: (1) Unfair or deceptive act or practice.--A failure to comply with any provision of this section shall be treated as a violation of a rule defining an unfair or deceptive act or practice promulgated under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

   Inserted: (2) Actions by the federal trade commission.--The Federal Trade Commission shall enforce the provisions of this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made part of this section.

   Original wording

   At the end of the bill, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed