S.Amdt. 1037

SA 1037. Mr. KOHL submitted an amendment intended to be proposed to
amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to
the bill S. 896, to prevent mortgage foreclosures and enhance mortgage
credit availability; which was ordered to lie on the table; as follows:

[[Page S5030]]

At the end of title I of the amendment, add the following:

SEC. 105. WARNINGS TO HOMEOWNERS OF FINANCIAL SCAMS.

(a) In General.--In connection with a foreclosure
proceeding on a residential mortgage loan initiated by a
lender, the loan servicer of such loan shall, at the time of
initiation of the proceeding, notify the homeowner of such
loan of the dangers of fraudulent activities associated with
foreclosure.
(b) Notice Requirements.--Each notice provided under
subsection (a) shall--
(1) be in writing;
(2) 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
(3) 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.).
(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)).
(d) Enforcement by Federal Trade Commission.--
(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)).
(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.
______