To improve the efforts of the Federal Government in mitigating home foreclosures and to require the Secretary of the Treasury to develop and implement a foreclosure prevention loan modification plan.

SA 145. Mr. DODD submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 263, between lines 10 and 11, insert the
following:

general provisions--hope for homeowners amendments

Sec. 1201.  Section 257 of the National Housing Act (12
U.S.C. 1715z-23), as amended by the Emergency Economic
Stabilization Act of 2008 (Public Law 110-343), is amended--
(1) in subsection (e)(1)(B), by inserting after ``being
reset,'' the following: ``or has, due to a decrease in
income,'';
(2) in subsection (k)(2), by striking ``and the
mortgagor'' and all that follows through the end and
inserting ``shall, upon any sale or disposition of the
property to which the mortgage relates, be entitled to 25
percent of appreciation, up to the appraised value of the
home at the time when the mortgage being refinanced under
this section was originally made. The Secretary may share any
amounts received under this paragraph with the holder of the
eligible mortgage refinanced under this section.'';
(3) in subsection (i)--
(A) by inserting ``, after weighing maximization of
participation with consideration for the solvency of the
program,'' after ``Secretary shall'';
(B) in paragraph (1), by striking ``equal to 3 percent''
and inserting ``not more than 2 percent''; and
(C) in paragraph (2), by striking ``equal to 1.5
percent'' and inserting ``not more than 1 percent''; and
(4) by adding at the end the following:
``(x) Auctions.--The Board shall, if feasible, establish
a structure and organize procedures for an auction to
refinance eligible mortgages on a wholesale or bulk basis.
``(y) Compensation of Servicers.--To provide incentive
for participation in the program under this section, each
servicer of an eligible mortgage insured under this section
shall be paid $1,000 for performing services associated with
refinancing such mortgage, or such other amount as the Board
determines is warranted. Funding for such compensation shall
be provided by funds realized through the HOPE bond under
subsection (w).''.
At the end of division B, add the following:
TITLE VI--FORECLOSURE PREVENTION

SEC. 6001. MANDATORY LOAN MODIFICATIONS.

Section 109(a) of the Emergency Economic Stabilization
Act of 2008 (12 U.S.C. 5219) is amended--
(1) by striking the last sentence;
(2) by striking ``To the extent'' and inserting the
following:
``(1) In general.--To the extent''; and
(3) by adding at the end the following:
``(2) Loan modifications required.--
``(A) In general.--In addition to actions required under
paragraph (1), the Secretary shall, not later than 15 days
after the date of enactment of this paragraph, develop and
implement a plan to facilitate loan modifications to prevent
avoidable mortgage loan foreclosures.
``(B) Funding.--Of amounts made available under section
115 and not otherwise obligated, not less than
$50,000,000,000, shall be made available to the Secretary for
purposes of carrying out the mortgage loan modification plan
required to be developed and implemented under this
paragraph.
``(C) Criteria.--The loan modification plan required by
this paragraph may incorporate the use of--
``(i) loan guarantees and credit enhancements;
``(ii) the reduction of loan principal amounts and
interest rates;
``(iii) extension of mortgage loan terms; and
``(iv) any other similar mechanisms or combinations
thereof, as determined appropriate by the Secretary.
``(D) Designation authority.--
``(i) FDIC.--The Secretary may designate the Corporation,
on a reimbursable basis, to carry out the loan modification
plan developed under this paragraph.
``(ii) Contracting authority.--If designated under clause
(i), the Corporation may use its contracting authority under
section 9 of the Federal Deposit Insurance Act.
``(E) Consultation required.--In developing the loan
modification plan under this paragraph, the Secretary shall
consult with the Chairperson of the Board of Directors of the
Corporation, the Board, and the Secretary of Housing and
Urban Development.
``(F) Reports to congress.--The Secretary shall provide
to the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of the
House of Representatives--
``(i) upon development of the plan required by this
paragraph, a report describing such plan; and
``(ii) a monthly report on the number and types of loan
modifications occurring during the reporting period, and the
performance of the loan modification plan overall.''.
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