S.Amdt. 4076

SA 4076. Mr. REED (for himself and Mr. Akaka) submitted an amendment
intended to be proposed to amendment SA 3739 proposed by Mr. Reid (for
Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to
promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1455, after line 25, insert the following:

SEC. 1077. OVERSIGHT OF EFFORTS TO REDUCE MORTGAGE DEFAULTS
AND FORECLOSURES.

(a) Definitions.--In this section--
(1) the term ``heads of appropriate agencies'' means the
Secretary of the Treasury, Comptroller of the Currency, the
Board of Governors, the Corporation, the National Credit
Union Administration, the Council, the Director of the
Bureau, the Office of Financial Research, the Federal Housing
Finance Agency, and a representative of State banking
regulators selected by the Secretary;
(2) the term ``mortgagee'' means--
(A) an original lender under a mortgage or the holder of a
residential mortgage at the time at which that mortgage
transaction is consummated;
(B) any affiliate, agent, subsidiary, successor, or
assignee of an original lender under a mortgage or the holder
of a residential mortgage at the time at which that mortgage
transaction is consummated;
(C) any servicer of a mortgage; and
(D) any subsequent purchaser, trustee, or transferee of any
mortgage or credit instrument issued by an original lender;
(3) the term ``Secretary'' means the Secretary of Housing
and Urban Development;
(4) the term ``servicer'' means the person or entity
responsible for servicing of a loan (including the person or
entity who makes or holds a loan if such person or entity
also services the loan); and
(5) the term ``servicing'' has the meaning given the term
in section 6(i) of the Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2605(i)).
(b) Monitoring of Home Loans.--
(1) In general.--The Secretary, in consultation with the
heads of appropriate agencies, shall develop and implement a
plan to monitor--
(A) conditions and trends in homeownership and the mortgage
industry, in order to predict trends in foreclosures and to
better understand other critical aspects of the mortgage
market; and
(B) the effectiveness of public efforts to reduce mortgage
defaults and foreclosures.
(2) Report to congress.--Not later than 1 year after the
development of the plan under paragraph (1), and each year
thereafter, the Secretary shall submit a report to Congress
that--
(A) summarizes and describes the findings of the monitoring
required under paragraph (1); and
(B) includes recommendations or proposals for legislative
or administrative action necessary--
(i) to increase the authority of the Secretary to levy
penalties against any mortgagee, or other person or entity,
who fails to comply with the requirements described in this
section;
(ii) to improve coordination between public and private
initiatives to reduce the overall rate of mortgage defaults
and foreclosures; and
(iii) to improve coordination between initiatives
undertaken by Federal, State, and local governments.
(c) National Database on Defaults and Foreclosures.--
(1) In general.--The Secretary, in consultation with the
heads of appropriate agencies, shall develop recommendations
for a national database on mortgage defaults and foreclosures
that--
(A) provides information to Federal regulatory agencies
on--
(i) mortgagees that generate home loans that go into
default or foreclosure at a rate significantly higher than
the national average for such mortgagees;
(ii) the factors associated with such higher rates; and
(iii) other factors and indicators that the Secretary
determines are critical to monitoring the mortgage markets;
and
(B) provides information to Federal, State, and local
governments on loans, delinquencies, defaults, foreclosures,
deeds in lieu of foreclosure, short sales, and sheriff sales
that--
(i) is not otherwise readily available;
(ii) would allow for a better understanding of local,
regional, and national trends; and
(iii) helps improve public policies that reduce defaults
and foreclosures.
(2) Considerations.--In developing the recommendations
under paragraph (1), the Secretary shall take into
consideration privacy concerns and legal issues relating to
such concerns, including the advisability of establishing
rules relating to access, including public access, to
information obtained under subsection (d).
(3) Report to congress on national database.--Not later
than 6 months after the date of enactment of this Act, the
Secretary shall submit a report to Congress that contains--
(A) the recommendations developed under paragraph (1);
(B) an estimate of the cost of maintaining the database
described in paragraph (1); and
(C) a reasonable timetable with a deadline by which a
national database on mortgage defaults and foreclosures shall
be established by the Secretary.
(d) Provision of Data.--
(1) Data report required.--Not later than 12 months after
the date of enactment of this Act, the Secretary, in
consultation with the heads of appropriate agencies, shall
issue final rules that require each mortgagee or servicer
that originates or services not fewer than 100 loans in the
prior calendar year (or any other person that the Secretary
determines can effectively provide the data described in
paragraph (2)) to submit a report to the Secretary not less
frequently than once each quarter that contains data the
Secretary determines are necessary to carry out this section.
(2) Contents of report.--Each report submitted under
paragraph (1) shall contain data that--
(A) for each loan, use the identification requirements that
are established under the Home Mortgage Disclosure Act (12
U.S.C. 2801 et seq.) for data reporting, including--
(i) the date of origination;
(ii) the agency code of the originator;
(iii) the respondent identification number of the
originator; and
(iv) the identifying number for the loan;
(B) describe the characteristics of each home loan
originated in the preceding 12 months by the mortgagee or
servicer (or, in the case of the first report required to be
submitted under this subsection, all active loans originated
by the mortgagee or servicer), including--
(i) the loan-to-value ratio at the time of origination for
each mortgage on the property; and
(ii) the type of mortgage, such as a fixed-rate or
adjustable-rate mortgage; and
(C) include the performance outcome of each home loan
originated in the preceding 12 months by the mortgagee or
servicer (or, in the case of the first report required to be
submitted under this subsection, all active loans originated
by the mortgagee or servicer), including--
(i) whether such home loan was in delinquency at any point
in such 12-month period; and
(ii) whether any judicial or non-judicial foreclosure was
initiated on such home loan during such 12-month period;
(D) are sufficient to establish for each home loan that at
any point during the preceding 12 months had become 60 or
more days delinquent with respect to a payment on any amount
due under the home loan, or for which a judicial or non-
judicial foreclosure was initiated, the interest rate on such
home loan at the time of such delinquency or foreclosure;
(E) include information relating to foreclosures,
including--
(i) the date of all foreclosures initiated by the mortgagee
or servicer; and
(ii) the combined loan-to-value ratio of all mortgages on a
home at the time foreclosure was initiated;
(F) for a home loan that is in foreclosure, include
information on all actions, including loan modifications,
taken to mitigate or resolve the problem that led to the
initiation of foreclosure and all actions undertaken prior to
initiation of a foreclosure to resolve a delinquency or
default;
(G) identify each home loan for which foreclosure was
completed in the preceding 12 months, including--
(i) foreclosures initiated in such 12-month period; and
(ii) the date of the foreclosure completion; and
(H) include any other information that the Secretary
determines is necessary to carry out this section.
(3) Compliance plan and report.--The Secretary, in
consultation with the heads of appropriate agencies, shall--
(A) develop a plan to monitor the compliance with the
requirements established in this subsection; and
(B) submit to Congress a report on such plan.
(4) Establishment of national database.--The Secretary
shall establish a national database on mortgage defaults and
foreclosures by the deadline established in the report to
Congress required by subsection (c)(3) and shall provide
public access to such database or portions thereof, subject
to the Secretary making reasonable efforts to ensure that
such public disclosure adequately addresses privacy,
confidentiality, or legal rights under Federal or State law
that may reasonably be raised.
(e) Consolidated Database.--Not later than 6 months after
the establishment of the national database described in
subsection

[[Page S3921]]

(d)(4), the Federal Financial Institutions Examination
Council, or any successor thereto, shall create a
consolidated database that establishes a connection between
the data provided under the Home Mortgage Disclosure Act (12
U.S.C. 2801 et seq.) and the data provided under this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of fiscal years 2010 through 2014.
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