S.Amdt. 2158

SA 2158. Ms. CORTEZ MASTO submitted an amendment intended to be
proposed by her to the bill S. 2155, to promote economic growth,
provide tailored regulatory relief, and enhance consumer protections,
and for other purposes; which was ordered to lie on the table; as
follows:

At the end of title III, add the following:

SEC. 308. SAFEGUARDS TO PREVENT DISPLACEMENT OF SENIORS.

Section 255(j) of the National Housing Act (12 U.S.C.
1715z-20(j)) is amended--
(1) by striking the subsection designation and all that
follows through ``The Secretary'' and inserting the
following:
``(j) Safeguards to Prevent Displacement of Homeowners.--
``(1) Deferral of obligations of homeowners.--The
Secretary''; and
(2) by adding at the end the following:
``(2) Loss mitigation in cases of delinquent taxes,
insurance, and homeowners association fees.--
``(A) Requirement.--In the case of a mortgage insured under
this section that is in default by reason of failure to pay
taxes or insurance required under the mortgage or homeowners
association fees, the Secretary shall require that the
mortgagee, as a precondition of sending a due and payable
request to the Secretary, take appropriate loss mitigation
actions, which may include--
``(i) establishing a realistic repayment plan for the
delinquency;
``(ii) assisting the borrower in contacting a housing
counseling agency approved by the Secretary to obtain free
assistance with--

``(I) finding a viable resolution to the delinquency; or
``(II) identifying local resources available to provide
funds or homestead exemptions;

``(iii) refinancing the delinquent mortgage into a new home
equity conversion mortgage if--

``(I) there is sufficient equity to satisfy the existing
mortgage and the delinquency; and
``(II) the applicant for refinancing meets the financial
assessment guidelines of the Secretary;

``(iv) extending the deadline for foreclosure in a case in
which the youngest living borrower--

``(I) is not less than 80 years of age; and
``(II) has critical circumstances, such as a terminal
illness, long-term physical disability, or unique occupancy
need;

``(v) refraining from submitting a due and payable request
to the Secretary in a case in which the total arrearage for
the delinquency is not more than $2,000; and
``(vi) any other loss mitigation action the Secretary
considers appropriate.
``(B) Treatment of non-borrowing spouses.--For purposes of
loss mitigation required under subparagraph (A), a mortgagee
shall treat a non-borrowing spouse as a borrower.
``(C) Failure to comply.--In the case of a claim for
insurance benefits for a mortgage insured under this section
made by a mortgagee who fails to comply with the requirement
under subparagraph (A), the Secretary may reduce or deny
those benefits based on that failure.
``(3) Definitions.--In this subsection:
``(A) Borrower.--The term `borrower', with respect to a
mortgage insured under this section--
``(i) means the original borrower under the note and
mortgage; and
``(ii) does not include successors or assigns of the
original borrower.
``(B) Non-borrowing spouse.--The term `non-borrowing
spouse', with respect to a borrower under a mortgage insured
under this section, means the spouse of the borrower who is
not a borrower.''.
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