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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 52— EMERGENCY ECONOMIC STABILIZATION · SUBCHAPTER I— TROUBLED ASSETS RELIEF PROGRAM · § 5219

§ 5219. Foreclosure mitigation efforts

488 words·~2 min read·/usc/title-12/section-5219

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(a)Residential mortgage loan servicing standards
(1)In general To the extent that the Secretary acquires mortgages, mortgage backed 1 securities, and other assets secured by residential real estate, including multifamily housing, the Secretary shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the Secretary to encourage the servicers of the underlying mortgages, considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 1715z–23 of this title or other available programs to minimize foreclosures. In addition, the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures and to remediate lead and asbestos hazards in residential properties.
(2)Waiver of certain provisions in connection with loan modifications The Secretary shall not be required to apply executive compensation restrictions under section 5221 of this title, or to receive warrants or debt instruments under section 5223 of this title, solely in connection with any loan modification under this section.
(b)Coordination The Secretary shall coordinate with the Corporation, the Board (with respect to any mortgage or mortgage-backed securities or pool of securities held, owned, or controlled by or on behalf of a Federal reserve bank, as provided in section 5220(a)(1)(C) of this title), the Federal Housing Finance Agency, the Secretary of Housing and Urban Development, and other Federal Government entities that hold troubled assets to attempt to identify opportunities for the acquisition of classes of troubled assets that will improve the ability of the Secretary to improve the loan modification and restructuring process and, where permissible, to permit bona fide tenants who are current on their rent to remain in their homes under the terms of the lease. In the case of a mortgage on a residential rental property, the plan required under this section shall include protecting Federal, State, and local rental subsidies and protections, and ensuring any modification takes into account the need for operating funds to maintain decent and safe conditions at the property.
(c)Consent to reasonable loan modification requests Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.
(Pub. L. 110–343, div. A, title I, § 109, Oct. 3, 2008, 122 Stat. 3774; Pub. L. 111–5, div. B, title VII, § 7002, Feb. 17, 2009, 123 Stat. 521; Pub. L. 115–174, title III, § 305, May 24, 2018, 132 Stat. 1339.)
Connections13 cite this · traces to 5
Cited by 13 sections
7 references not yet in our index
  • 1
  • Pub. L. 110–343, div. A, title I, § 109
  • 122 Stat. 3774
  • Pub. L. 111–5, div. B, title VII, § 7002
  • 123 Stat. 521
  • 132 Stat. 1339
  • Pub. L. 111–5
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§ 5219
Foreclosure mitigation efforts
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Cite1
Pub. L.Pub. L. 110–343, div. A, title I, § 109
Stat.122 Stat. 3774
Pub. L.Pub. L. 111–5, div. B, title VII, § 7002
Stat.123 Stat. 521
Cites 12 · showing 10Cited by 13 across 6 sources
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