12 U.S.C. § 5219

Foreclosure mitigation efforts

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(a) Residential mortgage loan servicing standards(1) In general

To the extent that the Secretary acquires mortgages, mortgage backed 11 So in original. Probably should be “mortgage-backed”. 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.

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.)Editorial NotesAmendments

2018—Subsec. (a)(1). Pub. L. 115–174 inserted before period at end “and to remediate lead and asbestos hazards in residential properties”.

2009—Subsec. (a). Pub. L. 111–5 designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2).

Notes of Decisions

Cited in 49 cases (2 in the last 5 years), 2010–2025 · leading case: Wigod v. Wells Fargo Bank, N.A., 673 F.3d 547 (7th Cir. 2012).

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Wigod v. Wells Fargo Bank, N.A., 673 F.3d 547 (7th Cir. 2012). · cites it 2× “" 12 U.S.C. § 5219 (a). Congress also granted the Secretary the authority to "use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.”

Young v. Wells Fargo Bank, N.A., 717 F.3d 224 (1st Cir. 2013). · cites it 2× “§ 109; 12 U.S.C. § 5219 (a)(1). To effectuate these goals, the Secretary was given the power to “use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.”

Anthony Taylor v. J.P. Morgan Chase Bank, N.A., 958 F.3d 556 (7th Cir. 2020). · cites it 2× “See 12 U.S.C. § 5219 (a)(1). As part of that endeavor, the Secretary provided financial No.”

Daniels v. Select Portfolio Servicing, Inc., 246 Cal. App. 4th 1150 (Cal. Ct. App. 2016). “556; 12 U.S.C. § 5219 (a).) [¶] That plan was HAMP, introduced in February 2009, and funded by a $50 billion set-aside of TARP monies to induce lenders to refinance mortgages to reduce monthly payments for struggling homeowners.”

Orcilla v. Big Sur, Inc., 244 Cal. App. 4th 982 (Cal. Ct. App. 2016). “556; 12 U.S.C. § 5219 (a).) [¶] That plan was HAMP, introduced in February 2009, and funded by a $50 billion set-aside of TARP monies to induce lenders to refinance mortgages to reduce monthly payments for struggling homeowners.”

West v. JPMorgan Chase Bank, 214 Cal. App. 4th 780 (Cal. Ct. App. 2013). “’ 12 U.S.C. § 5219 (a). Congress also granted the Secretary the authority to ‘use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.”

Josephine Spaulding v. Wells Fargo Bank, N.A., 714 F.3d 769 (4th Cir. 2013). “” 12 U.S.C. § 5219 (a). Congress also granted the Secretary the authority to “use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.”

Charter Bank v. Francoeur, 2012 NMCA 78 (N.M. Ct. App. 2012). · cites it 3× “” 12 U.S.C. § 5219 (a)(1). In order to participate in HAMP, service providers must execute a servicer participation agreement with Fannie Mae.”

Fed. Nat'l Mortg. Ass'n v. Rego, 50 N.E.3d 419 (Mass. 2016). “In April, 2010, GMAC notified the Regos that they were eligible for the Federal Home Affordable Modification Program, 12 U.S.C. § 5219 (HAMP), and offered modified terms of payment.”

Bushell v. JPMorgan Chase Bank, N.A., 220 Cal. App. 4th 915 (Cal. Ct. App. 2013). “556; 12 U.S.C. § 5219 (a).) *923 That plan was HAMP, introduced in February 2009, and funded by a $50 billion set-aside of TARP monies to induce lenders to refinance mortgages to reduce monthly payments for struggling homeowners.”

Bosque v. Wells Fargo Bank, N.A., 762 F. Supp. 2d 342 (D. Mass. 2011). “12 U.S.C. § 5219 (c). 3 . The Department of the Treasury created the Making Home Affordable Program jointly with the Federal Housing Finance Agency, the Federal National Mortgage Association ("Fannie Mae”), and the Federal Home Loan Mortgage Corporation ("Freddie Mac”).”

Lawrence v. Fed. Home Loan Mortg. Corp., 808 F.3d 670 (5th Cir. 2015). “HAMP, which stems from the Emergency Economic Stabilization Act and is codified at 12 U.S.C. §§ 5219 , 1715z-23, authorizes the Department of the Treasury to incentivize mortgage servicers to modify existing mortgages and avoid default.”

Show all 49 citing cases →

— 12 U.S.C. § 5219(a) — 1 case

Tony Lee & James Morgan v. Bac Home Loans Servicing, LP FKA Countrywide Homes Loans Servicing, LP (Tex. App. 2014).

— 12 U.S.C. § 5219(a)(1) — 1 case

Thomas v. JPMorgan Chase & Co., 811 F. Supp. 2d 781 (S.D.N.Y. 2011).

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