H.R. 3609 (110th): Emergency Home Ownership and Mortgage Equity Protection Act of 2007

110th Congress, 2007–2009. Text as of Sep 20, 2007 (Introduced).

Status & Summary | PDF | Source: GPO

I

110th CONGRESS

1st Session

H. R. 3609

IN THE HOUSE OF REPRESENTATIVES

September 20, 2007

(for himself, Ms. Linda T. Sánchez of California, Mr. Frank of Massachusetts, Mrs. Maloney of New York, and Mr. Watt) introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend title 11 of the United States Code with respect to modification of certain mortgages on principal residences, and for other purposes.

1.

Short title

This Act may be cited as the Emergency Home Ownership and Mortgage Equity Protection Act of 2007.

2.

Determination of secured status

Section 506(b) of title 11, the United States Code, is amended by adding at the end the following:

While a case is pending, no fee, costs, or charges may be added to a debt that is provided for in a chapter 13 plan and is secured by the debtor's principal residence unless the holder of the secured claim gives timely notice of such fee, costs, or charge to the debtor and to the trustee.

.

3.

Limitation of 1978 exemption that prevents Federal bankruptcy courts from making modifications to the terms of a mortgage on a debtor’s principal residence

Section 1322(b)(2) of title 11, United States Code, is amended by striking , other than a claim secured only by a security interest in real property that is the debtor’s principal residence,.

4.

Modification of claims secured by debtor’s principal residence

(a)

Contents of plan

Section 1322(b) of title 11, the United States Code, is amended—

(1)

in paragraph (10) by striking and at the end,

(2)

by redesignating paragraph (11) as paragraph (12), and

(3)

by inserting after paragraph (10) the following:

(11)

provide for payment of allowed claims secured by the debtor’s principal residence consistent with section 1325(a)(5), over a period exceeding the period permitted under section 1322(d); and

.

(b)

Confirmation of plan

Section 1325(b)(5) of title 11, the United States Code, is amended by inserting except as otherwise provided in section 1322(b), after (5).

5.

Elimination of credit counseling requirement for chapter 13 debtors facing foreclosure

Section 109(h) of title 11, United States Code, is amended by adding at the end the following:

(5)

The requirements of paragraph (1) shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence has initiated a judicial or non-judicial foreclosure on the debtor’s principal residence.

.

6.

Confirmation of plan

Section 1325(a) of title 11, the United States Code, is amended—

(1)

in paragraph (8) by striking and at the end,

(2)

in paragraph (9) by striking the period at the end and inserting ; and, and

(3)

by inserting after paragraph (9) the following:

(10)

notwithstanding paragraph (5)(B)(i)(I), the holder of a claim that is paid pursuant to section 1322(b)(11) shall retain the lien securing such claim until payment of such claim.

.

7.

Discharge

Section 1328 of title 11, the United States Code, is amended—

(1)

in subsection (a)—

(A)

by inserting (other than payments to holders of allowed claims provided for under section 1322(b)(11) after paid the 1st place it appears, and

(B)

in paragraph (1) by inserting or 1322(b)(11) after 1322(b)(5), and

(2)

in subsection (c)(1) by inserting or 1322(b)(11) after 1322(b)(5).