123STA T . 1 6 3 9PUBLIC LA W 111 – 22 —M A Y 2 0, 2009 ‘ ‘ (2)thes e rvic er sh al l b e d ee m edt o have satis f ied the d u t y set forth i np ara g raph ( 1 )if , before D ecember 3 1,2 0 12, the servicer implements a q ualified loss mitigation plan that meets the follo w ing criteria
‘‘( A ) Default on the payment of such mortgage has occurred, is imminent, or is reasonably foreseeable, as such terms are defined by guidelines issued by the S ecretary of the T reasury or his designee under the E mergency Eco - nomic Stabili z ation Act of 200 8. ‘‘( B ) The mortgagor occupies the property securing the mortgage as his or her principal residence. ‘‘( C ) The servicer reasonably determined, consistent with the guidelines issued by the Secretary of the Treasury or his designee, that the application of such qualified loss mitigation plan to a mortgage or class of mortgages will li k ely provide an anticipated recovery on the outstanding principal mortgage debt that will e x ceed the anticipated recovery through foreclosures. ‘‘(b) NOLIAB I L I TY . — A servicer that is deemed to be acting in the best interests of all investors or other parties under this section shall not be liable to any party who is owed a duty under subsection (a)(1), and shall not be sub j ect to any injunction, stay, or other equitable relief to such party, based solely upon the implementation by the servicer of a qualified loss mitigation plan. ‘‘(c) STA ND A R D I ND US TRY P RA C TIC E .—The qualified loss mitiga- tion plan guidelines issued by the Secretary of the Treasury under the Emergency Economic Stabilization Act of 2008 shall constitute standard industry practice for purposes of all F ederal and State laws. ‘‘(d) SCO P EO F SAFE H ARBOR.—Any person, including a trustee, issuer, and loan originator, shall not be liable for monetary damages or be subject to an injunction, stay, or other equitable relief, based solely upon the cooperation of such person with a servicer when such cooperation is necessary for the servicer to implement a quali- fied loss mitigation plan that meets the requirements of subsection (a). ‘‘(e) R EPORTIN G .—Each servicer that engages in qualified loss mitigation plans under this section shall regularly report to the Secretary of the Treasury the extent, scope, and results of the servicer ’ s modification activities. The Secretary of the Treasury shall prescribe regulations or guidance specifying the form, content, and timing of such reports. ‘‘(f) DEFINITIONS.—As used in this section— ‘‘(1) the term ‘qualified loss mitigation plan’ means— ‘‘(A) a residential loan modification, workout, or other loss mitigation plan, including to the extent that the Sec- retary of the Treasury determines appropriate, a loan sale, real property disposition, trial modification, pre-foreclosure sale, and deed in lieu of foreclosure, that is described or authorized in guidelines issued by the Secretary of the Treasury or his designee under the Emergency Economic Stabilization Act of 2008
and ‘‘(B) a refinancing of a mortgage under the Hope for Homeowners program; ‘‘(2) the term ‘servicer’ means the person responsible for the servicing for others of residential mortgage loans (including of a pool of residential mortgage loans); and Regulations.D ea d line. Cr iteria.
