SA 1037. Mr. KOHL submitted an amendment intended to be proposed to amendment SA 1018 submitted by Mr. Dodd (for himself and Mr. Shelby) to the bill S. 896, to prevent mortgage foreclosures and enhance mortgage credit availability; which was ordered to lie on the table; as follows:


At the end of title I of the amendment, add the following:
SEC. 105. WARNINGS TO HOMEOWNERS OF FINANCIAL SCAMS.
(a) In General.--In connection with a foreclosure proceeding on a residential mortgage loan initiated by a lender, the loan servicer of such loan shall, at the time of initiation of the proceeding, notify the homeowner of such loan of the dangers of fraudulent activities associated with foreclosure.
(b) Notice Requirements.--Each notice provided under subsection (a) shall--
(1) be in writing;
(2) have the heading ``Notice Required by Federal Law'' in a 14-point boldface type in English and Spanish at the top of such notice; and
(3) contain the following statement in English and Spanish: ``Mortgage foreclosure is a complex process. Some people may approach you about saving your home. You should be careful about any such promises. There are government and nonprofit agencies you may contact for helpful information about the foreclosure process. Contact your lender immediately at [__XX], call the Department of Housing and Urban Development Housing Counseling Line at (800) 569-4287 to find a housing counseling agency certified by the Department to assist you in avoiding foreclosure, or visit the Department's Tips for Avoiding Foreclosure website at http://www.hud.gov/foreclosure for additional assistance.'' (the blank space to be filled in by the loan servicer and successor telephone numbers and Uniform Resource Locators (URLs) for the Department of Housing and Urban Development
Housing Counseling Line and Tips for Avoiding Foreclosure website, respectively.).

(c) Loan Servicer.--As used in this section, the term ``loan servicer'' has the same meaning as the term ``servicer'' in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)(2)).
(d) Enforcement by Federal Trade Commission.--
(1) UNFAIR OR DECEPTIVE ACT OR PRACTICE.--A failure to comply with any provision of this section shall be treated as a violation of a rule defining an unfair or deceptive act or practice promulgated under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) ACTIONS BY THE FEDERAL TRADE COMMISSION.--The Federal Trade Commission shall enforce the provisions of this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made part of this section.


(As printed in the Congressional Record for the Senate on May 1, 2009.)