text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Troubled Assets Relief Program 
  Targeted Assets Act of 2009''.
  
  SEC. 2. DEFINITIONS.
  
      Section 3 of the Emergency Economic Stabilization Act of 2008 
  (division A of Public Law 110-343) is amended by striking paragraph (9) 
  and inserting the following new paragraphs:
              ``(9) Troubled assets.--The term `troubled assets' means--
                      ``(A) any residential mortgage, and any security, 
                  obligation, or other instrument that is based on or 
                  related to such mortgage--
                              ``(i) is in pre-foreclosure;
                              ``(ii) with respect to which the borrower 
                          has missed at least 2 payments within the last 
                          6 months; or
                              ``(iii) which is in forbearance; or
                      ``(B) any other financial instrument that the 
                  Secretary, after consultation with the Chairman of the 
                  Board of Governors of the Federal Reserve System, 
                  determines the purchase of which is necessary to 
                  promote financial market stability, but only upon 
                  transmittal of such determination, in writing, to the 
                  appropriate committees of Congress.
              ``(10) Rehabilitated mortgage.--The term `rehabilitated 
          mortgage' means a mortgage which has been restructured, 
          refinanced or otherwise modified to lower the borrower's 
          monthly payment--
                      ``(A) creating a front-end debt ratio, including 
                  the cost of mortgage principal, interest, taxes, and 
                  insurance, of no more than 30 percent of the gross 
                  monthly income of the borrower; or
                      ``(B) to a term deemed affordable by the borrower 
                  after full disclosure by the lender and pursuant to 
                  rules as may be established by the Secretary.
              ``(11) Independent appraiser.--The term `independent 
          appraiser' means a person who--
                      ``(A) is licensed pursuant to the laws and 
                  regulations of the State where the person practices;
                      ``(B) is disclosed to the borrower or buyer; and
                      ``(C) is not coerced, extorted, induced, 
                  intimidated, bribed or otherwise influenced by or in 
                  collusion with the mortgage lender, mortgaged broker, 
                  mortgage banker, real estate broker, appraisal 
                  management company or other persons or companies having 
                  a vested interest in the transaction.''.
  
  SEC. 3. LIMIT ON AUTHORITY TO WRITE OFF LOSSES.
  
      Section 101 of the Emergency Economic Stabilization Act of 2008 
  (division A of Public Law 110-343) is amended by striking subsection 
  (a) and inserting the following new subsection:
      ``(a) Authority.--
              ``(1) In general.--The Secretary is authorized to establish 
          the Troubled Asset Restoration and Assistance Program 
          (hereafter in this title referred to as the `TARAP') to allow 
          the Treasury to purchase lender or servicer `losses' on 
          rehabilitated mortgages, on such terms and conditions as are 
          defined in this Act and determined by the Secretary.
              ``(2) Authority to purchase.--Through the TARAP, the 
          Treasury shall pay up to 80 percent of the difference between 
          the original asset and the rehabilitated asset to the lender or 
          servicer under certain conditions.
              ``(3) Write off of remainder.--That portion of the 
          difference between the original asset and the rehabilitated 
          asset to the lender or servicer that is not paid for by the 
          Secretary under paragraph (2) may be written to loss.''.
  
  SEC. 4. REGULATIONS AND GUIDELINES.
  
      Section 101(c) of the Emergency Economic Stabilization Act of 2008 
  (division A of Public Law 110-343) is amended by striking paragraph (5) 
  and inserting the following new paragraphs:
              ``(5) Issuing such regulations and other guidance as may be 
          necessary or appropriate to define terms or carry out the 
          authorities or purposes of this title including determining 
          qualifications for an independent appraiser, making the final 
          determinations as to whether an asset is troubled, what the 
          values are that will determine the amount of purchase, the 
          amount of reductions in the purchase price for purposes of 
          subsection (d)(2), and any other functionality issues required 
          to operate the program.
              ``(6) Conforming to guidelines established in subsection 
          (g), the Secretary is authorized to make all necessary rules 
          and determinations regarding documented best efforts, required 
          timelines, and other processes and procedures.''.
  
  SEC. 5. ELIGIBLE ASSET.
  
      Section 101 of the Emergency Economic Stabilization Act of 2008 
  (division A of Public Law 110-343) is amended--
              (1) by striking subsection (d);
              (2) by redesignating subsection (e) as subsection (i); and
              (3) by inserting after subsection (c) the following new 
          subsections:
      ``(d) Eligible Assets.--
              ``(1) In general.--An asset is eligible for TARAP if--
                      ``(A) it is the borrower's primary residence; and
                      ``(B) it--
                              ``(i) is a troubled asset, as defined in 
                          section 3(9); or
                              ``(ii) it was a troubled asset but has been 
                          rehabilitated by the servicer or lender (as 
                          defined in section 3(10)) on or after October 
                          3, 2008, and allowing the borrower to remain in 
                          the borrower's home.
              ``(2) Assets not included.--An asset is not eligible for 
          TARAP if--
                      ``(A) it was valued at more than 150 percent of the 
                  current fair market value; and
                      ``(B) the original value was assessed solely by the 
                  lender's appraiser,
          unless the servicer or lender agrees to such reduction in the 
          purchase amount as the Secretary may require as a condition for 
          the purchase.
      ``(f) Eligible Lender or Servicer.--A lender or servicer is 
  eligible for TARAP assistance if--
              ``(1) the lender or servicer has agreed to full disclosure 
          requirements as may be established by the Secretary; or
              ``(2) the lender or servicer has agreed to use an 
          independent appraiser and standard appraisal practices as may 
          be established by the Secretary;
      ``(g) Program Guidelines.--
              ``(1) TARAP shall pay a servicer or lender up to 80 percent 
          of the difference between the original asset and rehabilitated 
          asset pursuant to such regulations as may be prescribed by the 
          Secretary.
              ``(2) The servicer or lender shall use documented best 
          efforts, prior to foreclosure, to work with the borrower to 
          create an affordable front-end debt ratio of up to 30 percent 
          of the borrower's gross monthly income.
              ``(3) The Secretary may establish mechanisms to provide for 
          those assets which cannot be rehabilitated under the preceding 
          guidelines.
      ``(h) Program Termination.--All authority under this section ceases 
  no later than December 31, 2009.''.
  
  SEC. 6. DEFERRAL OF ALL FORECLOSURES ON ANY PRINCIPAL DWELLING OF A 
                CONSUMER FOR A 90-DAY PERIOD.
  
      (a) In General.--Notwithstanding any provision of any State or 
  Federal law, after the date of the enactment of this Act, no creditor, 
  servicer, or holder of such mortgage, or any other person acting on 
  behalf of any such creditor, servicer, or holder, may take any action 
  to initiate a foreclosure, whether judicial or nonjudicial, or any 
  action in connection with a foreclosure already instituted other than 
  to suspend such foreclosure, with respect to any eligible mortgage of a 
  consumer, until the end of the 90-day period beginning on the date of 
  the enactment of this Act.
      (b) Action by Consumer.--
              (1) In general.--After the date of the enactment of this 
          Act, any consumer shall have the right to defer any initiation 
          of a foreclosure, whether judicial or nonjudicial, or any 
          action in connection with a foreclosure already instituted, 
          including any foreclosure sale, with respect to any eligible 
          mortgage by any creditor, servicer, or holder of such mortgage, 
          or any other person acting on behalf of any such creditor, 
          servicer, or holder, until the end of the 90-day period 
          beginning on the date of the enactment of this Act.
              (2) Enforcement of right.--Any consumer may defend against 
          a foreclosure or bring an action in any court of competent or 
          general jurisdiction to compel compliance with the right of the 
          consumer under paragraph (1) to defer any initiation of a 
          foreclosure or any action in connection with a foreclosure 
          already instituted, including any foreclosure sale, with 
          respect to any eligible mortgage.
      (c) Rule of Construction.--No provision of this section shall be 
  construed as affecting or altering the obligations of the consumer 
  under the terms of the eligible mortgage notwithstanding any deferral 
  of foreclosure.
      (d) Eligible Mortgage Defined.--For purposes of this section, the 
  term ``eligible mortgage'' means any residential mortgage loan to any 
  consumer that constitutes a first lien on the dwelling or real property 
  securing the loan which constitutes, or on which is located, the 
  principal residence of the consumer.
target: Troubled Assets Relief Program Targeted Assets Act of 2009 - Amends the Emergency Economic Stabilization Act of 2008 (EESA) to authorize the Secretary of the Treasury to establish the Troubled Asset Restoration and Assistance Program (TARAP) to allow the Treasury to purchase lender or servicer losses on rehabilitated mortgages, on terms and conditions determined by the Secretary.
  
  Directs the Treasury, acting through TARAP, to pay up to 80% of the difference between the original asset and the rehabilitated asset to the lender or servicer under certain conditions.
  
  Permits the portion of the difference between the original asset and the rehabilitated asset to the lender or servicer that is not paid for by the Secretary to be written to loss.
  
  Requires any regulations and other guidance the Secretary may issue to determine qualifications for an independent appraiser, and make final determinations as to: (1) whether an asset is troubled; (2) what the values are that will determine the amount of purchase; (3) the amount of reductions in the purchase price for certain otherwise ineligible assets; and (4) any other functionality issues required to operate the program.
  
  Authorizes the Secretary, conforming to specified guidelines, to make all necessary rules and determinations regarding documented best efforts, required timelines, and other processes and procedures.
  
  Identifies criteria for eligible assets and eligible lenders or servicers.
  
  Sunsets TARAP on December 31, 2009.
  
  Prohibits, for a 90-day period, a mortgage servicer, or holder, from taking action to initiate a foreclosure, or any action in connection with a foreclosure already instituted (other than to suspend it), with respect to any eligible mortgage of a consumer.
  
  Entitles a consumer to defer initiation of a foreclosure, or any action in connection with one already instituted by any creditor, servicer, or holder of a mortgage, until the end of the 90-day period beginning on the date of the enactment of this Act.
feat_title: To amend the Emergency Economic Stabilization Act of 2008 to restrict which assets banks can write off as loss for purposes of the Troubled Assets Relief Program, and for other purposes.