---
kind: "section"
citation: "12 U.S.C. § 5219"
title: "12"
title_heading: "Banks and Banking"
number: "5219"
heading: "Foreclosure mitigation efforts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5219"
units:
  - "Chapter 52 — Emergency Economic Stabilization"
  - "Subchapter I — Troubled Assets Relief Program"
---

# §5219. Foreclosure mitigation efforts

- (a) **Residential mortgage loan servicing standards—**
  - (1) **In general—** To the extent that the [Secretary](/usc/12/5202.md?p=7) acquires [mortgages](/usc/12/1707.md?p=a), [mortgage](/usc/12/1707.md?p=a) backed[^1] securities, and other assets secured by residential [real estate](/usc/12/1707.md?p=g), including [multifamily housing](/usc/12/1715z–22a.md?p=1), the [Secretary](/usc/12/5202.md?p=7) shall implement a plan that seeks to maximize assistance for homeowners and use the authority of the [Secretary](/usc/12/5202.md?p=7) to encourage the servicers of the underlying [mortgages](/usc/12/1707.md?p=a), considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under [section 1715z–23 of this title](/usc/12/1715z–23.md) or other available programs to minimize foreclosures. In addition, the [Secretary](/usc/12/5202.md?p=7) may use loan guarantees and [credit](/usc/12/5481.md?p=7) 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](/usc/12/5202.md?p=7) shall not be required to apply executive compensation restrictions under [section 5221 of this title](/usc/12/5221.md), or to receive warrants or debt instruments under [section 5223 of this title](/usc/12/5223.md), solely in connection with any loan modification under this section.
- (b) **Coordination—** The [Secretary](/usc/12/5202.md?p=7) shall coordinate with the [Corporation](/usc/12/5202.md?p=4), the [Board](/usc/12/5202.md?p=2) (with respect to any [mortgage](/usc/12/1707.md?p=a) or [mortgage](/usc/12/1707.md?p=a)-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](/usc/12/5220.md?p=a-1-C)), the Federal Housing Finance Agency, the [Secretary](/usc/12/5202.md?p=7) of Housing and Urban Development, and other Federal Government entities that hold [troubled assets](/usc/12/5202.md?p=9) to attempt to identify opportunities for the acquisition of classes of [troubled assets](/usc/12/5202.md?p=9) that will improve the ability of the [Secretary](/usc/12/5202.md?p=7) 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](/usc/12/1707.md?p=a) on a residential rental property, the plan required under this section shall include protecting Federal, [State](/usc/12/1707.md?p=d), and local rental subsidies and protections, and ensuring any modification takes into account the need for operating [funds](/usc/12/5202.md?p=6) to maintain decent and safe conditions at the property.
- (c) **Consent to reasonable loan modification requests—** Upon any request arising under existing investment contracts, the [Secretary](/usc/12/5202.md?p=7) 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.

## Footnotes

[^1]: So in original. Probably should be “mortgage-backed”.

## Source credit

(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.)

## Notes

### Editorial Notes

### Amendments

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).