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Title V ~ Credit CARD Act of 2009

SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE LENDING

(a) In General- Section 626 of division D of the Omnibus Appropriations Act, 2009 (Public Law 111-8) is amended-

(1) in subsection (a)-

(A) by striking ‘Within’ and inserting ‘(1) Within’;

(B) in paragraph (1), as designated by subparagraph (A), by inserting after the first sentence the following: ‘Such rulemaking shall relate to unfair or deceptive acts or practices regarding mortgage loans, which may include unfair or deceptive acts or practices involving loan modification and foreclosure rescue services.’; and

(C) by adding at the end the following:

(2) Paragraph (1) shall not be construed to authorize the Federal Trade Commission to promulgate a rule with respect to an entity that is not subject to enforcement of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) by the Commission.

(3) Before issuing a final rule pursuant to the proceeding initiated under paragraph (1), the Federal Trade Commission shall consult with the Federal Reserve Board concerning any portion of the proposed rule applicable to acts or practices to which the provisions of the Truth in Lending Act (15 U.S.C. 1601 et seq.) may apply.

(4) The Federal Trade Commission shall enforce the rules issued under paragraph (1) 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; and

(2) in subsection (b)-

(A) by striking so much as precedes paragraph (2) and inserting the following:

(b)(1) Except as provided in paragraph (6), in any case in which the attorney general of a State has reason to believe that an interest of the residents of that State has been or is threatened or adversely affected by the engagement of any person subject to a rule prescribed under subsection (a) in a practice that violates such rule, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate district court of the United States or other court of competent jurisdiction-

(A) to enjoin that practice;

(B) to enforce compliance with the rule;

(C) to obtain damages, restitution, or other compensation on behalf of residents of the State; or

(D) to obtain penalties and relief provided by the Federal Trade Commission Act and such other relief as the court considers appropriate.; and

(B) in paragraphs (2), (3), and (6), by striking ‘Commission’ each place it appears and inserting ‘primary Federal regulator’.

(b) Effective Date- The amendments made by subsection (a) shall take effect on March 12, 2009.