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Full Text of this Amendment
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
5SEC. ------. RULEMAKING PROCEDURE FOR SUBPRIME LENDING MORTGAGES AND NONTRADITIONAL MORTGAGE LOANS.
Notwithstanding section 18 of the Federal Trade Commission Act (15 U.S.C. 57a) or any other provision of law, the Federal Trade Commission shall conduct rulemaking proceedings with respect to subprime mortgage lending and nontraditional mortgage loans in accordance with section 553 of title 5, United States Code.
SEC. ------. ENFORCEMENT BY STATE ATTORNEYS GENERAL.
(a) IN GENERAL.--Except as provided in subsection (f), a State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate State or district court of the United States to enforce the provisions of the Federal Trade Commission Act or any other Act enforced by the Federal Trade Commission to obtain penalties and relief provided under such Acts whenever the attorney general of the State has reason to believe that the interests of the residents of the State have
been or are being threatened or adversely affected by a violation of a subprime mortgage lending rule or a nontraditional mortgage loan rule promulgated by the Federal Trade Commission.
(b) NOTICE.--The State shall serve written notice to the Commission of any civil action under subsection (a) at least 60 days prior to initiating such civil action. The notice shall include a copy of the complaint to be filed to initiate such civil action, except that if it is not feasible for the State to provide such prior notice, the State shall provide notice immediately upon instituting such civil action.
(c) INTERVENTION BY FTC.--Upon receiving the notice required by subsection (b), the Commission may intervene in such civil action and upon intervening--
(1) be heard on all matters arising in such civil action; and
(2) file petitions for appeal of a decision in such civil action.
(d) SAVINGS CLAUSE.--Nothing in this section shall prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence. Nothing in this section shall prohibit the attorney general of a State, or other authorized State officer, from proceeding in State or Federal court on
the basis of an alleged violation of any civil or criminal statute of that State.
(e) VENUE; SERVICE OF PROCESS; JOINDER.--In a civil action brought under subsection (a)--
(1) the venue shall be a judicial district in which the lender or a related party operates or is authorized to do business;
(2) process may be served without regard to the territorial limits of the district or of the State in which the civil action is instituted; and
(3) a person who participated with a lender or related party an alleged violation that is being litigated in the civil action may be joined in the civil action without regard to the residence of the person.
(f) PREEMPTIVE ACTION BY FTC.--If the Commission has instituted a civil action or an administrative action for violation of this Act or any other Act enforced by the Commission, no State attorney general, or other official or agency of a State, may bring an action under this section during the pendency of that action against any defendant named in the complaint of the Commission for any violation of this Act alleged in the complaint.
(g) AWARD OF COSTS AND FEES.--If the attorney general of a State prevails in any civil action under subsection (a), the State can recover reasonable costs and attorney fees from the lender or related party.
(As printed in the Congressional Record for the Senate on Apr 3, 2008.)