; and (11) to ensure market confidence in the United States housing system and improve accountability and transparency, Federal regulators should be empowered to fully exercise all statutorily mandated and implied powers to protect consumers from harmful mortgage servicers. (b) Purpose It is the purpose of this Act to ensure that mortgage borrowers are protected from abusive servicing practices, to end engagement by mortgage servicers in illegal servicing practices, to keep more people in their homes whenever possible, to promote servicers’ compliance with the loss mitigation guidelines of Fannie Mae and Freddie Mac, and to minimize losses to companies and taxpayers. 3. Regulation and oversight of mortgage servicers (a) In general Subpart A of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4541 et seq.) is amended by adding at the end the following new section: 1327. Prudential management and operations standards for covered servicers (a) Definitions For purposes of this section, the following definitions shall apply: (1) Director The term Director has the meaning given such term in section 1303. (2) Covered servicer The term covered servicer means a servicer, as such term is defined in section 6(i) of the Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2605(i) ), that conducts mortgage servicing with respect to any single-family mortgage loans owned or guaranteed by any enterprise. (b) Standards The Director shall establish standards, by regulation, for covered servicers relating to each of the following: (1) Adequacy of internal controls and information systems, taking into account the nature and scale of business operations. (2) Independence and adequacy of internal audit systems. (3) Overall risk management processes, including adequacy of oversight by senior management and policies to identify, measure, monitor, and control ma­te­ri­al risks, including data protection and rep­u­ta­tion­al risks. (4) Compliance with the mortgage