; (2) are not affiliated with the mortgagor under any of the covered mortgages for which it is authorized to carry out actions under the pilot program under this section; and (3) comply with all relevant State and Federal laws. (c) Selection of a qualified entity or entities (1) Scope The Secretary shall have the discretion to select qualified entities to participate in the pilot program under this section. (2) Criteria Such selection shall be based on the qualifications and experience of the entity or entities to carry out the specific activities identified in subsection (a), including the level of infrastructure capability in reporting detailed information on the mortgage loan, underlying property, and the mortgagor. (3) Participating loans The Secretary shall make available not less than 50,000 and not more than 100,000 loans that meet the delinquency criteria of subsection (a) for this pilot program. (4) Timing The Secretary shall select the qualified entity and entities and make available loans under the pilot for their performance within 90 days of the enactment of the Act. (d) Payments Payments to the entity or entities selected to carry out the pilot program under this section may be based on— (1) a flat amount per covered mortgage; (2) a performance success basis based on— (A) completed packages; or (B) completed loan modifications, pre-foreclosure sales, and deeds in lieu of foreclosure