[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5754 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5754
To authorize the Secretary of Housing and Urban Development to provide
grants to State and local governments to carry out programs to provide
mediation between mortgagees and mortgagors facing foreclosure.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 15, 2010
Mr. Cohen (for himself, Mr. Delahunt, and Ms. Hirono) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To authorize the Secretary of Housing and Urban Development to provide
grants to State and local governments to carry out programs to provide
mediation between mortgagees and mortgagors facing foreclosure.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preventing Homeowners from
Foreclosure Act of 2010''.
SEC. 2. FORECLOSURE MEDIATION GRANT PROGRAM.
(a) Establishment.--The Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') shall carry out a
program to make competitive grants to States and units of local
government to establish mediation programs that assist mortgagors under
home mortgages facing foreclosure on such mortgages.
(b) Foreclosure Mediation Program Requirements.--Amounts from a
grant under this section may be used only for costs of a foreclosure
mediation program that provides as follows:
(1) Scope.--
(A) State grantees.--In the case of a grant under
this section to a State, the program shall be carried
out in at least one unit of local government within
such State.
(B) Local government grantees.--In the case of a
grant made to a unit of local government, the program
shall be carried out in such unit of local government.
(2) Applicability.--The program shall apply to--
(A) any mortgagee that, after the expiration of the
90-day period beginning upon receipt, by the grant
recipient, of amounts from a grant under this section,
initiates a foreclosure proceeding on a home mortgage
for a mortgaged home that is located in the
jurisdiction within which such program is being carried
out, pursuant to paragraph (1); and
(B) any mortgagor under such a home mortgage who is
subject to a foreclosure proceeding.
(3) Referral to attorney or housing counselor.--The program
shall provide the mortgagor with a referral and contact
information for a paid or pro bono attorney, or a housing
counselor certified by the Secretary.
(4) Required meeting and mediation.--The program shall
require that, as soon as is practicable after the initiation of
a foreclosure proceeding on a home mortgage or a mortgagee has
provided the required foreclosure notice on a home mortgage to
the mortgagor in accordance with applicable State or local law,
as applicable, and, in any event, before entry of any
foreclosure judgment on or foreclosure sale for, as applicable,
the home mortgage--
(A) any representative obtained by the mortgagor
(including a representative obtained pursuant to a
referral under paragraph (3)) shall meet with the
mortgagor; and
(B) the mortgagee shall conduct, consistent with
any applicable State or local law, a mediation
conference that--
(i) is held to resolve issues relating to
the foreclosure, with the aim of avoiding the
foreclosure, through mediation;
(ii) is held in an appropriate court in the
jurisdiction of the grant recipient or, in the
case of jurisdiction that does not provide for
judicial foreclosure, such other appropriate
venue;
(iii) involves the participation of a
neutral, third party mediator selected by the
court or the administrator of the foreclosure
mediation program; and
(iv) is attended by--
(I) the mortgagee or, if the
mortgagee or an agent of the mortgagee
having authority to execute a
settlement of all matters relating to
the mortgage is immediately accessible
by telephone, by a representative of
the mortgagee; and
(II) the mortgagor, or any
representative obtained by the
mortgagor (including a representative
obtained pursuant to a referral under
paragraph (3)), or both.
If the mortgagor fails to attend the conference, the
requirement under this paragraph for a mediation conference
shall be deemed to be satisfied upon verification by the
administrator of the mediation program that the required
foreclosure notice has been provided and issuance by such
administrator of an order authorizing initiation of such
foreclosure proceeding.
(5) Outreach.--The grant recipient shall establish an
outreach program to raise homeowner awareness of the existence
of the foreclosure mediation program. Such outreach program
shall include providing access to information regarding the
foreclosure mediation program through a telephone hotline or a
World Wide Web site, or both.
(c) Selection of Grant Recipients.--The Secretary shall select
applicants to receive grants under this section under a competition
based on selection criteria that the Secretary shall establish by
regulation.
(d) Recordkeeping.--Each grant recipient shall maintain a record of
the outcome of each mediation conference carried out under the
mediation program assisted with the grant amounts, including the nature
of any loan modification made as a result of participation in the
mediation program.
(e) Definitions.--For purposes of this Act, the following
definitions shall apply:
(1) Foreclosure proceeding.--The term ``foreclosure
proceeding'' means any proceeding or procedure under applicable
law, including judicial and non-judicial procedures, including
a sheriff sale, to foreclose on a home mortgage.
(2) Home mortgage.--The term ``home mortgage'' means a
mortgage loan, repayment of which is secured by an interest in
a one- to four-family residence that is the principal residence
of the mortgagor.
(3) Grant recipient.--The term ``grant recipient'' means a
State or unit of local government that receives grant amounts
under this section.
(4) Mortgaged home.--The term ``mortgaged home'' means,
with respect to a home mortgage, the residence that is subject
to the interest that secures repayment of the home mortgage.
(5) Required foreclosure notice.--The term ``required
foreclosure notice'' means any initial notice that is required
under the law of a State to be submitted to the mortgagor under
a residential mortgage as a condition precedent to foreclosure
on such mortgage.
(6) State.--The term ``State'' means the States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, the Trust Territory
of the Pacific Islands, and any other territory or possession
of the United States.
(f) Authorization of Appropriations.--There is authorized to be
appropriated for grants under this section such sums as may be
necessary for each of fiscal years 2011 through 2015.
(g) Regulations.--The Secretary of Housing and Urban Development
shall issue any regulations necessary to carry out this section.
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