text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Homeowners' Emergency Mortgage 
  Assistance Act''.
  
  SEC. 2. MORTGAGE EMERGENCY ASSISTANCE PROGRAM.
  
      (a) In General.--The Secretary shall establish a program to make 
  payments on a mortgage for a 1- to 4-family residence when--
              (1) the mortgagee has given the mortgagor notice in 
          accordance with section 3(b) that it intends to foreclose the 
          mortgage;
              (2) at least 2 full monthly installments due on the 
          mortgage are unpaid after the application of any partial 
          payments that may have been accepted but not yet applied to the 
          mortgage account;
              (3) the mortgagor is suffering financial hardship due to 
          circumstances beyond the control of the mortgagor which render 
          the mortgagor unable to correct the delinquency on the mortgage 
          and unable to make full mortgage payments before the expiration 
          of the 60-day period beginning on the date that notice was sent 
          to the mortgagor in accordance with section 3(b);
              (4) there is a reasonable prospect that the mortgagor will 
          be able to resume full mortgage payments not later than 36 
          months after the beginning of the period for which assistance 
          payments are provided and to pay the mortgage in full by its 
          maturity date or by a later date agreed upon by the mortgagee;
              (5) the property mortgaged is the mortgagor's principal 
          place of residence;
              (6) the mortgagor does not own other residential property 
          which is subject to a mortgage;
              (7) the mortgagor has applied to the Secretary for 
          assistance in accordance with section 4; and
              (8) the mortgagor has not been more than 60 days in arrears 
          on a residential mortgage within the 2-year period preceding 
          the delinquency for which assistance is requested, unless the 
          mortgagor can demonstrate that the prior delinquency was the 
          result of financial hardship due to circumstances beyond the 
          control of the mortgagor.
      (b) Effect of Finding of Ineligibility.--If, after reviewing an 
  application for assistance submitted in accordance with section 4, the 
  Secretary determines that the mortgagor has not met the conditions of 
  eligibility described in subsection (a), the mortgagor shall be 
  prohibited from reapplying for assistance under this Act until the 
  expiration of the 6-month period beginning on the date of such 
  determination unless there is a material change in the financial 
  circumstances of the mortgagor.
      (c) Determination Relating to Financial Hardship.--In determining 
  whether a financial hardship (which may be caused by a reduction in 
  income or an increase in expenses, or both) is due to circumstances 
  beyond the control of a mortgagor, the Secretary may consider 
  information regarding the mortgagor's employment record, credit 
  history, and current income. Such circumstances shall include, but not 
  be limited to--
              (1) loss of job of a member of the household;
              (2) salary, wage, or earnings reduction of a member of the 
          household;
              (3) injury, disability, or illness of a member of the 
          household;
              (4) divorce or separation in the household; or
              (5) death of a member of the household.
      (d) Housing Counseling Agencies.--The Secretary shall designate and 
  approve nonprofit housing counseling agencies in each State to be 
  available to assist the Secretary in implementing the program 
  established pursuant to subsection (a) of this section and to section 
  4(b)(1)(A). Nonprofit housing agencies designated and approved under 
  this subsection shall provide assistance to an eligible mortgagor 
  during the entire period that such mortgagor receives assistance under 
  this Act.
  
  SEC. 3. LEGAL ACTION.
  
      (a) Conditions Under Which Legal Action Is Prohibited.--Except as 
  otherwise provided in the Act, a mortgagee of a mortgage for a 1- to 4-
  family residence may not accelerate the maturity of or commence any 
  legal action regarding such a mortgage (including, but not limited to, 
  mortgage foreclosure to recover under such obligation) or take 
  possession of any security of the mortgagor for such mortgage 
  obligation unless the mortgagee has sent to the mortgagor notice 
  pursuant to subsection (b). In addition, the mortgagee may not take 
  such action--
              (1) before the expiration of the 30-day period beginning on 
          the date that notice of the intent to take such action was sent 
          to the mortgagor in accordance with subsection (b);
              (2) before the expiration of the 30-day period beginning on 
          the date of the initial meeting between the mortgagor and an 
          approved counseling agency held in accordance with section 
          4(a);
              (3) if an application for such assistance under this Act 
          has been submitted to the Secretary on behalf of the mortgagor 
          and such application--
                      (A) is pending; or
                      (B) has been approved but payments have not yet 
                  been made toward the mortgage; or
              (4) if payment toward the mortgage is being made under this 
          Act.
      (b) Requirements of Notice.--The Secretary shall issue regulations 
  that include, but are not limited to, a uniform notice under this 
  section. Such notice shall be in plain language and shall--
              (1) inform the mortgagor in large bold type that he or she 
          may be eligible for temporary assistance in making mortgage 
          payments;
              (2) include an explanation of the mortgage assistance 
          program under this Act;
              (3) inform the mortgagor that to apply for mortgage 
          assistance, he or she shall attend a meeting in accordance with 
          section 4(a) within 30 days of the date of the notice;
              (4) include the legal action intended and the basis 
          therefore;
              (5) include a list of approved counseling agencies located 
          in the State in which the mortgagor resides;
              (6) be sent via first class mail to the last known address 
          of the mortgagor; and
              (7) be subject to such other requirements as prescribed by 
          the Secretary.
  
  SEC. 4. APPLICATION FOR ASSISTANCE.
  
      (a) Meeting.--
              (1) In general.--To apply for assistance under this Act, 
          not later than 30 days after receiving notice in accordance 
          with section 3(b), a mortgagor shall attend a face-to-face 
          meeting with the mortgagee or an approved counseling agency to 
          attempt to prevent legal action for which the notice was sent 
          by restructuring the mortgage payment schedule. A meeting under 
          this paragraph may be conducted over the telephone under 
          circumstances prescribed by the Secretary.
              (2) Notice.--If the mortgagor meets with the approved 
          counseling agency within the period specified in paragraph (1), 
          the approved counseling agency shall send notice of the meeting 
          which includes, but is not limited to, the date of the meeting, 
          to the mortgagee not later than 5 business days after the 
          meeting.
      (b) Preparation; Submission.--
              (1) In general.--If the mortgagor is not able to resolve 
          the default and prevent foreclosure before the expiration of 
          the 30-day period beginning on the date of the meeting, the 
          mortgagor may file an application for mortgage assistance under 
          this Act. At the request of the mortgagor, an approved 
          counseling agency shall--
                      (A) assist the mortgagor in preparing an 
                  application for assistance under this Act; and
                      (B) not later than 30 days after the mortgagor 
                  initially requests assistance in the preparation of the 
                  application, submit the completed application to the 
                  Secretary.
              (2) Fees.--The Secretary may pay approved counseling 
          agencies a fee, in an amount determined by the Secretary, for 
          rendering assistance pursuant to this Act.
      (c) Notice to Mortgagee.--If the approved counseling agency submits 
  an application for assistance to the Secretary on behalf of a 
  mortgagor, the approved counseling agency shall, not later than 5 
  business days after submitting the application, inform the mortgagee of 
  the date that the application was submitted.
      (d) Form; Contents.--An application for assistance under this Act 
  shall be submitted on a form prescribed by the Secretary and shall 
  include a financial statement disclosing all assets and liabilities of 
  the mortgagor, whether singly or jointly held, and all household income 
  regardless of source.
      (e) Effect of Misrepresentation.--A mortgagor who intentionally 
  misrepresents any financial information in connection with the filing 
  of an application for assistance under this Act may be denied 
  assistance and required to immediately repay any amount of assistance 
  received, and the mortgagee may, at any time thereafter, take any legal 
  action to enforce the mortgage without any further restrictions or 
  requirements under this Act.
      (f) Availability.--An application for assistance under this Act may 
  be obtained from an approved counseling agency.
      (g) Determination on Application.--
              (1) Time period.--The Secretary shall determine eligibility 
          of a mortgagor for assistance under this Act not later than 60 
          days after receipt of the application of the mortgagor.
              (2) Notification.--Not later than 5 business days after 
          making the determination on an application for assistance, the 
          Secretary shall notify the mortgagor and the mortgagee as to 
          whether the application has been approved or disapproved.
  
  SEC. 5. ASSISTANCE PAYMENTS BY SECRETARY.
  
      (a) Amount To Bring Mortgage Current.--If the Secretary determines 
  that a mortgagor is eligible for assistance under this Act and the 
  Secretary approves such mortgagor for assistance, the Secretary shall 
  pay to the mortgagee from any amounts made available to carry out this 
  Act the full amount due to the mortgagee pursuant to the terms of the 
  mortgage without regard to any acceleration under the mortgage, or the 
  full amount of any alternative mortgage payments agreed to by the 
  mortgagee and mortgagor on the date that the application is approved by 
  the Secretary. This amount shall include the amount of principal, 
  interest, taxes, assessments, ground rents, hazard insurance, any 
  mortgage insurance or credit insurance premiums, and reasonable 
  attorneys' fees incurred by such mortgagee in relation to the 
  arrearage.
      (b) Monthly Assistance Payments.--
              (1) In general.--The Secretary shall make monthly mortgage 
          assistance payments to the mortgagee on behalf of the mortgagor 
          pursuant to this Act.
              (2) Obligation of the mortgagor.--A mortgagor on whose 
          behalf the Secretary is making the mortgage assistance payments 
          shall pay monthly payments to the Secretary. Such payments 
          shall be in an amount which will cause the mortgagor's total 
          housing expense not to exceed 35 percent of the mortgagor's net 
          effective income. This shall be the maximum amount the 
          mortgagor can be required to pay during the 36 months a 
          mortgagor is eligible for mortgage assistance.
              (3) Obligation of the secretary.--Upon receipt of this 
          payment from the mortgagor, the Secretary or the Secretary's 
          duly authorized agent shall send the total mortgage payment 
          directly to the mortgagee.
      (c) Review Upon Delinquency.--If the mortgagor fails to pay to the 
  Secretary any amounts due directly from the mortgagor under this 
  section not later than 15 days after such due date, the Secretary or 
  its designated agent shall review the mortgagor's financial 
  circumstances to determine whether a delinquency in payments due from 
  the mortgagor under this section or section 6 is the result of a change 
  in the mortgagor's financial circumstances since the payment amount was 
  last determined. If the delinquency is not the result of a change in 
  the mortgagor's financial circumstances, the Secretary shall terminate 
  future mortgage assistance payments and the mortgagee may, at any time 
  thereafter, take any legal action to enforce its mortgage without any 
  further restriction or requirement. If the delinquency is the result of 
  such a change, the Secretary shall modify the mortgagor's required 
  payments to the Secretary as the Secretary shall determine.
      (d) Period for Assistance.--Payments under this Act shall be 
  provided for a period not to exceed 36 months, either consecutively or 
  nonconsecutively. The Secretary shall establish procedures for periodic 
  review of the mortgagor's financial circumstances for the purpose of 
  determining the necessity for continuation, termination, or adjustment 
  of the amount of the payments.
  
  SEC. 6. REPAYMENT OF ASSISTANCE.
  
      (a) Assistance Loan.--The amount by which the assistance payments 
  made by the Secretary to the mortgagee exceeds the amount of payments 
  made by the mortgagor to the Secretary shall be a loan by the Secretary 
  to the mortgagor. The loan shall be evidenced by such documents as the 
  Secretary shall determine necessary to protect the interests of the 
  United States.
      (b) Repayment of Assistance Loan.--Before making assistance 
  payments under this Act on behalf of a mortgagor, the Secretary shall 
  enter into an agreement with the mortgagor for repayment of all 
  mortgage assistance made by the Secretary under section 5, plus 
  interest as provided in subsection (c). The agreement shall provide for 
  monthly payments by the mortgagor to the Secretary which (1) shall 
  begin once the Secretary has determined that continuation of mortgage 
  assistance payments to the mortgagee is unnecessary, and (2) shall be 
  in an amount determined as follows:
              (1) Housing expense less than 35 percent.--If the 
          mortgagor's total housing expense is less than 35 percent of 
          the mortgagor's net effective income, the mortgagor shall pay 
          to the Secretary the difference between 35 percent of the 
          mortgagor's net effective income and the mortgagor's total 
          housing expense unless otherwise determined by the Secretary 
          after examining the mortgagor's financial circumstances and 
          ability to contribute to repayment of the mortgage assistance.
              (2) Housing expense greater than 35 percent.--If the 
          mortgagor's total housing expense is more than 35 percent of 
          the mortgagor's net effective income, repayment of the mortgage 
          assistance shall be deferred until the mortgagor's total 
          housing expense is less than 35 percent of the mortgagor's net 
          effective income.
              (3) When mortgage paid in full.--Notwithstanding paragraphs 
          (1) and (2), if repayment of mortgage assistance is not made by 
          the date that the mortgage is paid in full, the mortgagor shall 
          make mortgage assistance repayments in an amount not less than 
          the previous regular mortgage payment until the mortgage 
          assistance is repaid.
      (c) Interest.--Interest shall accrue on all mortgage assistance 
  made under this Act at the rate determined monthly by the Secretary of 
  the Treasury to be equal to the then current average yield on 
  outstanding 30-year bonds issued by the Secretary of the Treasury under 
  section 3102 of title 31, United States Code, and shall accrue only 
  during the period in which the mortgagor is required to make repayment 
  under this section.
      (d) Lien To Secure Repayment of Assistance.--Repayment of amounts 
  owed to the Secretary from a mortgagor shall be secured by a mortgage 
  lien on the property and by such other obligation as the Secretary may 
  require. The lien or other security interest of the Secretary shall not 
  be deemed to take priority over any other secured lien or secured 
  interest in effect against the mortgagor's property on the date 
  assistance payments begin. The Secretary may allow subordination of the 
  mortgage assistance lien only if such subordination is necessary to 
  permit the mortgagor to obtain a home improvement loan for repairs 
  necessary to preserve the property.
      (e) Time for Repayment.--Payments under this section shall be made 
  by the mortgagor to the Secretary not later than 14 days after each 
  mortgage payment is due under the mortgage (or in the case of repayment 
  after the mortgage has been paid in full, not later than the date the 
  mortgage payments were due under the mortgage).
  
  SEC. 7. DEFINITIONS.
  
      For the purposes of this Act, the following definitions apply:
              (1) Approved counseling agency.--The term ``approved 
          counseling agency'' means a nonprofit housing counseling agency 
          approved by the Secretary pursuant to section 2(e).
              (2) Gross household income.--The term ``gross household 
          income'' means the total income of a mortgagor, the mortgagor's 
          spouse, children residing in the same residence as the 
          mortgagor, and any other person living in such residence that 
          is declared by the mortgagor as a dependent for Federal income 
          tax purposes.
              (3) Household.--The term ``household'' means a mortgagor, 
          the mortgagor's spouse, children residing in the same residence 
          as the mortgagor, and any other person living in such residence 
          that is declared by the mortgagor as a dependent for Federal 
          income tax purposes.
              (4) Housing expense.--The term ``housing expense'' means 
          the sum of the mortgagor's monthly maintenance, utility, and 
          hazard insurance expense, taxes, and required mortgage 
          payments, including escrows.
              (5) Mortgagee; mortgagor.--The terms ``mortgagee'' and 
          ``mortgagor'' have the meanings given such terms in section 201 
          of the National Housing Act (12 U.S.C. 1707).
              (6) Net effective income.--The term ``net effective 
          income'' means the gross household income of the mortgagor, 
          less city, State, and Federal income and social security taxes.
              (7) Secretary.--The term ``Secretary'' means the Secretary 
          of Housing and Urban Development.
  
  SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
  
      There is authorized to be appropriated for each fiscal year such 
  sums as may be necessary to provide assistance under this Act and for 
  costs (as such term is defined in section 502 of the Federal Credit 
  Reform Act of 1990 (2 U.S.C. 661a)) of such assistance.
target: Homeowners' Emergency Mortgage Assistance Act - Directs the Secretary of Housing and Urban Development to establish a mortgage emergency assistance program for a mortgage for a one- to four-family residence whose mortgagor is temporarily unable to meet payment obligations due to financial hardship beyond the mortgagor's control.
  
  Prohibits an mortgagee from accelerating the maturity of or commencing any legal action regarding a mortgage (including foreclosure) or taking possession of any mortgagor security: (1) unless the mortgagee meets certain notice and other specified conditions; or (2) if the mortgagor has applied for or is receiving assistance under this Act.
  
  Requires mortgagor repayment of such assistance, plus interest.
feat_title: To establish a program to assist homeowners experiencing unavoidable, temporary difficulty making payments on home mortgages.