110 HR 5855 IH: Foreclosure Counseling Assistance Act of U.S. House of Representatives 2008-04-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5855 IN THE HOUSE OF REPRESENTATIVES April 17, 2008 Ms. Velázquez introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish a program to provide grants to help homeowners who are facing foreclosure to receive professional counseling.

1.

Short title

This Act may be cited as the Foreclosure Counseling Assistance Act of 2008.

2.

Purpose

The purpose of this Act is to promote adequate professional counseling for homeowners facing foreclosure due to the mortgage crisis.

3.

Foreclosure Counseling Assistance

(a)

Establishment

The Neighborhood Reinvestment Corporation (hereinafter in this Act referred to as the NRC) shall make grants to qualified counseling intermediaries and qualified legal organizations to provide legal assistance to homeowners of owner-occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure. (b)

Definitions

For purposes of this Act: (1)

Legal assistance

The term legal assistance means those services performed by, or under the supervision of, a licensed legal professional in representing homeowners of owner-occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure. (2)

Qualified counseling intermediaries

The term qualified counseling intermediaries means counseling intermediaries approved by the Department of Housing and Urban Development or the NRC to hire attorneys to assist homeowners who have legal issues related to homeownership preservation, home foreclosure preservation, and tenancy associated with foreclosures. (3)

Qualified legal organizations

The term qualified legal organizations means State and local legal organizations that have demonstrated legal experience in home foreclosure law, as such experience is determined by the Chief Executive Officer of the NRC. (c)

Grant priority

In making grants under this Act, the NRC shall give priority to qualified counseling intermediaries and qualified legal organizations that— (1)provide legal assistance in the 100 metropolitan statistical areas (as defined by the Director of the Office of Management and Budget) with the highest home foreclosure rates; and (2)have the capacity to begin using the grant funds within 90 days after receipt of the funds. (d)

Grant contingent on reporting

As a condition of the receipt of any grant under this Act, the grantee shall agree to disclose to the Chief Executive Officer of NRC basic information relating to the demographics of the borrower, the dollar amount and terms of the homeowner’s mortgage, and the outcome of any legal proceedings related to the foreclosure proceedings, including, but not limited to, resolution of the foreclosure or delinquency, with details about modifications, workouts, short sales or foreclosure.

4.

Authorization of Appropriations

There are authorized to be appropriated $37,500,000 to carry out this Act, to remain available until expended.