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.