I 111th CONGRESS 2d Session H. R. 6069 IN THE HOUSE OF REPRESENTATIVES July 30, 2010 Mr. Sarbanes introduced the following bill; which was referred to the Committee on Financial Services A BILL To ensure adequate funding for foreclosure mitigation counseling activities of the Neighborhood Reinvestment Corporation in connection with the Home Affordable Modification Program of the Secretary of the Treasury.

1.

Short title

This Act may be cited as the Making Home Affordable Improvements Act.

2.

Allocation of Making Home Affordable funding for foreclosure mitigation counseling in connection with Home Affordable Modification Program and Home Affordable Foreclosure Alternatives Program

(a)

Funding for foreclosure mitigation counseling

From any amounts made available for carrying out the Making Home Affordable initiative of the Secretary of the Treasury pursuant to title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), the Secretary shall provide assistance, in the amounts provided under subsection (c), to the National Foreclosure Mitigation Counseling Program for foreclosure mitigation counseling activities in connection with the Home Affordable Modification Program (HAMP) of such initiative. (b)

Distribution of assistance

(1)

In general

The National Foreclosure Mitigation Counseling Program shall distribute amounts received pursuant to subsection (a) to grantees in good standing in accordance with guidelines, policies, and procedures of the Program. (2)

Housing counseling agency eligibility

For a housing counseling agency to be eligible to receive assistance from amounts received pursuant to subsection (a), the agency must be a recipient of funding from the National Foreclosure Mitigation Counseling Program. (c)

Formula for funding

The amount provided under this subsection shall be an amount, for each mortgage modified under the Home Affordable Modification Program, as follows: (1)

Trial modifications

For each mortgage for which a servicer or lender has entered into a trial modification under the Program with the borrower, $500. (2)

Permanent modifications

For each mortgage for which a servicer or lender has entered into a permanent modification under the Program with the borrower, $750. (3)

Home Affordable Foreclosure Alternatives Program

For each mortgage for which the servicer or lender has agreed to an alternative to foreclosure under the Home Affordable Foreclosure Alternatives (HAFA) Program, $300. (d)

Administrative fees

The Neighborhood Reinvestment Corporation may use up to 15 percent of the amount allocated under subsection (a) for administrative expenses. (e)

Use of foreclosure mitigation counseling funds

Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, the Neighborhood Reinvestment Corporation shall establish a procedure by which the National Foreclosure Mitigation Counseling Program shall direct the amounts provided to such Program pursuant to this section to participating housing counseling agencies. (f)

National Foreclosure Mitigation Counseling Program

For purposes of this section, the term National Foreclosure Mitigation Counseling Program means the program of the Neighborhood Reinvestment Corporation for mortgage foreclosure mitigation activities carried out pursuant to— (1)title III of division K of the Consolidated Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2441); (2)section 2305 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 note); (3)title III of division I of the Omnibus Appropriations Act, 2009 (Public Law 111–8; 123 Stat. 9821); and (4)any other provision of law providing amounts to the Neighborhood Reinvestment Corporation for such activities. (g)

Guidelines

The Secretary of the Treasury shall revise the guidelines of the Making Home Affordable initiative and the Home Affordable Modification Program as necessary to carry out this section.

3.

Collection of program data and disclosure to Secretary of Housing and Urban Development

(a)

Collection of program data

The Secretary of the Treasury shall revise the guidelines of the Home Affordable Modification Program (HAMP) of the Making Home Affordable initiative of the Secretary, authorized under title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), to provide for the collection, by the Secretary on a monthly basis from each mortgage servicer and lender participating in the Program, of comprehensive data on the activities of the servicer or lender under the Home Affordable Modification Program. Such comprehensive data shall identify the participating housing counseling agency, when applicable, and shall include the following information: (1)The number of requests for mortgage modifications under the Program that the servicer or lender has received. (2)The number of requests for mortgage modifications under the Program that the servicer or lender has received for mortgages for borrowers having back-end debt-to-income ratios equal to or greater than 55 percent. (3)The number of requests for mortgage modifications under the Program that the servicer or lender has processed. (4)The number of requests for mortgage modifications under the Program that the servicer or lender has processed for mortgages for borrowers having back-end debt-to-income ratios equal to or greater than 55 percent. (5)The number of requests for mortgage modifications under the Program for which the servicer or lender has entered into a trial modification with the borrower. (6)The number of requests for mortgage modifications under the Program for which— (A)the servicer or lender has entered into a trial modification with the borrower; and (B)the borrower has a back-end debt-to-income ratio equal to or greater than 55 percent. (7)The number of requests for mortgage modifications under the Program for which the servicer or lender has entered into a permanent modification with the borrower. (8)The number of requests for mortgage modifications under the Program for which— (A)the servicer or lender has entered into a permanent modification with the borrower; and (B)the borrower has a back-end debt-to-income ratio equal to or greater than 55 percent. (9)The number of requests for mortgage modifications under the Program that the servicer or lender has denied. (10)The number of requests for mortgage modifications under the Program that the servicer or lender has denied for mortgages for borrowers having back-end debt-to-income ratios equal to or greater than 55 percent. (b)

Disclosure to Secretary of HUD

Not later than 14 days after each monthly deadline for submission of data by mortgage servicers and lenders participating in the Home Affordable Modification Program, the Secretary shall provide a report to the Secretary of Housing and Urban Development containing such monthly data collected by the Secretary of the Treasury from mortgage servicers and lenders participating in the Program, including the information specified in subsection (a). (c)

Public availability

Not later than 30 days after receipt by the Secretary of Housing and Urban Development of each monthly report pursuant to subsection (b), the Secretary of the Treasury shall make such report publicly available by means of a World Wide Web site of the Secretary and by submitting a report to the Congress.

4.

Definitions

For purposes of this Act, the following definitions shall apply: (1)

Back-end debt-to-income ratio

The term back-end debt-to-income ratio means, with respect to the borrower under a mortgage for which a request for modification under the Home Affordable Modification Program or a modification under such Program has been made, the ratio of monthly payments due on all debts of the borrower (including mortgage principal, interest, taxes, and insurance, and all other recurring debt) to the gross monthly income of the borrower before any such modification under such Program, as further defined by the Secretary in guidelines for the Home Affordable Modification Program. (2)

Secretary

Except where specifically provided otherwise, the term Secretary means the Secretary of the Treasury.