II 111th CONGRESS 1st Session S. 2912 IN THE SENATE OF THE UNITED STATES December 18, 2009 Mr. Nelson of Florida introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require lenders of loans with Federal guarantees or Federal insurance to consent to mandatory mediation.

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Short title

This Act may be cited as the Foreclosure Mandatory Mediation Act of 2009.

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Mandatory mediation

Title I of the Helping Families Save Their Homes Act of 2009 (Public Law 111–22; 12 U.S.C. 5201 note) is amended by adding at the end the following:

106.

Mandatory mediation

(a)

In general

Notwithstanding any other provision of law, before a qualified mortgagee may initiate a foreclosure proceeding or a sheriff sale, the qualified mortgagee shall conduct, consistent with any applicable State or local requirements, a one-time mediation with the affected mortgagor and a housing counseling agency, at the expense of the qualified mortgagee. (b)

Definitions

For purposes of this section— (1)the term housing counseling agency means— (A)a housing counseling agency certified by the Secretary under section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)); or (B)a neighborhood housing services program established by the Neighborhood Reinvestment Corporation under section 606 of the Housing and Community Development Amendments of 1978 (42 U.S.C. 8105); and (2)the term qualified mortgagee means an entity— (A)that makes a mortgage loan for, or holds a note secured by, a one- to four-family residence that is— (i)insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (ii)guaranteed, insured, or made under chapter 37 of title 38, United States Code; (iii)made, guaranteed, or insured under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.); or (iv)eligible for purchase by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; or (B)that is acting, or otherwise authorized to act, as the mortgagee of record for a lender, including any entity, such as the Mortgage Electronic Registration Systems or MERS, acting as a nominee for a lender in any suit brought against a mortgagor.

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