To establish a program for the Secretary of Housing and Urban Development to provide financial assistance to certain homeowners experiencing temporary difficulty making home mortgage payments resulting from their call or order to active duty while a member of the Individual Ready Reserve of the Armed Forces or the inactive National Guard.

Summary: Inactive Reservists Foreclosure Prevention Act of 2007 - Instructs the Secretary of Housing and Urban Development (HUD) to implement a mortgage assistance program through grants and loans for direct mortgage payments for the primary residential property of designated eligible households.

Requires such mortgage assistance to be paid monthly directly to the mortgage servicer during the period that a member of the eligible household is serving on active duty for a period of more than 30 days in the Armed Forces, including extensions in the period of such active duty.

Sets forth requirements governing: (1) grant assistance, repayment, and repayment in cases of foreclosure; and (2) application procedures.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Inactive Reservists Foreclosure 
Prevention Act of 2007''.

SEC. 2. MORTGAGE ASSISTANCE PROGRAM.

    (a) In General.--The Secretary of Housing and Urban Development 
shall carry out a program under this Act to provide mortgage assistance 
through the provision of grants and loans for direct mortgage payments 
on behalf of eligible households.
    (b) Eligible Mortgages.--Mortgage assistance under this Act may be 
provided only with respect to a mortgage that meets all of the 
following requirements:
            (1) Mortgagor requirements.--The mortgagor under the 
        mortgage--
                    (A) is a member of an eligible household that 
                resides in the property that is subject to the 
                mortgage; and
                    (B) has not, during the 24-month period ending upon 
                the date that the mortgagor submits an application for 
                assistance under this Act, been more than 60 days in 
                arrears under any mortgage for residential property.
            (2) Dwelling requirements.--The property that is subject to 
        the mortgage is--
                    (A) designed principally as a residential property; 
                and
                    (B) the primary place of residence of the mortgagor 
                and the mortgagor's household.

SEC. 3. ASSISTANCE PAYMENTS.

    (a) Monthly Direct Payment.--The Secretary shall design and 
implement the program under this Act in a manner that provides that any 
amounts paid by the Secretary for mortgage assistance with respect to 
an eligible mortgage are paid on a monthly basis directly to the 
mortgagee or other servicer of the mortgage.
    (b) Period of Assistance.--
            (1) In general.--Payment under the program under this 
        section with respect to an eligible mortgage may be made only 
        for scheduled payments due under the terms of the mortgage (as 
        in effect pursuant to any applicable provisions of law) during 
        the period that a member of the eligible household who is an 
        eligible member of the Armed Forces is serving on active duty 
        for a period of more than 30 days in the Armed Forces.
            (2) Extended deployments.--The Secretary shall ensure that 
        in determining the amount of assistance to be provided with 
        respect to an eligible mortgage and the period for which such 
        assistance will be provided, sufficient amounts for such 
        assistance shall be reserved under the program under this Act 
        to provide for unpredictability and extensions in the period of 
        active duty of eligible members of the Armed Forces.
    (c) Determination of Amount of Assistance.--Subject to subsection 
(d), the Secretary shall determine the amount of assistance to be 
provided with respect to an eligible mortgage based upon criteria 
established by the Secretary, by regulation.
    (d) Limitations on Amount of Assistance.--The amount of assistance 
provided under the program under this Act with respect to any eligible 
mortgage may not exceed the following amounts:
            (1) Monthly amount.--With respect to the assistance payment 
        for any single month, the amount due to be paid for such month 
        under the terms of the mortgage (as in effect pursuant to any 
        applicable provisions of law) for principal, interest, mortgage 
        insurance for the mortgage, and any scheduled deposit in an 
        escrow account for the purpose of ensuring payment of taxes, 
        insurance, assessments, and other charges with respect to the 
        property subject to the mortgage.
            (2) Aggregate amount.--An aggregate amount assistance over 
        the entire period under subsection (b) that assistance is 
        provided with respect to the mortgage, which shall be 
        established by the Secretary taking into consideration the 
        total amount made available for the program under this Act.
    (e) Prevention of Double Payments.--The Secretary shall take 
appropriate actions to ensure that, in the case of any payment on an 
eligible mortgage paid by a mortgagor for any period for which payment 
has already been made under the program under this Act, the mortgagor 
or other servicer of the mortgage shall return such payment within a 
reasonable period of time or shall immediately credit such payment 
toward amortization of the principal obligation under the mortgage, and 
promptly notify the mortgagor of such credit.

SEC. 4. REPAYMENT OF ASSISTANCE.

    (a) Grant Assistance; No Repayment.--
            (1) In general.--Any assistance provided under the program 
        under this Act with respect to any eligible mortgage during any 
        period during which the annual income of household of the 
        mortgagor, as determined by the Secretary, does not exceed 200 
        percent of the poverty line applicable to a family of the size 
        involved shall be in the form of a grant and, except as 
        provided in paragraph (2), the Secretary may not require 
        repayment of any such amounts.
            (2) Repayment in cases of foreclosure.--If the mortgagee 
        for any eligible mortgage for which assistance payments are 
        made pursuant to this subsection forecloses on the mortgage, 
        takes legal action to enforce the mortgage obligation, or 
        otherwise recovers possession of any security of the mortgage 
        as a result of default on the obligation of the mortgage, the 
        Secretary shall terminate payment of assistance under this Act 
        with respect to the mortgage and shall treat any assistance 
        previously provided with respect to the mortgage as assistance 
        in the form of a loan pursuant to subsection (b).
    (b) Loan Assistance; Repayment Required.--Any assistance provided 
under the program under this Act with respect to any eligible mortgage 
during any period during which the annual income of household of the 
mortgagor, as determined by the Secretary, exceeds 200 percent of the 
poverty line applicable to a family of the size involved shall be in 
the form of a loan, as follows:
            (1) No interest.--Such loan shall not bear any interest.
            (2) 10-year term.--Such loan shall have a term to maturity 
        of 10 years, which shall not commence until the period of 
        assistance under section 3(b) with respect to mortgage has 
        terminated.
            (3) Security.--Repayment of such loan shall be secured by a 
        lien on the residential property that is subject to the 
        eligible mortgage for which the assistance under this Act was 
        provided under the loan, in the aggregate amount of such loan 
        assistance provided. Such lien shall be held by the Secretary 
        and shall be subordinate to other mortgages and other secured 
        liens on the property in effect upon the date that assistance 
        under the program under this Act is first provided for the 
        mortgage, and to any Federal tax lien, but shall be superior to 
        any other lien.
            (4) Agreement.--The terms of such loan shall be set forth 
        in a written agreement, as the Secretary considers appropriate, 
        between the Secretary and the mortgagor.

SEC. 5. APPLICATION FOR ASSISTANCE.

    (a) In General.--To be eligible for mortgage assistance under this 
Act, a mortgagor for an eligible mortgage shall submit an application 
for such assistance in such form and manner as the Secretary shall 
require, which shall provide such information regarding the eligible 
mortgage as the Secretary shall require, including information 
sufficient for the Secretary to comply with subsection (b), and shall 
include a financial statement disclosing all income of each member of 
the household of the mortgagor regardless of source. An application for 
such assistance may be submitted before the eligible member of the 
Armed Forces who is a member of the eligible household begins active 
duty described in section 8(2).
    (b) Notification to Mortgagee and Servicer.--Upon submission of an 
application under subsection (a), the Secretary shall notify the 
mortgagee and servicer, if the mortgagee is not the servicer, of the 
eligible mortgage of the submission of the application for assistance 
under this Act.
    (c) Income Information.--The Secretary shall require that each such 
application include a certification by the mortgagor for the eligible 
mortgage of the anticipated income of the household of the mortgagor 
during the anticipated period of assistance under this Act, which, in 
the case of an application described in the last sentence of subsection 
(a), may be based on household income in the month before commencement 
of the active duty of the eligible member of the Armed Forces, less any 
such income attributable to such eligible member, plus the expected 
military pay of such eligible member. The Secretary may make a 
determination regarding compliance of the income of a mortgagor's 
household with the requirements under subsections (a)(1) and (b) of 
section 4 based upon such a certification, subject to such reviews as 
the Secretary shall, by regulation, provide.
    (d) Effect of Misrepresentation.--A mortgagor who is determined to 
have intentionally misrepresented 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 already received, and the mortgagee may, at any 
time thereafter, take any legal action to enforce the mortgage, if 
appropriate.
    (e) Review and Determination.--
            (1) In general.--The Secretary shall review each 
        application submitted for assistance under this Act and make a 
        determination regarding the eligibility for assistance of the 
        mortgage specified in the application not later than 30 days 
        after receipt of the application of the mortgagor, and shall 
        notify the mortgagor and the mortgagee and servicer of approval 
        or disapproval of such application not later than 30 days after 
        making the determination regarding approval.
            (2) Failure to make determination.--If the Secretary fails 
        to make a determination regarding eligibility for assistance of 
        a mortgage during the 30-day period specified in paragraph (1) 
        or fails to provide the notice regarding such determination as 
        required under such paragraph, the mortgage shall be considered 
        for purposes of this Act to have been approved as eligible for 
        assistance upon the date that the application for the mortgage 
        was submitted to the Secretary.

SEC. 6. COORDINATION WITH OTHER AGENCIES AND ENTITIES.

    (a) Publicity.--The Secretary shall take such action as may be 
necessary to ensure that eligible households and eligible members of 
the Armed Forces are aware of and informed about the availability of 
and requirements for mortgage assistance under this Act, which may 
include consulting and coordinating appropriate activities with the 
Secretary of Defense, the Federal financial institutions regulatory 
agencies, financial institutions regulated by such regulatory agencies, 
other mortgage lenders, the Federal National Mortgage Association, the 
Federal Home Loan Mortgage Corporation, and mortgage counseling 
agencies.
    (b) Implementation.--The Secretary shall consider using States, 
State or local agencies (including housing and housing finance 
agencies), mortgage lenders and other financial institutions, and other 
entities to conduct some or all of the functions and responsibilities 
involved in carrying out the program for mortgage assistance under this 
Act and may enter into agreements with such entities to provide for 
such entities to carry out such functions and responsibilities as the 
Secretary considers appropriate to ensure that such assistance is 
provided in an effective and efficient manner.

SEC. 7. SAVINGS CLAUSE.

    This Act may not be construed to alter, affect, or limit any 
provision of the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
seq.).

SEC. 8. DEFINITIONS.

    For the purposes of this Act, the following definitions apply:
            (1) Active duty.--The terms ``active duty'' and ``active 
        duty for a period of more than 30 days'' have the meanings 
        given such terms in section 101(d) of title 10, United States 
        Code.
            (2) Eligible member of the armed forces.--The term 
        ``eligible member of the Armed Forces'' means a member of the 
        Armed Forces who, while a member of the Individual Ready 
        Reserve or the inactive National Guard, is serving on active 
        duty pursuant to a call or order to active duty for a period of 
        more than 30 days.
            (3) Eligible mortgage.--The term ``eligible mortgage'' 
        means any mortgage that meets the requirements of section 2(b) 
        for assistance under this Act.
            (4) Eligible household.--The term ``eligible household'' 
        means a household that--
                    (A) contains a member who is an eligible member of 
                the Armed Forces; and
                    (B) has been determined by the Secretary to be 
                eligible for mortgage assistance under this Act.
            (5) Federal financial institutions regulatory agencies.--
        The term ``Federal financial institutions regulatory agencies'' 
        means the Office of the Comptroller of the Currency, the Board 
        of Governors of the Federal Reserve System, the Federal Deposit 
        Insurance Corporation, the Office of Thrift Supervision, and 
        the National Credit Union Administration.
            (6) 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.
            (7) Income.--The term ``income'' means, with respect to the 
        household of an eligible mortgagor, the aggregate income from 
        the all sources of each member of the household, as determined 
        in accordance with criteria prescribed by the Secretary.
            (8) Mortgage; mortgagee; mortgagor.--The terms 
        ``mortgage'', ``mortgagee'', and ``mortgagor'' have the 
        meanings given such terms in section 201 of the National 
        Housing Act (12 U.S.C. 1707).
            (9) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981, including any revision required by 
        such section.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (11) Servicer.--The term ``servicer'' has the meaning given 
        such term in section 6(i) of the Real Estate Settlement 
        Procedures Act of 1974 (12 U.S.C. 2605(i)).

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for mortgage assistance 
under this Act such sums as may be necessary for each of fiscal years 
2008, 2009, 2010, 2011, and 2012.

SEC. 10. REGULATIONS.

    Not later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act, the Secretary, in consultation 
with the Federal financial institutions regulatory agencies, shall 
issue such regulations as may be necessary to carry out this Act, which 
shall provide for the implementation of the mortgage assistance program 
under this Act upon the expiration of such period.