99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–26 

EMERGENCY MORTGAGE RELIEF PROGRAM 

TERMINATION ACT 

MARCH 7, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BACHUS, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 836] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 836) to rescind the unobligated funding for the Emergency Mortgage Relief Program and to terminate the program, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Emergency Mortgage Relief Program Termination 

Act’’. 

SEC. 2. RESCISSION OF FUNDING FOR EMERGENCY MORTGAGE RELIEF PROGRAM. 

Effective on the date of the enactment of this Act, there are rescinded and permanently canceled all unobligated balances remaining available as of such date of enactment of the amounts made available by section 1496(a) of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act (Public Law 111–203; 124 Stat. 2207; 

12 U.S.C. 2706 note). 

SEC. 3. TERMINATION OF EMERGENCY MORTGAGE RELIEF PROGRAM. 

(a) REPEAL.—Title I of the Emergency Housing Act of 1975 (12 U.S.C. 2701 et 

seq.), as amended by section 1496(b) of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act, is hereby repealed. 

(b) TREATMENT OF REMAINING FUNDS.—Notwithstanding the repeal under subsection (a) of this section, any amounts made available under the provision specified 

in section 2 of this Act and obligated before the date of the enactment of this Act 

shall continue to be governed by the provisions of law specified in subsection (a) of 

this section, as in effect immediately before such repeal. 


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(c) TERMINATION.—Upon the completion of outlays to liquidate all amounts referred to in subsection (b) of this section and the completion of all activities with 

respect to such amounts under the provisions of law specified in subsection (a) of 

this section, the Secretary of Housing and Urban Development shall terminate the 

Emergency Mortgage Relief Program authorized under the provisions specified in 

subsection (a). 

(d) STUDY OF USE OF PROGRAM BY MEMBERS OF THE ARMED FORCES, VETERANS, AND GOLD STAR RECIPIENTS.— (1) STUDY.—The Secretary of Housing and Urban Development shall conduct 

a study to determine the extent of usage of the Emergency Mortgage Relief Program authorized under the provisions specified in subsection (a) by, and the impact of such program on, covered homeowners. 

(2) REPORT.—Not later than the expiration of the 90-day period beginning on 

the date of the enactment of this Act, the Secretary shall submit to the Congress a report setting forth the results of the study under paragraph (1) and 

identifying best practices, with respect to covered homeowners, that could be applied to the Emergency Mortgage Relief Program. 

(3) COVERED HOMEOWNER.—For purposes of this subsection, the term ‘‘covered 

homeowner’’ means a homeowner who is— 

(A) a member of the Armed Forces of the United States on active duty 

or the spouse or parent of such a member; 

(B) a veteran, as such term is defined in section 101 of title 38, United 

States Code; or 

(C) eligible to receive a Gold Star lapel pin under section 1126 of title 10, 

United States Code, as a widow, parent, or next of kin of a member of the 

Armed Forces person who died in a manner described in subsection (a) of 

such section. 

PURPOSE AND SUMMARY

H.R. 836 would rescind all unobligated balances made available 

for the Emergency Mortgage Relief Program under section 1496(a) 

of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act, which was signed into law on July 21, 2010, and terminate the 

program. The bill also calls for a study by the Department of Housing and Urban Development (HUD) to identify best practices for 

how existing mortgage assistance programs can be applied to veterans, active duty military personnel, and their relatives. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 836 was introduced by Congressman Jeb Hensarling and 

Chairman Bachus to terminate the Emergency Mortgage Relief 

Program and rescind any unobligated balances remaining under 

the program. The Emergency Mortgage Relief Program was created 

under Section 1496 of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (P.L. 111–203). The Dodd-Frank Act established a $1 billion Emergency Homeowner Relief Fund, to be 

used to fund the Emergency Mortgage Relief Program, which provides loans or credit advances to borrowers who cannot pay their 

mortgages because of unemployment or reduction in income. Administered by HUD, emergency mortgage relief payments may be 

provided for up to twelve months and extended once for up to 

twelve additional months. 

Although as of February 2011, no funds have been furnished to 

homeowners under the program, questions remain about the cost, 

effectiveness, and benefits of the program. Under the Administration’s own projections for the program in its Fiscal Year 2012 

Budget submission, the program’s weighted average subsidy rate is 

97.92, meaning that nearly 98 cents of every dollar loaned under 

the program is not expected to be repaid. Also, several concerns 

have been raised about the effectiveness of the program based on 


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the underwriting of loans to homeowners who, by definition, lack 

the ability to pay because they are unemployed. Further concerns 

have been raised about the benefit to participants of a program 

that increases the debt of borrowers already struggling to meet 

their current obligations. Given the country’s current fiscal situation, a program whose benefits are speculative at best but where 

substantial taxpayer losses are certain does not warrant funding. 

HEARING

The Subcommittee on Insurance, Housing, and Community Opportunity held a hearing on March 2, 2011 entitled ‘‘Legislative 

Proposals to End Taxpayer Funding for Ineffective Foreclosure 

Mitigation Programs.’’ The following witnesses testified: 

• The Honorable Neil M. Barofsky, Special Inspector General for the Troubled Asset Relief Program 

• The Honorable David Stevens, Assistant Secretary for 

Housing and Commissioner of the Federal Housing Administration, Department of Housing and Urban Development 

• The Honorable Mercedes M. Ma ̃ rquez, Assistant Secretary, 

Community Planning and Development, Department of Housing and Urban Development 

• Matthew J. Scire`, Director, Financial Markets and Community Investment, U.S. Government Accountability Office 

• Katie Jones, Analyst in Housing Policy, Congressional Research Service, Library of Congress 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

March 3, 2011 and ordered H.R. 836, the Emergency Mortgage Relief Program Termination Act, as amended, favorably reported to 

the House by a record vote of 33 yeas and 22 nays (Record vote no. 

FC–8). 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion by Chairman Bachus to report the bill, as amended, to the House with a 

favorable recommendation was agreed to by a record vote of 33 

yeas and 22 nays (Record vote no. FC–8). The names of Members 

voting for and against follow: 

RECORD VOTE NO. FC–8 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Paul ................................ X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... X .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... ........... ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... ........... .............


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RECORD VOTE NO. FC–8—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... X .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. Marchant ........................ X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Pearce ............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Posey .............................. X ........... ............. Mr. Ellison ............................ ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Perlmutter ...................... ........... X .............

Mr. Westmoreland ................. X ........... ............. Mr. Donnelly ......................... ........... ........... .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Himes ............................. ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Peters ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Renacci ........................... X ........... .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

During consideration of H.R. 836, the following amendments 

were considered: 

1. An amendment offered by Mr. Grimm, no. 1a, requiring 

HUD to study the usage of the Emergency Mortgage Relief 

Program on members of the armed forces, veterans, and gold 

star recipients, to the amendment offered by Mr. Green, no. 1, 

requiring HUD, in consultation with other agencies, to determine an amount from the unobligated balances to provide assistance to members of the armed forces, veterans, and gold 

star recipients, was agreed to by a record vote of 33 yeas and 

22 nays (Record vote no. 7). 

RECORD VOTE NO. FC–7 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Paul ................................ X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... X .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... ........... ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... ........... .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... X .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. Marchant ........................ X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Pearce ............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Posey .............................. X ........... ............. Mr. Ellison ............................ ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Perlmutter ...................... ........... X .............


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RECORD VOTE NO. FC–7—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Westmoreland ................. X ........... ............. Mr. Donnelly ......................... ........... ........... .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Himes ............................. ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Peters ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Renacci ........................... X ........... .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

2. An amendment offered by Mr. Frank, no. 2, requiring all 

but $300 million of unobligated balances to be rescinded, was 

not agreed to by a record vote of 22 yeas and 33 nays (Record 

vote no. 6). 

RECORD VOTE NO. FC–6 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... ........... X ............. Mr. Frank (MA) ..................... X ........... .............

Mr. Hensarling ...................... ........... X ............. Ms. Waters ........................... X ........... .............

Mr. King (NY) ........................ ........... X ............. Mrs. Maloney ........................ X ........... .............

Mr. Royce .............................. ........... X ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. ........... X ............. Ms. Vela`zquez ...................... X ........... .............

Mr. Paul ................................ ........... X ............. Mr. Watt ............................... X ........... .............

Mr. Manzullo ......................... ........... X ............. Mr. Ackerman ....................... X ........... .............

Mr. Jones ............................... ........... X ............. Mr. Sherman ........................ X ........... .............

Mrs. Biggert .......................... ........... X ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... ........... ........... ............. Mr. Capuano ........................ X ........... .............

Mrs. Capito ........................... ........... X ............. Mr. Hinojosa ......................... ........... ........... .............

Mr. Garrett ............................ ........... X ............. Mr. Clay ................................ X ........... .............

Mr. Neugebauer .................... ........... X ............. Mrs. McCarthy (NY) .............. X ........... .............

Mr. McHenry .......................... ........... X ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ ........... X ............. Mr. Lynch ............................. X ........... .............

Mrs. Bachmann .................... ........... X ............. Mr. Miller (NC) ..................... X ........... .............

Mr. Marchant ........................ ........... X ............. Mr. David Scott (GA) ............ X ........... .............

Mr. McCotter ......................... ........... X ............. Mr. Al Green (TX) ................. X ........... .............

Mr. McCarthy (CA) ................ ........... X ............. Mr. Cleaver ........................... X ........... .............

Mr. Pearce ............................. ........... X ............. Ms. Moore ............................. X ........... .............

Mr. Posey .............................. ........... X ............. Mr. Ellison ............................ X ........... .............

Mr. Fitzpatrick ....................... ........... X ............. Mr. Perlmutter ...................... X ........... .............

Mr. Westmoreland ................. ........... X ............. Mr. Donnelly ......................... ........... ........... .............

Mr. Luetkemeyer .................... ........... X ............. Mr. Carson ........................... X ........... .............

Mr. Huizenga ......................... ........... X ............. Mr. Himes ............................. X ........... .............

Mr. Duffy ............................... ........... X ............. Mr. Peters ............................. X ........... .............

Ms. Hayworth ........................ ........... X ............. Mr. Carney ............................ X ........... .............

Mr. Renacci ........................... ........... X .............

Mr. Hurt ................................ ........... X .............

Mr. Dold ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Mr. Grimm ............................. ........... X .............

Mr. Canseco .......................... ........... X .............

Mr. Stivers ............................ ........... X .............

3. A motion to move the previous question on the Frank 

amendment offered by Chairman Bachus was agreed to by a 

record vote of 33 yeas and 18 nays (Record vote no. 5). 


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RECORD VOTE NO. FC–5 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Paul ................................ X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... X .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... ........... ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... ........... .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. Marchant ........................ X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Cleaver ........................... ........... ........... .............

Mr. Pearce ............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Posey .............................. X ........... ............. Mr. Ellison ............................ ........... ........... .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Perlmutter ...................... ........... X .............

Mr. Westmoreland ................. X ........... ............. Mr. Donnelly ......................... ........... ........... .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Carson ........................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Himes ............................. ........... ........... .............

Mr. Duffy ............................... X ........... ............. Mr. Peters ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Renacci ........................... X ........... .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

The following amendment was also considered by the Committee: 

An amendment offered by Mr. Green, no. 1 as amended by an 

amendment offered by Mr. Grimm, no. 1a (Record vote no. 7), requiring HUD to study the usage of the Emergency Mortgage Relief 

Program on members of the armed forces, veterans, and gold star 

recipients was agreed to by voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held a hearing and made 

findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The purposes of H.R.836 are to terminate the Emergency Mortgage Relief Program and rescind any unobligated balances remaining under the program because its cost, its effectiveness, and the 

benefits to its participants are uncertain. Given the country’s current fiscal situation, a program whose benefits are speculative but 

where substantial taxpayer losses are certain does not warrant 

funding. 


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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

MARCH 7, 2011. 

Hon. SPENCER BACHUS, Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 836, the Emergency Mortgage Relief Program Termination Act of 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Chad Chirico. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 836—Emergency Mortgage Relief Program Termination Act of 

2011 

Summary: H.R. 836 would terminate the Department of Housing 

and Urban Development’s (HUD’s) Emergency Mortgage Relief Program (EHLP). Additionally, the bill would rescind funds that remain available for the program as of the date of enactment. 

CBO estimates that enacting the legislation would decrease federal budget deficits by $840 million over the 2011–2012 period. 

Pay-as-you-go procedures apply because the legislation would affect 

direct spending. 

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 836 is shown in the following table. The effects of this legislation fall within budget function 370 (commerce 

and housing credit). 


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By fiscal year in millions of dollars— 

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011– 

2016 

2011– 

2021 

CHANGES IN DIRECT SPENDING 

Estimated 

Budget 

Authority ¥390 ¥450 0 0 0 0 0 0 0 0 0 ¥840 ¥840 

Estimated 

Outlays ... ¥390 ¥450 0 0 0 0 0 0 0 0 0 ¥840 ¥840 

Basis of estimate: The EHLP, authorized by the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, provides up to 

$50,000 in subsidized loans to homeowners who are at least three 

months delinquent on their mortgages because of the temporary 

loss of employment and income. EHLP will pay all arrearages that 

a homeowner has incurred and, for up to 24 months, the amount 

needed to lower the homeowner’s contribution to the mortgage payment to 31 percent of gross monthly income. HUD also will allow 

program funds to be administered by a state that has an existing 

program that provides substantially similar assistance to homeowners. 

HUD has indicated that the program will assist homeowners in 

Puerto Rico and the 32 states that are not participating in the Department of Treasury’s Hardest Hit Fund program; however, HUD 

has not yet awarded any EHLP funds to those states and territory. 

CBO estimates that terminating the EHLP will reduce outlays by 

$840 million over the 2011–2012 period. 

For this estimate, CBO assumes that the legislation will be enacted by June 2011. If the bill is enacted later in 2011, the expected savings would be reduced as HUD is likely to make EHLP 

awards under current law over the course of the next several 

months. 

Pay-as-you-go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. (Enacting H.R. 836 would 

have no impact on federal revenues.) 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 836, THE EMERGENCY MORTGAGE RELIEF 

PROGRAM TERMINATION ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON MARCH 3, 2011 

[By fiscal year, in millions of dollars] 

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011– 

2016 

2011– 

2021 

NET DECREASE (¥) IN THE DEFICIT 

Statutory 

Pay-AsYou-Go 

Impact .... ¥390 ¥450 0 0 0 0 0 0 0 0 0 ¥840 ¥840 

Intergovernmental and private-sector impact: The bill contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 


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Estimate prepared by: Federal Costs: Chad Chirico; Impact on 

State, Local, and Tribal Governments: Lisa Ramirez-Branum; Impact on the Private Sector: Paige Piper-Bach. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 836 does not contain any congressional earmarks, limited 

tax benefits, or limited tariffs benefits as defined in clause 9 of rule 

XXI. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section establishes the short title of the bill, the ‘Emergency 

Mortgage Relief Program Termination Act.’ 

Section 2. Rescission of funding for emergency mortgage relief program 

This section rescinds and permanently cancels all unobligated 

balances remaining available to the Emergency Mortgage Relief 

Program under Section 1496(a), Dodd-Frank Wall Street Reform 

and Consumer Protection Act as of such date of enactment. 

Section 3. Termination of Emergency Mortgage Relief Program 

This section repeals the Emergency Mortgage Relief Program. 

Subsection (b) of this section also provides that any amounts obligated for the Emergency Mortgage Relief Program before the date 

of enactment shall continue to be governed by the provisions of the 

Emergency Mortgage Relief Program that were in effect immediately before the program’s repeal. 

Further, subsection (d) of this section directs the Secretary of 

Housing and Urban Development to conduct a study to determine 

the extent of usage of the Emergency Mortgage Relief Program by 

‘‘covered homeowners.’’ Covered homeowners are defined as individuals who are active duty members of the U.S. armed forces and 

their spouses or parents, veterans of the U.S. armed forces, and individuals eligible to receive a Gold Star lapel button under 10 

U.S.C. 1126 as the widow, parent, or next of kin of a fallen member 


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of the U.S. armed forces. The Secretary of Housing and Urban Development is then required to submit a report to Congress including the results of that study and identifying any best practices that 

could be applied to the Emergency Mortgage Relief Program for 

covered homeowners within 90 days of enactment of this Act. 

Finally, this section requires the Secretary of Housing and Urban 

Development to terminate the Emergency Mortgage Relief Program 

upon the outlay of the funds necessary to complete the tasks referred to in subsections (b) and (d) of this section. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets): 

EMERGENCY HOUSING ACT OF 1975 

* * * * * * * 

øTITLE I—EMERGENCY MORTGAGE RELIEF 

øSHORT TITLE

øSEC. 101. This title may be cited as the ‘‘Emergency Homeowners’ Relief Act.’’ 

øFINDINGS AND PURPOSE

øSEC. 102. (a) The Congress finds that— 

ø(1) the Nation is in a severe recession and that the sharp 

downturn in economic activity has driven large numbers of 

workers into unemployment and has reduced the incomes of 

many others; 

ø(2) as a result of these adverse economic conditions the capacity of many homeowners to continue to make mortgage payments has deteriorated and may further deteriorate in the 

months ahead, leading to the possibility of widespread mortgage foreclosures and distress sales of homes; and 

ø(3) many of these homeowners could retain their homes 

with temporary financial assistance until economic conditions 

improve. 

ø(b) It is the purpose of this title to provide a standby authority 

which will prevent widespread mortgage foreclosures and distress 

sales of homes resulting from the temporary loss of employment 

and income through a program of emergency loans and advances 

and emergency mortgage relief payments to homeowners to defray 

mortgage expenses. 

øMORTGAGES ELIGIBLE FOR ASSISTANCE

øSEC. 103. No assistance shall be extended with respect to any 

mortgage under this title unless— 

ø(1) the holder of the mortgage has indicated to the mortgagor its intention to foreclose; 

ø(2) the mortgagor and holder of the mortgage have certified 

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closure and that the mortgagor is in need of emergency mortgage relief as authorized by this title; 

ø(3) payments under the mortgage have been delinquent for 

at least three months; 

ø(4) the mortgagor has incurred a substantial reduction in 

income as a result of involuntary unemployment or underemployment due to adverse economic conditions and is financially unable to make full mortgage payments; 

ø(5) there is a reasonable prospect that the mortgagor will 

be able to make the adjustments necessary for a full resumption of mortgage payments; and 

ø(6) the mortgaged property is the principal residence of the 

mortgagor. 

øLIMITS OF ASSISTANCE

øSEC. 104. (a) Assistance under this title with respect to a mortgage which meets the requirements of section 103 may be provided 

in the form of emergency mortgage relief loans and advances of 

credit insured pursuant to section 105 or in the form of emergency 

mortgage relief payments made by the Secretary pursuant to section 106. 

ø(b) Assistance under this title on behalf of a homeowner may be 

made available in an amount up to the amount of the principal, interest, taxes, ground rents, hazard insurance, and mortgage insurance premiums due under the homeowner’s mortgage, but such assistance shall not exceed the lesser of $250 per month or the 

amount determined to be reasonably necessary to supplement such 

amount as the homeowner is capable of contributing toward such 

mortgage payment. 

ø(c) Monthly payments may be provided under this title either 

with the proceeds of an insured loan or advance of credit or with 

emergency mortgage relief payments for up to twelve months, and, 

in accordance with criteria prescribed by the Secretary, such 

monthly payments may be extended once for up to twelve additional months. A mortgagor receiving the benefit of mortgage relief 

assistance pursuant to this title shall be required, in accordance, 

with criteria prescribed by the Secretary, to report any increase in 

income which will permit a reduction or termination of such assistance during this period. 

ø(d) Emergency loans or advances of credit made and insured 

under section 105, and emergency mortgage relief payments made 

under section 106, shall be repayable by the homeowner upon such 

terms and conditions as the Secretary shall prescribe, except that 

interest on a loan or advance of credit insured under section 105 

or emergency mortgage relief payments made under section 106 

shall not be charged at a rate which exceeds the maximum interest 

rate applicable with respect to mortgages insured pursuant to section 203(b) of the National Housing Act. 

ø(e) The Secretary may provide for the deferral of the commencement of the repayment of a loan or advance insured under section 

105 or emergency mortgage relief payments made under section 

106 until one year following the date of the last disbursement of 

the proceeds of the loan or advance or payments or for such longer 

period as the Secretary determines would further the purpose of 

this title. The Secretary shall by regulation require such security 


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for the repayment of insured loans or advances of credit or emergency mortgage relief payments as he deems appropriate and may 

require that such repayment be secured by a lien on the mortgaged 

property. 

øEMERGENCY MORTGAGE RELIEF LOANS AND ADVANCES

øSEC. 105. (a) The Secretary is authorized, upon such terms and 

conditions as the Secretary may prescribe, to insure banks, trust 

companies, finance companies, mortgage companies, savings and 

loan associations, insurance companies, credit unions, and such 

other financial institutions, which the Secretary finds to be qualified by experience and facilities and approves as eligible for insurance, against losses which they may sustain as a result of emergency loans or advances of credit made in accordance with the 

provisons of section 104 and this section with respect to mortgages 

eligible for assistance under this title. 

ø(b) The Secretary is authorized to fix a premium charge or 

charges for the insurance granted under this section, but in the 

case of any loan or advance credit, such charge or charges shall not 

exceed an amount equivalent to one-half of 1 per centum per 

annum of the principal obligation of such loan or advance of credit 

outstanding at any time. 

ø(c) The Secretary is authorized and empowered to waive compliance with any rule or regulation prescribed by the Secretary for the 

purposes of this section if, in the Secretary’s judgment, the enforcement of such rule or regulation would impose an injustice upon an 

insured lending institution which has substantially complied with 

such regulations in good faith. Any payment for loss made to an 

insured financial institution under this section shall be final and 

incontestable after two years from the date the claim was certified 

for payment by the Secretary, in the absence of fraud or misrepresentation on the part of such institution unless a demand for repurchase of the obligation shall have been made on behalf of the 

United States prior to the expiration of such two-year period. The 

Secretary is authorized to transfer to any financial institution approved for insurance under this title any insurance in connection 

with any loan which may be sold to it by another insured financial 

institution. 

ø(d) The aggregate amount of loans and advances insured under 

this section and emergency mortgage relief payments made under 

section 106 shall not exceed $3,000,000,000. 

ø(e) The Secretary shall establish underwriting guidelines or procedures to allocate amounts made available for loans and advances 

insured under this section and for emergency relief payments made 

under section 106 based on the likelihood that a mortgagor will be 

able to resume mortgage payments, pursuant to the requirement 

under section 103(5). 

øEMERGENCY MORTGAGE RELIEF PAYMENTS

øSEC. 106. (a) In the case of any mortgagee which would otherwise be eligible to participate in the program authorized under section 105 but does not qualify for an advance or advances as authorized by section 113 of this title or under section 10, 10b, or 11 of 

the Federal Home Loan Bank Act or otherwise elects not to participate in the program authorized under section 105, the Secretary is 


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authorized to make repayable emergency mortgage relief payments 

directly to such mortgagee on behalf of homeowners whose mortgages are held by such financial institution and who are delinquent 

in their mortgage payments. 

ø(b) Emergency mortgage relief payments shall be made under 

this section only with respect to a mortgage which meets the requirements of section 103 and only on such terms and conditions 

as the Secretary may prescribe, subject to the provisions of section 

104. 

ø(c) The Secretary may make such delegations and accept such 

certifications with respect to the processing of mortgage relief payments provided under this section as he deems appropriate to facilitate the prompt and efficient implementation of the assistance 

authorized under this section. 

øEMERGENCY HOMEOWNERS’ RELIEF FUND

øSEC. 107. To carry out the purposes of this title, the Secretary 

is authorized to establish in the Treasury of the United States an 

Emergency Homeowners’ Relief Fund (hereinafter in this title referred to as the ‘‘fund’’) which shall be available to the Secretary 

without fiscal year limitation— 

ø(1) for making payments in connection with defaulted loans 

or advances of credit insured under section 105 of this title; 

ø(2) for making emergency mortgage relief payments under 

section 106 of this title; 

ø(3) to pay such administrative expenses (or portion of such 

expenses) of carrying out the provisions of this title as the Secretary may deem necessary. 

øAUTHORITY OF THE SECRETARY

øSEC. 108. (a) The Secretary is authorized to make such rules 

and regulations as may be necessary to carry out the provisions of 

this title. 

ø(b) Notwithstanding any other provision of law relating to the 

acquisition, handling, improvement, or disposal of real or other 

property by the United States, the Secretary shall have power, for 

the protection of the interest of the fund authorized under this 

title, to pay out of such fund all expenses or charges in connection 

with the acquisition, handling, improvement, or disposal of any 

property, real or personal, acquired by the Secretary as a result of 

recoveries under security, subrogation, or other rights. 

ø(c) In the performance of, with respect to, the functions, powers, 

and duties vested in the Secretary by this title, the Secretary 

shall— 

ø(1) have the power, notwithstanding any other provision of 

law, whether before or after default, to provide by contract or 

otherwise for the extinguishment upon default of any redemption, equitable, legal, or other right, title in any mortgage, 

deed, trust, or other instrument held by or held on behalf of 

the Secretary under the provisions of this title; and 

ø(2) have the power to foreclose on any property or commence any action to protect or enforce any right conferred 

upon the Secretary by law, contract, or other agreement, and 

bid for and purchase at any foreclosure or other sale any property in connection with which assistance has been provided 


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pursuant to this title. In the event of any such acquisition, the 

Secretary may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property 

by the United States, complete, remodel and convert, dispose 

of, lease, and otherwise deal with, such property. Notwithstanding any other provision of law, the Secretary also shall 

have power to pursue to final collection by way of compromise 

or otherwise all claims acquired by him in connection with any 

security, subrogation, or other rights obtained by him in administering this title. 

ø(d) COVERAGE OF EXISTING PROGRAMS.—The Secretary shall 

allow funds to be administered by a State that has an existing program that is determined by the Secretary to provide substantially 

similar assistance to homeowners. After such determination is 

made such State shall not be required to modify such program to 

comply with the provisions of this title. 

øEXPIRATION DATE

øSEC. 109. No loans or advance of credit shall be insured and no 

emergency mortgage relief payments made under this title after 

September 30, 2011, except if such loan or advance or such payments are made with respect to a mortgagor receiving the benefit 

of a loan or advance insured, or emergency mortgage relief payments made, under this title on such date. 

øNOTIFICATION

øSEC. 110. Each Federal supervisory agency with respect to financial institutions subject to its jurisdiction, and the Secretary, 

with respect to other approved mortgagees, shall (1) prior to October 1, 1977, take appropriate action, not inconsistent with laws relating to the safety or soundness of such institutions or mortgagee, 

as the case may be, to waive or relax limitations pertaining to the 

operations of such institutions or mortgagees with respect to mortgage delinquencies in order to cause or encourage forebearance in 

residential mortgage loan foreclosures, and (2) until one year from 

the date of enactment of this title, request each such institution or 

mortgagee to notify that Federal supervisory agency, the Secretary, 

and the mortgagor, at least thirty days prior to instituting foreclosure proceedings in connection with any mortgage loan. As used 

in this title the term ‘‘Federal supervisory agency’’ means the 

Board of Governors of the Federal Reserve System, the Board of 

Directors of the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Federal Home Loan Bank Board, the 

Federal Savings and Loan Insurance Corporation, and the National 

Credit Union Administration. 

øREPORTS

øSEC. 111. Within sixty days after enactment of this title and 

within each sixty-day period thereafter prior to October 1, 1977, 

the Secretary shall make a report to the Congress on (1) the current rate of deliquencies and foreclosures in the housing market 

areas of the country which should be of immediate concern if the 

purposes of this title is to be achieved; (2) the extent of, and prospect for continuance of, voluntary forebearance by mortgagees in 


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such housing market areas; (3) actions being taken by governmental agencies to encourage forebearance by mortgages in such 

housing market areas; (4) actions taken and actions likely to be 

taken with respect to making assistance under this title available 

to alleviate hardships resulting from any serious rates of delinquencies and foreclosures; and (5) the current default status and 

projected default trends with respect to mortgages covering multifamily properties with special attention to mortgages insured under 

the various provisions of the National Housing Act and with recommendations on how such defaults and prospective defaults may 

be cured or avoided in a manner which, while giving weight to the 

financial interests of the United States, takes into full consideration the urgent needs of the many low- and moderate-income families that currently occupy such multifamily properties. 

øNONAPPLICABILITY OF OTHER LAWS

øSEC. 112. Notwithstanding any provision of law which limits the 

nature, amount, term, form, or rate of interest, or the nature, 

amount, or form of security of loans or advances of credit, loans, 

or advances of credit may be made in accordance with the provisions of this title without regard to such provision of law. 

øFEDERAL DEPOSIT INSURANCE CORPORATION ADVANCES

øSEC. 113. Notwithstanding any other provision of law, the Federal Deposit Insurance Corporation is authorized, upon such terms 

and conditions as the Corporation may prescribe, to make such advances to any insured bank as the Corporation determines may be 

necessary or appropriate to facilitate participation by such bank in 

the program authorized by this title. For the purpose of obtaining 

such funds as it determines are necessary for such advances, the 

Corporation may borrow from the Treasury as authorized in section 

14 of the Federal Deposit Insurance Act (12 U.S.C. 1824; 64 Stat. 

890), and the Secretary of the Treasury is authorized and directed 

to make loans to the Corporation for such purpose in the same 

manner as loans may be made for insurance purposes under such 

section, subject to the maximum limitation on outstanding aggregate loans there provided.¿ 

* * * * * * * 


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DISSENTING VIEWS 

H.R. 836, the ‘‘Emergency Mortgage Relief Program Termination 

Act’’ is one of four bills being advanced by the Majority as a coordinated assault on federal programs designed to address the nationwide housing and foreclosure crisis. This bill would rescind $1 billion which will soon be allocated to states, for use as bridge loans 

to unemployed homeowners to cover mortgage payments until 

these homeowners can find a job, in order to avoid a foreclosure 

and give these borrowers a chance to keep their homes. 

This program is one of a number of complementary federal programs that address different problems posed by our current housing programs. The other programs that the Majority is shutting 

down are the HAMP loan modification program, an FHA refinance 

program that is used in conjunction with principal mortgage reductions, and grants to local communities for purchase and rehabilitation of foreclosed and abandoned homes, to address blight and deterioration of neighborhoods experiencing a high foreclosure rate. At 

the hearing on these four bills, not a single witness—including the 

GAO and SIGTARP, who were witnesses called by the Majority— 

supported shutting down any of these four programs at this time. 

A major factor in the housing crisis was private sector lenders 

originating loans to borrowers that could not afford them, with 

such loans often combined with predatory loan features, such as exploding mortgage rate reset terms. As the housing crisis hit and 

homeowners started to default on loans, these same private sector 

lenders announced that they would address problems through proprietary loan modifications. In practice, there is a general consensus that these initial efforts were woefully inadequate to address the default and foreclosure crisis, particularly since a majority of these modifications actually increased the payments borrowers were required to make. Therefore, in early 2009, the Obama 

Administration started to roll out the first of a number of initiatives, using general authority under the TARP legislation, to facilitate loan modifications and refinancings of borrowers in or at risk 

of default, and in danger of foreclosure. 

Now, two years later, as some of these initiatives are showing 

real results and others are just beginning to take off, House Republicans want to shut these efforts down. They claim that these federal programs have not helped enough homeowners. But, their answer to the criticism that not enough homeowners have been 

helped by these programs . . . is to stop them from helping anyone 

else in the future. Their answer is to eliminate federal assistance 

that helps keep people in their homes and to eliminate the nationwide loan modification standards that go with them. Their answer 

is to turn over resolution of the foreclosure crisis to the very entities that created the bad loans in the first place and failed to 

achieve meaningful loan modifications in the period before these 


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government programs were put in place. The result would lead inevitably to a worsening of the foreclosure crisis, dampened home 

prices, and economic instability. 

This bill would rescind and permanently cancel all unobligated balances pursuant to the $1 billion in loans to unemployed homeowners that was authorized and funded in last year’s Dodd-Frank 

financial reform bill. The bill would also repeal the underlying authorization for such loans. The effect would be to kill the program 

before any funds are made available to unemployed homeowners. 

A reasonable projection is that the program will help from 30,000 to 50,000 distressed homeowners. Under the program, $1 billion is 

to be made available by HUD for loans to homeowners who are delinquent on their loans as a result of unemployment or medical 

condition. The purpose is to provide assistance with mortgage payments until the homeowner can find a job or is otherwise able to 

resume mortgage payments. The program fills an important gap, 

because HAMP and other private loan modification programs are 

designed to address a structural mismatch between a borrower’s income and mortgage payments, while this program is designed to 

address what is hoped to be a temporary loss of income. 

The program provides a zero interest bridge loan during the period when the borrower can’t make payments. the amount of the 

loan is designed to reduce monthly payments to an affordable 31% 

of a borrower’s current income. When a borrower is able resume 

payments on the mortgage, the borrower must begin repayment of 

the bridge loan. The program is being implemented through a provision which creates incentives for timely payment on the loan, in 

the form of a reduction of 20% of the loan balance each year that 

the borrower is current on that loan. 

Grants will be distributed by formula to 32 states. These are the states that have not separately received funding under $7.6 billion 

in cumulative TARP funds that Treasury has made available over 

the last year under its ‘‘Hardest Hit Fund’’ to the 18 states that 

have been hardest hit by the housing and foreclosure crisis. The $1 

billion will thus fill a gap by providing assistance to those states 

who did not receive Hardest Hit Funds, and therefore recission of 

these funds would create a significant imbalance in the allocation 

of such assistance nationwide. 

While the Emergency Mortgage Relief and Hardest Hit programs 

are not identical, they are substantially similar. The major difference is that Emergency Mortgage Relief is limited only to bridge 

loans to homeowners who are unemployed or have a medical problem creating payment programs, while the Hardest Hit program is 

used for this purpose, but also allows other flexible uses of funds 

at the option of the state, such as for principal reduction payments. 

The Emergency Mortgage Relief program is very similar to a program that has been administered for many years by the State of 

Pennsylvania, the ‘‘Homeowners Emergency Mortgage Assistance 

Program,’’ also known as entitled HEMAP. Since its inception in 

1983, 45,316 homeowners in Pennsylvania have been assisted, at 

an average loan amount of $11,000 per borrower. Like the federal 

program being proposed to be abolished by this bill, the HEMAP 

program provides loans to homeowners having mortgage payment 

problems because of unemployment, with the goal having the borVerDate Mar 15 2010 06:34 Mar 08, 2011 Jkt 099006 PO 00000 Frm 00017 Fmt 6604 Sfmt 6602 E:\HR\OC\HR026.XXX HR026

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rower resume payments when they are able to do so. 85% of 

HEMAP recipients have been able to keep their home as a result 

of such assistance. 

Proponents of shutting down the program have argued that the 

program will have a low cost recovery rate and therefore a high 

subsidy rate. It is true that repayment terms are somewhat more 

flexible than under either the Pennsylvania HEMAP program or 

some of the state Hardest Hit Fund programs—principally because 

of the incentive that HUD is offering under the program of forgiving principal over time on these loans based on a homeowner 

making on-time mortgage payments. However, this feature is designed to increase both the sustainability of homeowners being able 

to make the underlying mortgage payments and the behavioral incentive for a borrower to make such on-time payments. 

Shutting down this program prematurely would eliminate an important tool for 32 states to help unemployed homeowners keep 

their home long enough to find another job and ultimately resume 

mortgage payments and hang on to their home. There is no comparable private sector option for these unemployed borrowers. Enactment of this bill will therefore increase foreclosures and put 

more strain on our nations’ housing markets. 

GREGORY W. MEEKS. 

EMANUEL CLEAVER. 

GWEN MOORE. 

STEPHEN F. LYNCH. 

RUBE ́ N HINOJOSA. 

NYDIA M. VELA ́ ZQUEZ. 

BARNEY FRANK. 

CAROLYN B. MALONEY. 

LUIS V. GUTIERREZ. 

MICHAEL E. CAPUANO. 

KEITH ELLISON. 

MAXINE WATERS. 

Æ 


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