I 

111TH CONGRESS 

1ST SESSION H. R. 3066 

To authorize the Secretary of Housing and Urban Development to make 

temporary mortgage assistance loans to save the homes of unemployed 

homeowners who are delinquent on their mortgage payments. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 26, 2009 

Mr. CUMMINGS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To authorize the Secretary of Housing and Urban Development to make temporary mortgage assistance loans to 

save the homes of unemployed homeowners who are delinquent on their mortgage payments. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Temporary Mortgage 

5 Assistance Loan Act of 2009’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS. 

7 The Congress finds that— 


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1 (1) as the economy worsens and unemployment 

2 rates continue to rise, a growing number of long3 time homeowners are finding themselves in need of 

4 emergency short-term mortgage help in the event of 

5 a job loss or other crisis; 

6 (2) these homeowners may not need or want a 

7 permanent modification of their home loans or they 

8 may not qualify for government initiatives aimed 

9 principally at subprime borrowers or homeowners 

10 with exotic mortgage products; and 

11 (3) low-interest emergency mortgage loans can 

12 fill this gap in options for responsible homeowners in 

13 need of help and stem the rising tide of foreclosures 

14 that has depressed housing values across the United 

15 States. 

16 SEC. 3. TEMPORARY MORTGAGE ASSISTANCE LOANS. 

17 (a) AUTHORITY.—The Secretary of Housing and 

18 Urban Development (in this Act referred to as the ‘‘Sec19 retary’’) shall, to the extent amounts are made available 

20 in advance for loans under this section, make loans under 

21 this section in the form of mortgage assistance payments 

22 to mortgagees of all or part of the monthly payments due 

23 under the qualified mortgages of qualified homeowners 

24 who are in default on their mortgages. 


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1 (b) QUALIFIED HOMEOWNERS.—For purposes of this 

2 section, the term ‘‘qualified homeowner’’ means the mort3 gagor under a qualified mortgage or mortgages— 

4 (1) who is 60 days or more delinquent with re5 spect to any payment due under the qualified mort6 gage or mortgages; 

7 (2) who, or a member of whose household who 

8 before unemployment contributed significantly to the 

9 household income— 

10 (A) is unemployed, which unemployment 

11 renders the mortgagor temporarily unable to 

12 correct the delinquency and resume full pay13 ments under the qualified mortgage or mort14 gages; 

15 (B) has a reasonable prospect, in the de16 termination of the Secretary based on payment 

17 history prior to such unemployment, education, 

18 or participation in worker retraining during the 

19 period of such unemployment, for obtaining em20 ployment; and 

21 (C) who has registered for and is receiving 

22 State unemployment benefits; 

23 (c) QUALIFIED MORTGAGE AND MORTGAGES.— 

24 (1) QUALIFIED MORTGAGE.—For purposes of 

25 this section, the term ‘‘qualified mortgage’’ means, 


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1 with respect to a qualified homeowner, a first mort2 gage that— 

3 (A) is secured by an interest on a one- to 

4 four-unit residence that is the principal resi5 dence of the qualified homeowner that is not 

6 subject to more than one other subordinate 

7 mortgage; and 

8 (B) has an aggregate outstanding obliga9 tion that, at the time of application for assist10 ance under this section, exceeds the appraised 

11 value of the residence that is subject to the 

12 mortgages. 

13 (2) QUALIFIED MORTGAGES.—The term ‘‘quali14 fied mortgages’’ means, with respect to a qualified 

15 homeowner, a qualified mortgage and another subor16 dinate mortgage secured by an interest in the same 

17 residence, which mortgages have an aggregate out18 standing obligation that, at the time of application 

19 for assistance under this section, exceeds the ap20 praised value of the residence that is subject to the 

21 mortgages. 

22 (d) LOANS.—A loan under this section for a qualified 

23 mortgage or mortgages of a qualified homeowner shall— 


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1 (1) be in the form of monthly payments to the 

2 mortgagee or servicer of the mortgage or mortgages 

3 on account of such mortgage or mortgages— 

4 (A) during a period that ends upon the 

5 earlier of— 

6 (i) a determination by the Secretary, 

7 pursuant to regular periodic reviews of the 

8 financial circumstances of the household of 

9 the mortgagor, that because of changes in 

10 such financial circumstances payments are 

11 no longer necessary; or 

12 (ii) the making of the 18th such 

13 monthly payment on behalf of the qualified 

14 homeowner; 

15 (B) in an amount— 

16 (i) on a monthly basis, that does not 

17 exceed the amount, as determined by the 

18 Secretary, that bears the same proportion 

19 to the monthly amount due under the 

20 mortgage or mortgages, including prin21 cipal, interest, taxes, assessments, ground 

22 rents, hazard and mortgage insurance, and 

23 such other fees as the Secretary may ap24 prove, as the amount of monthly income 

25 lost due to the unemployment referred to 


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1 in subsection (b)(2) in the mortgagor’s 

2 household bears to the amount of the ag3 gregate household income of the mortgagor 

4 before such unemployment; and 

5 (ii) in the aggregate, that does not ex6 ceed $30,000; 

7 (2) be secured by a lien on the principal resi8 dence that is subject to the qualified mortgage or 

9 mortgages and subordinate in priority to such mort10 gage or mortgages; and 

11 (3) be repayable upon such terms and condi12 tions as the Secretary shall establish, which shall 

13 provide that— 

14 (A) the loan shall bear interest at a rate 

15 determined by the Secretary, which shall not 

16 exceed 3 percent annually; 

17 (B) such interest shall accrue from the 

18 time each monthly payment under the loan is 

19 disbursed; 

20 (C) repayment of the loan principal and in21 terest shall not be required until the expiration 

22 of the 60-day period that begins upon the ear23 lier of— 

24 (i) the time that the mortgagor or 

25 member of the mortgagor’s household who 


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1 is unemployed, as referred to in subsection 

2 (b)(2), obtains employment; or 

3 (ii) the Secretary ceases making 

4 monthly payments under the loan on be5 half of the qualified mortgagor. 

6 (e) FUNDING.—Of the funds made available to the 

7 Secretary of the Treasury under title I of the Emergency 

8 Economic Stabilization Act of 2008 (12 U.S.C. 5211) that 

9 remain unobligated, the Secretary of the Treasury shall 

10 make available to the Secretary of Housing and Urban 

11 Development such sums as may be necessary for costs (as 

12 such term is defined in section 502 of the Federal Credit 

13 Reform Act of 1990 (2 U.S.C. 661a)) of loans under this 

14 section. 

15 (f) REGULATIONS.—Not later than the expiration of 

16 the 90-day period beginning on the date of the enactment 

17 of this Act, the Secretary shall issue any regulations nec18 essary to carry out this Act. 

Æ 


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