SEC. 2. PILOT PROGRAM. 
(a) AUTHORITY.—The Secretary of Housing and 
Urban Development shall carry out a pilot program under 
this section to use the authority under section 204(a)(2) 
of the National Housing Act (12 U.S.C. 1710(a)(2)) to 
make payments to a qualified entity or entities to com-
pensate for their costs of making in-person contact with 
mortgagors whose payments under covered mortgages are 
more than 60 days past due, for the purpose of— 
(1) identifying mortgagors eligible for loan 
modifications or refinances and providing packages 
to the mortgagee for such purposes; 
(2) identifying mortgagers not eligible for a 
loan modification or refinance but willing to engage 
in pre-foreclosure sales or deeds in lieu of fore-
closure, and providing information to the mortgagee 
in order to facilitate such actions; 
(3) identifying whether a home’s current occu-
pant is the mortgagor or a renter, and if not occu-
pied, taking steps to locate and make contact with 
the mortgagor; 
(4) providing information to the Secretary and 
the mortgagee regarding the condition of the home, 
in order to facilitate any actions needed to prevent 
the deterioration and loss of value of the home and 
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assist the Department more generally in its asset 
management responsibilities; and 
(5) providing all relevant information on mort-
gagors and homes to the mortgagee on the loan and 
the Secretary in a format, approved by the Sec-
retary, which helps improve asset management and 
maximize asset recovery of these delinquent loans. 
(b) QUALIFIED ENTITIES.—For purposes of this sec-
tion, the term ‘‘qualified entity’’ means a single entity or 
a consortia or partnership of entities that— 
(1) have experience in carrying out the activi-
ties identified in subsection (a); 
(2) are not affiliated with the mortgagor under 
any of the covered mortgages for which it is author-
ized to carry out actions under the pilot program 
under this section; and 
(3) comply with all relevant State and Federal 
laws. 
(c) SELECTION OF A QUALIFIED ENTITY OR ENTI-
TIES.— 
(1) SCOPE.—The Secretary shall have the dis-
cretion to select qualified entities to participate in 
the pilot program under this section. 
(2) CRITERIA.—Such selection shall be based 
on the qualifications and experience of the entity or 
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entities to carry out the specific activities identified 
in subsection (a), including the level of infrastruc-
ture capability in reporting detailed information on 
the mortgage loan, underlying property, and the 
mortgagor. 
(3) PARTICIPATING
LOANS.—The Secretary 
shall make available not less than 50,000 and not 
more than 100,000 loans that meet the delinquency 
criteria of subsection (a) for this pilot program. 
(4) TIMING.—The Secretary shall select the 
qualified entity and entities and make available 
loans under the pilot for their performance within 
90 days of the enactment of the Act. 
(d) PAYMENTS.—Payments to the entity or entities 
selected to carry out the pilot program under this section 
may be based on— 
(1) a flat amount per covered mortgage; 
(2) a performance success basis based on— 
(A) completed packages; or 
(B) completed loan modifications, pre-fore-
closure sales, and deeds in lieu of foreclosure; 
or 
(3) a combination of the methods under para-
graphs (1) and (2). 
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(e) PROHIBITION ON FEES.—Entities selected to par-
ticipate in the pilot program under this section may not 
charge any fees or require any payments, directly or indi-
rectly, from the mortgagor or the mortgagee of a covered 
mortgage in connection any activities under the program. 
(f) HUD REVIEW AND REPORTING.—The Secretary 
shall publish periodic updates on the status of the pilot 
program under this section, commencing not later than 
30 days after the completion of actions under subsection 
(c)(1) and (c)(3), and thereafter not less often than every 
90 days until termination of the pilot program under sub-
section (h). Not later than 60 days after termination of 
the pilot program, the Secretary shall submit to the Con-
gress and make publicly available a final report on the 
pilot program, including information and analysis of per-
formance characteristics, which may include comparisons 
of estimated asset recovery levels under the pilot program 
compared to comparable loans not included in the pilot 
and loans that have gone through loan sales. 
(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) COVERED MORTGAGE.—The term ‘‘covered 
mortgage’’ means a mortgage on a 1- to 4-family 
residence insured under subsection (b) or (k) of sec-
tion 203, section 234(c), or 251 of the National 
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Housing Act (12 U.S.C. 1709 (b) or (k), 1715y(c), 
1715z–16). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(h) TERMINATION.—The Secretary may not make 
any payments under the pilot program under this section 
to any qualified entity for any in-person contact with a 
mortgagor that occurs after the expiration of the 24- 
month period beginning upon the completion of the actions 
under subsection (c)(1) and (c)(3). 
Æ 
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