H. R. 3221—199 
(i) 5-YEAR REINVESTMENT PERIOD.—During the 5- 
year period following the date of enactment of this 
Act, any revenue generated from the sale, rental, 
redevelopment, rehabilitation, or any other eligible use 
that is in excess of the cost to acquire and redevelop 
(including reasonable development fees) or rehabilitate 
an abandoned or foreclosed upon home or residential 
property shall be provided to and used by the State 
or unit of general local government in accordance with, 
and in furtherance of, the intent and provisions of 
this section. 
(ii) DEPOSITS IN THE TREASURY.— 
(I) PROFITS.—Upon the expiration of the 5- 
year period set forth under clause (i), any revenue 
generated from the sale, rental, redevelopment, 
rehabilitation, or any other eligible use that is 
in excess of the cost to acquire and redevelop 
(including 
reasonable 
development 
fees) 
or 
rehabilitate an abandoned or foreclosed upon home 
or residential property shall be deposited in the 
Treasury of the United States as miscellaneous 
receipts, unless the Secretary approves a request 
to use the funds for purposes under this Act. 
(II) OTHER AMOUNTS.—Upon the expiration of 
the 5-year period set forth under clause (i), any 
other revenue not described under subclause (I) 
generated from the sale, rental, redevelopment, 
rehabilitation, or any other eligible use of an aban-
doned or foreclosed upon home or residential prop-
erty shall be deposited in the Treasury of the 
United States as miscellaneous receipts. 
(B) OTHER REVENUES.—Any revenue generated under 
subparagraphs (A), (C) or (D) of subsection (c)(3) shall 
be provided to and used by the State or unit of general 
local government in accordance with, and in furtherance 
of, the intent and provisions of this section. 
(e) RULES OF CONSTRUCTION.— 
(1) IN
GENERAL.—Except as otherwise provided by this 
section, amounts appropriated, revenues generated, or amounts 
otherwise made available to States and units of general local 
government under this section shall be treated as though such 
funds were community development block grant funds under 
title I of the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.). 
(2) NO MATCH.—No matching funds shall be required in 
order for a State or unit of general local government to receive 
any amounts under this section. 
(f) AUTHORITY TO SPECIFY ALTERNATIVE REQUIREMENTS.— 
(1) IN
GENERAL.—In administering any amounts appro-
priated or otherwise made available under this section, the 
Secretary may specify alternative requirements to any provision 
under title I of the Housing and Community Development 
Act of 1974 (except for those related to fair housing, non-
discrimination, labor standards, and the environment) in 
accordance with the terms of this section and for the sole 
purpose of expediting the use of such funds.
H. R. 3221—200 
(2) NOTICE.—The Secretary shall provide written notice 
of its intent to exercise the authority to specify alternative 
requirements under paragraph (1) to the Committee on 
Banking, Housing and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representa-
tives not later than 10 business days before such exercise 
of authority is to occur. 
(3) LOW AND MODERATE INCOME REQUIREMENT.— 
(A) IN GENERAL.—Notwithstanding the authority of the 
Secretary under paragraph (1)— 
(i) all of the funds appropriated or otherwise made 
available under this section shall be used with respect 
to individuals and families whose income does not 
exceed 120 percent of area median income; and 
(ii) not less than 25 percent of the funds appro-
priated or otherwise made available under this section 
shall be used for the purchase and redevelopment of 
abandoned or foreclosed upon homes or residential 
properties that will be used to house individuals or 
families whose incomes do not exceed 50 percent of 
area median income. 
(B) RECURRENT REQUIREMENT.—The Secretary shall, 
by rule or order, ensure, to the maximum extent practicable 
and for the longest feasible term, that the sale, rental, 
or redevelopment of abandoned and foreclosed upon homes 
and residential properties under this section remain afford-
able to individuals or families described in subparagraph 
(A). 
(g) PERIODIC AUDITS.—In consultation with the Secretary of 
Housing and Urban Development, the Comptroller General of the 
United States shall conduct periodic audits to ensure that funds 
appropriated, made available, or otherwise distributed under this 
section are being used in a manner consistent with the criteria 
provided in this section. 
SEC. 2302. NATIONWIDE DISTRIBUTION OF RESOURCES. 
Notwithstanding any other provision of this Act or the amend-
ments made by this Act, each State shall receive not less than 
0.5 percent of funds made available under section 2301 (relating 
to emergency assistance for the redevelopment of abandoned and 
foreclosed homes). 
SEC. 2303. LIMITATION ON USE OF FUNDS WITH RESPECT TO EMINENT 
DOMAIN. 
No State or unit of general local government may use any 
amounts received pursuant to section 2301 to fund any project 
that seeks to use the power of eminent domain, unless eminent 
domain is employed only for a public use: Provided, That for pur-
poses of this section, public use shall not be construed to include 
economic development that primarily benefits private entities. 
SEC. 2304. LIMITATION ON DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—None of the funds made available under 
this title or title IV shall be distributed to— 
(1) an organization which has been indicted for a violation 
under Federal law relating to an election for Federal office; 
or 
(2) an organization which employs applicable individuals.
H. R. 3221—201 
(b) APPLICABLE INDIVIDUALS DEFINED.—In this section, the term 
‘‘applicable individual’’ means an individual who— 
(1) is— 
(A) employed by the organization in a permanent or 
temporary capacity; 
(B) contracted or retained by the organization; or 
(C) acting on behalf of, or with the express or apparent 
authority of, the organization; and 
(2) has been indicted for a violation under Federal law 
relating to an election for Federal office. 
SEC. 2305. COUNSELING INTERMEDIARIES. 
Notwithstanding any other provision of this Act, the amount 
appropriated 
under 
section 
2301(a) 
of 
this 
Act 
shall 
be 
$3,920,000,000 and the amount appropriated under section 2401 
of this Act shall be $180,000,000: Provided, That of the amount 
appropriated under section 2401 of this Act pursuant to this section, 
not less than 15 percent shall be provided to counseling organiza-
tions that target counseling services regarding loss mitigation to 
minority and low-income homeowners or provide such services in 
neighborhoods with high concentrations of minority and low-income 
homeowners: Provided further, That of amounts appropriated under 
such section 2401 $30,000,000 shall be used by the Neighborhood 
Reinvestment Corporation (referred to in this section as the ‘‘NRC’’) 
to make grants to counseling intermediaries approved by the 
Department of Housing and Urban Development or the NRC to 
hire attorneys to assist homeowners who have legal issues directly 
related to the homeowner’s foreclosure, delinquency or short sale. 
Such attorneys shall be capable of assisting homeowners of owner- 
occupied homes with mortgages in default, in danger of default, 
or subject to or at risk of foreclosure and who have legal issues 
that cannot be handled by counselors already employed by such 
intermediaries: Provided further, That of the amounts provided 
for in the prior provisos the NRC shall give priority consideration 
to counseling intermediaries and legal organizations that (1) provide 
legal assistance in the 100 metropolitan statistical areas (as defined 
by the Director of the Office of Management and Budget) with 
the highest home foreclosure rates, and (2) have the capacity to 
begin using the financial assistance within 90 days after receipt 
of the assistance: Provided further, That no funds provided under 
this Act shall be used to provide, obtain, or arrange on behalf 
of a homeowner, legal representation involving or for the purposes 
of civil litigation: Provided further, That the NRC, in awarding 
counseling grants under section 2401 of this Act, may consider, 
where appropriate, whether the entity has implemented a written 
plan for providing in-person counseling and for making contact, 
including personal contact, with defaulted mortgagors, for the pur-
pose of providing counseling or providing information about avail-
able counseling. 
TITLE IV—HOUSING COUNSELING 
RESOURCES 
SEC. 2401. HOUSING COUNSELING RESOURCES. 
There are appropriated out of any money in the Treasury 
not otherwise appropriated for the fiscal year 2008, for an additional
H. R. 3221—202 
amount for the ‘‘Neighborhood Reinvestment Corporation—Payment 
to the Neighborhood Reinvestment Corporation’’ $100,000,000, to 
remain available until December 31, 2008, for foreclosure mitigation 
activities under the terms and conditions contained in the second 
undesignated paragraph (beginning with the phrase ‘‘For an addi-
tional amount’’) under the heading ‘‘Neighborhood Reinvestment 
Corporation—Payment to the Neighborhood Reinvestment Corpora-
tion’’ of Public Law 110–161. 
SEC. 2402. CREDIT COUNSELING. 
(a) IN
GENERAL.—Entities approved by the Neighborhood 
Reinvestment Corporation or the Secretary and State housing 
finance entities receiving funds under this title shall work to iden-
tify and coordinate with non-profit organizations operating national 
or statewide toll-free foreclosure prevention hotlines, including those 
that— 
(1) serve as a consumer referral source and data repository 
for borrowers experiencing some form of delinquency or fore-
closure; 
(2) connect callers with local housing counseling agencies 
approved by the Neighborhood Reinvestment Corporation or 
the Secretary to assist with working out a positive resolution 
to their mortgage delinquency or foreclosure; or 
(3) facilitate or offer free assistance to help homeowners 
to understand their options, negotiate solutions, and find the 
best resolution for their particular circumstances. 
TITLE V—MORTGAGE DISCLOSURE 
IMPROVEMENT ACT 
SEC. 2501. SHORT TITLE. 
This title may be cited as the ‘‘Mortgage Disclosure Improve-
ment Act of 2008’’. 
SEC. 2502. ENHANCED MORTGAGE LOAN DISCLOSURES. 
(a) TRUTH IN LENDING ACT DISCLOSURES.—Section 128(b)(2) 
of the Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended— 
(1) by inserting ‘‘(A)’’ before ‘‘In the’’; 
(2) by striking ‘‘a residential mortgage transaction, as 
defined in section 103(w)’’ and inserting ‘‘any extension of credit 
that is secured by the dwelling of a consumer’’; 
(3) by striking ‘‘before the credit is extended, or’’ and 
inserting ‘‘and’’; 
(4) by inserting ‘‘, which shall be at least 7 business days 
before consummation of the transaction’’ after ‘‘written applica-
tion’’; 
(5) by striking ‘‘, whichever is earlier’’; and 
(6) by striking ‘‘If the’’ and all that follows through the 
end of the paragraph and inserting the following: 
‘‘(B) In the case of an extension of credit that is secured 
by the dwelling of a consumer, the disclosures provided under 
subparagraph (A), shall be in addition to the other disclosures 
required by subsection (a), and shall— 
‘‘(i) state in conspicuous type size and format, the 
following: ‘You are not required to complete this agreement