I 
112TH CONGRESS 
1ST SESSION H. R. 1131 
To authorize the Secretary of Housing and Urban Development to provide 
grants to State and local governments to carry out programs to provide 
mediation between mortgagees and mortgagors facing foreclosure. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2011 
Mr. COHEN introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To authorize the Secretary of Housing and Urban Develop-
ment to provide grants to State and local governments 
to carry out programs to provide mediation between 
mortgagees and mortgagors facing foreclosure. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Preventing Home-
owners from Foreclosure Act of 2011’’. 
SEC. 2. FORECLOSURE MEDIATION GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development (in this section referred to as the 
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‘‘Secretary’’) shall carry out a program to make competi-
tive grants to States and units of local government to es-
tablish mediation programs that assist mortgagors under 
home mortgages facing foreclosure on such mortgages. 
(b) FORECLOSURE MEDIATION PROGRAM REQUIRE-
MENTS.—Amounts from a grant under this section may 
be used only for costs of a foreclosure mediation program 
that provides as follows: 
(1) SCOPE.— 
(A) STATE GRANTEES.—In the case of a 
grant under this section to a State, the pro-
gram shall be carried out in at least one unit 
of local government within such State. 
(B) LOCAL GOVERNMENT GRANTEES.—In 
the case of a grant made to a unit of local gov-
ernment, the program shall be carried out in 
such unit of local government. 
(2) APPLICABILITY.—The program shall apply 
to— 
(A) any mortgagee that, after the expira-
tion of the 90-day period beginning upon re-
ceipt, by the grant recipient, of amounts from 
a grant under this section, initiates a fore-
closure proceeding on a home mortgage for a 
mortgaged home that is located in the jurisdic-
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tion within which such program is being carried 
out, pursuant to paragraph (1); and 
(B) any mortgagor under such a home 
mortgage who is subject to a foreclosure pro-
ceeding. 
(3) REFERRAL
TO
ATTORNEY
OR
HOUSING 
COUNSELOR.—The program shall provide the mort-
gagor with a referral and contact information for a 
paid or pro bono attorney, or a housing counselor 
certified by the Secretary. 
(4) REQUIRED MEETING AND MEDIATION.—The 
program shall require that, as soon as is practicable 
after the initiation of a foreclosure proceeding on a 
home mortgage or a mortgagee has provided the re-
quired foreclosure notice on a home mortgage to the 
mortgagor in accordance with applicable State or 
local law, as applicable, and, in any event, before 
entry of any foreclosure judgment on or foreclosure 
sale for, as applicable, the home mortgage— 
(A) any representative obtained by the 
mortgagor (including a representative obtained 
pursuant to a referral under paragraph (3)) 
shall meet with the mortgagor; and 
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(B) the mortgagee shall conduct, con-
sistent with any applicable State or local law, a 
mediation conference that— 
(i) is held to resolve issues relating to 
the foreclosure, with the aim of avoiding 
the foreclosure, through mediation; 
(ii) is held in an appropriate court in 
the jurisdiction of the grant recipient or, in 
the case of jurisdiction that does not pro-
vide for judicial foreclosure, such other ap-
propriate venue; 
(iii) involves the participation of a 
neutral, third party mediator selected by 
the court or the administrator of the fore-
closure mediation program; and 
(iv) is attended by— 
(I) the mortgagee or, if the mort-
gagee or an agent of the mortgagee 
having authority to execute a settle-
ment of all matters relating to the 
mortgage is immediately accessible by 
telephone, by a representative of the 
mortgagee; and 
(II) the mortgagor, or any rep-
resentative obtained by the mortgagor 
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(including a representative obtained 
pursuant to a referral under para-
graph (3)), or both. 
If the mortgagor fails to attend the conference, the 
requirement under this paragraph for a mediation 
conference shall be deemed to be satisfied upon 
verification by the administrator of the mediation 
program that the required foreclosure notice has 
been provided and issuance by such administrator of 
an order authorizing initiation of such foreclosure 
proceeding. 
(5) OUTREACH.—The grant recipient shall es-
tablish an outreach program to raise homeowner 
awareness of the existence of the foreclosure medi-
ation program. Such outreach program shall include 
providing access to information regarding the fore-
closure mediation program through a telephone hot-
line or a World Wide Web site, or both. 
(c) SELECTION OF GRANT RECIPIENTS.—The Sec-
retary shall select applicants to receive grants under this 
section under a competition based on selection criteria 
that the Secretary shall establish by regulation. 
(d) RECORDKEEPING.—Each grant recipient shall 
maintain a record of the outcome of each mediation con-
ference carried out under the mediation program assisted 
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with the grant amounts, including the nature of any loan 
modification made as a result of participation in the medi-
ation program. 
(e) DEFINITIONS.—For purposes of this Act, the fol-
lowing definitions shall apply: 
(1) FORECLOSURE
PROCEEDING.—The term 
‘‘foreclosure proceeding’’ means any proceeding or 
procedure under applicable law, including judicial 
and non-judicial procedures, including a sheriff sale, 
to foreclose on a home mortgage. 
(2) HOME MORTGAGE.—The term ‘‘home mort-
gage’’ means a mortgage loan, repayment of which 
is secured by an interest in a one- to four-family res-
idence that is the principal residence of the mort-
gagor. 
(3) GRANT RECIPIENT.—The term ‘‘grant re-
cipient’’ means a State or unit of local government 
that receives grant amounts under this section. 
(4) MORTGAGED HOME.—The term ‘‘mortgaged 
home’’ means, with respect to a home mortgage, the 
residence that is subject to the interest that secures 
repayment of the home mortgage. 
(5) REQUIRED
FORECLOSURE
NOTICE.—The 
term ‘‘required foreclosure notice’’ means any initial 
notice that is required under the law of a State to 
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be submitted to the mortgagor under a residential 
mortgage as a condition precedent to foreclosure on 
such mortgage. 
(6) STATE.—The term ‘‘State’’ means the 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam, 
the Virgin Islands, American Samoa, the Trust Ter-
ritory of the Pacific Islands, and any other territory 
or possession of the United States. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for grants under this section 
such sums as may be necessary for each of fiscal years 
2012 through 2016. 
(g) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue any regulations necessary 
to carry out this section. 
Æ 
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