I 
110TH CONGRESS 
1ST SESSION H. R. 2599 
To establish a program for the Secretary of Housing and Urban Development 
to provide financial assistance to certain homeowners experiencing tem-
porary difficulty making home mortgage payments resulting from their 
call or order to active duty while a member of the Individual Ready 
Reserve of the Armed Forces or the inactive National Guard. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2007 
Mr. SIRES introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To establish a program for the Secretary of Housing and 
Urban Development to provide financial assistance to 
certain homeowners experiencing temporary difficulty 
making home mortgage payments resulting from their 
call or order to active duty while a member of the Indi-
vidual Ready Reserve of the Armed Forces or the inac-
tive National Guard. 
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 ‘‘Inactive Reservists 
Foreclosure Prevention Act of 2007’’. 
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SEC. 2. MORTGAGE ASSISTANCE PROGRAM. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall carry out a program under this 
Act to provide mortgage assistance through the provision 
of grants and loans for direct mortgage payments on be-
half of eligible households. 
(b) ELIGIBLE MORTGAGES.—Mortgage assistance 
under this Act may be provided only with respect to a 
mortgage that meets all of the following requirements: 
(1) MORTGAGOR
REQUIREMENTS.—The mort-
gagor under the mortgage— 
(A) is a member of an eligible household 
that resides in the property that is subject to 
the mortgage; and 
(B) has not, during the 24-month period 
ending upon the date that the mortgagor sub-
mits an application for assistance under this 
Act, been more than 60 days in arrears under 
any mortgage for residential property. 
(2) DWELLING REQUIREMENTS.—The property 
that is subject to the mortgage is— 
(A) designed principally as a residential 
property; and 
(B) the primary place of residence of the 
mortgagor and the mortgagor’s household. 
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SEC. 3. ASSISTANCE PAYMENTS. 
(a) MONTHLY DIRECT PAYMENT.—The Secretary 
shall design and implement the program under this Act 
in a manner that provides that any amounts paid by the 
Secretary for mortgage assistance with respect to an eligi-
ble mortgage are paid on a monthly basis directly to the 
mortgagee or other servicer of the mortgage. 
(b) PERIOD OF ASSISTANCE.— 
(1) IN GENERAL.—Payment under the program 
under this section with respect to an eligible mort-
gage may be made only for scheduled payments due 
under the terms of the mortgage (as in effect pursu-
ant to any applicable provisions of law) during the 
period that a member of the eligible household who 
is an eligible member of the Armed Forces is serving 
on active duty for a period of more than 30 days in 
the Armed Forces. 
(2) EXTENDED DEPLOYMENTS.—The Secretary 
shall ensure that in determining the amount of as-
sistance to be provided with respect to an eligible 
mortgage and the period for which such assistance 
will be provided, sufficient amounts for such assist-
ance shall be reserved under the program under this 
Act to provide for unpredictability and extensions in 
the period of active duty of eligible members of the 
Armed Forces. 
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(c) DETERMINATION OF AMOUNT OF ASSISTANCE.— 
Subject to subsection (d), the Secretary shall determine 
the amount of assistance to be provided with respect to 
an eligible mortgage based upon criteria established by the 
Secretary, by regulation. 
(d) LIMITATIONS ON AMOUNT OF ASSISTANCE.—The 
amount of assistance provided under the program under 
this Act with respect to any eligible mortgage may not 
exceed the following amounts: 
(1) MONTHLY AMOUNT.—With respect to the 
assistance payment for any single month, the 
amount due to be paid for such month under the 
terms of the mortgage (as in effect pursuant to any 
applicable provisions of law) for principal, interest, 
mortgage insurance for the mortgage, and any 
scheduled deposit in an escrow account for the pur-
pose of ensuring payment of taxes, insurance, as-
sessments, and other charges with respect to the 
property subject to the mortgage. 
(2) 
AGGREGATE
AMOUNT.—An 
aggregate 
amount assistance over the entire period under sub-
section (b) that assistance is provided with respect 
to the mortgage, which shall be established by the 
Secretary taking into consideration the total amount 
made available for the program under this Act. 
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(e) PREVENTION OF DOUBLE PAYMENTS.—The Sec-
retary shall take appropriate actions to ensure that, in the 
case of any payment on an eligible mortgage paid by a 
mortgagor for any period for which payment has already 
been made under the program under this Act, the mort-
gagor or other servicer of the mortgage shall return such 
payment within a reasonable period of time or shall imme-
diately credit such payment toward amortization of the 
principal obligation under the mortgage, and promptly no-
tify the mortgagor of such credit. 
SEC. 4. REPAYMENT OF ASSISTANCE. 
(a) GRANT ASSISTANCE; NO REPAYMENT.— 
(1) IN
GENERAL.—Any assistance provided 
under the program under this Act with respect to 
any eligible mortgage during any period during 
which the annual income of household of the mort-
gagor, as determined by the Secretary, does not ex-
ceed 200 percent of the poverty line applicable to a 
family of the size involved shall be in the form of a 
grant and, except as provided in paragraph (2), the 
Secretary may not require repayment of any such 
amounts. 
(2) REPAYMENT IN CASES OF FORECLOSURE.— 
If the mortgagee for any eligible mortgage for which 
assistance payments are made pursuant to this sub-
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section forecloses on the mortgage, takes legal action 
to enforce the mortgage obligation, or otherwise re-
covers possession of any security of the mortgage as 
a result of default on the obligation of the mortgage, 
the Secretary shall terminate payment of assistance 
under this Act with respect to the mortgage and 
shall treat any assistance previously provided with 
respect to the mortgage as assistance in the form of 
a loan pursuant to subsection (b). 
(b) LOAN ASSISTANCE; REPAYMENT REQUIRED.— 
Any assistance provided under the program under this Act 
with respect to any eligible mortgage during any period 
during which the annual income of household of the mort-
gagor, as determined by the Secretary, exceeds 200 per-
cent of the poverty line applicable to a family of the size 
involved shall be in the form of a loan, as follows: 
(1) NO INTEREST.—Such loan shall not bear 
any interest. 
(2) 10-YEAR
TERM.—Such loan shall have a 
term to maturity of 10 years, which shall not com-
mence until the period of assistance under section 
3(b) with respect to mortgage has terminated. 
(3) SECURITY.—Repayment of such loan shall 
be secured by a lien on the residential property that 
is subject to the eligible mortgage for which the as-
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sistance under this Act was provided under the loan, 
in the aggregate amount of such loan assistance pro-
vided. Such lien shall be held by the Secretary and 
shall be subordinate to other mortgages and other 
secured liens on the property in effect upon the date 
that assistance under the program under this Act is 
first provided for the mortgage, and to any Federal 
tax lien, but shall be superior to any other lien. 
(4) AGREEMENT.—The terms of such loan shall 
be set forth in a written agreement, as the Secretary 
considers appropriate, between the Secretary and the 
mortgagor. 
SEC. 5. APPLICATION FOR ASSISTANCE. 
(a) IN GENERAL.—To be eligible for mortgage assist-
ance under this Act, a mortgagor for an eligible mortgage 
shall submit an application for such assistance in such 
form and manner as the Secretary shall require, which 
shall provide such information regarding the eligible mort-
gage as the Secretary shall require, including information 
sufficient for the Secretary to comply with subsection (b), 
and shall include a financial statement disclosing all in-
come of each member of the household of the mortgagor 
regardless of source. An application for such assistance 
may be submitted before the eligible member of the Armed 
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Forces who is a member of the eligible household begins 
active duty described in section 8(2). 
(b) 
NOTIFICATION
TO
MORTGAGEE
AND 
SERVICER.—Upon submission of an application under 
subsection (a), the Secretary shall notify the mortgagee 
and servicer, if the mortgagee is not the servicer, of the 
eligible mortgage of the submission of the application for 
assistance under this Act. 
(c) INCOME INFORMATION.—The Secretary shall re-
quire that each such application include a certification by 
the mortgagor for the eligible mortgage of the anticipated 
income of the household of the mortgagor during the an-
ticipated period of assistance under this Act, which, in the 
case of an application described in the last sentence of 
subsection (a), may be based on household income in the 
month before commencement of the active duty of the eli-
gible member of the Armed Forces, less any such income 
attributable to such eligible member, plus the expected 
military pay of such eligible member. The Secretary may 
make a determination regarding compliance of the income 
of a mortgagor’s household with the requirements under 
subsections (a)(1) and (b) of section 4 based upon such 
a certification, subject to such reviews as the Secretary 
shall, by regulation, provide. 
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(d) EFFECT OF MISREPRESENTATION.—A mortgagor 
who is determined to have intentionally misrepresented 
any financial information in connection with the filing of 
an application for assistance under this Act may be denied 
assistance and required to immediately repay any amount 
of assistance already received, and the mortgagee may, at 
any time thereafter, take any legal action to enforce the 
mortgage, if appropriate. 
(e) REVIEW AND DETERMINATION.— 
(1) IN GENERAL.—The Secretary shall review 
each application submitted for assistance under this 
Act and make a determination regarding the eligi-
bility for assistance of the mortgage specified in the 
application not later than 30 days after receipt of 
the application of the mortgagor, and shall notify 
the mortgagor and the mortgagee and servicer of ap-
proval or disapproval of such application not later 
than 30 days after making the determination re-
garding approval. 
(2) FAILURE
TO
MAKE
DETERMINATION.—If 
the Secretary fails to make a determination regard-
ing eligibility for assistance of a mortgage during 
the 30-day period specified in paragraph (1) or fails 
to provide the notice regarding such determination 
as required under such paragraph, the mortgage 
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shall be considered for purposes of this Act to have 
been approved as eligible for assistance upon the 
date that the application for the mortgage was sub-
mitted to the Secretary. 
SEC. 6. COORDINATION WITH OTHER AGENCIES AND ENTI-
TIES. 
(a) PUBLICITY.—The Secretary shall take such ac-
tion as may be necessary to ensure that eligible households 
and eligible members of the Armed Forces are aware of 
and informed about the availability of and requirements 
for mortgage assistance under this Act, which may include 
consulting and coordinating appropriate activities with the 
Secretary of Defense, the Federal financial institutions 
regulatory agencies, financial institutions regulated by 
such regulatory agencies, other mortgage lenders, the Fed-
eral National Mortgage Association, the Federal Home 
Loan Mortgage Corporation, and mortgage counseling 
agencies. 
(b) IMPLEMENTATION.—The Secretary shall consider 
using States, State or local agencies (including housing 
and housing finance agencies), mortgage lenders and other 
financial institutions, and other entities to conduct some 
or all of the functions and responsibilities involved in car-
rying out the program for mortgage assistance under this 
Act and may enter into agreements with such entities to 
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provide for such entities to carry out such functions and 
responsibilities as the Secretary considers appropriate to 
ensure that such assistance is provided in an effective and 
efficient manner. 
SEC. 7. SAVINGS CLAUSE. 
This Act may not be construed to alter, affect, or 
limit any provision of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 501 et seq.). 
SEC. 8. DEFINITIONS. 
For the purposes of this Act, the following definitions 
apply: 
(1) ACTIVE DUTY.—The terms ‘‘active duty’’ 
and ‘‘active duty for a period of more than 30 days’’ 
have the meanings given such terms in section 
101(d) of title 10, United States Code. 
(2) 
ELIGIBLE
MEMBER
OF
THE
ARMED 
FORCES.—The term ‘‘eligible member of the Armed 
Forces’’ means a member of the Armed Forces who, 
while a member of the Individual Ready Reserve or 
the inactive National Guard, is serving on active 
duty pursuant to a call or order to active duty for 
a period of more than 30 days. 
(3) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means any mortgage that meets the re-
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quirements of section 2(b) for assistance under this 
Act. 
(4) ELIGIBLE HOUSEHOLD.—The term ‘‘eligible 
household’’ means a household that— 
(A) contains a member who is an eligible 
member of the Armed Forces; and 
(B) has been determined by the Secretary 
to be eligible for mortgage assistance under this 
Act. 
(5) FEDERAL FINANCIAL INSTITUTIONS REGU-
LATORY AGENCIES.—The term ‘‘Federal financial in-
stitutions regulatory agencies’’ means the Office of 
the Comptroller of the Currency, the Board of Gov-
ernors of the Federal Reserve System, the Federal 
Deposit Insurance Corporation, the Office of Thrift 
Supervision, and the National Credit Union Admin-
istration. 
(6) 
HOUSEHOLD.—The 
term 
‘‘household’’ 
means a mortgagor, the mortgagor’s spouse, chil-
dren residing in the same residence as the mort-
gagor, and any other person living in such residence 
that is declared by the mortgagor as a dependent for 
Federal income tax purposes. 
(7) INCOME.—The term ‘‘income’’ means, with 
respect to the household of an eligible mortgagor, 
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the aggregate income from the all sources of each 
member of the household, as determined in accord-
ance with criteria prescribed by the Secretary. 
(8) MORTGAGE; MORTGAGEE; MORTGAGOR.— 
The terms ‘‘mortgage’’, ‘‘mortgagee’’, and ‘‘mort-
gagor’’ have the meanings given such terms in sec-
tion 201 of the National Housing Act (12 U.S.C. 
1707). 
(9) POVERTY LINE.—The term ‘‘poverty line’’ 
has the meaning given such term in section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981, 
including any revision required by such section. 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Housing and Urban Develop-
ment. 
(11) SERVICER.—The term ‘‘servicer’’ has the 
meaning given such term in section 6(i) of the Real 
Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605(i)). 
SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated for mortgage 
assistance under this Act such sums as may be necessary 
for each of fiscal years 2008, 2009, 2010, 2011, and 2012. 
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SEC. 10. REGULATIONS. 
Not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act, the 
Secretary, in consultation with the Federal financial insti-
tutions regulatory agencies, shall issue such regulations as 
may be necessary to carry out this Act, which shall provide 
for the implementation of the mortgage assistance pro-
gram under this Act upon the expiration of such period. 
Æ 
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