I 
111TH CONGRESS 
1ST SESSION H. R. 3142 
To establish a program to assist homeowners experiencing unavoidable, 
temporary difficulty making payments on home mortgages. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2009 
Mr. FATTAH introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To establish a program to assist homeowners experiencing 
unavoidable, temporary difficulty making payments on 
home mortgages. 
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 ‘‘Homeowners’ Emer-
gency Mortgage Assistance Act’’. 
SEC. 2. MORTGAGE EMERGENCY ASSISTANCE PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
program to make payments on a mortgage for a 1- to 4- 
family residence when— 
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(1) the mortgagee has given the mortgagor no-
tice in accordance with section 3(b) that it intends 
to foreclose the mortgage; 
(2) at least 2 full monthly installments due on 
the mortgage are unpaid after the application of any 
partial payments that may have been accepted but 
not yet applied to the mortgage account; 
(3) the mortgagor is suffering financial hard-
ship due to circumstances beyond the control of the 
mortgagor which render the mortgagor unable to 
correct the delinquency on the mortgage and unable 
to make full mortgage payments before the expira-
tion of the 60-day period beginning on the date that 
notice was sent to the mortgagor in accordance with 
section 3(b); 
(4) there is a reasonable prospect that the 
mortgagor will be able to resume full mortgage pay-
ments not later than 36 months after the beginning 
of the period for which assistance payments are pro-
vided and to pay the mortgage in full by its maturity 
date or by a later date agreed upon by the mort-
gagee; 
(5) the property mortgaged is the mortgagor’s 
principal place of residence; 
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(6) the mortgagor does not own other residen-
tial property which is subject to a mortgage; 
(7) the mortgagor has applied to the Secretary 
for assistance in accordance with section 4; and 
(8) the mortgagor has not been more than 60 
days in arrears on a residential mortgage within the 
2-year period preceding the delinquency for which 
assistance is requested, unless the mortgagor can 
demonstrate that the prior delinquency was the re-
sult of financial hardship due to circumstances be-
yond the control of the mortgagor. 
(b) EFFECT
OF FINDING
OF INELIGIBILITY.—If, 
after reviewing an application for assistance submitted in 
accordance with section 4, the Secretary determines that 
the mortgagor has not met the conditions of eligibility de-
scribed in subsection (a), the mortgagor shall be prohib-
ited from reapplying for assistance under this Act until 
the expiration of the 6-month period beginning on the date 
of such determination unless there is a material change 
in the financial circumstances of the mortgagor. 
(c) DETERMINATION
RELATING
TO
FINANCIAL 
HARDSHIP.—In determining whether a financial hardship 
(which may be caused by a reduction in income or an in-
crease in expenses, or both) is due to circumstances be-
yond the control of a mortgagor, the Secretary may con-
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sider information regarding the mortgagor’s employment 
record, credit history, and current income. Such cir-
cumstances shall include, but not be limited to— 
(1) loss of job of a member of the household; 
(2) salary, wage, or earnings reduction of a 
member of the household; 
(3) injury, disability, or illness of a member of 
the household; 
(4) divorce or separation in the household; or 
(5) death of a member of the household. 
(d) HOUSING COUNSELING AGENCIES.—The Sec-
retary shall designate and approve nonprofit housing 
counseling agencies in each State to be available to assist 
the Secretary in implementing the program established 
pursuant to subsection (a) of this section and to section 
4(b)(1)(A). Nonprofit housing agencies designated and ap-
proved under this subsection shall provide assistance to 
an eligible mortgagor during the entire period that such 
mortgagor receives assistance under this Act. 
SEC. 3. LEGAL ACTION. 
(a) CONDITIONS UNDER WHICH LEGAL ACTION IS 
PROHIBITED.—Except as otherwise provided in the Act, 
a mortgagee of a mortgage for a 1- to 4-family residence 
may not accelerate the maturity of or commence any legal 
action regarding such a mortgage (including, but not lim-
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ited to, mortgage foreclosure to recover under such obliga-
tion) or take possession of any security of the mortgagor 
for such mortgage obligation unless the mortgagee has 
sent to the mortgagor notice pursuant to subsection (b). 
In addition, the mortgagee may not take such action— 
(1) before the expiration of the 30-day period 
beginning on the date that notice of the intent to 
take such action was sent to the mortgagor in ac-
cordance with subsection (b); 
(2) before the expiration of the 30-day period 
beginning on the date of the initial meeting between 
the mortgagor and an approved counseling agency 
held in accordance with section 4(a); 
(3) if an application for such assistance under 
this Act has been submitted to the Secretary on be-
half of the mortgagor and such application— 
(A) is pending; or 
(B) has been approved but payments have 
not yet been made toward the mortgage; or 
(4) if payment toward the mortgage is being 
made under this Act. 
(b) REQUIREMENTS
OF NOTICE.—The Secretary 
shall issue regulations that include, but are not limited 
to, a uniform notice under this section. Such notice shall 
be in plain language and shall— 
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(1) inform the mortgagor in large bold type 
that he or she may be eligible for temporary assist-
ance in making mortgage payments; 
(2) include an explanation of the mortgage as-
sistance program under this Act; 
(3) inform the mortgagor that to apply for 
mortgage assistance, he or she shall attend a meet-
ing in accordance with section 4(a) within 30 days 
of the date of the notice; 
(4) include the legal action intended and the 
basis therefore; 
(5) include a list of approved counseling agen-
cies located in the State in which the mortgagor re-
sides; 
(6) be sent via first class mail to the last known 
address of the mortgagor; and 
(7) be subject to such other requirements as 
prescribed by the Secretary. 
SEC. 4. APPLICATION FOR ASSISTANCE. 
(a) MEETING.— 
(1) IN
GENERAL.—To apply for assistance 
under this Act, not later than 30 days after receiv-
ing notice in accordance with section 3(b), a mort-
gagor shall attend a face-to-face meeting with the 
mortgagee or an approved counseling agency to at-
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tempt to prevent legal action for which the notice 
was sent by restructuring the mortgage payment 
schedule. A meeting under this paragraph may be 
conducted over the telephone under circumstances 
prescribed by the Secretary. 
(2) NOTICE.—If the mortgagor meets with the 
approved counseling agency within the period speci-
fied in paragraph (1), the approved counseling agen-
cy shall send notice of the meeting which includes, 
but is not limited to, the date of the meeting, to the 
mortgagee not later than 5 business days after the 
meeting. 
(b) PREPARATION; SUBMISSION.— 
(1) IN GENERAL.—If the mortgagor is not able 
to resolve the default and prevent foreclosure before 
the expiration of the 30-day period beginning on the 
date of the meeting, the mortgagor may file an ap-
plication for mortgage assistance under this Act. At 
the request of the mortgagor, an approved coun-
seling agency shall— 
(A) assist the mortgagor in preparing an 
application for assistance under this Act; and 
(B) not later than 30 days after the mort-
gagor initially requests assistance in the prepa-
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ration of the application, submit the completed 
application to the Secretary. 
(2) FEES.—The Secretary may pay approved 
counseling agencies a fee, in an amount determined 
by the Secretary, for rendering assistance pursuant 
to this Act. 
(c) NOTICE TO MORTGAGEE.—If the approved coun-
seling agency submits an application for assistance to the 
Secretary on behalf of a mortgagor, the approved coun-
seling agency shall, not later than 5 business days after 
submitting the application, inform the mortgagee of the 
date that the application was submitted. 
(d) FORM; CONTENTS.—An application for assistance 
under this Act shall be submitted on a form prescribed 
by the Secretary and shall include a financial statement 
disclosing all assets and liabilities of the mortgagor, 
whether singly or jointly held, and all household income 
regardless of source. 
(e) EFFECT OF MISREPRESENTATION.—A mortgagor 
who intentionally misrepresents any financial information 
in connection with the filing of an application for assist-
ance under this Act may be denied assistance and required 
to immediately repay any amount of assistance received, 
and the mortgagee may, at any time thereafter, take any 
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legal action to enforce the mortgage without any further 
restrictions or requirements under this Act. 
(f) AVAILABILITY.—An application for assistance 
under this Act may be obtained from an approved coun-
seling agency. 
(g) DETERMINATION ON APPLICATION.— 
(1) TIME PERIOD.—The Secretary shall deter-
mine eligibility of a mortgagor for assistance under 
this Act not later than 60 days after receipt of the 
application of the mortgagor. 
(2) NOTIFICATION.—Not later than 5 business 
days after making the determination on an applica-
tion for assistance, the Secretary shall notify the 
mortgagor and the mortgagee as to whether the ap-
plication has been approved or disapproved. 
SEC. 5. ASSISTANCE PAYMENTS BY SECRETARY. 
(a) AMOUNT TO BRING MORTGAGE CURRENT.—If 
the Secretary determines that a mortgagor is eligible for 
assistance under this Act and the Secretary approves such 
mortgagor for assistance, the Secretary shall pay to the 
mortgagee from any amounts made available to carry out 
this Act the full amount due to the mortgagee pursuant 
to the terms of the mortgage without regard to any accel-
eration under the mortgage, or the full amount of any al-
ternative mortgage payments agreed to by the mortgagee 
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and mortgagor on the date that the application is ap-
proved by the Secretary. This amount shall include the 
amount of principal, interest, taxes, assessments, ground 
rents, hazard insurance, any mortgage insurance or credit 
insurance premiums, and reasonable attorneys’ fees in-
curred by such mortgagee in relation to the arrearage. 
(b) MONTHLY ASSISTANCE PAYMENTS.— 
(1) IN GENERAL.—The Secretary shall make 
monthly mortgage assistance payments to the mort-
gagee on behalf of the mortgagor pursuant to this 
Act. 
(2) OBLIGATION
OF
THE
MORTGAGOR.—A 
mortgagor on whose behalf the Secretary is making 
the mortgage assistance payments shall pay monthly 
payments to the Secretary. Such payments shall be 
in an amount which will cause the mortgagor’s total 
housing expense not to exceed 35 percent of the 
mortgagor’s net effective income. This shall be the 
maximum amount the mortgagor can be required to 
pay during the 36 months a mortgagor is eligible for 
mortgage assistance. 
(3) OBLIGATION
OF
THE
SECRETARY.—Upon 
receipt of this payment from the mortgagor, the Sec-
retary or the Secretary’s duly authorized agent shall 
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