I 
112TH CONGRESS 
2D SESSION 
H. R. 4848 
To save neighborhoods and keep families in their homes by encouraging 
mortgage loan modifications and suspending foreclosures and evictions. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 26, 2012 
Mr. CLARKE of Michigan (for himself, Mr. LEWIS of Georgia, Mr. CONYERS, 
Mr. GEORGE MILLER of California, Mr. CLEAVER, Ms. KAPTUR, Mr. 
GRIJALVA, Ms. WATERS, Mr. CARSON of Indiana, Mr. JACKSON of Illi-
nois, Ms. CLARKE of New York, and Mr. ELLISON) introduced the fol-
lowing bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committee on Financial Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To save neighborhoods and keep families in their homes 
by encouraging mortgage loan modifications and sus-
pending foreclosures and evictions. 
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 ‘‘Save Our Neighbor-
hoods Act of 2012’’. 
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SEC. 2. STAYS OF FORECLOSURES. 
(a) CAUSE OF ACTION.— 
(1) IN GENERAL.—A mortgagor of a property 
subject to a federally related mortgage loan may file 
a motion before a court in the jurisdiction in which 
the property is located for an order under subsection 
(d). 
(2) INTERIM ORDER.—The court shall, on the 
date of such filing, enter an order that shall— 
(A) stay any foreclosure proceedings (in-
cluding proceedings before a State court) that 
have been brought against the property that is 
subject to the federally related mortgage loan; 
and 
(B) remain in effect for a period of 60 
days, beginning on the date that the order is 
entered. 
(3) LIMITATION.—The mortgagor of the prop-
erty subject to a federally related mortgage loan is 
only allowed to file one motion under subsection 
(a)(1). 
(b) CONSENSUAL REVISION
OF MORTGAGE.—The 
mortgagor and mortgagee shall meet not later than 30 
days after the mortgagor files under subsection (a). Not 
later than 15 days prior to that meeting, the mortgagee 
shall provide the mortgagor with a list of local housing 
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counseling agencies approved by the Secretary of Housing 
and Urban Development. The mortgagor may be accom-
panied by a counselor from such an agency. If the mort-
gagor and mortgagee execute a consensually modified 
mortgage agreement within 60 days of the court granting 
the stay, the order under subsection (a)(2) would termi-
nate. If at the end of the 60 days an agreement has not 
been reached, the court may issue an order under sub-
section (d) in accordance with subsection (c). The mort-
gagor may request not more than 1 additional meeting 
after the first meeting and before the end of the period 
during which foreclosure proceedings are stayed pursuant 
to an order under subsection (a) or (d). The mortgagee 
shall comply with that request not later than 30 days after 
that request. 
(c) STANDARD OF PROOF.—The court shall grant a 
motion under subsection (a)(1) for an order under sub-
section (d), if the mortgagor demonstrates by a preponder-
ance of the evidence the following: 
(1) That the mortgagor has a reasonable ability 
to make payments described under subsection (d)(5). 
(2) Financial hardship of the mortgagor. 
(3) That the property subject to the mortgage 
would be the primary residence of the mortgagor. 
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(d) ORDER DESCRIBED.—An order under this sub-
section shall, beginning on the date that is 60 days after 
the filing of the motion under subsection (a)(1)— 
(1) stay any foreclosure proceedings that have 
been brought against the property that is subject to 
the federally related mortgage loan, including pro-
ceedings before a State court and eviction or de-
tainer proceedings in a non-judicial foreclosure 
State; 
(2) remain in effect for a period of up to 3 
years beginning on the date that the order is en-
tered, except that the period shall terminate if an 
agreement under subsection (b) is executed during 
such period; 
(3) prohibit the assessment or collection of any 
late fees regarding payments on the federally related 
mortgage loan; 
(4) toll the statute of limitations for any other 
applicable laws pertaining to the federally related 
mortgage loan; 
(5) require that the mortgagor make payments 
in an amount the court determines appropriate, 
which may include the fair market rental value of 
the property (determined by the court in accordance 
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with subsection (f)), to the mortgagee at such times 
as the court determines appropriate; and 
(6) require that the mortgagee apply such pay-
ments— 
(A) first, to any taxes owed on the prop-
erty; 
(B) then, to any obligations relating to in-
surance, including homeowner’s insurance on 
the property; 
(C) then, to any interest due on the mort-
gage for that period under the terms of the 
mortgage; and 
(D) finally, to the principal amount due on 
the mortgage for that period under the terms of 
the mortgage. 
(e) RESULT OF FAILURE TO REVISE DURING STAY 
OF FORECLOSURE.—If an order under subsection (d) ter-
minates and the mortgagor and mortgagee have not sub-
mitted an agreement described in subsection (b) to the 
court on or before the date that the order terminates, the 
court shall enter an order— 
(1) ordering an appraisal to determine the fair 
market value of the property to be performed by a 
licensed appraiser approved by the Secretary of 
Housing and Urban Development; 
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(2) if the fair market value of the property, as 
determined by the appraiser is less than the prin-
cipal remaining on the mortgage loan, adjusting the 
principal amount to the fair market value, giving 
consideration to the appraisal and any other infor-
mation the court determines appropriate; 
(3) ordering reasonable interest on the principal 
as adjusted under paragraph (2) based on the aver-
age prime offer rate (as such term is defined in sec-
tion 129C of the Truth in Lending Act (15 U.S.C. 
1639c)) for mortgages; and 
(4) if the fair market value is greater than the 
principal remaining on the mortgage loan, ordering 
payments set at a reasonable interest rate on the re-
maining principal based on the average prime offer 
rate for mortgages on that date. 
(f) DETERMINATION
OF FAIR MARKET RENTAL 
VALUE.—In determining the fair market rental value of 
a property for purposes of subsection (d)(5), the court 
shall consider the following: 
(1) The fair market rents for the market area 
in which the property is located for similar property 
calculated for other Federal rental housing pro-
grams. 
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(2) Any other information the court determines 
appropriate. 
(g) AUTHORITY OF MAGISTRATE JUDGES.—Any pro-
ceeding regarding a motion under subsection (a) may be 
heard by a magistrate judge of the United States, and that 
magistrate judge, notwithstanding section 636(b)(1)(A) of 
title 28, United States Code, may issue an order in accord-
ance with this section. 
(h) LIMITATION ON REMEDIES.—The mortgagee’s 
remedies shall be limited to those that would be available 
as if the proceeding were a foreclosure proceeding. 
(i) DEFINITIONS.—In this Act: 
(1) The term ‘‘federally related mortgage loan’’ 
has the meaning given such term under section 3 of 
the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2602). 
(2) The term ‘‘financial hardship’’ means any 
financial burden of a mortgagor that causes that 
mortgagor to be reasonably unable to make a pay-
ment on that mortgage, including— 
(A) reduction in or loss of income that was 
supporting the mortgage; 
(B) change in household financial cir-
cumstances; 
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(C) recent or upcoming increase in the 
mortgagor’s monthly mortgage payment; 
(D) an unavoidable increase in other ex-
penses; 
(E) a lack of cash reserves to maintain 
payment on the mortgage and cover basic living 
expenses at the same time (cash reserves in-
clude assets such as cash savings, money mar-
ket funds, stocks or bonds, but exclude retire-
ment accounts); 
(F) excessive monthly debt payments, in-
cluding if the mortgagor has been using credit 
cards, a home equity loan or other credit to 
make the mortgage payment; 
(G) the mortgagor has been subject to 
predatory lending practices; and 
(H) other reasons for hardship identified 
and explained by the mortgagor. 
(3) In determining whether a lending practice is 
predatory, the court shall consider whether the mort-
gagor has been subject to practices including but not 
limited to: abusive collection practices; balloon pay-
ments; encouragement of default; repeat financing 
where the equity is depleted as a result of financing; 
excessive fees; excessive interest rates; fraud, decep-
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tion, and abuse; high loan-to-value ratio; lending 
without regard to ability to repay; loan flipping; 
mandatory arbitration clauses; payday lending; pre- 
payment penalties; refinancing of mortgages with a 
loan that does not provide a tangible economic ben-
efit to the borrower; refinancing unsecured debt; 
payment of single-premium credit insurance; the 
process of referring borrowers who qualify for lower- 
cost financing to high-cost lenders; subprime lend-
ing; high yield-spread premiums. 
SEC. 3. REGULATORY AUTHORITY OF THE CONSUMER FI-
NANCIAL PROTECTION BUREAU. 
The Director of the Bureau of Consumer Financial 
Protection of the Federal Reserve System may make rules 
or issue guidance to carry out this Act. 
SEC. 4. DURATION OF THIS ACT. 
This Act shall be effective for 5 years, beginning on 
the date of enactment of this Act. 
Æ 
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