I
107TH CONGRESS
2D SESSION
H. R. 4067
To reinstitute the moratorium on foreclosure on FHA single family mortgage
loans of borrowers affected by the events of September 11, 2001, and
to expand such moratorium to employees of air carriers and aircraft
manufacturers who are involuntarily separated after such date.
IN THE HOUSE OF REPRESENTATIVES
MARCH 20, 2002
Mr. RUSH introduced the following bill; which was referred to the Committee
on Financial Services, and in addition to the Committee on the Judiciary,
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 concerned
A BILL
To reinstitute the moratorium on foreclosure on FHA single
family mortgage loans of borrowers affected by the
events of September 11, 2001, and to expand such mora-
torium to employees of air carriers and aircraft manufac-
turers who are involuntarily separated after such date.
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 ‘‘Airline Workers and
Victims of Terrorism Mortgage Relief Act of 2002’’.
SEC. 2. MORATORIUM ON FORECLOSURE OF FHA SINGLE
FAMILY MORTGAGES.
(a) IN GENERAL.—There shall be in effect a morato-
rium on the foreclosure of certain single-family mortgages
insured under the National Housing Act (12 U.S.C. 1701
et seq.). The moratorium shall be subject to the terms of
mortgagee letter 01–21 of the Secretary of Housing and
Urban Development (relating to relief options for bor-
rowers affected by the events of September 11, 2001), ex-
cept that, for purposes of the moratorium under this sec-
tion, such letter shall apply to all approved mortgagees
as if—
(1) the category of affected borrowers under
such letter included individuals who are involuntarily
separated (except for cause) after September 11,
2001, from employment with—
(A) an air carrier or a foreign air carrier
(as such terms are defined in section 40102 of
title 49, United States Code); or
(B) a manufacturer of aircraft used by, or
to be used by, an air carrier or foreign air car-
rier; and
(2) the moratorium on foreclosure of FHA-in-
sured single family mortgages is—
(A) in the case of any affected borrower
who is determined under title IV of the Air
Transportation Safety and System Stabilization
Act (49 U.S.C. 40101 note) to be an eligible in-
dividual for purposes of such title, the period
that begins upon the date of the enactment of
this Act and ends upon receipt by such eligible
individual of the first payment of any portion of
the amount of compensation determined under
such title with respect to the eligible individual;
(B) in the case of any affected borrower
who, during the 180-day period beginning on
the date of the enactment of this Act, files (or
becomes a party to) an action described in sec-
tion 405(c)(3)(B)(i) of such title (that is not
withdrawn 
in 
accordance 
with 
section
405(c)(3)(B)(ii) of such title), the period that
begins on the date of the enactment of this Act
and ends on the earlier of (i) the expiration of
the 18-month period beginning on such date of
enactment, and (ii) the date that a final judg-
ment is issued in such action; and
(C) in the case of any affected borrower
not described in subparagraph (A) or (B), the
180-day period beginning on the date of the en-
actment of this Act.
(b) TREATMENT OF MORTGAGE RELIEF.—Notwith-
standing section 405(b)(6) of the Air Transportation Safe-
ty and System Stabilization Act, the Special Master shall
not reduce the amount of compensation, to any individual,
determined under such title by reason of the benefit of
the applicability, to any affected borrower, of the morato-
rium established under subsection (b) of this section.
(c) IMPLEMENTATION.—The Secretary of Housing
and Urban Development shall take any actions necessary
to inform mortgagees of the provisions of this section and
to provide for the implementation of this section.
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