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tioned conditions) to provide mortgage foreclosure 
mitigation assistance primarily to States and areas 
with high rates of defaults and foreclosures pri-
marily in the subprime housing market to help elimi-
nate the default and foreclosure of mortgages of 
owner-occupied single-family homes that are at risk 
of such foreclosure. Other than areas with high rates 
of defaults and foreclosures, grants may also be pro-
vided to approved counseling intermediaries based on 
a geographic analysis of the Nation by the NRC 
which determines where there is a prevalence of 
subprime mortgages that are risky and likely to fail, 
including any trends for mortgages that are likely to 
default and face foreclosure. A State Housing Fi-
nance Agency may also be eligible where the State 
Housing Finance Agency meets all the requirements 
under this paragraph. A HUD-approved counseling 
intermediary shall meet certain mortgage foreclosure 
mitigation assistance counseling requirements, as de-
termined by the NRC, and shall be approved by 
HUD or the NRC as meeting these requirements. 
(2) Mortgage foreclosure mitigation assistance 
shall only be made available to homeowners of 
owner-occupied homes with mortgages in default or 
in danger of default. These mortgages shall likely be 
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subject to a foreclosure action and homeowners will 
be provided such assistance that shall consist of ac-
tivities that are likely to prevent foreclosures and re-
sult in the long-term affordability of the mortgage 
retained pursuant to such activity or another posi-
tive outcome for the homeowner. No funds made 
available under this paragraph may be provided di-
rectly to lenders or homeowners to discharge out-
standing mortgage balances or for any other direct 
debt reduction payments. 
(3) The use of Mortgage Foreclosure Mitigation 
Assistance by approved counseling intermediaries 
and State Housing Finance Agencies shall involve a 
reasonable analysis of the borrower’s financial situa-
tion, an evaluation of the current value of the prop-
erty that is subject to the mortgage, counseling re-
garding the assumption of the mortgage by another 
non-Federal party, counseling regarding the possible 
purchase of the mortgage by a non-Federal third 
party, counseling and advice of all likely restruc-
turing and refinancing strategies or the approval of 
a work-out strategy by all interested parties. 
(4) NRC may provide up to 15 percent of the 
total funds under this paragraph to its own charter 
members with expertise in foreclosure prevention 
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HR 1105 PCS 
counseling, subject to a certification by the NRC 
that the procedures for selection do not consist of 
any procedures or activities that could be construed 
as an unacceptable conflict of interest or have the 
appearance of impropriety. 
(5) HUD-approved counseling entities and 
State Housing Finance Agencies receiving funds 
under this paragraph shall have demonstrated expe-
rience in successfully working with financial institu-
tions as well as borrowers facing default, delin-
quency and foreclosure as well as documented coun-
seling capacity, outreach capacity, past successful 
performance and positive outcomes with documented 
counseling plans (including post mortgage fore-
closure mitigation counseling), loan workout agree-
ments and loan modification agreements. NRC may 
use other criteria to demonstrate capacity in under-
served areas. 
(6) Of the total amount made available under 
this paragraph, up to $5,000,000 may be made 
available to build the mortgage foreclosure and de-
fault mitigation counseling capacity of counseling 
intermediaries through NRC training courses with 
HUD-approved counseling intermediaries and their 
partners, except that private financial institutions 
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that participate in NRC training shall pay market 
rates for such training. 
(7) Of the total amount made available under 
this paragraph, up to 4 percent may be used for as-
sociated administrative expenses for the NRC to 
carry out activities provided under this section. 
(8) Mortgage foreclosure mitigation assistance 
grants may include a budget for outreach and adver-
tising, and training, as determined by the NRC. 
(9) The NRC shall report bi-annually to the 
House and Senate Committees on Appropriations as 
well as the Senate Banking Committee and House 
Financial Services Committee on its efforts to miti-
gate mortgage default. Such reports shall identify 
successful strategies and methods for preserving 
homeownership and the long-term affordability of at- 
risk mortgages and shall include recommended ef-
forts that will or likely can assist in the success of 
this program as well as an analysis of any policy and 
procedures that failed to result in successful mort-
gage foreclosure mitigation. The report shall include 
an analysis of the details and use of any post mitiga-
tion counseling of assisted borrowers designed to en-
sure the continued long-term affordability of the 
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