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SEC. 2302. NATIONWIDE DISTRIBUTION OF RESOURCES. 
Notwithstanding any other provision of this Act or the 
amendments made by this Act, each State shall receive not 
less than 0.5 percent of funds made available under section 
2301 (relating to emergency assistance for the redevelop-
ment of abandoned and foreclosed homes). 
SEC. 2303. LIMITATION ON USE OF FUNDS WITH RESPECT 
TO EMINENT DOMAIN. 
No State or unit of general local government may use 
any amounts received pursuant to section 2301 to fund any 
project that seeks to use the power of eminent domain, un-
less eminent domain is employed only for a public use: Pro-
vided, That for purposes of this section, public use shall not 
be construed to include economic development that pri-
marily benefits private entities. 
SEC. 2304. LIMITATION ON DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—None of the funds made available 
under this title or title IV shall be distributed to— 
(1) an organization which has been indicted for 
a violation under Federal law relating to an election 
for Federal office; or 
(2) an organization which employs applicable 
individuals. 
(b) APPLICABLE INDIVIDUALS DEFINED.—In this sec-
tion, the term ‘‘applicable individual’’ means an individual 
who—
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(1) is— 
(A) employed by the organization in a per-
manent or temporary capacity; 
(B) contracted or retained by the organiza-
tion; or 
(C) acting on behalf of, or with the express 
or apparent authority of, the organization; and 
(2) has been indicted for a violation under Fed-
eral law relating to an election for Federal office. 
SEC. 2305. COUNSELING INTERMEDIARIES. 
Notwithstanding any other provision of this Act, the 
amount appropriated under section 2301(a) of this Act 
shall be $3,920,000,000 and the amount appropriated under 
section 2401 of this Act shall be $180,000,000: Provided, 
That of the amount appropriated under section 2401 of this 
Act pursuant to this section, not less than 15 percent shall 
be provided to counseling organizations that target coun-
seling services regarding loss mitigation to minority and 
low-income homeowners or provide such services in neigh-
borhoods with high concentrations of minority and low-in-
come homeowners: Provided further, That of amounts ap-
propriated under such section 2401 $30,000,000 shall be 
used by the Neighborhood Reinvestment Corporation (re-
ferred to in this section as the ‘‘NRC’’) to make grants to 
counseling intermediaries approved by the Department of
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Housing and Urban Development or the NRC to hire attor-
neys to assist homeowners who have legal issues directly re-
lated to the homeowner’s foreclosure, delinquency or short 
sale. Such attorneys shall be capable of assisting home-
owners of owner-occupied homes with mortgages in default, 
in danger of default, or subject to or at risk of foreclosure 
and who have legal issues that cannot be handled by coun-
selors already employed by such intermediaries: Provided 
further, That of the amounts provided for in the prior pro-
visos the NRC shall give priority consideration to coun-
seling intermediaries and legal organizations that (1) pro-
vide legal assistance in the 100 metropolitan statistical 
areas (as defined by the Director of the Office of Manage-
ment and Budget) with the highest home foreclosure rates, 
and (2) have the capacity to begin using the financial as-
sistance within 90 days after receipt of the assistance: Pro-
vided further, That no funds provided under this Act shall 
be used to provide, obtain, or arrange on behalf of a home-
owner, legal representation involving or for the purposes of 
civil litigation: Provided further, That the NRC, in award-
ing counseling grants under section 2401 of this Act, may 
consider, where appropriate, whether the entity has imple-
mented a written plan for providing in-person counseling 
and for making contact, including personal contact, with
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defaulted mortgagors, for the purpose of providing coun-
seling or providing information about available counseling. 
TITLE IV—HOUSING 
COUNSELING RESOURCES 
SEC. 2401. HOUSING COUNSELING RESOURCES. 
There are appropriated out of any money in the Treas-
ury not otherwise appropriated for the fiscal year 2008, for 
an additional amount for the ‘‘Neighborhood Reinvestment 
Corporation—Payment to the Neighborhood Reinvestment 
Corporation’’ $100,000,000, to remain available until De-
cember 31, 2008, for foreclosure mitigation activities under 
the terms and conditions contained in the second undesig-
nated paragraph (beginning with the phrase ‘‘For an addi-
tional amount’’) under the heading ‘‘Neighborhood Rein-
vestment Corporation—Payment to the Neighborhood Rein-
vestment Corporation’’ of Public Law 110–161. 
SEC. 2402. CREDIT COUNSELING. 
(a) IN GENERAL.—Entities approved by the Neighbor-
hood Reinvestment Corporation or the Secretary and State 
housing finance entities receiving funds under this title 
shall work to identify and coordinate with non-profit orga-
nizations operating national or statewide toll-free fore-
closure prevention hotlines, including those that—
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(1) serve as a consumer referral source and data 
repository for borrowers experiencing some form of de-
linquency or foreclosure; 
(2) connect callers with local housing counseling 
agencies approved by the Neighborhood Reinvestment 
Corporation or the Secretary to assist with working 
out a positive resolution to their mortgage delin-
quency or foreclosure; or 
(3) facilitate or offer free assistance to help 
homeowners to understand their options, negotiate so-
lutions, and find the best resolution for their par-
ticular circumstances. 
TITLE 
V—MORTGAGE 
DISCLO-
SURE IMPROVEMENT ACT 
SEC. 2501. SHORT TITLE. 
This title may be cited as the ‘‘Mortgage Disclosure 
Improvement Act of 2008’’. 
SEC. 2502. ENHANCED MORTGAGE LOAN DISCLOSURES. 
(a) TRUTH IN LENDING ACT DISCLOSURES.—Section 
128(b)(2) of the Truth in Lending Act (15 U.S.C. 
1638(b)(2)) is amended— 
(1) by inserting ‘‘(A)’’ before ‘‘In the’’; 
(2) by striking ‘‘a residential mortgage trans-
action, as defined in section 103(w)’’ and inserting
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‘‘any extension of credit that is secured by the dwell-
ing of a consumer’’; 
(3) by striking ‘‘before the credit is extended, or’’ 
and inserting ‘‘and’’; 
(4) by inserting ‘‘, which shall be at least 7 busi-
ness days before consummation of the transaction’’ 
after ‘‘written application’’; 
(5) by striking ‘‘, whichever is earlier’’; and 
(6) by striking ‘‘If the’’ and all that follows 
through the end of the paragraph and inserting the 
following: 
‘‘(B) In the case of an extension of credit that is 
secured by the dwelling of a consumer, the disclosures 
provided under subparagraph (A), shall be in addi-
tion to the other disclosures required by subsection 
(a), and shall— 
‘‘(i) state in conspicuous type size and for-
mat, the following: ‘You are not required to com-
plete this agreement merely because you have re-
ceived these disclosures or signed a loan applica-
tion.’; and 
‘‘(ii) be provided in the form of final disclo-
sures at the time of consummation of the trans-
action, in the form and manner prescribed by 
this section.
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‘‘(C) In the case of an extension of credit that is 
secured by the dwelling of a consumer, under which 
the annual rate of interest is variable, or with respect 
to which the regular payments may otherwise be vari-
able, in addition to the other disclosures required by 
subsection (a), the disclosures provided under this 
subsection shall do the following: 
‘‘(i) Label the payment schedule as follows: 
‘Payment Schedule: Payments Will Vary Based 
on Interest Rate Changes’. 
‘‘(ii) State in conspicuous type size and for-
mat examples of adjustments to the regular re-
quired payment on the extension of credit based 
on the change in the interest rates specified by 
the contract for such extension of credit. Among 
the examples required to be provided under this 
clause is an example that reflects the maximum 
payment amount of the regular required pay-
ments on the extension of credit, based on the 
maximum interest rate allowed under the con-
tract, in accordance with the rules of the Board. 
Prior to issuing any rules pursuant to this 
clause, the Board shall conduct consumer testing 
to determine the appropriate format for pro-
viding the disclosures required under this sub-
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paragraph to consumers so that such disclosures 
can be easily understood, including the fact that 
the initial regular payments are for a specific 
time period that will end on a certain date, that 
payments will adjust afterwards potentially to a 
higher amount, and that there is no guarantee 
that the borrower will be able to refinance to a 
lower amount. 
‘‘(D) In any case in which the disclosure state-
ment under subparagraph (A) contains an annual 
percentage rate of interest that is no longer accurate, 
as determined under section 107(c), the creditor shall 
furnish an additional, corrected statement to the bor-
rower, not later than 3 business days before the date 
of consummation of the transaction. 
‘‘(E) The consumer shall receive the disclosures 
required under this paragraph before paying any fee 
to the creditor or other person in connection with the 
consumer’s application for an extension of credit that 
is secured by the dwelling of a consumer. If the disclo-
sures are mailed to the consumer, the consumer is 
considered to have received them 3 business days after 
they are mailed. A creditor or other person may im-
pose a fee for obtaining the consumer’s credit report 
before the consumer has received the disclosures under