I 
110TH CONGRESS 
1ST SESSION H. R. 3587 
To establish a program to assist homeowners experiencing unavoidable, tem-
porary difficulty making payments on mortgages insured under the Na-
tional Housing Act. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2007 
Mr. FATTAH (for himself, Ms. JACKSON-LEE of Texas, Mr. TOWNS, Mr. KEN-
NEDY, Ms. SCHAKOWSKY, Mr. CUMMINGS, Mr. DAVIS of Illinois, Mr. 
KUCINICH, Mr. ELLISON, and Mr. GRIJALVA) 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 
mortgages insured under the National Housing Act. 
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 insured under 
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the National Housing Act for a 1- to 4-family residence 
when— 
(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; 
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(5) the property mortgaged is the mortgagor’s 
principal place of residence; 
(6) the mortgagor does not own other property 
which is subject to a mortgage insured or held by 
the Secretary; 
(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 
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(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-
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, 
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a mortgagee of a mortgage which is insured under the Na-
tional Housing Act 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 limited to, 
mortgage foreclosure to recover under such obligation) 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. 
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given such terms in section 201 of the National 
Housing Act (12 U.S.C. 1707). 
(6) NET EFFECTIVE INCOME.—The term ‘‘net 
effective income’’ means the gross household income 
of the mortgagor, less city, State, and Federal in-
come and social security taxes. 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
Æ 
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