To authorize the Secretary of Housing and Urban Development to provide grants to State and local governments to carry out programs to provide mediation between mortgagees and mortgagors facing foreclosure.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preventing Homeowners from 
Foreclosure Act of 2010''.

SEC. 2. FORECLOSURE MEDIATION GRANT PROGRAM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
(in this section referred to as the ``Secretary'') shall carry out a 
program to make competitive grants to States and units of local 
government to establish mediation programs that assist mortgagors under 
home mortgages facing foreclosure on such mortgages.
    (b) Foreclosure Mediation Program Requirements.--Amounts from a 
grant under this section may be used only for costs of a foreclosure 
mediation program that provides as follows:
            (1) Scope.--
                    (A) State grantees.--In the case of a grant under 
                this section to a State, the program shall be carried 
                out in at least one unit of local government within 
                such State.
                    (B) Local government grantees.--In the case of a 
                grant made to a unit of local government, the program 
                shall be carried out in such unit of local government.
            (2) Applicability.--The program shall apply to--
                    (A) any mortgagee that, after the expiration of the 
                90-day period beginning upon receipt, by the grant 
                recipient, of amounts from a grant under this section, 
                initiates a foreclosure proceeding on a home mortgage 
                for a mortgaged home that is located in the 
                jurisdiction within which such program is being carried 
                out, pursuant to paragraph (1); and
                    (B) any mortgagor under such a home mortgage who is 
                subject to a foreclosure proceeding.
            (3) Referral to attorney or housing counselor.--The program 
        shall provide the mortgagor with a referral and contact 
        information for a paid or pro bono attorney, or a housing 
        counselor certified by the Secretary.
            (4) Required meeting and mediation.--The program shall 
        require that, as soon as is practicable after the initiation of 
        a foreclosure proceeding on a home mortgage or a mortgagee has 
        provided the required foreclosure notice on a home mortgage to 
        the mortgagor in accordance with applicable State or local law, 
        as applicable, and, in any event, before entry of any 
        foreclosure judgment on or foreclosure sale for, as applicable, 
        the home mortgage--
                    (A) any representative obtained by the mortgagor 
                (including a representative obtained pursuant to a 
                referral under paragraph (3)) shall meet with the 
                mortgagor; and
                    (B) the mortgagee shall conduct, consistent with 
                any applicable State or local law, a mediation 
                conference that--
                            (i) is held to resolve issues relating to 
                        the foreclosure, with the aim of avoiding the 
                        foreclosure, through mediation;
                            (ii) is held in an appropriate court in the 
                        jurisdiction of the grant recipient or, in the 
                        case of jurisdiction that does not provide for 
                        judicial foreclosure, such other appropriate 
                        venue;
                            (iii) involves the participation of a 
                        neutral, third party mediator selected by the 
                        court or the administrator of the foreclosure 
                        mediation program; and
                            (iv) is attended by--
                                    (I) the mortgagee or, if the 
                                mortgagee or an agent of the mortgagee 
                                having authority to execute a 
                                settlement of all matters relating to 
                                the mortgage is immediately accessible 
                                by telephone, by a representative of 
                                the mortgagee; and
                                    (II) the mortgagor, or any 
                                representative obtained by the 
                                mortgagor (including a representative 
                                obtained pursuant to a referral under 
                                paragraph (3)), or both.
        If the mortgagor fails to attend the conference, the 
        requirement under this paragraph for a mediation conference 
        shall be deemed to be satisfied upon verification by the 
        administrator of the mediation program that the required 
        foreclosure notice has been provided and issuance by such 
        administrator of an order authorizing initiation of such 
        foreclosure proceeding.
            (5) Outreach.--The grant recipient shall establish an 
        outreach program to raise homeowner awareness of the existence 
        of the foreclosure mediation program. Such outreach program 
        shall include providing access to information regarding the 
        foreclosure mediation program through a telephone hotline or a 
        World Wide Web site, or both.
    (c) Selection of Grant Recipients.--The Secretary shall select 
applicants to receive grants under this section under a competition 
based on selection criteria that the Secretary shall establish by 
regulation.
    (d) Recordkeeping.--Each grant recipient shall maintain a record of 
the outcome of each mediation conference carried out under the 
mediation program assisted with the grant amounts, including the nature 
of any loan modification made as a result of participation in the 
mediation program.
    (e) Definitions.--For purposes of this Act, the following 
definitions shall apply:
            (1) Foreclosure proceeding.--The term ``foreclosure 
        proceeding'' means any proceeding or procedure under applicable 
        law, including judicial and non-judicial procedures, including 
        a sheriff sale, to foreclose on a home mortgage.
            (2) Home mortgage.--The term ``home mortgage'' means a 
        mortgage loan, repayment of which is secured by an interest in 
        a one- to four-family residence that is the principal residence 
        of the mortgagor.
            (3) Grant recipient.--The term ``grant recipient'' means a 
        State or unit of local government that receives grant amounts 
        under this section.
            (4) Mortgaged home.--The term ``mortgaged home'' means, 
        with respect to a home mortgage, the residence that is subject 
        to the interest that secures repayment of the home mortgage.
            (5) Required foreclosure notice.--The term ``required 
        foreclosure notice'' means any initial notice that is required 
        under the law of a State to be submitted to the mortgagor under 
        a residential mortgage as a condition precedent to foreclosure 
        on such mortgage.
            (6) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, the Trust Territory 
        of the Pacific Islands, and any other territory or possession 
        of the United States.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 2011 through 2015.
    (g) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out this section.

Summary: Preventing Homeowners from Foreclosure Act of 2010 - Directs the Secretary of Housing and Urban Development (HUD) to implement a competitive grants program for states and local governmental entities to establish mediation programs to assist mortgagors under home mortgages facing foreclosure on such mortgages.

Requires the program to provide the mortgagor with a referral and contact information for a paid or pro bono attorney or a HUD-certified housing counselor.

Requires grant recipients to establish an outreach program to raise homeowner awareness of the existence of the foreclosure mediation program, including a telephone hotline, a World Wide Web site, or both.