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HR 5855 IH

To establish a program to provide grants to help homeowners who are facing foreclosure to receive professional counseling.

April 17, 2008

Ms. VELAZQUEZ introduced the following bill; which was referred to the Committee on Financial Services

To establish a program to provide grants to help homeowners who are facing foreclosure to receive professional counseling.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Foreclosure Counseling Assistance Act of 2008'.

SEC. 2. PURPOSE.

The purpose of this Act is to promote adequate professional counseling for homeowners facing foreclosure due to the mortgage crisis.

SEC. 3. FORECLOSURE COUNSELING ASSISTANCE.

(a) Establishment- The Neighborhood Reinvestment Corporation (hereinafter in this Act referred to as the `NRC') shall make grants to qualified counseling intermediaries and qualified legal organizations to provide legal assistance to homeowners of owner-occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure.

(b) Definitions- For purposes of this Act:

(1) LEGAL ASSISTANCE- The term `legal assistance' means those services performed by, or under the supervision of, a licensed legal professional in representing homeowners of owner-occupied homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure.

(2) QUALIFIED COUNSELING INTERMEDIARIES- The term `qualified counseling intermediaries' means counseling intermediaries approved by the Department of Housing and Urban Development or the NRC to hire attorneys to assist homeowners who have legal issues related to homeownership preservation, home foreclosure preservation, and tenancy associated with foreclosures.

(3) QUALIFIED LEGAL ORGANIZATIONS- The term `qualified legal organizations' means State and local legal organizations that have demonstrated legal experience in home foreclosure law, as such experience is determined by the Chief Executive Officer of the NRC.

(c) Grant Priority- In making grants under this Act, the NRC shall give priority to qualified counseling intermediaries and qualified legal organizations that--

(1) provide legal assistance in the 100 metropolitan statistical areas (as defined by the Director of the Office of Management and Budget) with the highest home foreclosure rates; and

(2) have the capacity to begin using the grant funds within 90 days after receipt of the funds.

(d) Grant Contingent on Reporting- As a condition of the receipt of any grant under this Act, the grantee shall agree to disclose to the Chief Executive Officer of NRC basic information relating to the demographics of the borrower, the dollar amount and terms of the homeowner's mortgage, and the outcome of any legal proceedings related to the foreclosure proceedings, including, but not limited to, resolution of the foreclosure or delinquency, with details about modifications, workouts, short sales or foreclosure.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated $37,500,000 to carry out this Act, to remain available until expended.