Sec. 101. Reforms to housing counseling and financial literacy programs
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Section 106 of the Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701x ) is amended— in subsection (a)(4)— in subparagraph (B), by striking subparagraph
(D)and inserting subparagraph
(E); in subparagraph (C), by striking adequate distribution and all that follows through foreclosure rates and inserting that the recipients are geographically diverse and include organizations that serve urban or rural areas ; by redesignating subparagraphs (D), (E), and
(F)as subparagraphs (E), (F), and (G), respectively; and by inserting after subparagraph
(C)the following: In distributing assistance made available under this paragraph, the Secretary shall give priority consideration to entities serving areas with the highest home foreclosure rates. . in subsection (e), by adding at the end the following: In this paragraph, the term covered mortgage loan means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is— insured by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); or guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b). For each counselor employed by an organization receiving assistance under this section, the Secretary shall consider the competence of the counselor compared to the default rate of all counseled borrowers of a covered mortgage loan in comparable markets, and such other factors as the Secretary determines appropriate to further the purposes of this section. If, based on the comparison required under paragraph (6)(B), the Secretary determines that a counselor lacks competence to provide counseling in the areas described in subsection (e)(2), the Secretary may— require retesting of the individual; or suspend the certification under this subsection for the individual. ; and in subsection (i)— by redesignating paragraph
(3)as paragraph (4); and by inserting after paragraph
(2)the following: The Secretary may deny future covered assistance to an organization or entity receiving covered assistance if the Secretary determines that the organization or entity, or the individual through which the organization or entity provides such counseling, presents an unacceptable risk to families accessing counseling services or the programs under which covered mortgage loans (as defined in subsection (e)(6)(A)), which determination shall be— based on the comparison required under subsection (e)(6)(B); and made in accordance with regulations issued by the Secretary. The Secretary shall give an organization or entity receiving covered assistance at least 60 days prior written notice of any termination under this paragraph, and the termination shall take effect at the end of the notice period, unless the Secretary withdraws the termination notice or extends the notice period. If requested in writing by the organization or entity within 30 days of the date of the notice described in clause (i), the organization or entity shall be entitled to an informal conference with the official authorized to issue termination notices on behalf of the Secretary (or a designee of that official) at which the organization or entity may present for consideration specific factors that the organization or entity believes were beyond the control of the organization or entity and that caused the excessive default rates. . In this subsection, the term covered mortgage loan means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4-families that is— insured by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); made, guaranteed, or insured by the Department of Veterans Affairs; or made, guaranteed, or insured by the Department of Agriculture. A borrower with respect to a covered mortgage loan who is 60 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in housing counseling. The cost of counseling for delinquent borrowers described in paragraph
(2)with respect to a covered mortgage loan described in paragraph (1)(A) shall be paid for by the Mutual Mortgage Insurance Fund, as authorized under section 203(r)(4) of the National Housing Act ( 12 U.S.C. 1709(r)(4) ).
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- 12 USC 1715z–13a
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Sec. 101
Reforms to housing counseling and financial literacy programs
Cite12 USC 1715z–13a
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