12 USC 1701x - Assistance with respect to housing for low- and moderate-income families

U.S Code last checked for updates: Jul 28, 2026

§ 1701x.

Assistance with respect to housing for low- and moderate-income families

(a)

Authorization to provide information, advice, and technical assistance; scope of assistance; authorization of appropriations

(1)

The Secretary is authorized to provide, or contract with public or private organizations to provide, information, advice, and technical assistance, including but not limited to—

(i)

the assembly, correlation, publication, and dissemination of information with respect to the construction, rehabilitation, and operation of low- and moderate-income housing;

(ii)

the provision of advice and technical assistance to public bodies or to nonprofit or cooperative organizations with respect to the construction, rehabilitation, and operation of low- and moderate-income housing, including assistance with respect to self-help and mutual self-help programs;

(iii)

counseling and advice to tenants and homeowners with respect to property maintenance, financial management, and such other matters as may be appropriate to assist them in improving their housing conditions and in meeting the responsibilities of tenancy or homeownership; and

(iv)

the provision of technical assistance to communities, particularly smaller communities, to assist such communities in planning, developing, and administering Community Development Programs pursuant to title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.].

(2)

The Secretary (A) shall provide the services described in clause (iii) of paragraph (1) for homeowners assisted under section 235 of the National Housing Act [12 U.S.C. 1715z]; (B) shall, in consultation with the Secretary of Agriculture, provide such services for borrowers who are first-time homebuyers with guaranteed loans under section 502(h) of the Housing Act of 1949 [42 U.S.C. 1472(h)]; and (C) may provide such services for other owners of single family dwelling units insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.] or guaranteed or insured under chapter 37 of title 38. For purposes of this paragraph and clause (iii) of paragraph (1), the Secretary may provide the services described in such clause directly or may enter into contracts with, make grants to, and provide other types of assistance to private or public organizations with special competence and knowledge in counseling low- and moderate-income families to provide such services.

(3)

There is authorized to be appropriated for the purposes of this subsection, without fiscal year limitation, such sums as may be necessary; except that for such purposes there are authorized to be appropriated $6,025,000 for fiscal year 1993 and $6,278,050 for fiscal year 1994. Of the amounts appropriated for each of fiscal years 1993 and 1994, up to $500,000 shall be available for use for counseling and other activities in connection with the demonstration program under section 152 of the Housing and Community Development Act of 1992. Any amounts so appropriated shall remain available until expended.

(4)

Homeownership and Rental Counseling Assistance.—

(A)

In general.—

The Secretary shall make financial assistance available under this paragraph to HUD-approved housing counseling agencies and State housing finance agencies.

(B)

Qualified entities.—

The Secretary shall establish standards and guidelines for eligibility of organizations (including governmental and nonprofit organizations) to receive assistance under this paragraph, in accordance with subparagraph (D).

(C)

Distribution.—

Assistance made available under this paragraph shall be distributed in a manner that encourages efficient and successful counseling programs and that ensures that the recipients are geographically diverse and include organizations that serve urban or rural areas.

(D)

Limitation on distribution of assistance.—

(i)

In general.—

None of the amounts made available under this paragraph shall be distributed to—

(I)

any organization which has been convicted for a violation under Federal law relating to an election for Federal office; or

(II)

any organization which employs applicable individuals.

(ii)

Definition of applicable individuals.—

In this subparagraph, the term “applicable individual” means an individual who—

(I)

is—

(aa)

employed by the organization in a permanent or temporary capacity;

(bb)

contracted or retained by the organization; or

(cc)

acting on behalf of, or with the express or apparent authority of, the organization; and

(II)

has been convicted for a violation under Federal law relating to an election for Federal office.

(E)

Grantmaking process.—

In making assistance available under this paragraph, the Secretary shall consider appropriate ways of streamlining and improving the processes for grant application, review, approval, and award.

(F)

Authorization of appropriations.—

There are authorized to be appropriated $45,000,000 for each of fiscal years 2009 through 2012 for—

(i)

the operations of the Office of Housing Counseling of the Department of Housing and Urban Development;

(ii)

the responsibilities of the Director of Housing Counseling under paragraphs (2) through (5) of subsection (g); and

(iii)

assistance pursuant to this paragraph for entities providing homeownership and rental counseling.

(b)

Loans to nonprofit organizations or public housing agencies; purpose and terms; repayment; authorization of appropriations; deposit of appropriations in Low and Moderate Income Sponsor Fund

(1)

The Secretary is authorized to make loans to nonprofit organizations or public housing agencies for the necessary expenses, prior to construction, in planning, and obtaining financing for, the rehabilitation or construction of housing for low or moderate income families under section 235 of the National Housing Act [12 U.S.C. 1715z] or any other federally assisted program. Such loans shall be made without interest and shall not exceed 80 per centum of the reasonable costs expected to be incurred in planning, and in obtaining financing for, such housing prior to the availability of financing, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site acquisition, application and mortgage commitment fees, and construction loan fees and discounts. The Secretary shall require repayment of loans made under this subsection, under such terms and conditions as he may require, upon completion of the project or sooner, and may cancel any part or all of a loan if he determines that it cannot be recovered from the proceeds of any permanent loan made to finance the rehabilitation or construction of the housing.

(2)

The Secretary shall determine prior to the making of any loan that the nonprofit organization or public housing agency meets such requirements with respect to financial responsibility and stability as he may prescribe.

(3)

There are authorized to be appropriated for the purposes of this subsection not to exceed $7,500,000 for the fiscal year ending June 30, 1969, and not to exceed $10,000,000 for the fiscal year ending June 30, 1970. Any amounts so appropriated shall remain available until expended, and any amounts authorized for any fiscal year under this paragraph but not appropriated may be appropriated for any succeeding fiscal year.

(4)

All funds appropriated for the purposes of this subsection shall be deposited in a fund which shall be known as the Low and Moderate Income Sponsor Fund, and which shall be available without fiscal year limitation and be administered by the Secretary as a revolving fund for carrying out the purposes of this subsection. Sums received in repayment of loans made under this subsection shall be deposited in such fund.

(c)

Grants for homeownership counseling organizations

(1)

In general

The Secretary of Housing and Urban Development may make grants—

(A)

to nonprofit organizations experienced in the provision of homeownership counseling to enable the organizations to provide homeownership counseling to eligible homeowners; and

(B)

to assist in the establishment of nonprofit homeownership counseling organizations.

(2)

Program requirements

(A)

Applications for grants under this subsection shall be submitted in the form, and in accordance with the procedures, that the Secretary requires.

(B)

The homeownership counseling organizations receiving assistance under this subsection shall use the assistance only to provide homeownership counseling to eligible homeowners.

(C)

The homeownership counseling provided by homeownership counseling organizations receiving assistance under this subsection shall include counseling with respect to—

(i)

financial management;

(ii)

available community resources, including public assistance programs, mortgage assistance programs, home repair assistance programs, utility assistance programs, food programs, and social services; and

(iii)

employment training and placement.

(3)

Availability of homeownership counseling

The Secretary shall take any action that is necessary—

(A)

to ensure the availability throughout the United States of homeownership counseling from homeownership counseling organizations receiving assistance under this subsection, with priority to areas that—

(i)

are experiencing high rates of home foreclosure and any other indicators of homeowner distress determined by the Secretary to be appropriate;

(ii)

are not already adequately served by homeownership counseling organizations; and

(iii)

have a high incidence of mortgages involving principal obligations (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in excess of 97 percent of the appraised value of the properties that are insured pursuant to section 203 of the National Housing Act [12 U.S.C. 1709]; and

(B)

to inform the public of the availability of the homeownership counseling.

(4)

Eligibility for counseling

A homeowner shall be eligible for homeownership counseling under this subsection if—

(A)

the home loan is secured by property that is the principal residence (as defined by the Secretary) of the homeowner;

(B)

the home loan is not assisted under title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.]; and

(C)

the homeowner is, or is expected to be, unable to make payments, correct a home loan delinquency within a reasonable time, or resume full home loan payments due to a reduction in the income of the homeowner because of—

(i)

an involuntary loss of, or reduction in, the employment of the homeowner, the self-employment of the homeowner, or income from the pursuit of the occupation of the homeowner;

(ii)

any similar loss or reduction experienced by any person who contributes to the income of the homeowner;

(iii)

a significant reduction in the income of the household due to divorce or death; or

(iv)

a significant increase in basic expenses of the homeowner or an immediate family member of the homeowner (including the spouse, child, or parent for whom the homeowner provides substantial care or financial assistance) due to—

(I)

an unexpected or significant increase in medical expenses;

(II)

a divorce;

(III)

unexpected and significant damage to the property, the repair of which will not be covered by private or public insurance; or

(IV)

a large property-tax increase; or

(D)

the Secretary of Housing and Urban Development determines that the annual income of the homeowner is no greater than the annual income established by the Secretary as being of low- or moderate-income.

(5)

Notification of availability of homeownership counseling

(A)

Notification of availability of homeownership counseling

(i)

Requirement

(ii)

Content

Notification under this subparagraph shall—

(I)

notify the homeowner or mortgage applicant of the availability of any homeownership counseling offered by the creditor (or proposed creditor);

(II)

if provided to an eligible mortgage applicant, state that completion of a counseling program is required for insurance pursuant to section 203 of the National Housing Act [12 U.S.C. 1709];

(III)

notify the homeowner or mortgage applicant of the availability of homeownership counseling provided by nonprofit organizations approved by the Secretary and experienced in the provision of homeownership counseling, or provide the toll-free telephone number described in subparagraph (D)(i);

(IV)

notify the homeowner by a statement or notice, written in plain English by the Secretary of Housing and Urban Development, in consultation with the Secretary of Defense and the Secretary of the Treasury, explaining the mortgage and foreclosure rights of servicemembers, and the dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) [now 50 U.S.C. 3901 et seq.], including the toll-free military one source number to call if servicemembers, or the dependents of such servicemembers, require further assistance; and

(V)

notify the housing or mortgage applicant of the availability of mortgage software systems provided pursuant to subsection (g)(3).

(B)

Deadline for notification

The notification required in subparagraph (A) shall be made—

(i)

in a manner approved by the Secretary; and

(ii)

before the expiration of the 45-day period beginning on the date on which the failure referred to in such subparagraph occurs.

(C)

Notification

(D)

Administration and compliance

The Secretary shall, to the extent of amounts approved in appropriation Acts, enter into an agreement with an appropriate private entity under which the entity will—

(i)

operate a toll-free telephone number through which any eligible homeowner can obtain a list of nonprofit organizations, which shall be updated annually, that—

(I)

are approved by the Secretary and experienced in the provision of homeownership counseling; and

(II)

serve the area in which the residential property of the homeowner is located;

(ii)

monitor the compliance of creditors with the requirements of subparagraphs (A) and (B); and

(iii)

report to the Secretary not less than annually regarding the extent of compliance of creditors with the requirements of subparagraphs (A) and (B).

(E)

Report

(6)

Definitions

For purposes of this subsection:

(A)

The term “creditor” means a person or entity that is servicing a home loan on behalf of itself or another person or entity.

(B)

The term “eligible homeowner” means a homeowner eligible for counseling under paragraph (4).

(C)

The term “home loan” means a loan secured by a mortgage or lien on residential property.

(D)

The term “homeowner” means a person who is obligated under a home loan.

(E)

The term “residential property” means a 1-family residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.

(7)

Regulations

(8)

Authorization of appropriations

(d)

Prepurchase and foreclosure-prevention counseling demonstration

(1)

Purposes

The purpose of this subsection is—

(A)

to reduce defaults and foreclosures on mortgage loans insured under the Federal Housing Administration single family mortgage insurance program;

(B)

to encourage responsible and prudent use of such federally insured home mortgages;

(C)

to assist homeowners with such federally insured mortgages to retain the homes they have purchased pursuant to such mortgages; and

(D)

to encourage the availability and expansion of housing opportunities in connection with such federally insured home mortgages.

(2)

Authority

(3)

Grants

(4)

Qualified nonprofit organizations

(5)

Prepurchase counseling

(A)

Mandatory participation

Under the demonstration program, the Secretary shall require any eligible homebuyer who intends to purchase a home located in a counseling target area and who has applied for (as determined by the Secretary) a qualified mortgage (as such term is defined in paragraph (9)) on such home that involves a downpayment of less than 10 percent of the principal obligation of the mortgage, to receive counseling prior to signing of a contract to purchase the home. The counseling shall include counseling with respect to—

(i)

financial management and the responsibilities involved in homeownership;

(ii)

fair housing laws and requirements;

(iii)

the maximum mortgage amount that the homebuyer can afford; and

(iv)

options, programs, and actions available to the homebuyer in the event of actual or potential delinquency or default.

(B)

Eligibility for counseling

A homebuyer shall be eligible for prepurchase counseling under this paragraph if—

(i)

the homebuyer has applied for a qualified mortgage;

(ii)

the homebuyer is a first-time homebuyer; and

(iii)

the home to be purchased under the qualified mortgage is located in a counseling target area.

(6)

Foreclosure-prevention counseling

(A)

Availability

(B)

Notification of delinquency

Under the demonstration program, the Secretary shall require the creditor of any eligible homeowner who is delinquent (as described in subparagraph (A)) to send written notice by registered or certified mail within 5 days (excluding Saturdays, Sundays, and legal public holidays) after the occurrence of such delinquency—

(i)

notifying the homeowner of the delinquency and the name, address, and phone number of the counseling organization for the counseling target area; and

(ii)

notifying any counseling organization for the counseling target area of the delinquency and the name, address, and phone number of the delinquent homeowner.

(C)

Coordination with emergency homeownership counseling program

(D)

Eligibility for counseling

A homeowner shall be eligible for foreclosure-prevention counseling under this paragraph if—

(i)

the home owned by the homeowner is subject to a qualified mortgage; and

(ii)

such home is located in a counseling target area.

(7)

Scope of demonstration program

(A)

Designation of counseling target areas

(B)

Counseling target areas

Each counseling target area shall consist of a group of contiguous census tracts—

(i)

the population of which is greater than 50,000;

(ii)

which together constitute an identifiable neighborhood, area, borough, district, or region within a metropolitan area (except that this clause may not be construed to exclude a group of census tracts containing areas not wholly contained within a single town, city, or other political subdivision of a State);

(iii)

in which the average age of existing housing is greater than 20 years; and

(iv)

for which (I) the percentage of qualified mortgages on homes within the area that are foreclosed exceeds 5 percent for the calendar year preceding the year in which the area is selected as a counseling target area, or (II) the number of qualified mortgages originated on homes in such area in the calendar year preceding the calendar year in which the area is selected as a counseling target area exceeds 20 percent of the total number of mortgages originated on residences in the area during such year.

(C)

Mortgage characteristics

(D)

Expansion of target areas

(E)

Designation of control areas

(8)

Evaluation

(9)

Definitions

For purposes of this subsection:

(A)

The term “control area” means an area designated by the Secretary under paragraph (7)(E).

(B)

The term “counseling target area” means an area designated by the Secretary under paragraph (7)(A).

(C)

The term “creditor” means a person or entity that is servicing a loan secured by a qualified mortgage on behalf of itself or another person or entity.

(D)

The term “displaced homemaker” means an individual who—

(i)

is an adult;

(ii)

has not worked full-time, full-year in the labor force for a number of years, but has during such years, worked primarily without remuneration to care for the home and family; and

(iii)

is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.

(E)

The term “downpayment” means the amount of purchase price of home required to be paid at or before the time of purchase.

(F)

The term “eligible homebuyer” means a homebuyer that meets the requirements under paragraph (5)(B).

(G)

The term “eligible homeowner” means a homeowner that meets the requirements under paragraph (6)(D).

(H)

The term “first-time homebuyer” means an individual who—

(i)

(and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the home pursuant to which counseling is provided under this subsection;

(ii)

is a displaced homemaker who, except for owning a residence with his or her spouse or residing in a residence owned by the spouse, meets the requirements of clause (i); or

(iii)

is a single parent who, except for owning a residence with his or her spouse or residing in a residence owned by the spouse while married, meets the requirements of clause (i).

(I)

The term “home” includes any dwelling or dwelling unit eligible for a qualified mortgage, and includes a unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.

(J)

The term “metropolitan area” means a standard metropolitan statistical area as designated by the Director of the Office of Management and Budget.

(K)

The term “qualified mortgage” means a mortgage on a 1- to 4-family home that is insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.].

(L)

The term “Secretary” means the Secretary of Housing and Urban Development.

(M)

The term “single parent” means an individual who—

(i)

is unmarried or legally separated from a spouse; and

(ii)

(I)

has 1 or more minor children for whom the individual has custody or joint custody; or

(II)

is pregnant.

(10)

Regulations

(11)

Authorization of appropriations

(12)

Termination

(e)

Certification

(1)

Requirement for assistance

(2)

Standards and examination

The Secretary shall, by regulation, establish standards and procedures for testing and certifying counselors and for certifying organizations. Such standards and procedures shall require, for certification of an organization, that each individual through which the organization provides counseling shall demonstrate, and, for certification of an individual, that the individual shall demonstrate, by written examination (as provided under subsection (f)(4)), competence to provide counseling in each of the following areas:

(A)

Financial management.

(B)

Property maintenance.

(C)

Responsibilities of homeownership and tenancy.

(D)

Fair housing laws and requirements.

(E)

Housing affordability.

(F)

Avoidance of, and responses to, rental and mortgage delinquency and avoidance of eviction and mortgage default.

(3)

Requirement under HUD programs

(4)

Outreach

(5)

Encouragement

(6)

Reviews

The Secretary—

(A)

may conduct periodic reviews; and

(B)

shall conduct performance reviews of all organizations receiving assistance under this section that—

(i)

consist of a review of the organization’s compliance with all program requirements; and

(ii)

may take into account the organization’s aggregate counselor performance under paragraph (7)(B).

(7)

Considerations

(A)

Covered mortgage loan defined

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 housing cooperatives) designed principally for the occupancy of between 1 and 4 families that is—

(i)

insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); or

(ii)

guaranteed under section 1715z–13a or 1715z–13b of this title.

(B)

Comparison

(8)

Certification

If, based on the comparison required under paragraph (7)(B), the Secretary determines that a counselor lacks competence to provide counseling in the areas described in subsection (e)(2) and such action will not create a significant loss of capacity for housing counseling services in the service area, the Secretary may—

(A)

require continued education coupled with successful completion of a probationary period;

(B)

require retesting if the counselor continues to demonstrate a lack of competence under paragraph (7)(B); and

(C)

suspend an individual certification if a counselor fails to demonstrate competence after not fewer than 2 retesting opportunities under subparagraph (B).

(f)

Homeownership and rental counselor training and certification programs

(1)

Establishment

(2)

Eligibility and selection

(A)

Eligibility

(B)

Selection

The Secretary shall provide for entities meeting the requirements of subparagraph (A) to submit applications to provide the training and certification program under this subsection. The Secretary shall select an application based on the ability of the entity to—

(i)

establish the program as soon as possible on a national basis, but not later than the date under paragraph (6);

(ii)

minimize the costs involved in establishing the program; and

(iii)

effectively and efficiently carry out the program.

(3)

Training

(4)

Certification

(5)

Fees

(6)

Timing

(7)

Authorization of appropriations

(g)

Procedures and activities

(1)

Counseling procedures

(A)

In general

(B)

Homeownership counseling

For purposes of this subsection and as used in the provisions referred to in this subparagraph, the term “homeownership counseling” means counseling related to homeownership and residential mortgage loans. Such term includes counseling related to homeownership and residential mortgage loans that is provided pursuant to—

(i)

section 105(a)(20) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(20));

(ii)

in the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.]—

(I)

section 9(e) (42 U.S.C. 1437g(e));

(II)

section 8(y)(1)(D) (42 U.S.C. 1437f(y)(1)(D));

(III)

section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));

(IV)

section 23(c)(4) 1

 See References in Text note below.

(42 U.S.C. 1437u(c)(4));

(V)

section 32(e)(4) (42 U.S.C. 1437z–4(e)(4));

(VI)

section 33(d)(2)(B) (42 U.S.C. 1437z–5(d)(2)(B));

(VII)

sections 302(b)(6) and 303(b)(7) (42 U.S.C. 1437aaa–1(b)(6), 1437aaa–2(b)(7)); and

(VIII)

section 304(c)(4) (42 U.S.C. 1437aaa–3(c)(4));

(iii)

section 302(a)(4) of the American Homeownership and Economic Opportunity Act of 2000 (42 U.S.C. 1437f note);

(iv)

sections 12773(b)(2) and 12808(b) of title 42;

(v)

this section and section 1701w of this title;

(vi)

section 4110(d)(2)(G) of this title;

(vii)

sections 12872(b)(6), 12873(b)(7), 12874(c)(4), 12892(b)(6), and 12893(b)(6) of title 42;

(viii)

section 11408(b)(1)(F)(iii) ¹ of title 42;

(ix)

sections 202(3) ¹ and 810(b)(2)(A) ¹ of the Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3), 4229(b)(2)(A));

(x)

in the National Housing Act [12 U.S.C. 1701 et seq.]—

(I)

in section 203 (12 U.S.C. 1709), the penultimate undesignated paragraph of paragraph (2) of subsection (b), subsection (c)(2)(A), and subsection (r)(4);

(II)

subsections (a) and (c)(3) of section 237; ¹ and

(III)

subsections (d)(2)(B) and (m)(1) of section 255 (12 U.S.C. 1715z–20);

(xi)

section 502(h)(4)(B) of the Housing Act of 1949 (42 U.S.C. 1472(h)(4)(B));

(xii)

section 1701z–7 of this title; and

(xiii)

section 1701z–16 of this title.

(C)

Rental housing counseling

For purposes of this subsection, the term “rental housing counseling” means counseling related to rental of residential property, which may include counseling regarding future homeownership opportunities and providing referrals for renters and prospective renters to entities providing counseling and shall include counseling related to such topics that is provided pursuant to—

(i)

section 105(a)(20) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(20));

(ii)

in the United States Housing Act of 1937—

(I)

section 9(e) (42 U.S.C. 1437g(e));

(II)

section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));

(III)

section 23(c)(4) ¹ (42 U.S.C. 1437u(c)(4));

(IV)

section 32(e)(4) (42 U.S.C. 1437z–4(e)(4));

(V)

section 33(d)(2)(B) (42 U.S.C. 1437z–5(d)(2)(B)); and

(VI)

section 302(b)(6) (42 U.S.C. 1437aaa–1(b)(6));

(iii)

section 12773(b)(2) of title 42;

(iv)

this section;

(v)

section 12872(b)(6) of title 42;

(vi)

section 11408(b)(1)(F)(iii) ¹ of title 42;

(vii)

sections 202(3) ¹ and 810(b)(2)(A) ¹ of the Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3), 4229(b)(2)(A)); and

(viii)

the rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).

(2)

Standards for materials

(3)

Mortgage software systems

(A)

Certification

The Secretary shall provide for the certification of various computer software programs for consumers to use in evaluating different residential mortgage loan proposals. The Secretary shall require, for such certification, that the mortgage software systems take into account—

(i)

the consumer’s financial situation and the cost of maintaining a home, including insurance, taxes, and utilities;

(ii)

the amount of time the consumer expects to remain in the home or expected time to maturity of the loan; and

(iii)

such other factors as the Secretary considers appropriate to assist the consumer in evaluating whether to pay points, to lock in an interest rate, to select an adjustable or fixed rate loan, to select a conventional or government-insured or guaranteed loan and to make other choices during the loan application process.

If the Secretary determines that available existing software is inadequate to assist consumers during the residential mortgage loan application process, the Secretary shall arrange for the development by private sector software companies of new mortgage software systems that meet the Secretary’s specifications.

(B)

Use and initial availability

(C)

Availability

(D)

Budget compliance

(4)

National public service multimedia campaigns to promote housing counseling

(A)

In general

(B)

Contact information

(C)

Authorization of appropriations

(D)

Foreclosure rescue education programs

(i)

In general

Ten percent of any funds appropriated pursuant to the authorization under subparagraph (C) shall be used by the Director of Housing Counseling to conduct an education program in areas that have a high density of foreclosure. Such program shall involve direct mailings to persons living in such areas describing—

(I)

tips on avoiding foreclosure rescue scams;

(II)

tips on avoiding predatory lending mortgage agreements;

(III)

tips on avoiding for-profit foreclosure counseling services; and

(IV)

local counseling resources that are approved by the Department of Housing and Urban Development.

(ii)

Program emphasis

(iii)

Terms defined

For purposes of this subparagraph:

(I)

High density of foreclosures

(II)

High percentage of retirement communities

(III)

High percentage of low-income minority communities

(5)

Education programs

(h)

Definitions

For purposes of this section:

(1)

Nonprofit organization

(2)

State

(3)

Unit of general local government

(4)

HUD-approved counseling agency

The term “HUD-approved counseling agency” means a private or public nonprofit organization that is—

(A)

exempt from taxation under section 501(c) of title 26; and

(B)

certified by the Secretary to provide housing counseling services.

(5)

State housing finance agency

(i)

Accountability for recipients of covered assistance

(1)

Tracking of funds

The Secretary shall—

(A)

develop and maintain a system to ensure that any organization or entity that receives any covered assistance uses all amounts of covered assistance in accordance with this section, the regulations issued under this section, and any requirements or conditions under which such amounts were provided; and

(B)

require any organization or entity, as a condition of receipt of any covered assistance, to agree to comply with such requirements regarding covered assistance as the Secretary shall establish, which shall include—

(i)

appropriate periodic financial and grant activity reporting, record retention, and audit requirements for the duration of the covered assistance to the organization or entity to ensure compliance with the limitations and requirements of this section, the regulations under this section, and any requirements or conditions under which such amounts were provided; and

(ii)

any other requirements that the Secretary determines are necessary to ensure appropriate administration and compliance.

(2)

Misuse of funds

If any organization or entity that receives any covered assistance is determined by the Secretary to have used any covered assistance in a manner that is materially in violation of this section, the regulations issued under this section, or any requirements or conditions under which such assistance was provided—

(A)

the Secretary shall require that, within 12 months after the determination of such misuse, the organization or entity shall reimburse the Secretary for such misused amounts and return to the Secretary any such amounts that remain unused or uncommitted for use; and

(B)

such organization or entity shall be ineligible, at any time after such determination, to apply for or receive any further covered assistance.

The remedies under this paragraph are in addition to any other remedies that may be available under law.

(3)

Termination of assistance

(A)

In general

The Secretary may deny renewal of 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 counseling, is not in compliance with program requirements—

(i)

based on the performance review described in subsection (e)(6); and

(ii)

in accordance with regulations issued by the Secretary.

(B)

Notice

(C)

Informal conference

(4)

Covered assistance

(j)

Offering foreclosure mitigation counseling

(1)

Covered mortgage loan defined

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 housing cooperatives) or stock or membership in a cooperative ownership housing corporation designed principally for the occupancy of between 1 and 4 families that is—

(A)

insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.);

(B)

guaranteed under section 1715z–13a or 1715z–13b of this title;

(C)

made, guaranteed, or insured by the Department of Veterans Affairs; or

(D)

made, guaranteed, or insured by the Department of Agriculture.

(2)

Opportunity for borrowers

(3)

Cost

(Pub. L. 90–448, title I, § 106, Aug. 1, 1968, 82 Stat. 490; Pub. L. 91–609, title IX, § 903(a), (b), Dec. 31, 1970, 84 Stat. 1808; Pub. L. 93–383, title VIII, § 811, Aug. 22, 1974, 88 Stat. 735; Pub. L. 95–128, title IX, § 903, Oct. 12, 1977, 91 Stat. 1149; Pub. L. 97–35, title III, § 339A, Aug. 13, 1981, 95 Stat. 417; Pub. L. 98–181, title I [title IV, § 465], Nov. 30, 1983, 97 Stat. 1236; Pub. L. 98–479, title II, § 204(f), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 100–242, title I, § 169, Feb. 5, 1988, 101 Stat. 1865; Pub. L. 100–628, title X, § 1009, Nov. 7, 1988, 102 Stat. 3266; Pub. L. 101–137, § 8, Nov. 3, 1989, 103 Stat. 826; Pub. L. 101–625, title V, § 577, title VII, § 706(c), Nov. 28, 1990, 104 Stat. 4238, 4286; Pub. L. 102–550, title I, § 162(a)–(d), Oct. 28, 1992, 106 Stat. 3719–3721; Pub. L. 104–316, title I, § 106(a), Oct. 19, 1996, 110 Stat. 3830; Pub. L. 105–276, title V, § 594(a), (b), Oct. 21, 1998, 112 Stat. 2655; Pub. L. 107–73, title II, § 205, Nov. 26, 2001, 115 Stat. 674; Pub. L. 109–163, div. A, title VI, § 688(a), Jan. 6, 2006, 119 Stat. 3336; Pub. L. 110–289, div. B, title I, § 2127, July 30, 2008, 122 Stat. 2841; Pub. L. 111–203, title XIV, §§ 1443–1445, 1448, 1449, July 21, 2010, 124 Stat. 2165–2171, 2173, 2174; Pub. L. 119–101, title I, § 101, July 11, 2026, 140 Stat. 847.)

cite as: 12 USC 1701x