A bill introduced and referred to house committee would help fund mediation between mortgagees and mortgage borrowers who are facing foreclosure.
H.R. 1131, otherwise known as the Preventing Homeowners from Foreclosure Act of 2011, would authorize HUD to provide grants to state and local governments to carry out programs to encourage the mediation services by directing homeowners to a HUD-certified counselor or pro-bono attorney.
“The Secretary of Housing and Urban Development 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,” the bill states.
The bill was introduced by Rep. Steve Cohen (D-Tenn.) and is very similar to a bill introduced by Cohen last year, which did not make it out of committee.
H.R. 1131 has been referred to the House Financial Services Committee. The bill comes at a time when many housing relief programs have been called into question by House Republicans; namely the Home Affordable Modification Program (HAMP) and the Neighborhood Stabilization Program (NSP), both of which the Financial Services Committee voted to terminate. The Obama Administration said the president would veto any anti-housing relief measures that end up on his desk.
View H.R. 1131.
Written by Elizabeth Ecker