§8108 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Ten percent of the specific funds for the program must go to the Neighborhood Reinvestment Corporation. They must work with mortgage servicers to warn homeowners who are behind on payments about scams tied to foreclosure. Using that money, the Corporation must tell borrowers that foreclosure is complicated, that people may try to sell false help and to be careful, that federal and nonprofit groups (including HUD) can help, and that they should contact their lender or HUD-certified housing counselors. Notices must include the loan servicer’s phone number, HUD’s housing counseling line number, and the HUD website addresses for counseling and foreclosure-avoidance tips.

Title 42, §8108

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, of any amounts made available for any fiscal year pursuant to section 1701x(a)(4)(F) of title 12 (as added by section 1444),11 See References in Text note below. 10 percent shall be used only for assistance to the Neighborhood Reinvestment Corporation for activities, in consultation with servicers of residential mortgage loans, to provide notice to borrowers under such loans who are delinquent with respect to payments due under such loans that makes such borrowers aware of the dangers of fraudulent activities associated with foreclosure.

(b)The Neighborhood Reinvestment Corporation, in consultation with servicers of residential mortgage loans, shall use the amounts provided pursuant to subsection (a) to carry out activities to inform borrowers under residential mortgage loans—

(1)that the foreclosure process is complex and can be confusing;

(2)that the borrower may be approached during the foreclosure process by persons regarding saving their home and they should use caution in any such dealings;

(3)that there are Federal Government and nonprofit agencies that may provide information about the foreclosure process, including the Department of Housing and Urban Development;

(4)that they should contact their lender immediately, contact the Department of Housing and Urban Development to find a housing counseling agency certified by the Department to assist in avoiding foreclosure, or visit the Department’s website regarding tips for avoiding foreclosure; and

(5)of the telephone number of the loan servicer or successor, the telephone number of the Department of Housing and Urban Development housing counseling line, and the Uniform Resource Locators (URLs) for the Department of Housing and Urban Development Web sites for housing counseling and for tips for avoiding foreclosure.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1444, referred to in subsec. (a), means section 1444 of Pub. L. 111–203. Codification Section was enacted as part of the Expand and Preserve Home Ownership Through Counseling Act and also as part of the Mortgage Reform and Anti-Predatory Lending Act and as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the Neighborhood Reinvestment Corporation Act which comprises this subchapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the date on which final

Regulations

implementing such section take effect, or on the date that is 18 months after the designated transfer date if such

Regulations

have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an

Effective Date

of 2010 Amendment note under section 1601 of Title 15, Commerce and Trade.

§8108 Warnings to homeowners of foreclosure rescue scams

Summary

Title 42, §8108

Notes & Related Subsidiaries

Editorial Notes

References in Text

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Regulations

Effective Date

Citations & Metadata