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Title 12, Banks and BankingRelease 119-102

§2702 Mortgages Eligible for Assistance

Title 12 › CHAPTER 28 — EMERGENCY MORTGAGE RELIEF › § 2702

Last updated Aug 21, 2026|Official source

Summary

No mortgage help will be given unless all of these things are true. The lender must have told the borrower it plans to foreclose, and both the borrower and lender must say foreclosure is likely and that emergency mortgage help is needed. The mortgage payments must be at least three months late. The borrower must have had a big loss of income because of involuntary job loss or fewer hours caused by bad economic conditions or health problems, and cannot pay the full mortgage. There must be a fair chance the borrower can return to full payments, and the home must be the borrower’s main residence.

Full Legal Text

Title 12, §2702

Banks and Banking, Source: USLM XML via OLRC

No assistance shall be extended with respect to any mortgage under this chapter unless—
(1)the holder of the mortgage has indicated to the mortgagor its intention to foreclose;
(2)the mortgagor and holder of the mortgage have certified that circumstances make it probable that there will be a foreclosure and that the mortgagor is in need of emergency mortgage relief as authorized by this chapter;
(3)payments under the mortgage have been delinquent for at least three months;
(4)the mortgagor has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions or medical conditions and is financially unable to make full mortgage payments;
(5)there is a reasonable prospect that the mortgagor will be able to make the adjustments necessary for a full resumption of mortgage payments; and
(6)the mortgaged property is the principal residence of the mortgagor.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Par. (2). Pub. L. 111–203, § 1496(b)(1)(A), substituted “have certified” for “have indicated in writing to the Secretary of Housing and Urban Development (hereinafter referred to as the ‘Secretary’) and to any agency or department of the Federal Government responsible for the regulation of the holder” and struck out “(such as the volume of delinquent loans in its portfolio)” after “circumstances” and “, except that such statement by the holder of the mortgage may be waived by the Secretary if in his judgment such waiver would further the purposes of this chapter” after “by this chapter”. Par. (4). Pub. L. 111–203, § 1496(b)(1)(B), inserted “or medical conditions” after “adverse economic conditions”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the date on which final

Regulations

implementing that amendment 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 a note under section 1601 of Title 15, Commerce and Trade.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2702

Title 12, Banks and Banking

Last Updated

Aug 21, 2026

Release point: 119-102