Dodd Frank Act

H.R.4173
Dodd-Frank Wall Street Reform and Consumer Protection Act (Enrolled Bill [Final as
Passed Both House and Senate] - ENR)

Subtitle D--Office of Housing Counseling
SEC. 1441. SHORT TITLE.
This subtitle may be cited as the `Expand and Preserve Home Ownership Through
Counseling Act'.
SEC. 1442. ESTABLISHMENT OF OFFICE OF HOUSING COUNSELING.
Section 4 of the Department of Housing and Urban Development Act (42 U.S.C. 3533) is
amended by adding at the end the following new subsection:
`(g) Office of Housing Counseling`(1) ESTABLISHMENT- There is established, in the Department, the Office of
Housing Counseling.
`(2) DIRECTOR- There is established the position of Director of Housing
Counseling. The Director shall be the head of the Office of Housing Counseling
and shall be appointed by, and shall report to, the Secretary. Such position shall
be a career-reserved position in the Senior Executive Service.
`(3) FUNCTIONS`(A) IN GENERAL- The Director shall have primary responsibility within
the Department for all activities and matters relating to homeownership
counseling and rental housing counseling, including-`(i) research, grant administration, public outreach, and policy
development relating to such counseling; and
`(ii) establishment, coordination, and administration of all
regulations, requirements, standards, and performance measures
under programs and laws administered by the Department that
relate to housing counseling, homeownership counseling
(including maintenance of homes), mortgage-related counseling
(including home equity conversion mortgages and credit protection
options to avoid foreclosure), and rental housing counseling,
including the requirements, standards, and performance measures
relating to housing counseling.
`(B) SPECIFIC FUNCTIONS- The Director shall carry out the functions
assigned to the Director and the Office under this section and any other
provisions of law. Such functions shall include establishing rules
necessary for-`(i) the counseling procedures under section 106(g)(1) of the
Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(h)(1));

`(ii) carrying out all other functions of the Secretary under section
106(g) of the Housing and Urban Development Act of 1968,
including the establishment, operation, and publication of the
availability of the toll-free telephone number under paragraph (2)
of such section;
`(iii) contributing to the distribution of home buying information
booklets pursuant to section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604);
`(iv) carrying out the certification program under section 106(e) of
the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(e));
`(v) carrying out the assistance program under section 106(a)(4) of
the Housing and Urban Development Act of 1968, including
criteria for selection of applications to receive assistance;
`(vi) carrying out any functions regarding abusive, deceptive, or
unscrupulous lending practices relating to residential mortgage
loans that the Secretary considers appropriate, which shall include
conducting the study under section 6 of the Expand and Preserve
Home Ownership Through Counseling Act;
`(vii) providing for operation of the advisory committee
established under paragraph (4) of this subsection;
`(viii) collaborating with community-based organizations with
expertise in the field of housing counseling; and
`(ix) providing for the building of capacity to provide housing
counseling services in areas that lack sufficient services, including
underdeveloped areas that lack basic water and sewer systems,
electricity services, and safe, sanitary housing.
`(4) ADVISORY COMMITTEE`(A) IN GENERAL- The Secretary shall appoint an advisory committee to
provide advice regarding the carrying out of the functions of the Director.
`(B) MEMBERS- Such advisory committee shall consist of not more than
12 individuals, and the membership of the committee shall equally
represent the mortgage and real estate industry, including consumers and
housing counseling agencies certified by the Secretary.
`(C) TERMS- Except as provided in subparagraph (D), each member of
the advisory committee shall be appointed for a term of 3 years. Members
may be reappointed at the discretion of the Secretary.
`(D) TERMS OF INITIAL APPOINTEES- As designated by the Secretary
at the time of appointment, of the members first appointed to the advisory
committee, 4 shall be appointed for a term of 1 year and 4 shall be
appointed for a term of 2 years.
`(E) PROHIBITION OF PAY; TRAVEL EXPENSES- Members of the
advisory committee shall serve without pay, but shall receive travel
expenses, including per diem in lieu of subsistence, in accordance with
applicable provisions under subchapter I of chapter 57 of title 5, United
States Code.

`(F) ADVISORY ROLE ONLY- The advisory committee shall have no
role in reviewing or awarding housing counseling grants.
`(5) SCOPE OF HOMEOWNERSHIP COUNSELING- In carrying out the
responsibilities of the Director, the Director shall ensure that homeownership
counseling provided by, in connection with, or pursuant to any function, activity,
or program of the Department addresses the entire process of homeownership,
including the decision to purchase a home, the selection and purchase of a home,
issues arising during or affecting the period of ownership of a home (including
refinancing, default and foreclosure, and other financial decisions), and the sale or
other disposition of a home.'.
SEC. 1443. COUNSELING PROCEDURES.
(a) In General- Section 106 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x) is amended by adding at the end the following new subsection:
`(g) Procedures and Activities`(1) COUNSELING PROCEDURES`(A) IN GENERAL- The Secretary shall establish, coordinate, and
monitor the administration by the Department of Housing and Urban
Development of the counseling procedures for homeownership counseling
and rental housing counseling provided in connection with any program of
the Department, including all requirements, standards, and performance
measures that relate to homeownership and rental housing counseling.
`(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-`(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) (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 233(b)(2) and 258(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12773(b)(2),
12808(b));

`(v) this section and section 101(e) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x, 1701w(e));
`(vi) section 220(d)(2)(G) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12 U.S.C.
4110(d)(2)(G));
`(vii) sections 422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), and
443(b)(6) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4),
12892(b)(6), and 12893(b)(6));
`(viii) section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));
`(ix) sections 202(3) and 810(b)(2)(A) 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-`(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 (12 U.S.C.
1715z-2); 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 508 of the Housing and Urban Development Act of
1970 (12 U.S.C. 1701z-7); and
`(xiii) section 106 of the Energy Policy Act of 1992 (42 U.S.C.
12712 note).
`(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) (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 233(b)(2) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12773(b)(2));

`(iv) section 106 of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701x);
`(v) section 422(b)(6) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12872(b)(6));
`(vi) section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));
`(vii) sections 202(3) and 810(b)(2)(A) 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- The Secretary, in consultation with the
advisory committee established under subsection (g)(4) of the Department of
Housing and Urban Development Act, shall establish standards for materials and
forms to be used, as appropriate, by organizations providing homeownership
counseling services, including any recipients of assistance pursuant to subsection
(a)(4).
`(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- Such certified computer
software programs shall be used to supplement, not replace, housing
counseling. The Secretary shall provide that such programs are initially
used only in connection with the assistance of housing counselors certified
pursuant to subsection (e).
`(C) AVAILABILITY- After a period of initial availability under
subparagraph (B) as the Secretary considers appropriate, the Secretary
shall take reasonable steps to make mortgage software systems certified
pursuant to this paragraph widely available through the Internet and at

public locations, including public libraries, senior-citizen centers, public
housing sites, offices of public housing agencies that administer rental
housing assistance vouchers, and housing counseling centers.
`(D) BUDGET COMPLIANCE- This paragraph shall be effective only to
the extent that amounts to carry out this paragraph are made available in
advance in appropriations Acts.
`(4) NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGNS TO
PROMOTE HOUSING COUNSELING`(A) IN GENERAL- The Director of Housing Counseling shall develop,
implement, and conduct national public service multimedia campaigns
designed to make persons facing mortgage foreclosure, persons
considering a subprime mortgage loan to purchase a home, elderly
persons, persons who face language barriers, low-income persons,
minorities, and other potentially vulnerable consumers aware that it is
advisable, before seeking or maintaining a residential mortgage loan, to
obtain homeownership counseling from an unbiased and reliable sources
and that such homeownership counseling is available, including through
programs sponsored by the Secretary of Housing and Urban Development.
`(B) CONTACT INFORMATION- Each segment of the multimedia
campaign under subparagraph (A) shall publicize the toll-free telephone
number and website of the Department of Housing and Urban
Development through which persons seeking housing counseling can
locate a housing counseling agency in their State that is certified by the
Secretary of Housing and Urban Development and can provide advice on
buying a home, renting, defaults, foreclosures, credit issues, and reverse
mortgages.
`(C) AUTHORIZATION OF APPROPRIATIONS- There are authorized
to be appropriated to the Secretary, not to exceed $3,000,000 for fiscal
years 2009, 2010, and 2011, for the development, implementation, and
conduct of national public service multimedia campaigns under this
paragraph.
`(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- In conducting the education
program described under clause (i), the Director of Housing
Counseling shall also place an emphasis on serving communities
that have a high percentage of retirement communities or a high
percentage of low-income minority communities.
`(iii) TERMS DEFINED- For purposes of this subparagraph:
`(I) HIGH DENSITY OF FORECLOSURES- An area has
a `high density of foreclosures' if such area is one of the
metropolitan statistical areas (as that term is defined by the
Director of the Office of Management and Budget) with the
highest home foreclosure rates.
`(II) HIGH PERCENTAGE OF RETIREMENT
COMMUNITIES- An area has a `high percentage of
retirement communities' if such area is one of the
metropolitan statistical areas (as that term is defined by the
Director of the Office of Management and Budget) with the
highest percentage of residents aged 65 or older.
`(III) HIGH PERCENTAGE OF LOW-INCOME
MINORITY COMMUNITIES- An area has a `high
percentage of low-income minority communities' if such
area contains a higher-than-normal percentage of residents
who are both minorities and low-income, as defined by the
Director of Housing Counseling.
`(5) EDUCATION PROGRAMS- The Secretary shall provide advice and
technical assistance to States, units of general local government, and nonprofit
organizations regarding the establishment and operation of, including assistance
with the development of content and materials for, educational programs to
inform and educate consumers, particularly those most vulnerable with respect to
residential mortgage loans (such as elderly persons, persons facing language
barriers, low-income persons, minorities, and other potentially vulnerable
consumers), regarding home mortgages, mortgage refinancing, home equity loans,
home repair loans, and where appropriate by region, any requirements and costs
associated with obtaining flood or other disaster-specific insurance coverage.'.
(b) Conforming Amendments to Grant Program for Homeownership Counseling
Organizations- Section 106(c)(5)(A)(ii) of the Housing and Urban Development Act of
1968 (12 U.S.C.