Emergency Homeowners' Loan Program: Announcement of Activation of Program and Availability of Emergency Assistance, 12127-12129 [2011-4817]

Download as PDF Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Notices jlentini on DSKJ8SOYB1PROD with NOTICES Lundy by telephone at 202–372–1379 or by e-mail at Wayne.M.Lundy@uscg.mil. SUPPLEMENTARY INFORMATION: The primary matters to be considered include: —Safety provisions applicable to tenders operating from passenger ships —Performance standards for recovery systems for all types of ships —Guidelines for a visible element to general alarm systems on passenger ships —Making the provisions of MSC.1/ Circ.1206/Rev.1 mandatory —Guidelines for the standardization of lifeboat control arrangements —Development of new framework of requirements for life-saving appliances —Amendments to Assembly Resolution A.744(18) —Supporting guidelines for cargo oil tank coating and corrosion protection —Development of a mandatory Code for ships operating in polar waters —Revision of resolution A.760(18) —Protection against noise on board ships —Noise from commercial shipping and its adverse impacts on marine life —Classification of offshore industry vessels and consideration of the need for a Code for offshore construction support vessels —Consideration of IACS unified interpretations —Measures to promote integrated bilge water treatment systems —Revision of resolution MEPC.159(55) —Revision of testing requirements for lifejacket RTDs. Hard copies of documents associated with the 55th session of DE will be available at this meeting. To request further copies of documents please write to the address provided below. Members of the public may attend this meeting up to the seating capacity of the room and may submit comments. Those who wish to submit comments or seek additional information about the meeting may contact Mr. Wayne Lundy, Commandant (CG–5213), U.S. Coast Guard Headquarters, 2100 Second Street, SW., Room 1300, Washington, DC 20593–7126, by telephone (202) 372–1379 or e-mail Wayne.M.Lundy@uscg.mil. Information on Services for Individuals With Disabilities For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, contact Mr. Wayne Lundy at (202) 372–1379 or by e-mail at Wayne.M.Lundy@uscg.mil as soon as possible. VerDate Mar<15>2010 19:16 Mar 03, 2011 Jkt 223001 Dated: March 1, 2011. J. G. Lantz, Director of Commercial Regulations and Standards. [FR Doc. 2011–4976 Filed 3–3–11; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5470–N–02] Emergency Homeowners’ Loan Program: Announcement of Activation of Program and Availability of Emergency Assistance Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. AGENCY: This notice announces the reactivation of the Emergency Homeowners’ Loan Program, originally established by statute in 1975, and reauthorized, with certain modifications, by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which also made $1 billion in funding available for this program. The Emergency Homeowners’ Loan Program provides emergency mortgage relief to homeowners who are unemployed or underemployed and at risk of foreclosure and who meet certain requirements of the program. This notice sets out the requirements and procedures by which emergency relief will be made available to eligible homeowners. DATES: Effective Date: April 4, 2011. FOR FURTHER INFORMATION CONTACT: Office of Housing Counseling, Office of Housing, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410; telephone number 202–708–0317 (this is not a tollfree number). Persons with hearing or speech impairments may access this number through TTY by calling the tollfree Federal Information Relay Service at 800–877–8339. SUPPLEMENTARY INFORMATION: SUMMARY: I. Activation of Emergency Homeowners’ Loan Program The Emergency Housing Act of 1975 (12 U.S.C. 2701), signed into law on July 2, 1975, conferred on HUD, through title I of the statute, entitled the ‘‘Emergency Homeowners’ Relief Act,’’ standby authority to provide emergency assistance, including emergency mortgage relief loans or advances of credit, and to make emergency mortgage assistance payments for the benefit of certain eligible homeowners to defray PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 12127 their mortgage expenses so as to prevent widespread mortgage foreclosures and distress sales of homes resulting from a homeowner’s substantial reduction in income resulting from temporary involuntary loss of employment or underemployment due to adverse economic conditions. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111–203, approved July 21, 2010) (Dodd-Frank Act) revised and reauthorized this 1975 statute, and makes available $1 billion to HUD to implement the Emergency Homeowners’ Loan program during Fiscal Year (FY) 2011. HUD is reinstating the 1975 program, with such modifications as necessary to mirror the statutory changes made by the DoddFrank Act, that provide the regulatory framework by which emergency assistance may be provided to eligible homeowners. This notice announces the activation of the Emergency Homeowners’ Loan Program (EHLP), and the availability of emergency mortgage relief payments for eligible homeowners. II. Emergency Homeowners’ Loan Program Funding for FY 2011 For FY 2011, HUD will administer funding under EHLP, as follows: A. Counseling for Homeowners HUD, through a network of HUDapproved housing counselors, and other such organizations, will provide homeowners with services that include but are not limited to: • Developing and disseminating program marketing materials; • Providing an overview of the program and eligibility requirements; • Conducting initial eligibility screening (including verifying income); • Counseling homeowners, including providing information concerning available employment and training resources; • Collecting and assembling homeowner documentation; and • Providing transition counseling by exploring with the homeowner other loss mitigation options, including loan modification, short sale, deed-in-lieu of foreclosure, or traditional sale of home. B. Intermediary to Perform Funds Control and Mortgage Servicing Functions Pursuant to statutory authority to make such delegations, HUD may contract with a fiscal agent to provide general accounting and fiscal control services, including collecting payments from homeowners, distributing emergency mortgage relief payments to servicers on a monthly basis, performing E:\FR\FM\04MRN1.SGM 04MRN1 12128 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Notices adjusted gross income as ‘‘income’’ is defined in 24 CFR 2700.5) is combined with the income of all mortgagors and/ C. States With Substantially Similar or co-signers on the delinquent Programs mortgage and note,1 must have a total One of the changes enacted by the pre-Event income equal to, or less than, Dodd-Frank Act was to authorize the 120 percent of the area median income Secretary to allow emergency assistance (AMI), as determined by HUD, of the to be administered by states with area in which the homeowner’s existing programs that provide principal residence is located, and substantially similar assistance to which income includes, but is not limited to, wage, salary, self-employed homeowners. On November 12, 2010, earnings, and other adjusted gross HUD published a notice in the Federal income. Register (75 FR 69454) that described 2. Substantial Income Reduction. The key features of HUD’s emergency homeowner, whose income is combined mortgage relief payment program for with the income of all co-makers and/ homeowners, and which solicited or co-signers on the note secured by the applications from states that have delinquent mortgage and the other existing programs that may be substantially similar to the EHLP (EHLP mortgagors on the delinquent mortgage, must have a current monthly income Substantially Similar Program). (See https://www.hud.gov/offices/hsg/sfh/hcc/ that is at least 15 percent lower than the homeowner’s pre-Event monthly ehlp/ehlphome.cfm.) income, with such reduction resulting D. Emergency Mortgage Relief Payments from the homeowner’s involuntary but temporary unemployment or To the extent that a state does not underemployment due to adverse submit information about an existing economic conditions or medical program that provides substantially conditions. similar assistance to homeowners, or 3. Employment. With respect to such submission does not meet the employment, the homeowner may be a requirements outlined in HUD’s wage and salary worker or may be selfNovember 12, 2010 notice, HUD will employed. administer the EHLP in that state in 4. Delinquency and Likelihood of accordance with the requirements of Foreclosure. The homeowner and all coSection III of this notice. makers and/or co-signers on the note The regulations in 24 CFR part 2700, secured by the delinquent mortgage and as applicable to emergency mortgage relief payments, apply to the emergency all other mortgagors on the delinquent mortgage must certify that mortgage relief payments made circumstances at the time of application available through this notice, including for emergency mortgage relief payments, use of defined terms, eligibility including the homeowner being at least requirements for the homeowner, and 3 months delinquent on the delinquent mortgaged property, unless otherwise mortgage, make it probable that the superseded by requirements of this mortgagee will foreclose on the notice. To minimize cross-reference to delinquent mortgage. the regulations, some defined terms and 5. Ability to Resume Repayment. The regulatory requirements are repeated in homeowner must have a reasonable this notice. likelihood of being able to resume repayment of the delinquent mortgage III. HUD’s Emergency Mortgage Relief obligations, and meet other housing Payments Program for 2011 expenses and debt obligations when the A. Homeowner Eligibility homeowner regains full employment, as determined by: To be eligible for emergency a. The homeowner’s income, assistance under the EHLP in FY 2011, combined with all mortgagors and/or a homeowner must have experienced a co-signers on the delinquent mortgage substantial reduction in income due to and note, must have a back-end ratio or involuntary but temporary debt-to-income (DTI) below 55 percent unemployment or underemployment (principal, interest, taxes, insurance, resulting from adverse economic and revolving and fixed installment conditions or medical conditions debt divided by total monthly income). (referred to as the Event) and meet the requirements set forth in section III.A of For this calculation, homeowner’s combined income will be measured at this notice. Accordingly the following requirements determine the eligibility of the pre-Event level. the homeowner to receive emergency 1 Mortgagors and co-signers who are covered by mortgage relief payments. this provision do not have to have signed both 1. Income Thresholds. The documents. If only one document is signed by an individual, both are covered under this provision. homeowner, whose income (annual jlentini on DSKJ8SOYB1PROD with NOTICES accounting, managing loan balances, and providing payoff information. VerDate Mar<15>2010 19:16 Mar 03, 2011 Jkt 223001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 b. Homeowners with second mortgage debt or an equity line of credit (ELOC) are not disqualified from receiving emergency mortgage relief payments. Applicants with second mortgage payments or ELOC payments whose DTI ratio is within the program’s 55 percent limit may still qualify for emergency mortgage relief payments based on all other program eligibility criteria. 6. Principal Residence. The homeowner must occupy the mortgaged property as the homeowner’s principal residence. The mortgaged property must also be a single-family residence (1-to 4unit structure, or condominium, cooperative, or manufactured home). B. Terms and Conditions of Emergency Mortgage Relief Payments 1. Declining Balance Loans. The repayment mechanism for the emergency mortgage relief payments made on behalf of the homeowner to the mortgagee shall be a declining balance, deferred payment, non-recourse, subordinate loan with zero interest. The declining balance loan will cover emergency mortgage relief payments provided for arrearages, including delinquent taxes and insurance, in accordance with section III.B.2., and up to 24 months of monthly payments on the homeowner’s delinquent mortgage to include principal, interest, insurance, taxes, and hazard insurance, in accordance with section III.B.3. 2. Use of Funds for Arrearages. Emergency mortgage relief payments shall be used to pay 100 percent of the eligible homeowner’s delinquent mortgage arrearages (such as mortgage insurance, principal, interest, insurance, taxes, hazard insurance, and ground rent, homeowners’ assessment fees, late fees, condominium fees, and certain foreclosure-related legal fees and late payments, if any) on the homeowner’s delinquent mortgage. 3. Homeowner Contribution Payments. The homeowner contribution to the delinquent mortgage monthly mortgage payment shall be set at 31 percent of the sum of the eligible homeowner’s monthly income at the time of EHLP application and the monthly income of all other mortgagors and co-signers (if applicable) of the delinquent mortgage and note at the time of EHLP application, but in no instance will the homeowner contribution to the monthly mortgage payment be less than $25 per month. 4. Use of Funds for Continuing Mortgage Assistance. Monthly emergency mortgage relief payments on the delinquent mortgage shall be made to the mortgagee or servicing institution E:\FR\FM\04MRN1.SGM 04MRN1 Federal Register / Vol. 76, No. 43 / Friday, March 4, 2011 / Notices jlentini on DSKJ8SOYB1PROD with NOTICES in combination with the homeowner contribution payments. 5. Duration of Emergency Mortgage Relief Payments. If at any time the homeowner’s monthly income, including all other co-makers and cosigners of the note secured by the delinquent mortgage and other mortgagors on the delinquent mortgage, increases to greater than 85 percent or more of its pre-Event income level, emergency mortgage relief payments will be phased out over a 2-month period. In any event, the aggregate amount of emergency mortgage relief payments provided to any homeowner shall not exceed the earlier in occurrence of: (i) The receipt of $50,000, or (ii) 23 months beyond the date of the first payment (this period includes the first emergency mortgage relief payment, which is inclusive of the first monthly emergency mortgage relief payment, and the payment of arrearages). C. Repayment Terms 1. Transition Counseling. A housing counseling affiliate shall contact each homeowner who is approaching the last months of EHLP participation and who remains unemployed or underemployed (approximately 3 to 5 months before the emergency mortgage relief payments end) and require the homeowner to meet with a HUD-approved counseling agent to explore alternative available options, such as loss mitigation, loan modification, short sale, deed-in-lieu of foreclosure, or traditional sale of home. 2. Repayment of Emergency Mortgage Assistance Payment. As a condition of the homeowner’s approval for participation in the EHLP, the homeowner shall execute an EHLP Note and EHLP Mortgage in the amount of EHLP funds, which may not exceed $50,000. The EHLP Mortgage shall be secured by the mortgaged property in either second- or third-lien position (as applicable depending on the existence of a second-lien mortgage). The EHLP Note shall be in the form of a 5-year deferred declining balance, zero interest, nonrecourse note with a term of up to 7 years. 3. Terms for Declining Balance Feature. No payment is due on the EHLP Note during the term of the EHLP Note, so long as the homeowner remains current on the homeowner contribution payment while receiving emergency mortgage relief payments and on the homeowner’s full monthly payments on the delinquent mortgage once the homeowner is no longer receiving emergency mortgage relief payments. If the homeowner meets this requirement, the balance due on the principal balance VerDate Mar<15>2010 19:16 Mar 03, 2011 Jkt 223001 of the EHLP Note shall decline by 20 percent of the original principal amount, annually, until the balance owed on the EHLP Note is extinguished. 4. Ongoing Qualification of Homeowner. After initial income verification at intake, the homeowner shall be required to notify the housing counseling agency of any changes in the homeowner’s income and/or employment status during the entire period in which emergency mortgage relief payments are provided. 5. Termination of Emergency Mortgage Relief Payments. Emergency mortgage relief payments will terminate and the homeowner will resume full responsibility for meeting the monthly payments on the delinquent mortgage in the event of the occurrence of one or more of the following circumstances: a. The homeowner has received 24 months of emergency mortgage relief payments or assistance in the amount of $50,000, whichever occurs first; b. The homeowner fails to report changes in employment status or income within 15 days of the change; c. The homeowner’s monthly income, combined with that of all mortgagors and/or co-signers on the delinquent mortgage and note, increases to greater than 85 percent or more of its pre-Event income level; d. The homeowner sells the mortgaged property or refinances the mortgaged property for cash-out; e. The homeowner defaults on the homeowner contribution payments; or f. The homeowner defaults on the delinquent mortgage. 6. Events Triggering EHLP Note Repayment. The homeowner will be responsible for repayment of the outstanding balance of the EHLP Note, if, at any time during the term of the EHLP Note, one or more of the following events occur: a. The homeowner defaults on the homeowner contribution payments while receiving emergency mortgage relief payments or on the full monthly payment owed on the delinquent mortgage once the homeowner is no longer receiving emergency mortgage relief payments; or b. The homeowner sells the mortgaged property, resulting in net proceeds to the homeowner, and satisfies the outstanding balance on the EHLP Note or the homeowner refinances the mortgaged property and satisfies the outstanding balance on the EHLP Note. Net proceeds from sale of the mortgaged property shall be an amount equivalent to the contract sales price of the mortgaged property less applicable brokers fees, payoff of firstand (if applicable) second- and third- PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 12129 lien mortgage balances, and an allowance of $2,000 to the homeowner for relocation expenses. Net proceeds shall go towards satisfying the EHLP Note. In the event that net proceeds are not sufficient to satisfy the outstanding balance of the EHLP Note, any outstanding balance in excess of net proceeds shall be written off by HUD and net proceeds shall be sufficient to fully satisfy the EHLP Note and the EHLP Mortgage against the mortgaged property shall be released. In the event of a cash-out refinance of the homeowner’s delinquent mortgage (and/or second mortgage, as applicable), the outstanding balance of the EHLP Note shall be repaid from remaining cash-out proceeds available after the homeowner’s delinquent mortgage (and/ or second mortgage, as applicable) has been paid off, including the payment of all applicable closing costs, and the EHLP Mortgage against the property shall be released. In the event remaining cash-out proceeds from a cash-out mortgage refinance are not sufficient to satisfy the outstanding balance of the homeowner’s EHLP Note, any outstanding balance in excess of net proceeds shall be written off by HUD and the remaining cash-out proceeds shall be sufficient to fully satisfy the EHLP Note and the EHLP Mortgage against the mortgaged property shall be released. 7. Administration of Emergency Homeowners’ Loans. HUD will work with its fiscal agent in the states that have been allocated funding for the EHLP, but are not a part of the EHLP Substantially Similar Program, to make emergency mortgage relief payments to eligible homeowners under this notice and the regulations in 24 CFR part 2700. Dated: February 28, 2011. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. 2011–4817 Filed 3–3–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Fish and Wildlife Service [FWS–R5–FHC–2011–N034; 53330–1335– 0000–J3] Lake Champlain Sea Lamprey Control Alternatives Workgroup Fish and Wildlife Service, Interior. ACTION: Notice of meeting. AGENCY: We, the U.S. Fish and Wildlife Service (Service), announce a SUMMARY: E:\FR\FM\04MRN1.SGM 04MRN1

Agencies

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 76, Number 43 (Friday, March 4, 2011)]
[Notices]
[Pages 12127-12129]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4817]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5470-N-02]


Emergency Homeowners' Loan Program: Announcement of Activation of 
Program and Availability of Emergency Assistance

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice announces the reactivation of the Emergency 
Homeowners' Loan Program, originally established by statute in 1975, 
and reauthorized, with certain modifications, by the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, which also made $1 billion 
in funding available for this program. The Emergency Homeowners' Loan 
Program provides emergency mortgage relief to homeowners who are 
unemployed or underemployed and at risk of foreclosure and who meet 
certain requirements of the program. This notice sets out the 
requirements and procedures by which emergency relief will be made 
available to eligible homeowners.

DATES: Effective Date: April 4, 2011.

FOR FURTHER INFORMATION CONTACT: Office of Housing Counseling, Office 
of Housing, Department of Housing and Urban Development, 451 7th 
Street, SW., Washington, DC 20410; telephone number 202-708-0317 (this 
is not a toll-free number). Persons with hearing or speech impairments 
may access this number through TTY by calling the toll-free Federal 
Information Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Activation of Emergency Homeowners' Loan Program

    The Emergency Housing Act of 1975 (12 U.S.C. 2701), signed into law 
on July 2, 1975, conferred on HUD, through title I of the statute, 
entitled the ``Emergency Homeowners' Relief Act,'' standby authority to 
provide emergency assistance, including emergency mortgage relief loans 
or advances of credit, and to make emergency mortgage assistance 
payments for the benefit of certain eligible homeowners to defray their 
mortgage expenses so as to prevent widespread mortgage foreclosures and 
distress sales of homes resulting from a homeowner's substantial 
reduction in income resulting from temporary involuntary loss of 
employment or underemployment due to adverse economic conditions. The 
Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-
203, approved July 21, 2010) (Dodd-Frank Act) revised and reauthorized 
this 1975 statute, and makes available $1 billion to HUD to implement 
the Emergency Homeowners' Loan program during Fiscal Year (FY) 2011. 
HUD is reinstating the 1975 program, with such modifications as 
necessary to mirror the statutory changes made by the Dodd-Frank Act, 
that provide the regulatory framework by which emergency assistance may 
be provided to eligible homeowners. This notice announces the 
activation of the Emergency Homeowners' Loan Program (EHLP), and the 
availability of emergency mortgage relief payments for eligible 
homeowners.

II. Emergency Homeowners' Loan Program Funding for FY 2011

    For FY 2011, HUD will administer funding under EHLP, as follows:

A. Counseling for Homeowners

    HUD, through a network of HUD-approved housing counselors, and 
other such organizations, will provide homeowners with services that 
include but are not limited to:
     Developing and disseminating program marketing materials;
     Providing an overview of the program and eligibility 
requirements;
     Conducting initial eligibility screening (including 
verifying income);
     Counseling homeowners, including providing information 
concerning available employment and training resources;
     Collecting and assembling homeowner documentation; and
     Providing transition counseling by exploring with the 
homeowner other loss mitigation options, including loan modification, 
short sale, deed-in-lieu of foreclosure, or traditional sale of home.

B. Intermediary to Perform Funds Control and Mortgage Servicing 
Functions

    Pursuant to statutory authority to make such delegations, HUD may 
contract with a fiscal agent to provide general accounting and fiscal 
control services, including collecting payments from homeowners, 
distributing emergency mortgage relief payments to servicers on a 
monthly basis, performing

[[Page 12128]]

accounting, managing loan balances, and providing payoff information.

C. States With Substantially Similar Programs

    One of the changes enacted by the Dodd-Frank Act was to authorize 
the Secretary to allow emergency assistance to be administered by 
states with existing programs that provide substantially similar 
assistance to homeowners. On November 12, 2010, HUD published a notice 
in the Federal Register (75 FR 69454) that described key features of 
HUD's emergency mortgage relief payment program for homeowners, and 
which solicited applications from states that have existing programs 
that may be substantially similar to the EHLP (EHLP Substantially 
Similar Program). (See https://www.hud.gov/offices/hsg/sfh/hcc/ehlp/ehlphome.cfm.)

D. Emergency Mortgage Relief Payments

    To the extent that a state does not submit information about an 
existing program that provides substantially similar assistance to 
homeowners, or such submission does not meet the requirements outlined 
in HUD's November 12, 2010 notice, HUD will administer the EHLP in that 
state in accordance with the requirements of Section III of this 
notice.
    The regulations in 24 CFR part 2700, as applicable to emergency 
mortgage relief payments, apply to the emergency mortgage relief 
payments made available through this notice, including use of defined 
terms, eligibility requirements for the homeowner, and mortgaged 
property, unless otherwise superseded by requirements of this notice. 
To minimize cross-reference to the regulations, some defined terms and 
regulatory requirements are repeated in this notice.

III. HUD's Emergency Mortgage Relief Payments Program for 2011

A. Homeowner Eligibility

    To be eligible for emergency assistance under the EHLP in FY 2011, 
a homeowner must have experienced a substantial reduction in income due 
to involuntary but temporary unemployment or underemployment resulting 
from adverse economic conditions or medical conditions (referred to as 
the Event) and meet the requirements set forth in section III.A of this 
notice. Accordingly the following requirements determine the 
eligibility of the homeowner to receive emergency mortgage relief 
payments.
    1. Income Thresholds. The homeowner, whose income (annual adjusted 
gross income as ``income'' is defined in 24 CFR 2700.5) is combined 
with the income of all mortgagors and/or co-signers on the delinquent 
mortgage and note,\1\ must have a total pre-Event income equal to, or 
less than, 120 percent of the area median income (AMI), as determined 
by HUD, of the area in which the homeowner's principal residence is 
located, and which income includes, but is not limited to, wage, 
salary, self-employed earnings, and other adjusted gross income.
---------------------------------------------------------------------------

    \1\ Mortgagors and co-signers who are covered by this provision 
do not have to have signed both documents. If only one document is 
signed by an individual, both are covered under this provision.
---------------------------------------------------------------------------

    2. Substantial Income Reduction. The homeowner, whose income is 
combined with the income of all co-makers and/or co-signers on the note 
secured by the delinquent mortgage and the other mortgagors on the 
delinquent mortgage, must have a current monthly income that is at 
least 15 percent lower than the homeowner's pre-Event monthly income, 
with such reduction resulting from the homeowner's involuntary but 
temporary unemployment or underemployment due to adverse economic 
conditions or medical conditions.
    3. Employment. With respect to employment, the homeowner may be a 
wage and salary worker or may be self-employed.
    4. Delinquency and Likelihood of Foreclosure. The homeowner and all 
co-makers and/or co-signers on the note secured by the delinquent 
mortgage and all other mortgagors on the delinquent mortgage must 
certify that circumstances at the time of application for emergency 
mortgage relief payments, including the homeowner being at least 3 
months delinquent on the delinquent mortgage, make it probable that the 
mortgagee will foreclose on the delinquent mortgage.
    5. Ability to Resume Repayment. The homeowner must have a 
reasonable likelihood of being able to resume repayment of the 
delinquent mortgage obligations, and meet other housing expenses and 
debt obligations when the homeowner regains full employment, as 
determined by:
    a. The homeowner's income, combined with all mortgagors and/or co-
signers on the delinquent mortgage and note, must have a back-end ratio 
or debt-to-income (DTI) below 55 percent (principal, interest, taxes, 
insurance, and revolving and fixed installment debt divided by total 
monthly income). For this calculation, homeowner's combined income will 
be measured at the pre-Event level.
    b. Homeowners with second mortgage debt or an equity line of credit 
(ELOC) are not disqualified from receiving emergency mortgage relief 
payments. Applicants with second mortgage payments or ELOC payments 
whose DTI ratio is within the program's 55 percent limit may still 
qualify for emergency mortgage relief payments based on all other 
program eligibility criteria.
    6. Principal Residence. The homeowner must occupy the mortgaged 
property as the homeowner's principal residence. The mortgaged property 
must also be a single-family residence (1-to 4-unit structure, or 
condominium, cooperative, or manufactured home).

B. Terms and Conditions of Emergency Mortgage Relief Payments

    1. Declining Balance Loans. The repayment mechanism for the 
emergency mortgage relief payments made on behalf of the homeowner to 
the mortgagee shall be a declining balance, deferred payment, non-
recourse, subordinate loan with zero interest. The declining balance 
loan will cover emergency mortgage relief payments provided for 
arrearages, including delinquent taxes and insurance, in accordance 
with section III.B.2., and up to 24 months of monthly payments on the 
homeowner's delinquent mortgage to include principal, interest, 
insurance, taxes, and hazard insurance, in accordance with section 
III.B.3.
    2. Use of Funds for Arrearages. Emergency mortgage relief payments 
shall be used to pay 100 percent of the eligible homeowner's delinquent 
mortgage arrearages (such as mortgage insurance, principal, interest, 
insurance, taxes, hazard insurance, and ground rent, homeowners' 
assessment fees, late fees, condominium fees, and certain foreclosure-
related legal fees and late payments, if any) on the homeowner's 
delinquent mortgage.
    3. Homeowner Contribution Payments. The homeowner contribution to 
the delinquent mortgage monthly mortgage payment shall be set at 31 
percent of the sum of the eligible homeowner's monthly income at the 
time of EHLP application and the monthly income of all other mortgagors 
and co-signers (if applicable) of the delinquent mortgage and note at 
the time of EHLP application, but in no instance will the homeowner 
contribution to the monthly mortgage payment be less than $25 per 
month.
    4. Use of Funds for Continuing Mortgage Assistance. Monthly 
emergency mortgage relief payments on the delinquent mortgage shall be 
made to the mortgagee or servicing institution

[[Page 12129]]

in combination with the homeowner contribution payments.
    5. Duration of Emergency Mortgage Relief Payments. If at any time 
the homeowner's monthly income, including all other co-makers and co-
signers of the note secured by the delinquent mortgage and other 
mortgagors on the delinquent mortgage, increases to greater than 85 
percent or more of its pre-Event income level, emergency mortgage 
relief payments will be phased out over a 2-month period. In any event, 
the aggregate amount of emergency mortgage relief payments provided to 
any homeowner shall not exceed the earlier in occurrence of: (i) The 
receipt of $50,000, or (ii) 23 months beyond the date of the first 
payment (this period includes the first emergency mortgage relief 
payment, which is inclusive of the first monthly emergency mortgage 
relief payment, and the payment of arrearages).

C. Repayment Terms

    1. Transition Counseling. A housing counseling affiliate shall 
contact each homeowner who is approaching the last months of EHLP 
participation and who remains unemployed or underemployed 
(approximately 3 to 5 months before the emergency mortgage relief 
payments end) and require the homeowner to meet with a HUD-approved 
counseling agent to explore alternative available options, such as loss 
mitigation, loan modification, short sale, deed-in-lieu of foreclosure, 
or traditional sale of home.
    2. Repayment of Emergency Mortgage Assistance Payment. As a 
condition of the homeowner's approval for participation in the EHLP, 
the homeowner shall execute an EHLP Note and EHLP Mortgage in the 
amount of EHLP funds, which may not exceed $50,000. The EHLP Mortgage 
shall be secured by the mortgaged property in either second- or third-
lien position (as applicable depending on the existence of a second-
lien mortgage). The EHLP Note shall be in the form of a 5-year deferred 
declining balance, zero interest, nonrecourse note with a term of up to 
7 years.
    3. Terms for Declining Balance Feature. No payment is due on the 
EHLP Note during the term of the EHLP Note, so long as the homeowner 
remains current on the homeowner contribution payment while receiving 
emergency mortgage relief payments and on the homeowner's full monthly 
payments on the delinquent mortgage once the homeowner is no longer 
receiving emergency mortgage relief payments. If the homeowner meets 
this requirement, the balance due on the principal balance of the EHLP 
Note shall decline by 20 percent of the original principal amount, 
annually, until the balance owed on the EHLP Note is extinguished.
    4. Ongoing Qualification of Homeowner. After initial income 
verification at intake, the homeowner shall be required to notify the 
housing counseling agency of any changes in the homeowner's income and/
or employment status during the entire period in which emergency 
mortgage relief payments are provided.
    5. Termination of Emergency Mortgage Relief Payments. Emergency 
mortgage relief payments will terminate and the homeowner will resume 
full responsibility for meeting the monthly payments on the delinquent 
mortgage in the event of the occurrence of one or more of the following 
circumstances:
    a. The homeowner has received 24 months of emergency mortgage 
relief payments or assistance in the amount of $50,000, whichever 
occurs first;
    b. The homeowner fails to report changes in employment status or 
income within 15 days of the change;
    c. The homeowner's monthly income, combined with that of all 
mortgagors and/or co-signers on the delinquent mortgage and note, 
increases to greater than 85 percent or more of its pre-Event income 
level;
    d. The homeowner sells the mortgaged property or refinances the 
mortgaged property for cash-out;
    e. The homeowner defaults on the homeowner contribution payments; 
or
    f. The homeowner defaults on the delinquent mortgage.
    6. Events Triggering EHLP Note Repayment. The homeowner will be 
responsible for repayment of the outstanding balance of the EHLP Note, 
if, at any time during the term of the EHLP Note, one or more of the 
following events occur:
    a. The homeowner defaults on the homeowner contribution payments 
while receiving emergency mortgage relief payments or on the full 
monthly payment owed on the delinquent mortgage once the homeowner is 
no longer receiving emergency mortgage relief payments; or
    b. The homeowner sells the mortgaged property, resulting in net 
proceeds to the homeowner, and satisfies the outstanding balance on the 
EHLP Note or the homeowner refinances the mortgaged property and 
satisfies the outstanding balance on the EHLP Note. Net proceeds from 
sale of the mortgaged property shall be an amount equivalent to the 
contract sales price of the mortgaged property less applicable brokers 
fees, payoff of first- and (if applicable) second- and third-lien 
mortgage balances, and an allowance of $2,000 to the homeowner for 
relocation expenses. Net proceeds shall go towards satisfying the EHLP 
Note. In the event that net proceeds are not sufficient to satisfy the 
outstanding balance of the EHLP Note, any outstanding balance in excess 
of net proceeds shall be written off by HUD and net proceeds shall be 
sufficient to fully satisfy the EHLP Note and the EHLP Mortgage against 
the mortgaged property shall be released.
    In the event of a cash-out refinance of the homeowner's delinquent 
mortgage (and/or second mortgage, as applicable), the outstanding 
balance of the EHLP Note shall be repaid from remaining cash-out 
proceeds available after the homeowner's delinquent mortgage (and/or 
second mortgage, as applicable) has been paid off, including the 
payment of all applicable closing costs, and the EHLP Mortgage against 
the property shall be released.
    In the event remaining cash-out proceeds from a cash-out mortgage 
refinance are not sufficient to satisfy the outstanding balance of the 
homeowner's EHLP Note, any outstanding balance in excess of net 
proceeds shall be written off by HUD and the remaining cash-out 
proceeds shall be sufficient to fully satisfy the EHLP Note and the 
EHLP Mortgage against the mortgaged property shall be released.
    7. Administration of Emergency Homeowners' Loans. HUD will work 
with its fiscal agent in the states that have been allocated funding 
for the EHLP, but are not a part of the EHLP Substantially Similar 
Program, to make emergency mortgage relief payments to eligible 
homeowners under this notice and the regulations in 24 CFR part 2700.

    Dated: February 28, 2011.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-4817 Filed 3-3-11; 8:45 am]
BILLING CODE 4210-67-P

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