Friday, October 2, 2009

Senator Reed Introduces Bill to Strengthen Mortgage Modification Efforts

On September 30, 2009, Senator Jack Reed (D-RI) issued a press release that he introduced "Preserving Homes and Communities Act of 2009" (S. 1731) which is a bill to help "keep families in their homes and prevent communities from deteriorating as a result of skyrocketing mortgage defaults." The bill is cosponsored by Senators Dick Durbin (D-IL), Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR).

One aspect of the bill will require that "qualified homeowners are evaluated for and offered loan modifications." The bill will apparently prohibit foreclosure while the homeowner waits for loan modification analysis and provide legal relief where lenders fail to follow the mortgage modification program rules. The bill will apparently "force lenders to modify qualified mortgages."

On September 30, 2009, the bill was referred to Senate Committee on Banking, Housing, and Urban Affairs.
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