Foreclosure Prevention and Sound Mortgage Servicing Act of 2008

To amend the Real Estate Settlement Procedures Act of 1974 to require mortgagees for mortgages in default to engage in reasonable loss mitigation activities.

4/2/2008--Introduced.
Foreclosure Prevention and Sound Mortgage Servicing Act of 2008 - Amends the Real Estate Settlement Procedures Act of 1974 to impose on a mortgagee a duty to engage in loss mitigation of covered federally related mortgage loans. Prohibits initiation of foreclosure on such loans if the mortgagee or servicer has at any time failed to comply with the requirements of this Act. Requires a mortgagee or servicer to pursue specified priority loss mitigation activities, with notice to the borrower or mortgagor, before considering secondary loss mitigation activities. Sets forth criteria governing the affordability of scheduled payments due from the borrower pursuant to loss mitigation activities. Requires the mortgagee or servicer to notify the mortgagor in writing within certain deadlines concerning prospective adjustable rate mortgage increases. Requires a mortgagee or servicer to provide the borrower with direct access to authorized loss mitigation personnel. Requires a servicer or mortgagee to forward to a housing counseling agency approved by the Department of Housing and Urban Development the contact information of any borrower whose federally related mortgage loan payment is more than 60 days late. Prohibits a mortgagee for a federally related mortgage loan from requiring a borrower to:
(1) limit or waive the right to bring any claims, defenses, demands, proceedings, actions, or causes of action against the mortgagee or servicer as a condition of accepting an offer of any loss mitigation activities; or
(2) agree to arbitration as a condition of receiving loan modification activities. Requires the servicer of a federally related mortgage loan to make available without charge, upon borrower's written request, specified account status and documentation.


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Sponsor

• Rep. Maxine Waters [D, CA-35]

Committees

• House Financial Services
• 1 more
  • House Financial Services
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Amendments

This bill has no amendments.

Amendments to H.R.5679

Number	Status	Purpose

Bill Status

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Introduced		Voted on by House		Voted on by Senate		Considered By President		Bill Becomes Law
April 02, 2008

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All Bill Actions

• Apr 16, 2008: Subcommittee Hearings Held.
• Apr 16, 2008: Referred to the Subcommittee on Housing and Community Opportunity.
• Apr 02, 2008: Referred to the House Committee on Financial Services.
• Introduced on Apr 02, 2008.

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Blog Coverage

May 31, 2008 Negotiating a Loan Modification Agreement

By Lance W. Newton – lance@sdrpsolutions.com. Because I’ve spent the last several years working with Real Estate Investors and homeowners and because the market for real estate has changed so dramatically, I am now getting many calls ...

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Source: secondstartamerica.info

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May 06, 2008 Kittle Testifies on Bill to Mandate Certain Loss Mitigation Activities

... Chairman-elect of the Mortgage Bankers Association and President of Principle Wholesale Lending, testified today before the House Financial Services Subcommittee on Housing and Community Opportunity. Mr. Kittle testified on HR 5679, ...

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Source: Mortgage

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April 23, 2008 The Future of Mortgage Servicing

US Representative Maxine Waters recently introduced legislation that would profoundly alter the duties of mortgage servicers. The bill, HR 5679, The Foreclosure Prevention and Sound Mortgage Servicing Act of 2008, would prohibit...

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Source: Consumer Law - Justia BlawgSearch.com

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