Foreclosure Rescue Fraud Act of 2008

A bill to protect the property and security of homeowners who are subject to foreclosure proceedings, and for other purposes.

4/17/2008--Introduced.
Foreclosure Rescue Fraud Act of 2008 - Prohibits a foreclosure consultant from:
(1) receiving compensation from a homeowner for services performed regarding residential real property until such consultant has fully performed each service contracted for;
(2) holding power of attorney from any homeowner, except to inspect documents;
(3) receiving consideration from a third party in connection with services rendered to a homeowner by such third party with respect to the foreclosure, unless such consideration is fully disclosed in writing before such services are rendered;
(4) accepting any wage assignment, lien, or other security to secure compensation for services rendered regarding foreclosure of the residential real property; or
(5) acquiring any interest in the residence of a homeowner with whom the consultant has contracted. Sets forth contract requirements. Permits a homeowner to cancel such contract without penalty or obligation. Declares void and unenforceable:
(1) any waiver by a homeowner of the protections provided in this Act; and
(2) any contract that does not comply with this Act. Requires a loan servicer to notify a homeowner of the dangers of fraudulent activities associated with foreclosure if the servicer finds that the homeowner has failed to make two consecutive payments on a residential mortgage loan and such loan is at risk of foreclosure. Subjects any foreclosure consultant who fails to comply with this Act to liability for actual and punitive damages and attorneys' fees. Empowers the Federal Trade Commission (FTC) and the states to enforce this Act.

... morehide bill summarySee Full Bill Text

Sponsor

• Sen. Herbert Kohl [D, WI]
• and 6 Co-Sponsors
  • Sen. Barbara Boxer [D, CA]
  • Sen. Norm Coleman [R, MN]
  • Sen. Susan Collins [R, ME]
  • Sen. Dianne Feinstein [D, CA]
  • Sen. Blanche Lincoln [D, AR]
  • Sen. Barbara Mikulski [D, MD]
  close

Committees

• Senate Banking, Housing, and Urban Affairs

Amendments

This bill has no amendments.

Amendments to S.2888

Number	Status	Purpose

Bill Status

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Introduced		Voted on by Senate		Voted on by House		Considered By President		Bill Becomes Law
April 17, 2008

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All Bill Actions

• Apr 17, 2008: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
• Apr 17, 2008: Sponsor introductory remarks on measure. (CR S3160)
• Introduced on Apr 17, 2008.

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Related Issue Areas:

• Surety and fidelity
• Restrictive trade practices
• Punitive damages
• Power of attorney
• 15 more
• Mortgages
• Liens
• Legal fees
• Law
• Home ownership
• Fraud
• Foreclosure
• Finance
• Criminal justice
• Contracts
• Consumers
• Consumer education
• Consultants
• Business
• Housing

Data from the Congressional Research Service

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Blog Coverage

September 10, 2008 If you work with Foreclosure Properties in Florida Please READ ...

Federal legislation is currently being drafted called the “Foreclosure Rescue Fraud Act of 2008” (S. 2888) which has one very onerous clause that sums up the intent of the legislation – “A Foreclosure Consultant is ANYONE who delays or

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Source: A Step Ahead with Paige Rausch

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

September 08, 2008 Anyone who deals with Short Sales and Foreclosures in Florida Must ...

Federal legislation is currently being drafted called the “Foreclosure Rescue Fraud Act of 2008” (S. 2888) which has one very onerous clause that sums up the intent of the legislation – “A Foreclosure Consultant is ANYONE who delays or

Was this article useful? Yes or No

Source: A Step Ahead with Paige Rausch

Did you find this article useful? Your opinion counts - together, we're finding the very best news and blog coverage about Congress available on the web.

April 28, 2008 NARHRI Update

NARHRI Weekly Member Update: April 28, 2008 Latest News From Around the Country Federal: Senate Introduces “The Foreclosure Rescue Fraud Act of 2008″ (S. 2888); NARHRI Federal Lobbying Efforts Continue; Analysis Available to Members in ...

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Source: Kim's Investor Blog

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