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Protecting Homeowners: New Rules for Bulk Sale of Non-Performing Mortgages.

This law establishes strict rules for government agencies (FHA, Fannie Mae, Freddie Mac) selling bulk packages of non-performing mortgages to prevent mass investor takeovers. It ensures that distressed homeowners receive better access to financial assistance programs, and that most foreclosed properties are channeled back into the market as affordable housing or sold to owner-occupants. The goal is to stabilize neighborhoods and increase housing affordability.
Key points
Stronger Foreclosure Protection: Buyers of non-performing loans must offer loss mitigation options (like loan modifications) at least as favorable as those provided by the FHA, with failure to comply serving as a defense against foreclosure.
Priority for Affordable Housing: Local governments and non-profit organizations get priority access to purchase these loans to promote neighborhood stability and affordable housing.
Limiting Investor Speculation: Investors who acquire properties through foreclosure must dedicate 75% of them to owner-occupants or affordable rental housing (rent capped at 30% of income) for at least 10 years.
No Sale During Forbearance: Loans currently in a forbearance plan or within 90 days of its end cannot be sold, providing borrowers time to stabilize their finances.
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Additional Information
Print number: 118_S_3784
Sponsor: Sen. Reed, Jack [D-RI]
Process start date: 2024-02-08
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Preserving Homes and Communities Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3784.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-02-08.

What are the main provisions?

Key points include:

  • Stronger Foreclosure Protection: Buyers of non-performing loans must offer loss mitigation options (like loan modifications) at least as favorable as those provided by the FHA, with failure to comply serving as a defense against foreclosure.
  • Priority for Affordable Housing: Local governments and non-profit organizations get priority access to purchase these loans to promote neighborhood stability and affordable housing.
  • Limiting Investor Speculation: Investors who acquire properties through foreclosure must dedicate 75% of them to owner-occupants or affordable rental housing (rent capped at 30% of income) for at least 10 years.
  • No Sale During Forbearance: Loans currently in a forbearance plan or within 90 days of its end cannot be sold, providing borrowers time to stabilize their finances.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Reed, Jack [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Real Estate Economy