Representative Elijah Cummings (D-MD) has introduced H.R. 1477, “The Preserving Homes and Communities Act of 2011,” on April 14, 2011. The bill has 27 original co-sponsors. H.R. 1477 is the companion bill to S. 489, introduced by Senator Jack Reed (D-RI) on March 3, 2011. S. 489 now has eleven co-sponsors.
The bill would provide $1 billion for the National Housing Trust Fund (created as part of the Housing and Economic Recovery Act of 2008) generated as proﬁts from the sale of warrants that the federal government received from banks which beneﬁted from TARP bailouts. So far, the sale of these warrants has generated $8.5 billion in new revenue to the federal government.
The bill would also make changes to how banks engage in mortgage foreclosures, providing improved protections for homeowners facing foreclosure. Among its provisions are a requirement that lenders and servicers evaluate homeowners for mortgage modiﬁcations prior to beginning foreclosures, a prohibition against continuing foreclosure proceedings while a homeowner is being evaluated for a modiﬁcation, and establishing penalties for servicers that engage in unlawful foreclosure practices.
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