Rep. Rosa DeLauro (D-CT) has reintroduced the Regulation of Mortgage Servicing Act, a bill that will establish clear, national standards for mortgage lenders and help struggling homeowners avoid foreclosure. “I continue to hear from those who are in danger of losing their homes and yet, cannot get anyone from their lenders or mortgage servicers to answer their questions," said Rep. DeLauro. "These families need help, and the industry needs better regulation. The Regulation of Mortgage Servicing Act would establish national standards that ensure homeowners have access to the information they need, and are given the opportunities they need to avoid foreclosure and keep their homes. As last week’s progress report showed, we still have a long way to go before people are being treated fairly. Homeownership is the American dream, and we must do all we can to allow as many Americans as possible to achieve it.”
The Regulation of Mortgage Servicing Act would require mortgage servicers and lenders to improve communication with homeowners by creating a single point of contact for borrowers, end the dual track process of foreclosing while negotiating loan modifications, and require third-party reviews of loan modification and foreclosure alternatives before families are sent into foreclosure. By establishing national standards, this legislation will help homeowners negotiate and avoid the foreclosure process.
The Mortgage Settlement Agreement, reached in February 2012, required mortgage servicers to implement extensive new servicing standards, designed to correct the kinds of conduct that harmed consumers during recent years. Just last week the Monitor of the National Mortgage Settlement released a progress report concluding that there is still much work to be done.