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House Financial Services Committee passes loan modification bill HR 5579MortgagePress.comHR 5579, House Financial Services Committee, Emergency Mortgage Loan Modification Act of 2008
The House Financial Services Committee passed the Emergency
Mortgage Loan Modification Act of 2008 (HR 5579). HR 5579
would:
1. Establish a standard for loan modifications or workout plans
for pools of certain residential mortgage loans;
2. Create a duty for the servicers of such pooled loans to
maximize recovery of proceeds for the benefit of all investors and
holders of beneficial interests in the pooled loans, and not to any
individual party or group of parties;
3. Deem the loan servicer to be acting on behalf of the
securitization vehicle in the best interest of all such investors
and holders if the servicer makes certain loss mitigation efforts
for a loan in or facing payment default in the reasonable belief
that such efforts will maximize the net present value to be
realized over that which would be realized through foreclosure;
and
4. Declare that, absent of specific contractual provisions to
the contrary, a servicer acting in a manner consistent with such
duty shall not be liable to specified persons for entering into a
qualified loan modification or workout plan for loss mitigation
purposes.
For a copy of the bill, please click here.