The Preserving Homes and Communities Act of 2024 restricts how federal housing agencies and mortgage companies can sell troubled mortgages to investors. When the Federal Housing Administration, Fannie Mae, or Freddie Mac sell bundles of non-performing loans, they must prioritize sales to nonprofit organizations, local governments, and community groups that focus on affordable housing rather than to profit-focused investors. The bill requires these agencies to exhaust all loss mitigation options before selling loans, notify borrowers at least 90 days in advance, and impose strict requirements on loan purchasers, including mandatory affordable loss mitigation options for struggling borrowers and rules requiring that 75 percent of foreclosed properties be sold to owner-occupants or converted to affordable rental housing for at least 10 years. The legislation also creates a priority purchasing window for nonprofits and government agencies to buy foreclosed properties before they go to the general market. The Department of Housing and Urban Development and the Federal Housing Finance Agency must issue regulations within 18 months and provide Congress with semiannual reports on loan sales and outcomes, including fair lending analysis to identify potential discrimination in how loans are serviced after sale.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.