DELAURO INTRODUCES LEGISLATION TO PROTECT AMERICAN HOMEOWNERS

Washington, DC— Congresswoman Rosa DeLauro (CT-3) introduced the Regulation of Mortgage Servicing Act today, a bill that will establish clear, national standards for mortgage lenders and help struggling homeowners avoid foreclosure.

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, as well as ending the dual track process of foreclosing while negotiating loan modifications, and requiring 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.

"Each week, I hear from constituents who are in danger of losing their homes and yet, cannot get anyone from their lenders or mortgage servicers to answer their questions. These families need help, and the industry needs better regulation. The Regulation of Mortgage Servicing Act will 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," said Congresswoman DeLauro. "Homeownership is the American dream, and we must do all we can to keep that dream alive for the millions of American families struggling in this difficult economy."

"Realtors® are supportive of the Regulation of Mortgage Servicing Act and any effort to help struggling families stay in their homes," said National Association of Realtors (NAR) President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. "For homeowners who are unable to meet their mortgage obligations, quickly approving reasonable short sale offers will allow families to avoid foreclosure, which benefits families, our communities, the housing market and the economy. More aggressive efforts to modify loans and expedite short sales will limit the losses incurred by lenders, the federal government and taxpayers and reduce the negative impact on local home values, and that's beneficial for everyone."

A wide variety of organizations support this legislation, including the National Association of Realtors, National Consumer Law Center, National Community Reinvestment Coalition, National Council of La Raza, and the Connecticut Fair Housing Center.