DeLauro Reintroduces Legislation to Protect American Homeowners

Would Address Problems Identified By National MortgageSettlement Monitor

WASHINGTON, DC— Congresswoman Rosa DeLauro (D-CT)reintroduced the Regulation of Mortgage Servicing Act today, a bill thatwill establish clear, national standards for mortgage lenders and helpstruggling homeowners avoid foreclosure.

"I continue to hear from those who are in danger of losingtheir homes and yet, cannot get anyone from their lenders or mortgage servicersto answer their questions. These families need help, and the industry needsbetter regulation. The Regulation of Mortgage Servicing Act wouldestablish national standards that ensure homeowners have access to theinformation they need, and are given the opportunities they need to avoidforeclosure and keep their homes. As last week's progress report showed, westill 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 manyAmericans as possible to achieve it."

The Regulation of Mortgage Servicing Act wouldrequire mortgage servicers and lenders to improve communication with homeownersby creating a single point of contact for borrowers, end the dual track processof foreclosing while negotiating loan modifications, and require third-partyreviews of loan modification and foreclosure alternatives before families aresent into foreclosure. By establishing national standards, this legislationwill 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 recentyears. Just last week the Monitor of the National Mortgage Settlement releaseda progress report concluding that there is still much work to be done. Inparticular, complaints frequently have been "related to single point ofcontact, dual tracking, the loan modification process, and accuracy ofcustomers' account information." The Regulation of Mortgage Servicing Act directlyaddresses many of these concerns.