H.R.3595 - Mandatory Foreclosure Mediation Act112th Congress (2011-2012)
|Sponsor:||Rep. Wilson, Frederica S. [D-FL-17] (Introduced 12/07/2011)|
|Committees:||House - Financial Services|
|Latest Action:||01/12/2012 Referred to the Subcommittee on Insurance, Housing and Community Opportunity.|
This bill has the status Introduced
Here are the steps for Status of Legislation:
Summary: H.R.3595 — 112th Congress (2011-2012)All Bill Information (Except Text)
Introduced in House (12/07/2011)
Mandatory Foreclosure Mediation Act - Prohibits a servicer from initiating a foreclosure action against a borrower unless the servicer has: (1) made a reasonable effort to initiate mediation proceedings to determine if the borrower is eligible for a loan modification or an alternative to foreclosure; and (2) offered the borrower, if eligible, such a modification or alternative.
Requires a servicer to suspend a foreclosure action initiated before the enactment of this Act until the servicer: (1) completes such a mediation proceeding; and (2) offers the borrower, if eligible, a modification or alternative.
Prohibits a servicer, during the suspension period, from: (1) sending the borrower a notice of foreclosure, (2) conducting or scheduling a sale of the real property securing the mortgage, or (3) causing final judgment to be entered against the borrower.
Directs the Secretary of Housing and Urban Development (HUD) to establish such a mediation process.
Declares that a servicer is not required to suspend a foreclosure action if the servicer makes a reasonable effort to schedule a mediation proceeding and documents that the borrower has not agreed to one.
Makes a violation of this Act a bar to a foreclosure action. Allows a servicer in compliance with this Act, however, to bring or proceed with a foreclosure action, regardless of any prior violation.