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Published: June 2008

Bill offers key protections for homeowners facing foreclosure

Coalition: Mortgage

Consumer Action joined in a letter urging the Senate to pass the "Housing and Economic Recovery Act of 2008," largely because of the inclusion of the HOPE for Homeowners Act. This bill has since become law.

Below is a summarized excerpt from the letter:

HOPE for Homeowners Act

The HOPE for Homeowners measure reflects the recognition that loan modifications to date have not occurred to anything like the extent necessary to address the scale of the problem. The HOPE for Homeowners act is expected to help avoid a number of unnecessary foreclosures by providing a solution that is far preferable for lenders, servicers, homeowners, and local governments alike. It is expected to do so in a way that protects the taxpayers from undue risk, and provides homeowners with a sustainable alternative to the unsustainable loan currently in place.

The Federal Housing Finance Regulatory Reform Act

We support the bill’s establishment of a new regulatory structure to provide financial and public mission oversight over the GSEs. Conditions have changed considerably since 2003 when GSE regulatory reform was first placed on the congressional agenda. The current mortgage crisis further underscores the need for strong and financially sound GSEs to continue to provide the steady source of capital to the mortgage market. A strong presence by them is also required to help families to save their homes and to ensure an ongoing flow of responsible home loan credit. The establishment of an independent regulator is viewed as important as important for ensuring ongoing public confidence in the GSEs. We also are pleased that this legislation establishes a new Housing Trust Fund and a Capital Magnet Fund to support the construction of affordable rental housing and makes improvements to the GSEs’ affordable housing goal requirements.

Lead Organization

Consumer Federation of America

Other Organizations

ACORN | Center for Responsible Lending | Consumer Federation of America | Leadership Conference on Civil Rights | National Consumer Law Center (on behalf of their low-income clients) | National Council of La Raza | National Fair Housing Alliance | National Association for the Advancement of Colored People (NAACP) | Opportunity Finance Network | U.S. Public Interest Research Group (U.S. PIRG)

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Bill offers key protections for homeowners facing foreclosure   (CFAStatementHousingStimulusBillEnactment73008.pdf)