Congresswoman Dina Titus (NV-D) and Congressman Dennis Cardoza (CA-D) introduced legislation today in the House of Representatives to help struggling homeowners receive valuable information that could help them avoid foreclosure. The Mortgage Assistance Information and Scam Prevention Act of 2009 requires all mortgage servicers who receive incentive payments under federal programs to notify their clients about federal programs for which they may qualify.
“My district in Southern Nevada has been one of the hardest hit by the foreclosure crisis,” Congresswoman Titus said. “To make matters worse, too many people do not know about the resources that are available to help them keep their home. From refinancing options to loan modifications, help is out there, but it can be hard to find. This legislation will ensure that homeowners who are struggling to stay in their home get critical information about the various programs. In addition, this notification will help protect people from shameful scams by providing them with accurate and efficient information.”
“I have long maintained that until our foreclosure problems are resolved, there will be no resolution to the economic downturn,” said Congressman Cardoza, whose district in Central California similarly faces some of the highest foreclosure rates in the country. “This bill is a significant step in aiding those who have fallen prey to refinance scams or simply could be spared a difficult foreclosure with adequate information and resources.”
Under the bill, mortgage servicers who are participating in a number of federal programs would have to notify each of their mortgage holders and include instructions on ways to receive available federal assistance. With the number of scams on the rise, homeowners would have reliable information about legitimate federal services, and be less likely to turn to fraudulent alternatives.
Full Text of the Bill