Legislation Introduced in U.S. Senate Would Create Incentives for Loan Mods

U.S. Senator Jack Reed (D-RI) has introduced legislation, S. 1731, titled "Preserving Homes and Communities Act of 2009" that would create an incentive for lenders to more quickly evaluate whether homeowners qualify for loan modifications.

According to a Press Release from Senator Reed, the Preserving Homes and Communities Act of 2009 will:

• Expand and Improve Loan Modification Programs and Rein in Costly Fees
• Provide Targeted Mortgage Payment Assistance
• Encourage Strong Mediation Programs
• Establish a National Database on Foreclosures
• Capitalize the National Housing Trust Fund

The Bill was referred to Senate Committee on Banking, Housing, and Urban Affairs.

Read the Senator’s press release and the bill