Maxine Waters, D-California and Ranking Member of the House Committee on Financial Services announced a new bill designed to raise the oversight for mortgage service companies who do business with the leading government sponsored agencies, Fannie Mae and Freddie Mac.
On Monday, Maxine Waters introduced H.R. 6102, the Homeowner Mortgage Servicing Fairness Act of 2018. Waters elaborated that she is fighting and protecting “to ensure hardworking Americans can remain in their homes.”
“Mortgage servicers play a critical role in determining whether homeowners experiencing financial hardships will be forced out of their homes,” Waters said. “However, despite the lessons learned during the foreclosure crisis, we continue to uncover evidence of bad behavior by our nation’s mortgage service companies.”
Waters continued, “Borrowers can’t choose their servicer so it’s especially important that Congress provide strong protections to prevent servicers from taking advantage of borrowers and to protect borrowers from foreclosure,” she said. “This bill will implement common-sense reforms to ensure that servicers are giving borrowers every possible opportunity to avoid foreclosure.”
According to the Housing Wire, some of the changes this bill would bring include increasing FHFA oversight of servicers who work with the GSEs, requiring documentation of mortgage service company behavior and FHFA evaluation to be provided to borrowers and penalizing failures to meet the minimum standards established by the FHFA. This would cover about 60% of all home loans.
According to the bill’ sponsors, the National Consumer Law Center and the National Fair Housing Alliance fully support this new legislation.
This is the second time this year that Maxine Waters has been publicly fighting for homeowners to receive better foreclosure protection. In April, she introduced a bill that would strengthen mortgage service company requirements for FHA borrowers in an attempt to prevent foreclosures. However, considering the Trump administration’s stance on easing bank and mortgage regulations, it appears very little if anything will come of Maxine Water’s newly introduced bills to protect homeowners.