H.R. 6076 would amend the Truth in Lending Act to permit deferrals on certain home mortgage foreclosures for a limited period to allow homeowners to take remedial action, to require home mortgage servicers to provide advance notice of any upcoming reset of the mortgage interest rate.
Detailed Summary
Home Retention and Economic Stabilization Act of 2008 - Amends the Truth in Lending Act to establish the right of an eligible deferred-foreclosure consumer, defendable in court, to defer initiation of a foreclosure or related action, including a foreclosure sale, brought by any creditor, servicer, or holder of an eligible deferred-foreclosure mortgage, during a specified deferment period.
Declares invalid any foreclosure action or proceeding regarding a deferred-foreclosure mortgage if the creditor or servicer fails to notify the consumer: (1) at least 30 days before instituting the action or proceeding; and (2) at least once during each subsequent 30-day period until the foreclosure becomes final.
Prescribes procedures governing: (1) initiating foreclosure deferment; (2) payment notices during the deferment period; and (3) the manner of consumer payment during the deferment period.
Amortizes over the life of the mortgage the difference between the amount of monthly payment due under the eligible deferred-foreclosure mortgage and the deferment payment amount.
Prohibits a creditor or servicer from imposing any late fee or other fee or charge during the deferment period.
Requires the creditor or servicer to provide the consumer with separate, written notification, distinct from all other correspondence, regarding: (1) any interest rate increase with respect to a sub-prime mortgage; (2) any minimum monthly payment increase with respect to a negative amortization mortgage; (3) clear and conspicuous disclosure of the good faith estimate of the monthly payment applicable after the adjustment or reset date; and (4) a list of alternatives available to consumers prior to the date of adjustment or increase.
Authorizes appropriations for the Neighborhood Reinvestment Corporation to implement foreclosure mitigation activities.
Status of the Legislation
Latest Major Action: 5/15/2008: Referred to House committee. Status: Referred to the House Committee on Financial Services.
Points in Favor
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Points Against
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Visitor Comments
R.P.
September 28, 2008, 3:20pm (report abuse)This is a catch 22, you're screwed either way, but I really think that a whole lot of people should be going to federal prison for fraud.
Jim
September 30, 2008, 7:54pm (report abuse)Putting them in federal prison might be justifiable since the problem is getting worse and no action is being actively pursued.
I heard the LIBOR rate tripled today which is used to set a large portion of these loan interest rates.
Depending on their cap and amount the interest can adjust up or down will determine how many homeless will surface.
An effective deterrent for the crooks would be for their property and wealth seized and the proceeds used to re-establish people who were reeled in, back into homes at heavy discounts and losses to the sharks who caused this mess.
susie
October 17, 2008, 2:45pm (report abuse)i have someone to buy - short sale - for over appraisal price. countrywide just keeps loosing the paperwork. they are unbelievable! can't even tell how to get out and what is safe to do. this is wrong on so many levels.