Akaka Cosponsors Bill to Protect Homeowners Facing Foreclosure

This story appeared in Bank Digest.

Sen. Daniel K. Akaka, D-Hawaii, joined 10 other Senators in introducing the “Regulation of Mortgage Servicing Act,” a bill aimed at helping homeowners who are at risk of foreclosure stay in their homes by bringing more fairness and transparency into their dealings with mortgage servicers. The measure would end the dual track process, under which foreclosure proceeds at the same time that a homeowner is being considered for non-foreclosure alternatives. In addition, the bill would require banks and other mortgage servicers to create a single point of contact for homeowners to work with and provide an independent, third-party review before sending a family to foreclosure. Akaka said, “My office has received countless requests for help from local families frustrated by delays, confusion, broken promises, and conflicting advice from their loan servicers. These families are simply trying to find a way to stay in their homes, and the added hardships they have endured are inexcusable. This legislation will help families and loan servicers to communicate and work more effectively toward their mutual benefit.”