Industry News

Second foreclosure-prevention bill introduced in Senate

HOPE Act would fund outreach programs, revolving loans

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Foreclosure-prevention legislation introduced Monday by the chairman of the Senate Banking Securities and Insurance Subcommittee would beef up funding for HUD-approved financial counseling agencies and help states establish their own programs. The Homeownership Protection and Enhancement Act of 2007, or HOPE Act, would also provide nearly $300 million for revolving loan funds that states could use to subsidize loans for families facing foreclosure. In introducing the bill in the Senate on Monday, Sen. Jack Reed, D-R.I., said it would help states establish and enhance outreach programs to identify homeowners at risk of losing their homes and help them avoid foreclosure. The outreach programs would "reach out to delinquent borrowers, offer them access to financial counseling, and, when appropriate, help them negotiate a plan to restructure their debt," Reed said. States would be rewarded for setting up effective foreclosure-prevention program with additional funding and re...