Preserving Homes and Communities Act of 2026

Key Points

• This bill requires government-backed mortgage agencies to exhaust all options to help homeowners keep their houses before selling their delinquent loans to private investors.
• When these loans are sold, the bill gives first priority to local governments and nonprofit groups that have experience in keeping neighborhoods stable and providing affordable housing.
• Companies that buy these mortgages must offer help programs, such as lower monthly payments, that are just as good as the protections provided by the original government-backed loan.
• If a buyer eventually forecloses on a home, they must ensure that 75% of those properties are sold to regular families or nonprofits, or rented to low-income tenants at affordable rates.
• Homeowners would get a 90-day warning before their loan is sold, and they could use a company's failure to follow these rules as a legal defense to stop a foreclosure.
• The government would gain the power to take back loans or properties from companies that break these rules and would track data to make sure the sales do not result in discrimination.