Congress·In Committee·S. 3753

Senate Bill Would Force Mortgage Agencies to Exhaust Homeowner Relief Options Before Selling Delinquent Loans

Preserving Homes and Communities Act of 2026

about 2 months ago·View on Congress.gov

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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.

HousingEconomy FinanceCivil Rights

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Jan 30, 2026Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S420)

Jan 30, 2026

Introduced in Senate

Related News

3 articles

Quiver Quantitative·about 1 month ago

New Bill: Senator Jack Reed introduces S. 3753: Preserving Homes and Communities Act of 2026

The bill aims to regulate the sale of non-performing mortgage loans to promote affordable housing. It mandates that purchasers offer loss mitigation options at least as favorable as FHA terms and establishes a 'First Look' program for nonprofits to buy foreclosed properties at fair market value.

Nonprofit Quarterly·over 1 year ago

How to Recharge a Nonprofit-Led Affordable Housing Delivery System

The Preserving Homes and Communities Act would codify programs helping community buyers obtain properties from government entities before they go to broad sale. This shift aims to make more single-family homes available to nonprofits rather than large investors to address the housing crisis.

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Moomoo·about 1 month ago

Senator Jack Reed proposes S. 3753: Preserving Homes and Communities Act of 2026

This legislation regulates bulk auctions of non-performing loans. It requires a 90-day written notice to borrowers before a sale and mandates that purchasers maintain vacant properties and pay local taxes until the property is transferred to a nonprofit or sold to an owner-occupant.