Preserving Homes and Communities Act of 2026
Senate Bill Would Force Mortgage Agencies to Exhaust Homeowner Relief Options Before Selling Delinquent Loans
Legislative Progress
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.
Impact Analysis
Personal Impact
Life & Work
Small-scale real estate investors who currently buy non-performing loans at bulk auctions would face significant new restrictions. They'd need to provide loss mitigation at least as favorable as government programs, meet strict property disposition requirements (75% to owner-occupants/nonprofits), and comply with detailed quarterly reporting for 4 years. These rules could reduce profit opportunities but also create a more level playing field for community-focused organizations.
Programs
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S420)
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
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.
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
Preserving Homes and Communities Act of 2026
Data Sources
Sponsor
Cosponsors
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