To protect homeowners with substantial equity interests in their mortgaged principal residences from the loss of their homes through mortgage foreclosure when forbearance can reasonably be extended by the mortgage holders, to provide for the protection of the equity interests of homeowners in cases of foreclosure, and for other purposes.
Homeowners' Equity Protection Act - Requires a federally regulated institution to notify and offer a person defaulting on a federally related home mortgage a one-year period of forbearance (with interest but not principal payable during such period).
Prohibits foreclosure during such period. Provides for foreclosure and sale upon the period's expiration.
Requires foreclosing institutions to supply specified foreclosure and sale information to the appropriate Federal banking agencies for submission to the Secretary of Housing and Urban Development.
States that a federally related mortgage shall not be classified as a substandard asset for Federal banking purposes unless the forebearance period has expired, the mortgage default has not been corrected, and the remaining principal balance is at least 80 percent of the home's appraised value.
Applies such notice, forbearance, and foreclosure provisions to federally related mortgages held by nonfederally regulated institutions.
Introduced in House
Introduced in House
Referred to the House Committee on Banking, Finance + Urban Affrs.
Referred to the Subcommittee on Housing and Community Development.
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