Senator seeks foreclosure prevention expansion

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Senator seeks foreclosure prevention expansion

Dayton Business Journal – U.S. Sen. Sherrod Brown, D-Ohio, introduced legislation to expand access to foreclosure prevention services and increase protections for homeowners and investors in mortgage-backed securities.

The Foreclosure Fraud and Homeowner Abuse Prevention Act of 2011, which would prevent future servicer fraud and errors, improve foreclosure counseling and prevention and reform oversight of mortgage-based investing, comes on the heels of formal actions taken by the Federal Reserve Wednesday, April 13, against banking organizations with deficient practices in residential mortgage loan servicing and foreclosure processing.

“This foreclosure crisis affects all of us — homeowners, families, neighbors, and state and local governments. It is clear that the current system isn’t working and unfortunately federal regulators have failed to bring meaningful reform to the mortgaging servicing,” Brown said. “Ending the foreclosure mill requires stronger oversight, streamlined modification procedures, and meaningful penalties when servicers break the law. We should be finding ways to keep people in their homes, not gouging homeowners and forcing more houses onto an already depressed housing market.”

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