Congresswoman Wilson Introduces Mandatory Foreclosure Mediation Act, Fights to Keep Florida Families in Their HomesThursday December 08, 2011
Congresswoman Wilson Introduces Mandatory Foreclosure Mediation Act, Fights to Keep Florida Families in Their Homes
Wilson: “It Is Time We Leveled The Playing Field and Made It Easier for Working Families to Stay in Their Homes and Provide For Their Children”
Washington, DC – Congresswoman Frederica Wilson (FL-17) today introduced H.R. 3595, the Mandatory Foreclosure Mediation Act, to keep hardworking Florida families in their homes. The legislation would establish a mandatory mediation process for servicers of residential mortgages and borrowers.
“Florida families have been ravaged by the foreclosure epidemic across our state, and it is time to take action against predatory lenders who have taken advantage of innocent homeowners,” said Congresswoman Wilson. “This legislation will take on predatory lenders and the Big Banks by requiring mediation with at risk homeowners before foreclosing on a home. At a time when so many Floridians are struggling to make ends meet, it is time we leveled the playing field and made it easier for working families to stay in their homes and provide for their children.”
Specifically, the legislation would require loan servicers to initiate mediation proceedings with borrowers before any foreclosure action is taken, as well as suspend all current foreclosures until mediations occur. The bill would also mandate that the U.S. Department of Housing and Urban Development (HUD) create regulations outlining the mediation process and a system for determining whether homeowners qualify for loan modifications or foreclosure alternatives, with the goal of reducing mortgage principals.
If a loan servicer violates these requirements, the legislation would immediately bar foreclosure on a home.
Rep. Frederica S. Wilson is a first-term congresswoman representing the 17th District of Florida, including Northern Miami-Dade and Southeast Broward Counties. She is a former state legislator and school principal and the founder of the 5000 Role Models for Excellence Project, a mentoring program for young males at risk of dropping out of school.