[Congressional Record Volume 158, Number 128 (Thursday, September 20, 2012)]
[Senate]
[Page S6553]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED:
  S. 3589. A bill to require the Comptroller of the Currency to 
establish a pilot program to facilitate communication between borrowers 
and servicers; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, today I am introducing the Mortgage 
Modification Outreach Act.
  Despite some promising indicators in the housing market, many 
homeowners continue to face the threat of foreclosure. In my home state 
of Rhode Island, 22.6 percent of mortgages are underwater and 7.65 
percent of homeowners are either in the foreclosure process or at least 
90 days delinquent on their payment, a level which is higher than the 
national average.
  I have heard from many of my constituents about the difficulties they 
experience when applying for loan modifications, and so the bill I am 
introducing focuses on providing homeowners with a face and a place 
where they can get more help.
  First, the bill establishes a pilot program that would allow 
homeowners to receive information on how to reach their single point of 
contact by simply visiting a consumer banking branch affiliated with 
their mortgage servicer. Second, at the same affiliated bank branch, 
the homeowner can receive the address of a nearby location at which the 
homeowner can, at no cost in some cases, copy, fax, scan, or send all 
the paperwork that is required during the loan modification process. 
Simply put, my bill would enable a borrower to walk into the local bank 
branch affiliated with their mortgage servicer and get some face to 
face help.
  This pilot program is designed to bridge the gap that has arisen as 
struggling homeowners have sought--unsuccessfully in too many 
instances--to get easy answers to basic questions from their mortgage 
servicer as they navigate the loan modification process. Homeowners 
looking for assistance should neither have to jump through countless 
hoops nor be given the runaround. They should be treated like 
customers.
  There is no single solution that will help us gain traction in the 
housing market. However, along with my other efforts, such as S. 489, 
the Preserving Homes and Communities Act, S. 2162, the Project Rebuild 
Act, and my efforts to convert vacant foreclosed homes into rental 
properties, this legislation represents another commonsense approach to 
helping homeowners stay in their homes, reducing foreclosures, and 
healing the housing market.
  This bill is supported by the National Consumer Law Center and the 
National Association of Realtors. I look forward to working with my 
colleagues to pass this legislation.
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