U.S. Senator Jack Reed has introduced legislation titled "Preserving Homes and Communities Act of 2009". Reed’s Preserving Homes and Communities Act of 2009, is cosponsored by Senators Dick Durbin (D-IL), Sheldon Whitehouse (D-RI), and Jeff Merkley (D-OR).

According to a Press Release from Senator Reed, the Preserving Homes and Communities Act of 2009 will:

• Expand and Improve Loan Modification Programs and Rein in Costly Fees 
• Requires lenders and servicers to evaluate homeowners for affordable modifications prior to initiating foreclosure, and offering approved modifications to homeowners if the net present value of modification is greater than that of foreclosure.
• Establishes meaningful penalties by making noncompliance a defense to foreclosure.
• Places limits on when foreclosure fees can be charged and prohibits costly mark-ups.
• Provide Targeted Mortgage Payment Assistance 
• Assists homeowners experiencing a sharp reduction in income through no fault of their own.
• Authorizes $6.375 billion in formula funding to states to create revolving loan funds to offer homeowners grants or subsidized loans.
• Requires states to carefully steward federal dollars by requiring programs to abide by commonsense guidelines such as evaluating applicants’ employment prospects and capping maximum loan amounts.
• Encourage Strong Mediation Programs 
• Authorizes $80 million in competitive federal matching funds for states and localities to establish mandatory mediation programs.
• Establish a National Database on Foreclosures 
• Authorizes $5 million for the Department of Housing and Urban Development, in conjunction with other agencies, to develop a single database that will enable better monitoring of mortgage markets.
• Capitalize the National Housing Trust Fund 
• Provides $1 billion for the building, preservation, and rehabilitation of affordable housing from the proceeds of the warrants provisions in the Emergency Economic Stabilization Act.

To view the online Press Release, please click here.  

To view Senator Reid's Statement to the Senate including the Text of the Bill to be entered into Record, please click here

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.