Helping Families Save Their Homes Act of 2009
On May 20, 2009, President Obama signed into law the Helping Families Stay in Their Homes Act (“the Act”). Much of the new Act, which became effective immediately, is designed to revitalize the Federal Housing Administration’s Hope for Homeowners Program (i.e., loan modification) and to provide more assistance to attack the problems of mortgage fraud and homelessness. However, two other provisions of the Act will also be of keen interest to mortgage lenders and servicers. First, the Truth in Lending Act (“TIL”) is being amended to require mortgage holders to notify a borrower when the ownership of their loan is transferred to another party. Today, borrowers are only notified when the servicing of their loan is transferred. It remains to be seen whether borrowers will truly find the new disclosure helpful or just confusing.