Preserving Homes and Communities Act of 2026

This bill sets rules for when the federal housing department (for FHA-insured loans) and Fannie Mae and Freddie Mac may sell mortgage loans that borrowers have fallen behind on. Before such a sale, available help options for the borrower must be used up, the borrower must get written notice at least 90 days ahead, and governments and nonprofits must get priority to buy. Buyers of the loans must offer borrowers payment help at least as good as the original program's, and 75 percent of homes they take through foreclosure must go to owner-occupants, nonprofits, local governments, or affordable rentals, or be demolished or donated if not habitable. Loans cannot be sold while in a forbearance plan or within 90 days after one ends, and buyers must report loan outcomes and borrower demographic data for four years. The bill also creates a program giving owner-occupants, nonprofits, and governments the first chance to buy certain FHA foreclosed homes at or below market value.

Full text and official record on Congress.gov

Sponsors

• Jack Reed Democrat sponsor
• 4 cosponsors