Preserving Homes and Communities Act of 2024

The Preserving Homes and Communities Act of 2024 establishes new rules for selling non-performing single-family mortgage loans insured by the Federal Housing Administration (FHA) and sold by Fannie Mae and Freddie Mac. The bill requires that such loans can only be sold after exhausting loss mitigation options, with priority given to government entities, nonprofits, and community organizations focused on affordable housing. It mandates that purchasers offer loss mitigation options at least as favorable as current FHA guidelines, prohibits certain sale practices like contract for deed sales to non-profits, and requires that 75% of properties acquired through foreclosure must be sold to owner-occupants or used for affordable housing for 10 years. The bill also includes detailed data reporting requirements to track outcomes and prevent discriminatory practices, with semi-annual reports to Congress on loan sales and their impact on communities.