hold on there's just too much going on in Congress lmao...
Restricts bulk sales of bad mortgages to protect homeowners.
Sen. Jack Reed (D-RI), plus four co-sponsors.
Introduced in Senate, referred to Banking Committee.
This bill would require FHA, Fannie Mae, and Freddie Mac to follow strict rules before selling non-performing mortgages in bulk or group sales. Sponsors include Senate Banking Committee members. Currently, the bill is in committee with no scheduled vote.
Introduced Jan 30, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
If your mortgage is non-performing and the government wants to sell it, the bill forces the seller to give you a 90-day notice with details on your options. Investors who buy the loan must offer loss mitigation with no fees, and if they foreclose, they must sell 75% of those homes to families, nonprofits, or affordable renters for at least 10 years. This aims to keep neighborhoods stable and prevent investors from flipping homes for profit.
Supporters Say
Supporters say the bill protects struggling homeowners from being steamrolled by investors and keeps communities stable.
Critics Say
Critics argue it could reduce investor interest, lowering how much the government recovers and increasing costs to taxpayers.
Supporters, including housing advocates, argue that current bulk sales often lead to quick foreclosures and neighborhood blight. Critics, mainly financial institutions, contend that the strict requirements may make these loan pools less attractive, potentially reducing recoveries for FHA and the mortgage giants.