Issue Position: Norton Bill to Speed Modification and Foreclosure Relief

Issue Position

Norton will introduce a bill to permit independent third parties, such as certified housing counselors, to propose mortgage modifications where banks will have three months to accept or reject. Homeowners of foreclosed homes will have the option of renting their homes at market rates until they are sold. Not only will this help the former homeowners, it will help to reduce the number of vacant homes, which affect property values in neighborhoods.

Norton saw the necessity for new legislation after teaming with HUD and the U.S. Department of the Treasury to host a "Saving Homes, Foreclosure Prevention Day" in June, where 13 mortgage lenders and Fannie Mae and Freddie Mac provided tentative loan modifications onsite, but failed to make most of them permanent. In October, Norton also was among the first to call for a moratorium on foreclosures in D.C. until mortgage lenders demonstrated that they were no longer processing foreclosures without examining the underlining documents.

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