Representative Elijah Cummings (D-MD) introduced H.R. 1477, “The Preserving Homes and Communities Act of 2011,” on April 14. The bill has 27 original co-sponsors, all  Democrats. H.R. 1477 is the companion bill to S. 489, introduced by Senator Jack Reed (D-RI) on March 3, 2011. S. 489 now has 11 Democratic cosponsors (see Memo, 3/4.)

The bill would provide $1 billion for the National Housing Trust Fund from profits made from the sale of warrants that the federal government received from banks that benefited from TARP bailouts. So far, the sale of warrants has generated $8.5 billion in new revenue to the federal government.

The bill also would make significant changes to how banks engage in mortgage foreclosures, providing much improved protections for homeowners facing foreclosure. Among its provisions are a requirement that lenders and servicers evaluate homeowners for mortgage modifications prior to beginning foreclosures, a prohibition against continuing foreclosure proceedings while a homeowner is being evaluated for a modification, and establishing meaningful penalties for servicers that engage in unlawful foreclosure practices.

Both bills have been endorsed by a wide range of consumer advocacy organizations.

House cosponsors are Representatives Berkley (NV), Brown (FL), Cicilline (RI), Clarke (MI),   Clay (MO), Edwards (MD),  Eshoo (CA), Garamendi (CA), Al Green (TX), Grijalva (AZ), Gutierrez (IL), Hastings (FL),  Hinchey (NY), Holt (NJ), Jackson (IL), McDermott (WA), Miller (NC),  Miller (CA), Moore (WI), Norton (DC), Quigley (IL), Schakowsky (IL), Spier( CA), Sutton (OH), Tierney (MA), Welch (VT), and Woolsey (CA).

Senate cosponsors are Senators Begich (AK), Blumenthal (CT), Brown (OH), Durbin (IL), Franken (MN), Leahy (VT), Merkley (OR), Mikulski (MD), Schumer (NY), Sanders (VT), and Whitehouse (RI).

Advocates should now seek co-sponsorship of each bill by their Representative and Senators.