Preventing Abandoned Foreclosures and Preserving Communities Act of 2016
This bill amends the Real Estate Settlement Procedures Act of 1974 to require a servicer of a federally related or federally backed mortgage loan to provide, with respect to foreclosure proceedings, specified notice to the borrower and applicable taxing district.
Unless specified requirements are met, a servicer of a loan insured by the Federal Housing Administration and backed by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) may not abandon an initiated foreclosure.
The Consumer Financial Protection Bureau must establish a database of abandoned foreclosures.
The Government Accountability Office shall conduct a study on abandoned foreclosures.