The causes and effects of the economic downturn are nowhere more visible than in Nevada.  During my time in Washington, I have worked hard to confront this crisis by providing tens of millions of dollars in resources to Nevada housing counselors and neighborhood stabilization programs, through tax relief for homeowners that receive a principal reduction, and by establishing a number of federal foreclosure-prevention programs.  These efforts have certainly helped, but given the unique circumstances of our state’s economy, I am committed to keeping up the fight for Nevada homeowners.

Housing Finance Agencies Innovation Fund for the Hardest Hit Markets (“Hardest Hit Fund”)

In response to my calls for more aggressive foreclosure prevention programs, the Obama Administration created the Housing Finance Agencies Innovation Fund for the Hardest Hit Markets.  Nevada was awarded more than
$150 million to develop programs that help unemployed and underemployed homeowners with financial assistance, mortgage principal reduction, speeding up short sales, and providing second mortgage relief.  The Nevada Affordable Housing Assistance Corporation (NAHAC) has been approved to oversee Nevada’s Hardest Hit Funds Program.  You can find more information about the program requirements and how to apply by clicking here.  I am working closely with the State to ensure that these funds are put to use as quickly as possible.  In the meantime, I have a team of diligent staff in my Nevada offices committed to helping distressed homeowners.  Please visit my Casework webpage for more information on how my office can be of assistance.  For more information on foreclosure prevention and keeping your home affordable, please visit my Homeowner’s Assistance webpage.

Home Affordable Refinance Program (HARP)

On February 18, 2009, President Obama announced the Making Home Affordable (MHA) program, aimed at helping homeowners who are having difficulty making their mortgage payments avoid foreclosure.  The refinancing piece of MHA is the Home Affordable Refinance Program (HARP).  HARP allows homeowners with mortgages owned or guaranteed by Fannie Mae or Freddie Mac to refinance into loans with more favorable terms even if they owe more than the value of their homes.  While some Nevadans have taken advantage of this program, too many found themselves ineligible.  I fought to make the program more responsive to Nevada’s needs.  In October 2011, President Obama traveled to Las Vegas to announce changes to the HARP program, which include:

• Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers.
• Lifting the cap of 125% loan-to-value for eligible borrowers refinancing into fixed rate loans.
• Eliminating the need for a new property appraisal for eligible borrowers.

Please visit the Making Home Affordable website for more information on the changes and to see if you are eligible for the modified Home Affordable Refinance Program.

Neighborhood Stabilization Program

I was pleased to support the establishment of the Neighborhood Stabilization Program (NSP) in the Housing and Economic Recovery Act of 2008.  This program was designed to help stabilize communities blighted by foreclosures and abandonment.  I also helped revise key elements of NSP to make sure funds went to communities that are hardest-hit by the housing crisis and to expand the pool of eligible recipients.  This effort resulted in a commitment of up to $1.3 million in emergency technical assistance to Las Vegas and Clark County in order to ensure the effectiveness of their neighborhood stabilization programs.  I also worked with Housing and Urban Development Secretary Shaun Donovan to get additional Neighborhood Stabilization funds redirected from other locations to Nevada, resulting in a commitment of an additional $60 million in needed resources.

Helping Families Save Their Homes Act

I worked hard to shepherd passage of the Helping Families Save Their Homes Act, which includes several provisions to prevent foreclosures, protect tenants, and combat mortgage scams.  This law:

• Protects loan servicers from lawsuits, many of whom will not modify mortgages fearing they will be sued by investors.
• Expanded the HOPE for Homeowners (H4H) program by lowering fees for homeowners and lenders alike, and giving lenders greater incentives to participate.  This program helps modify loans with the goal of lowering monthly mortgage payments.  Please visit the H4H website for more information by clicking here.
• Provided resources to HUD to combat mortgage fraud, including additional staff and advertising to warn consumers about scams and inform them of legitimate foreclosure-relief services.
• Provided resources to HUD to advertise in languages that will raise awareness more broadly in communities across the nation.  This will help prevent fraud and provide homeowners with information on how and where to get government-approved assistance.
• Included new protections for tenants of foreclosed homes.

Fraud Enforcement and Recovery Act

Mortgage fraud is one of the biggest factors of the current economic crisis.  Unfortunately, as the government increased efforts to help families losing their homes, the prevalence of fraud rose simultaneously.  There are many companies claiming to be government-approved and charging for services that should be free.  Further, these companies are also continuing to offer consumers extremely risky loans or tricking them out of their homes.  In 2001, 6,400 cases of fraud were reported across the country.  In 2008, the number of fraud cases almost quadrupled to 63,173 cases (FBI).  To resolve this problem, I help lead the Senate to pass the Fraud Enforcement and Recovery Act of 2009, which has been signed into law.  This law:

• Provides critical funding and new tools that will allow law enforcement agencies, such as the FBI and HUD, to prosecute and punish those responsible for the mortgage fraud and corporate schemes that have hurt countless hardworking Americans and led to the worst financial crisis in decades.
• Increases the amount of resources at the U.S. Department of Justice to take fraud cases to trial.
• Applies government regulations to all companies that sell mortgages.  Previously, the federal government could only regulate banks.
• Closes several legal loopholes that otherwise may allow individuals guilty of criminal conduct to evade prosecution.  Individuals who have engaged in corruption or deliberate criminal behavior should not be able to escape punishment on a technicality.
• Provides the Federal Trade Commission (FTC) funding to investigate subprime loans.  The latest FTC investigations have resulted in charges against a California company that allegedly charged Hispanic and African-American clients higher interest rates than white clients, even though they had the same qualifications [FTC].

If you think you are a victim of mortgage fraud, please contact the Nevada Attorney General’s Bureau of Consumer Protection at in Las Vegas 702-486-3194 or 775-684-1180 in Carson City.  A complaint form, as well as other valuable information on consumer protection, is also available on the Attorney General’s website at www.ag.state.nv.us.

The housing market plays a vital role in the financial sector and stabilizing this industry is a key component of our economic recovery.  As Nevada’s senior senator and the Senate Majority Leader, I am committed to doing everything in my power to provide Nevadan families with the relief they deserve and to protect the American Dream of homeownership.