Absent Any Repossession, Foreclosure and Collections References Except Federal
Washington, DC – 12 May 2020 – Today, House Speaker Nancy Pelosi unveiled Democrats’ proposal for the next phase of coronavirus relief legislation, releasing a massive $3T legislative package titled “The Heroes Act” that Democrats hope to bring to a vote as early as Friday. Absent from this stimulus bill is any of the moratoriums of collections and repossession from either the Waters Bill H.R. 6379, or the Sherrod Bill senate bill S. 3565, would have created and the repossession and collections industry had feared would be attached to it.
The text of the bill, which spans more than 1,800 pages, includes most partisan funding assistance to state and local governments, hazard pay for frontline health care workers, forgiveness of student debt and bolstering Medicaid and Medicare. The bill is known as the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act.
The bill also includes provisions to assist farmers, protect renters and homeowners from evictions and foreclosures, and extend family and medical leave provisions previously approved by Congress. The legislation would also provide relief for essential workers, such as aviation, rail and Amtrak workers, as well as extend work visas for immigrants.
The only references to collections, were along the lines of federaly run programs such as the Veterans Administration Loans and Student loans. Below, are the only references to collections contained within the bill.
Section 80009. Suspension of VA debt collection activities during the COVID-19 public health emergency.
Sec. 150114. Extending the Length of Borrower Relief due to the Coronavirus Emergency. This section amends the CARES Act to extend suspension of payments for Federal student loans through September 30, 2021 and adds a 30-day transition period where any missed payments after payment suspension ends do not result in collection fees and are not reported to consumer reporting agencies
Housing Counseling Assistance – $100 million to enable housing counselors to respond to the surge of demand for services, which include foreclosure and eviction mitigation counseling, in light of the economic impact of the COVID-19 pandemic. The bill allows the purchase of technology and equipment so services can be provided through electronic means.
While not included in this bill, the Waters and Sherrod Bills are still alive. However, without attachment to a larger and more bipartisan bill, these bills stand little to no chance of growing legs and surviving the Republican Senate or the White House’s veto.
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