Preserving American Homeownership Act of 2015

Preserving American Homeownership Act of 2015

Requires the Director of the Federal Housing Finance Agency and the Federal Housing Commissioner each to establish a pilot program to encourage the use of shared equity mortgage modifications designed to return greater net present value to investors than other loss-mitigation activities, including foreclosure.

Requires a shared equity mortgage modification to:

• reduce by specified action the loan-to-value ratio of a covered mortgage to 100% or less within 3 years;
• reduce the interest rate if such a reduction of principal would not result in an affordable reduced monthly payment;
• reduce to a specified amount any periodic payment the homeowner is required to make;
• require the homeowner to pay the investor, upon refinancing or selling the real property securing a covered mortgage, up to 50% of the amount of the equity value of the real property, subject to certain conditions;
• be designed to deliver maximal net present value to the investor;
• be based on specified factors; and
• require disclosure to the homeowner, before entering into the shared equity mortgage modification, of the estimated net present value of the equity sharing interest to be determined under this Act.