Supporting Responsible Homeowners and Stabilizing Neighborhoods Act

• State-chartered banks must offer refinancing at lower interest rates to customers with underwater mortgages (loan-to-value ratio exceeding 100%) originated before January 1, 2009, current on payments, and at 5.25% interest or higher; offers must be made within 60 days of enactment with no fees exceeding actual costs incurred.

• Mortgagees must provide written transparency on loan modification eligibility criteria annually and within 30 days of any changes, deny modification applications in writing within 5 days with explanation of how applicant failed to meet criteria, and respond to short sale requests within 30 days stating acceptance, denial, or conditional acceptance with reasons.

• Foreclosure cannot commence until mortgagee records an affidavit of compliance demonstrating all loan modification requirements have been met, including providing loan modification notices and making required telephone contact attempts to inform borrowers of modification eligibility.

• Mortgagees must defer foreclosure for at least 12 months for homeowners who have occupied their home for 10+ years with at least one unemployed household member; deferral extends to 24 months for those occupying 20+ years.

• Mortgagees violating these provisions face liability for actual damages, statutory damages up to $2,000 per violation, potential punitive damages, injunctive relief, and must reimburse prevailing plaintiffs for attorney fees and costs.