As the housing crisis continues, current and aspiring middle-class families are increasingly at risk of losing their homes to foreclosures. More than 8 million homes are expected to be lost to foreclosure in the next five years, but Congress has so far neglected to employ funds authorized in the Emergency Economic Stabilization Act to address the foreclosure crisis that is at the root of the financial crisis. The Systematic Foreclosure Prevention and Mortgage Modification Act is modeled on a program used by the Federal Deposit Insurance Corporation to prevent foreclosures on mortgages held by IndyMac Federal Bank. The bill would require participating mortgage servicers to review all loans under their management. Servicers would test each loan to determine if modification or foreclosure would be more beneficial assuming mortgage debt equal to 31% of income. The bill requires servicers to modify mortgages passing the test, reducing monthly payments through interest rate reductions, extension of mortgage terms, or principal forbearance. Failure to modify eligible loans would disqualify servicers from the program. In exchange for loan modification, servicers would receive $1,000 to cover expenses and FDIC would share up to 50% of any losses incurred if a modified loan subsequently redefaulted. Funds authorized in the Emergency Economic Stabilization Act would pay for the program.