The Preserving Homes and Communities Act of 2026 aims to establish guidelines for the bulk auction or group sale of non-performing mortgage loans, focusing on affordable housing and borrower protection while ensuring the financial health of the Federal Housing Administration (FHA). The legislation mandates that the Secretary of Housing and Urban Development can only sell these loans when no other options exist to restore FHA's stability. Priority is given to government entities and nonprofit organizations capable of managing these loans to support affordable housing initiatives.