Sen. Carper Presses Treasury To Use Leverage To Help Struggling Homeowners

WASHINGTON, DC – June 24, 2009 – (RealEstateRama) — As part of ongoing efforts to stabilize the housing market and ensure banks and loan servicers are being held accountable, Sen. Tom Carper (D-Del.) joined 19 other senators in signing a letter sent to U.S. Treasury Secretary Timothy Geithner today urging him to develop and implement a strategy requiring banks and loan servicers participating in the Administration’s foreclosure prevention programs to effectively respond to qualified homeowners seeking assistance.

A recent report from the National Foreclosure Mitigation Counseling Program indicates that homeowners are waiting, on average, 45-60 days for responses to requests for help. Other homeowners have found servicers reluctant to make meaningful changes to the terms of their mortgages despite advertised participation in the Administration’s foreclosure prevention initiatives.

“To stabilize the economy we need to stabilize the housing market. Homeowners who need help before it’s too late should not have to wait two months to get assistance,” Sen. Carper said. “Companies that have agreed to participate in the Administration’s foreclosure prevention programs must be held accountable, especially when they are receiving taxpayer dollars. This Administration must keep pushing to ensure that servicers’ provide relief for homeowners.”

Contact: Bette Phelan (202) 224-2441