Wednesday, October 6, 2010

Henderson, NV – Congresswoman Dina Titus of Nevada’s Third District sent the following letter to Wells Fargo and a number of other banks today urging them to suspend foreclosure proceedings in Nevada until they can ensure the accuracy and legitimacy of their systems.  Titus also highlighted the importance of the banks’ participation in the Nevada program funded by the “Hardest Hit Fund.”

Below is the text of the letter.  Similar letters were also sent to JP Morgan Chase, Citibank, GMAC, PNC, and Bank of America.

October 6, 2010

John G. Stumpf
CEO – Well Fargo
420 Montgomery Street
San Francisco, CA 94104

Dear Mr. Stumpf,

I am proud to represent Nevada’s Third Congressional District, which was recently referred to as “Ground Zero” of the foreclosure crisis by Secretary of Housing and Urban Development Shaun Donovan.  My office has worked with more than 1,000 homeowners as they attempt to avoid foreclosure and stay in their homes.

I am writing today to express my concern regarding recent media reports that many financial institutions have suspended foreclosure proceedings in certain regions due to concerns that mortgage servicers have made misrepresentations in the foreclosure processes.  Some financial institutions have suspended all foreclosure proceedings until a complete review is done to ensure that sloppy and incomplete paperwork is not causing families to be evicted from their homes unnecessarily.

As you know, Nevada is not one of the 23 states that have been part of the foreclosure moratorium instituted by a number of institutions.  I believe, however, that it would be wise and responsible for your institution to suspend foreclosure proceedings until you can ensure that your systems and documents meet high standards for accuracy and legitimacy.  It is simply inexcusable that a family could be made homeless because of careless handling of paperwork.  It is imperative that you examine your systems to ensure that a homeowner’s loan documentation is fairly and accurately reviewed to best determine an individual solution for the homeowner.

Additionally, since beginning my term in Congress I have been pushing the Obama Administration and financial institutions to avoid “one size fits all” solutions to the foreclosure crisis because programs that are effective in Montana are not likely to be successful in states like Florida and Nevada where the crisis has been much more severe.  I was pleased the Obama Administration created the “Hardest Hit Fund” to help homeowners in states that have been affected the most by the foreclosure crisis.  I have been personally involved from the beginning of the process to formulate Nevada’s state plan to use the almost $200 million it will receive through the “Hardest Hit Fund.”  I worked with Nevada officials to ensure that principal reduction was the main element of their proposal because it is clearly the most effective method to ensure homeowners are able to stay in their homes for the long term and continue paying their mortgages.  I am concerned that your institution has not yet agreed to participate in the most important components of the program.  As you well know, your institution received direct taxpayer assistance through the TARP.  I did not support TARP because it contained no “strings” to ensure that Wall Street financial institutions would do their part to help the recovery of Main Street.  It has become clear, unfortunately, that my fears have been confirmed and your institution is unwilling even to agree to consider principal reduction through the Nevada plan.  I strongly urge you to reconsider this decision and stand ready to work with your institution to ensure you are fully engaged in the program.

I appreciate your attention to these issues and look forward to your prompt response.

Sincerely,

Dina Titus
Member of Congress

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Tags: housing