Sen. Franken Asks Secretary Geithner to Make Immediate Changes to Help Homeowners Facing Foreclosure
Today, U.S. Sen. Al Franken (D-Minn.) urged Treasury Secretary Timothy Geithner to take immediate action to aid homeowners faced with foreclosure. Joined by 17 of his colleagues, Sen. Franken requested that specific changes be made to the Home Affordable Modification Program (HAMP), which assists homeowners who wish to modify their mortgages to avoid foreclosure. The letter recommends changes to improve the effectiveness of HAMP and hold banks and servicers accountable.
The letter from Sen. Franken and his colleagues can be read here.
"While the intentions of HAMP are good, too many homeowners are still struggling with the program," said Sen. Franken. "The common sense improvements that I'm requesting Secretary Geithner make will help Minnesota families take the necessary steps to avoid foreclosure and stay in their homes."
One of the key steps the senators request in the letter is the creation of the Office of the Homeowner Advocate. Originally introduced by Sen. Franken in his Homeowners Advocate Bill, which passed the Senate with bipartisan support in June, the Office of the Homeowner Advocate would focus on assisting homeowners who believe their mortgage servicer is breaking the rules.
Additional steps outlined in the letter to improve the effectiveness of HAMP include:
- Provisions that would hold servicers accountable;
- Automatically extend permanent mortgage modifications if trial modifications are completed successfully;
- Revise eligibility requirements;
- Ensure that servicers provide homeowners with necessary documentation; and
- Provide homeowners with information as to why they have been denied HAMP modification.
In addition to Sen. Franken and Sen. Bob Menendez (D-N.J.), the following senators signed the letter to Secretary Geithner: Sens. Patrick Leahy (D-Vt.), Sherrod Brown (D-Ohio), Kirsten Gillibrand (D-N.Y.), Debbie Stabenow (D-Mich.), Bernie Sanders (I-Vt.), Frank Lautenberg (D-N.J.), Daniel Akaka (D-Hawaii), Carl Levin (D-Mich.), Tom Udall (D-N. Mex.), Sheldon Whitehouse (D-R.I.), Ben Cardin (D-Md.), Mark Begich (D-Alaska), Maria Cantwell (D-Wash.), Jeanne Shaheen (D-N.H.), Chuck Schumer (D-N.Y.), and Jeff Merkley (D-Ore.).
