Help for Homeowners and the Housing Finance Industry
Although our economic recovery is more visible each day, we still see persisting signs of distress in the housing and job markets. Homeowners across the country have experienced significant events including lost jobs, depleted savings, and deflated housing values due to the financial crisis. In combination with the effects of subprime loans and poorly managed servicer processes, there have been an unprecedented number of foreclosures recently.
For Homeowners in Danger of Losing their Home:
If you or anyone you know may be in danger of losing a home, important information is available at www.makinghomeaffordable.gov, or you can be connected to a HUD-certified housing counselor through 1-888-995-HOPE or www.hud.gov. Keeping one’s home is a matter of immediate concern for many households. Waiting too long to talk to a housing counselor is a problem many families have experienced. No matter what type of situation you are in, a HUD-certified housing counselor can be a source of unbiased help.
Fannie Mae and Freddie Mac have established toll-free phone lines and web submission processes to make this data available:
It is important to know that lenders are required to consider homeowners for a federal modification through the HAMP program before the homeowner applies for a proprietary modification, which is a modification offered directly by the lender and worked out through the servicer. Additionally, in order to qualify for a permanent modification through HAMP or a private servicer, homeowners must successfully complete a three-month trial modification. Homeowners in HUD trial modifications can call HUD’s interactive voice system at 1-800-569-4287, or the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673) and ask for “MHA HELP” for more specifics.
A new online tool, www.checkmyNPV.com, can help homeowners determine whether they are eligible for the Home Affordable Modification Program (HAMP). The NPV test is part of the evaluation process that mortgage servicers must use to determine eligibility for the HAMP program.
It is also important to be cautious of predatory lenders. If someone offers to negotiate with your mortgage company and wants a fee to arrange, stop, or delay foreclosure, say no. To find information about loan scams, go to www.LoanScamAlert.org or www.ftc.gov/MoneyMatters.
Homeowners can file a complaint or get further help through the homeowner’s hotline, 1-888-995-HOPE (4673), or the Federal Trade Commission at www.ftc.gov/consumerprotection or 877-FTC-HELP (4357).
If you have followed the guidelines provided by your mortgage servicer or lender, worked with a HUD-certified housing counselor agency to resolve the barriers to obtaining assistance, and you are still facing foreclosure, please call my Roanoke constituent services office at (540) 857-2676.
Stabilizing our Housing Finance Industry for the Long Term
Although our economic recovery is more visible each day, we still see persisting signs of distress in the housing and job markets. Homeowners across the country have experienced significant events including lost jobs, depleted savings, and deflated housing values due to the financial crisis. In combination with the effects of subprime loans and poorly managed servicer processes, there have been an unprecedented number of foreclosures since 2008.
The Administration is taking multiple actions to address questions about the legality of pending and completed foreclosures. First, private sector foreclosures are being investigated through the Financial Fraud Enforcement Task Force, a coalition of over 20 federal agencies, 94 US Attorney’s Offices, and state and local partners. The Task Force has made hundreds of arrests of criminal defendants who are allegedly responsible for billions in losses. Next, the Administration is working with state attorneys general, federal regulators, mortgage lenders, and servicers to settle on behalf of homeowners that were improperly foreclosed on. Third, several regulatory offices are working together to create servicing standards that will set uniform expectations of servicers.
Moving forward, I will continue to participate in hearings and discussions about how to foster sustainable recovery in our housing market. An important part of that debate is determining the appropriate role of the government in our housing finance market. The current financial state of Fannie Mae and Freddie Mac is not sustainable. You can find the Department of Treasury’s recommendations for the future of the housing finance market at www.treasury.gov. I look forward to thorough debate of this report as Congress considers options for improving our housing market for the long term.
