Dodd-Frank News Center

Pelosi Seeks Investigation of Financial Institution Foreclosure Handling

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

Speaker of the House Nancy Pelosi, D-Calif., and other members of the California Democratic Congressional Delegation, are urging regulators and the Justice Department to investigate possible violations of laws or regulations by financial institutions in their handling of delinquent mortgages, mortgage modifications and foreclosures.

In a letter to Attorney General Eric Holder, Federal Reserve Board Chairman Ben Bernanke and Acting Comptroller of the Currency John Walsh, the Democrats said recent reports that Ally Financial Inc. and JP Morgan Chase may have approved thousands of unwarranted foreclosures increase concerns that “systemic problems exist in the ways many financial institutions have dealt with homeowners who are seeking to avoid foreclosures.”

Housing Scorecard Shows Continued Progress, but Challenges Remain

This story appeared in Bank Digest.

The Departments of Housing and Urban Development (HUD) and Treasury have released the August 2010 edition of the Obama Administration’s Housing Scorecard which is a comprehensive report on the nation’s housing market. The Scorecard noted that in July, housing prices remained level after 30 straight months of decline and that some price predictions have improved. In addition, historic low interest rates continued to promote home affordability and refinancing options for the nation’s families. Commenting on the Scorecard, HUD Assistant Secretary Raphael Bostic said, “While there has been some stabilization in the housing market, it remains clear that we have more work ahead.” Bostic added, “Through the Obama Administration’s efforts over the past 16 months, we have seen increased price stabilization and improved home affordability for prospective, qualified homebuyers. At the same time, we know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation’s hardest hit  neighborhoods.” The Treasury and HUD also released the Administration's Home Affordable Modification Program Servicer Performance Report through July.

Details Released on Housing Finance Conference

This story appeared in Bank Digest.

The Obama Administration announced additional details about its August 17 Conference on the Future of Housing Finance, including a list of panelists and the conference agenda. This event will provide a forum for public input as the Administration continues its work developing a comprehensive housing finance reform proposal for delivery to Congress by January 2011. “This conference is an opportunity for us to broaden our perspectives on a number of key issues in a transparent way to make certain that all of the best ideas are on the table,” said A. Goldstein, Under Secretary of the Treasury for Domestic Finance. Dr. Raphael Bostic, HUD Assistant Secretary for Policy Development and Research, noted, “This conference is an opportunity to engage stakeholders and experts with broad knowledge and many perspectives.” Bostic added, “It is part of our larger effort to make sure that we have a deep and wide understanding of these issues as we chart a thoughtful, sound path forward in reforming our housing finance system.”

Support for Homeowners Struggling with Unemployment Announced

This story appeared in Bank Digest.

The Obama Administration has announced additional support to help homeowners struggling with unemployment through two targeted foreclosure-prevention programs. Through the existing Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets, the Treasury Department will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment. Additionally, the Housing and Urban Development Department will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance for up to 24 months to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment or a medical condition.

Housing Scorecard Shows Continued Increase in Home Affordability

This story appeared in Bank Digest.

The Department of Housing and Urban Development (HUD) and the Treasury Department have released the second edition of the Administration’s Housing Scorecard showing that home affordability in the U.S. remains near the most attractive levels in 10 years. These latest result are attributed to interest rates continuing to be at all time lows. In addition, the Housing Scorecard now tracks the impact of HUD’s Neighborhood Stabilization Program (NSP), which has spurred local investment and is beginning to make affordably priced homes available to consumers. “The housing market is performing better than the predictions made over a year ago,” said HUD Assistant Secretary Raphael Bostic. “We’re absolutely not claiming victory, but due to the Obama Administration’s efforts, improved home affordability is continuing to provide opportunities for prospective, qualified, homebuyers, while promising neighborhood stabilization efforts are helping hard hit neighborhoods start to recover.”

PSA Campaign to Raise Awareness of Making Home Affordable Program

This story appeared in Bank Digest.

The Advertising Council, in partnership with the Treasury Department and the Department of Housing and Urban Development (HUD), announced the launch of a national public service advertising (PSA) campaign designed to encourage homeowners who are struggling with their monthly mortgage payments to learn about the Making Home Affordable Program. “Even though the economy is getting stronger, many Americans are still facing the fear and uncertainty of losing their home to foreclosure,” said Treasury Secretary Tim Geithner. “The Administration's loan modification programs have given more than a million responsible homeowners a chance to stay in their homes, and we want to do all we can to help make sure that struggling homeowners know about these free resources for help.”

July Housing Scorecard Released

This story appeared in Bank Digest.

The U.S. Department of Housing and Urban Development (HUD) and the Treasury Department have released the second edition of the Housing Scorecard showing that, thanks in part to interest rates continuing at all-time lows, home affordability in the U.S. remains near the most attractive levels in 10 years. In addition, for the first time, the report now tracks the impact of HUD’s Neighborhood Stabilization Program, which has spurred local investment and is beginning to make affordably-priced homes available to consumers. The Housing Scorecard is the Obama administration’s comprehensive report on the nation’s housing market. “The Administration’s programs to stabilize the housing market have helped many across the country weather this crisis,” said Treasury Assistant Secretary Herb Allison. “Our initiatives continue to offer responsible homeowners the chance to avoid the often painful process of foreclosure.”

March Loan Modification Report Released

This story appeared in Bank Digest.

The Treasury and Housing and Urban Development Departments have announced the release of the March data for the Administration's Home Affordable Modification Program (HAMP). As of the end of the month, more than 1.4 million homeowners received offers for trial modifications, and more than 1.1 million borrowers were receiving a median savings of $500 each month. Permanent modifications have been granted to more than 230,000 homeowners, and an additional 108,000 permanent modifications have been approved by servicers and are pending only borrower acceptance. Homeowners' lower monthly mortgage payments under HAMP represent a cumulative savings of more than $3 billion.

Monthly Servicer Performance Report Issued

This story appeared in Bank Digest.

The Treasury Department and the Department of Housing and Urban Development have released their February data for the administration's Home Affordable Modification Program (HAMP). As of the end of February, more than one million borrowers were receiving a median savings of $500 each month—a 36 percent median monthly payment decrease. Permanent modifications have been granted to 170,000 homeowners, and an additional 91,800 permanent modifications have been approved by servicers and are pending only borrower acceptance.

SAFE Act Public Comment Period Extended

This story appeared in Bank Digest.

HUD has issued a notice advising that it is extending to March 5, 2010, the deadline for comments on its proposed rule addressing the agency's responsibilities under the Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act). The proposal was published on Dec. 15, 2009. The public comment deadline was originally scheduled to close on Feb. 16, 2010.