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Washington, D.C.— Today, Congressman Elijah E. Cummings (D-Md.) released the following statement in response to a letter from Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan to 25 mortgage servicing firms urging the companies to ramp up their efforts to assist struggling homeowners:
“Secretary Geithner was right on target in urging mortgage servicing companies to ramp up their efforts to accommodate struggling homeowners, and I know that I am joined by people all across the country in thanking him for acting with the urgency of now.
“Last month, I held a foreclosure prevention forum that provided nearly 1,000 homeowners with the opportunity to sit down one-on-one with their lending companies to work out solutions to avoid foreclosure. It became very clear at this event that these mortgage servicing companies are willing to step up to the plate and help individuals in danger of foreclosure stay in their homes. However, it also became clear that the banks do not yet have the capacity to handle the large number of requests they are receiving for assistance. It is critical that these companies continue their efforts to help American families by staffing up to full capacity and properly training employees who will be tasked with assisting these homeowners.
“Additionally, I urge Secretary Geithner to address the growing number of homeowners with prime loans who are losing their jobs and suddenly finding themselves at danger of falling through the cracks. With the loss of their main source of income, it is almost impossible for these individuals to modify their loans, and if their homes are underwater, opportunities to refinance or sell all but disappear.
“I have proposed legislation, the Temporary Mortgage Assistance Act of 2009, H.R. 3066, which would provide short-term loans to help these individuals keep up with their mortgage payments while they find new employment—all at no new cost to the taxpayer. It is my hope that the Obama Administration will address this issue with the same urgency as other economic situations. We must all continue to work together to help restore our economy and keep Americans from losing their dreams of homeownership.”
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