Norton Asks Geithner for Answers for Constituents Having Trouble Modifying Their Mortgages

Norton Asks Geithner for Answers for Constituents Having Trouble Modifying Their Mortgages

September 15, 2010

WASHINGTON, DC -- The Office of Congresswoman Eleanor Holmes Norton (D-DC) today released a letter from Norton to U.S. Department of the Treasury Secretary Timothy Geithner about allegations from her constituents of "stonewalling" and the bureaucratic red tape they have experienced when trying to qualify for the Save Our Homes program and the Home Affordable Modification Program (HAMP).

Norton wrote, "Some of my constituents have been told that if they are current on their mortgage payments, then they do not qualify. Some have even been counseled by their lenders to go into default in order to qualify. Others have been made to undergo a three-month waiting period, only to find that, after that period, they do not qualify for a mortgage modification." Norton asked for details concerning the specific steps necessary to qualify for HAMP.

In June, Norton teamed with the U.S. Department of Housing and Urban Development (HUD), and the U.S. Department of the Treasury to host "Saving Homes, Foreclosure Prevention Day," where HUD-approved counselors, 13 mortgage lenders, and Fannie Mae and Freddie Mac provided one-on-one services to 765 homeowners, many of whom received loan modifications onsite. Her letter expressed dissatisfaction with the outcomes that have been reported by her constituents.

Nortons's letter to Geithner follows:

Timothy F. Geithner

Secretary

Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Dear Secretary Geithner,

Many of my constituents were encouraged by my foreclosure prevention event, Saving Homes: Foreclosure Prevention Day, which I co-sponsored with the administration on June 26, 2010. However, I am surprised at the stonewalling that my constituents are finding, and I write now to bring to your attention to a number of complaints that my office has received about Save Our Homes and the Home Affordable Modification Program (HAMP).

Some of my constituents have been told that if they are current on their mortgage payments then they do not qualify. Some have even been counseled by their lenders to go into default in order to qualify. Others have been made to undergo a three-month waiting period, only to find that, after that period, that they do not qualify for a mortgage modification.

These constituents should have been informed of all the necessary procedures and timeframes at the foreclosure prevention event. It would be helpful for my office and for these constituents to know exactly what the steps are to qualify for the Save Our Homes and HAMP programs. We need answers for the large number of constituents who have complained because they have not been able to take advantage of the HAMP program.

Kindly arrange for the appropriate staff in your office to be in touch with me concerning what assistance you can provide in helping us to resolve these issues.

Sincerely,