Congressman Salazar says banks "better start helping people keep their homes"

“This is a disgrace”

WASHINGTON, D.C. – December 3, 2009 – (RealEstateRama) — Today Congressman John Salazar voiced strong support for the Obama Administration’s recent demand that lending institutions step up efforts to help those fighting off foreclosure through the government’s “Making Home Affordable” program. Specifically, Congressman Salazar expressed his anger over reports that the banks have been evasive and unhelpful to constituents in Colorado’s Third Congressional District.

“This is a disgrace,” said Congressman Salazar. “Instead of getting the help they need, my constituents are being sent through voice mail systems or to outsourced call-centers by the lending institutions. They’re being misled. They’re getting the run-around for months and then being denied.  I voted against the bank bailout last year but that measure passed and many of these banks were propped up with taxpayer money. They better start answering those taxpayers’ calls and they better start helping them keep their homes.  I’ve heard from many constituents who have had difficulties getting help with their mortgage and they need to be able to get their concerns addressed.”

Lenders are not adjusting many loans permanently in a timely manner after the trial period, and many eligible borrowers are not participating in the temporary mortgage modification program. The plan announced this week stipulates:

•    Lenders must submit a plan, including a timetable, detailing when and whether or not they will make a temporarily adjusted mortgage permanent. These plans are specific to each borrower and mortgage.
•    Treasury/Fannie Mae “Account Liaisons” will be assigned to monitor actual progress against these plans on a daily basis.
•    Failure to meet these requirements by December can result in monetary penalties or sanctions for lenders, encouraging them to comply and give more borrowers a permanently adjusted mortgage.
•    Lenders must create a service report with data on how many modified mortgages have been made permanent, and which ones will be made permanent by the end of the year. These published reports will provide more transparency to borrowers and provide an incentive to lenders to have a good mortgage adjustment record.
•    Lenders must also submit details on why borrowers are rejected from permanent adjustments, forcing lenders to provide a good reason for failing to adjust a loan.
Tools for Borrowers
•    www.makinghomeaffordable.gov – New simple links to apply for loan modifications, both temporary and permanent, including an easy way to see if you meet the financial need requirements
•    HOPE Homeowner Hotline – 888-995-HOPE
State, Local and Community Engagement – Agencies approved to distribute information to        borrowers about applying for temporary or permanent loan modifications.
•    Housing and Urban Development Offices
o    Denver Regional Office – 1670 Broadway, 25th Floor
Denver, CO 80202
(303) 672-5440, Fax (303) 672-5004
•    HUD-Approved Counseling Organizations
o    Upper Arkansas Area Council of Governments – 3224 Independence Road
P.O. Box 510, Canon City, Colorado 81212
719-269-7687, Fax 719-275-2907, housing (at) uaacog (dot) com
o    Housing Solutions for the Southwest – 295 Girard St
Durango, Colorado 81303
970-259-1086-10, Fax 970-259-2037, tmiller (at) swhousingsolutions (dot) com
o    CCCS of Greater Denver, A Division of MMI – 225 N. 5th Street, Ste. 703
Grand Junction, Colorado 81501
970-242-2000, jeanine.lipka (at) moneymanagement (dot) org
o    Grand Junction Housing Authority, 1011 North 10th Street
Grand Junction, Colorado 81501
970-245-0388, Fax 970-254-8347, acase (at) gjha (dot) org
o    Housing Resources of Western Colorado (HRWC), 524 30 Road, Suite 3
Grand Junction,, Colorado 81504
970-241-2871-116, Fax 970-245-4853, jonl (at) housingresourceswc (dot) org
o    Catholic Charities of the Diocese of Pueblo, CO – 429 W. 10th Street Suite 101
Pueblo, Colorado 81003
800-303-4690, Fax 719-544-4215, jmazur (at) pueblocharities (dot) org
o    CCCS of Greater Dallas – Pueblo, 200 West 1st Street, Suite 302
Pueblo, Colorado 81003
719-542-6620, Fax 719-542-7057, info (at) cccs (dot) net
•    Additional Resources can be found here: http://www.hud.gov/offices/hsg/sfh/hcc/fc/
Residents of Colorado’s Third Congressional District can also contact one of Congressman Salazar’s four district offices for additional assistance (Pueblo 719-543-8200, Grand Junction 970-245-7107, Alamosa 719-587-5105, Durango 970-259-1012).

Eric Wortman, Communications Director
Contact: (202) 225-4761
Edward Stern, Deputy Press Secretary
Contact: (202) 536-6190