WASHINGTON, D.C. – July 7, 2011 – (RealEstateRama) — Mortgages servicers should be required to give every mortgage holder “a good-faith review of foreclosure alternatives” before taking steps to take his or her home, CRL president Michael Calhoun told Congress today.
In testimony before the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit and Subcommittee on Oversight and Investigations, he recommended that servicers be required to do the following:
exhaust alternatives before starting foreclosure proceedings
disclose the numbers they use to calculate whether a mortgage holder qualifies for a loan modification rather than foreclosure
provide meaningful, third-party reviews of loan modification denials
give each customer a single point of contact during the loan modification process.
end conflicts of interest in how they are paid and how they operate
Read the full testimony here: http://rspnsb.li/oFxvIy
For more information: Kathleen Day at (202) 349-1871 or ; or Charlene Crowell at (919) 313-8523 or .
About the Center for Responsible Lending
The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation’s largest community development financial institutions.