Home > 2011 > Mortgages

House Committee Aims to Gut Foreclosure Protection Measures

Advertiser Disclosure Comments 7 Comments

Foreclosure_Kevin DooleyThe House Financial Services Committee today will mark up four bills designed to gut foreclosure prevention programs. No other legislation is being proposed to fill the gap and help the estimated five million mortgage holders at risk of losing their homes.

According to the Center for Responsible Lending’s (CRL) Julia Gordon, the proposed legislation would:

Eliminate the Home Affordable Modification Program (HAMP) going forward. This program allows for interest rate reductions and, in some cases principal reductions, for homeowners having trouble keeping up with their payments. Homeowners currently enrolled in HAMP would not be affected.

Kill the unemployment loan assistance program before it starts. This program was authorized under the Dodd-Frank Wall Street Reform Act and is designed to provide “bridge loans,” or short-term loans, to homeowners who have lost their jobs but could make their payments once they are employed again. It is modeled after successful programs currently available in eighteen states, and could fill the gap in remaining states where similar programs are not yet available.

End the FHA Short Refinance program. This program allows homeowners with FHA loans to refinance with a principal reduction.

Eliminate the third round of funding for the neighborhood stabilization program. This program provides communities that have suffered from foreclosures and abandonment with funds to purchase and redevelop foreclosed and abandoned homes and residential properties.

Sponsors of the bills claim the current efforts have not been effective enough, but they have not proposed any other solutions to stem the continuing tide of foreclosures. An estimated 50,000 new foreclosure actions are initiated every week, according to CRL. RealtyTrac reported a record 2.9 million foreclosures in 2010.

“When we’re in the midst of an epidemic, we don’t close all the hospitals—we work faster and harder to find a cure,” CRL president Mike Calhoun said in a statement. “We call on Congress to strengthen foreclosure prevention efforts by holding servicers accountable and requiring a review of every mortgage loan before foreclosures proceed.”

[Related: Solving The Foreclosure Mess: Let’s Get Serious]

Image: Kevin Dooley, via Flickr.com

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • Kenneth Harris

    Our home is going into foreclosure . We are both disabled . Our Loan company HSBC is not wanting to work with us . Can you help us at all ?

    Thank You
    Kenneth Harris

    • http://www.docprep.net Greg

      Mr. Harris, On Wednesday March 2, 2011 HSBC had suspended all foreclosures since the are being investigated by government entities for deceptive practices. If you are on a fixed income, HSBC will give you a permanent modification if you meet the guidelines. If you have any other income outside of the disability, HSBC will give you relief in 6 month intervals up to 2 years.

  • http://www.granthammond.com Grant in Nashville

    It seems a tad premature to eliminate any of these measures. Clearly, we are not in a Republican controlled House as this would cause the rest of the homeowners who are hanging on by a thread to be snipped.

  • http://www.credit.com Gerri Detweiler

    Mr. Harris – I would be happy to help if I can. Can you tell me what you have tried to do so far?

  • Yolanda Simmons

    2008 I had my wages cut and my husband lost his job. My mortgage is with PNC bank I have been dealing with them a year to modify my loan they would lose a paper, or I had to write 20 hardship letters. This is what they done for me, same interest rate, same amount, same taxes, same insurance they just added what I owed on to the amount .Where is the modification? please help me

  • http://www.Credit.com Gerri Detweiler

    Yolanda – I am terribly sorry to hear what you’ve been going through. I wish I had a clear solution for you, unfortunately, lenders have made a mess of this program. But here’s what I can recommend:

    Contact your elected officials in Washington. Each office (your Senators and Representative) have an ombudsman who helps constituents with problems. Ask them to help you intervene with the bank.

    Contact a bankruptcy attorney to find out whether bankruptcy can help. It may not, but it’s worth a try and the consultation with the attorney should be free.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team