Menendez Applauds Actions Against Big Banks That Failed To Help Homeowners

WASHINGTON, DC – June 16, 2011 – (RealEstateRama) — The Housing Scorecard for May recently released by the Obama administration included detailed assessments of the 10 largest mortgage providers that are participating in the Administration’s Making Home Affordable Program, setting a new industry benchmark for disclosure on servicer assistance to struggling homeowners.

Since the program started, the Treasury Department has required participating providers to take actions to improve their services for homeowners. In light of the review just published, the administration has found some servicers have not produced satisfactory reviews from customers in the areas of: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. As a result, the Treasury Department is withholding financial incentives from Bank of America, J.P. Morgan Chase, and Wells Fargo.

“These banks cannot continue doing business as usual,” said U.S. Sen. Robert Menendez (D-NJ). “I applaud the Treasury Department for withholding payments to them for poor performance when it comes to foreclosures and mortgage modifications. For several years, I have been calling for mortgage servicers to be held more accountable, including at a Housing Subcommittee hearing I chaired just this year in May. The last thing homeowners should have to worry about is obstacles from the banks that are supposed to be helping them keep their homes.”

For more information or to read the detailed reports, go to http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/Pages/default.aspx.