September 12, 2007

Dodd, Bond Secure Senate Approval for Funding to Help American Homeowners Struggling with Foreclosure

Washington, D.C. – Senator Chris Dodd, D-Conn., Chairman of the Senate Banking Committee, and Senator Kit Bond, R-Mo., successfully won Senate approval for a measure to help provide $100 million to help homeowners facing foreclosure to remain in their homes.
    “Homeowners are being battered by the rising tide of foreclosures,” said Dodd. “This measure can act as a lifeline to help keep them in their homes.” “Across the country too many families are facing the nightmare threat of foreclosure,” said Bond. “This is a good step forward to help stem the tide of foreclosures without bailing out risky lenders and speculators from the market.”
The measure would require the Secretary of Housing and Urban Development (HUD) to provide grants for mitigation assistance to public, private and non-profit entities to assist borrowers. The grants can be used for both conventional and subprime loans and can be used to help homeowners modify or refinance their mortgages, or to obtain counseling to examine other options to keep them in their homes. These activities are consistent with the principles agreed to in May at the Homeowners Preservation Summit convened by Dodd, at which lenders, servicers, and representatives from Fannie Mae and Freddie Mac committed to make their best efforts to help homeowners stay in their homes. The legislation requires that HUD develop a listing of foreclosure mitigation entities and counseling centers and report annually to Congress on its efforts to successfully lessen the current crisis related to mortgage defaults. The measure was included in the Department of Transportation, Housing, and Urban Development Act of 2007, which was approved today by a vote of 88-7.