March 03, 2008

DODD ON TREASURY’S HOPE NOW ALLIANCE:

“THE PROGRAM IS FAR FROM PERFECT”

“The Treasury’s efforts are certainly one piece of the puzzle but, frankly, Hope Now does not have the resources or capacity to deal with the sheer size of the problem that has millions of Americans in financial dire straits. The program is far from perfect – repayment plans outnumber modifications by over two-to-one so far. There is also a question as to whether these modifications are long-term, or whether the servicers are simply adding arrears back into the loan, resulting in a higher payment for some borrowers that receive a so-called modification. Furthermore, media reports call into question exactly how Treasury is crunching its numbers, and how much of their agenda is merely a publicity ploy. It is hard to imagine that the same Administration whose oversight – or lack thereof – led us into the mortgage crisis will be able to devise a plan strong enough to pull us out of it. We need a multipronged approach to this complex problem, which is why I have introduced several ideas to help as many homeowners as possible.”