WASHINGTON — A group of 20 Senate Democrats led by Senate Banking Committee Chairman Chris Dodd and Sen. Jack Reed are putting pressure on the Obama administration to reduce foreclosures.
In a letter to Treasury Secretary Tim Geithner, the senators pressed the administration to ensure mortgage servicers participating in government foreclosure mitigation programs like the Making Home Affordable Program are aggressively working to help struggling borrowers.
"We write to urge you to use the full measure of your authority to ensure that servicers participating in the Administration's foreclosure prevention programs more quickly and effectively respond to homeowners seeking assistance," said the letter, which was dated June 24 and released this week.
The senators said they were troubled by reports that borrowers usually wait between 45 and 60 days for a response after requesting assistance. The senators also said they were concerned about option adjustable rate mortgages scheduled to reset in the next four years and asked the Treasury to take a more proactive approach to helping those borrowers.
The senators asked Geithner to respond to several specific questions geared toward holding the administration accountable for its foreclosure mitigation efforts.
For example, they asked what the administration is doing to ensure there is sufficient servicer capacity to handle demand, how the administration is monitoring servicer performance, and what the administration is doing to ensure greater participation by servicers in government's foreclosure reduction programs.
They also asked whether additional legislation is needed.