WASHINGTON — Treasury Secretary Henry Paulson and Department of Housing and Urban Development Secretary Alphonso Jackson were joined by mortgage market participants Oct. 10 in announcing a new alliance to strengthen efforts for struggling homeowners.
On Aug. 31, President George W. Bush announced an initiative to help as many Americans as possible keep their homes. He asked Paulson and Jackson to spearhead an effort to identify and help struggling homeowners. Since that time, Treasury and HUD have been meeting with the nation's leading mortgage counselors, mortgage servicers, lenders, investors and other industry experts to explore ideas on how to reach and help as many homeowners as possible.
Paulson noted that many individual lenders are already working to save many borrowers from losing their homes and, at the same time, helping themselves weather the mortgage market downturn. However, he stated, "Only through better integration of their efforts can mortgage counselors and mortgage servicers reach the greatest number of borrowers facing payments they can't meet and only with increased coordination can they be more effective in finding solutions for those homeowners."
This new partnership of 11 of the largest mortgage servicers representing 60% of mortgages, counselors, investors, and trade associations called HOPE NOW is the public-private sector answer. "These leaders recognize that by working together, coordinating and scaling up their activities, they will be able to work toward the goal to help more homeowners," Paulson said, adding that he hoped the effort would grow.
In his discussion with members of Congress, Paulson said members from both sides of the aisle approved of the effort. "We need to ensure that foreclosure prevention efforts reach as many families as possible. Since one significant problem is a lack of coordination among mortgage servicers and nonprofit groups working directly with borrowers, I applaud today's announcement led by the Secretaries of Treasury and HUD. This will help coordinate efforts and reach more at risk homeowners through the HOPE NOW alliance," House Financial Services Committee Chairman Barney Frank (D-Mass.), who has put an added focus on consumer protections and housing, said. He explained that he was planning a similar effort but now instead will be working in cooperation with Treasury
and HUD so as not to duplicate efforts.
The National Foundation of Credit Counseling has also offered its support and resources for HOPE NOW.
Participating in the press event in addition to the secretaries at Treasury's Pennsylvania Avenue headquarters were NeighborWorks America CEO Ken Wade, Wells Fargo Home Mortgage Co-President Michael J. Heid,
and American Securitization Forum Executive Director George Miller.
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