Durbin Urges Congressional Action on Foreclosures « The Washington Independent
Earlier today, the Treasury Department revealed that the administration’s anti-foreclosure program — which encourages banks to alter mortgages voluntarily — has enrolled roughly 360,000 struggling homeowners in trial modifications.
Sen. Richard Durbin (D-Ill.) is hardly impressed.
The upper-chamber’s second-ranking Democrat issued a statement just hours later pointing out that almost precisely the same number of homeowners had foreclosure filings on their residences in July alone. Durbin said the figures are indication that Congress needs to step in to protect struggling homeowners.
Waiting for banks to ‘volunteer’ to end this foreclosure crisis is a waste of time. Treasury’s latest report show this approach has failed miserably.
It’s time for the Treasury Secretary to sit down with Congressional leadership and work to end this blight on our economic future.
Although the statement doesn’t mention mortgage bankruptcy reform, Durbin has been among the loudest cheerleaders for that proposal, which would empower homeowners to escape foreclosure through the courts.
Although House lawmakers passed mortgage bankruptcy reform legislation earlier in the year, Senate lawmakers killed the proposal after the Obama administration abandoned its support for the measure.