Maloney statement on mortgage-servicer settlement

Feb 9, 2012 Issues: Financial Services
Press Contact: 
Jon Houston (202) 225-7944

WASHINGTON, DC – Rep. Carolyn Maloney (D-NY), senior member of the House Financial Services Committee, today issued the following statement on the agreement announced by the Department of Housing and Urban Development, Department of Justice, state Attorneys General, and five mortgage-service companies:

“Today's settlement announcement with the nation’s five largest mortgage servicers-- the largest civil federal and state settlement in history--  is positive news and ends nearly twelve months of intense negotiations between state and federal officials and financial institutions. The Obama Administration and state Attorneys General, including New York's Eric Schneiderman, should be congratulated for their painstaking work on this agreement. It offers substantial relief to homeowners hurt by unethical mortgage servicers. New York homeowners will benefit significantly, with a projected $790 million being directed to New York State for victims of wrongful foreclosure and for mortgage modifications.

“Although the total pool of funds is not nearly enough to help all of the homeowners who were negatively impacted during the financial crisis, this agreement will help stabilize the nation's housing market, a crucial step forward in strengthening our economy and establishing a self-sustaining recovery-- without precluding investigation and prosecution of criminality around these issues as new revelations warrant. And it includes, for the first time, significant resources for principal reduction for struggling homeowners facing foreclosure. It also contains strong servicing standards going forward which will apply to all loans with enforcement provisions and penalties.

“There is still much that could be done to help homeowners. With interest rates at historic lows, I support President Obama's State of the Union proposal to make it easier for responsible homeowners to refinance at these low rates. I hope my colleagues will support legislation to advance this proposal so homeowners can begin to take advantage of the full panoply of refinance options.”

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To learn more, visit http://www.nationalforeclosuresettlement.com