Home > Avid Law Center, Foreclosure > White House signals more aggressive stance to protect homeowners

White House signals more aggressive stance to protect homeowners

Many experts see the biggest obstacle to the economic recovery is the mired housing market, which is bound to become a significant issue in the 2012 campaign season. As such, President Obama has signaled that it will take a more aggressive role this year in protecting homeowners from foreclosure, an intention that to-date has fallen short.

Rep. Barney Frank (Mass.), ranking Democrat on the Financial Services Committee, which has jurisdiction over the mortgage giants Fannie Mae and Freddie Mac, want the administration to put more pressure on banks to do more to help troubled homeowners refinance mortgages.

According to TheHill.com, putting more pressure on the banks to help troubled homeowners refinance has emerged as the most likely option, given the extreme difficulty of persuading the GOP-controlled House to set aside more money to avert foreclosures.

In July, the President acknowledged the administration’s efforts have fallen short of expectations to-date but made asserted that they will continue to search for additional ways to pressure the banks.

“We’re going back to the drawing board, talking to banks, try to put some pressure on them to work with people who have mortgages to see if we can make further adjustments, modify loans more quickly, and also see if there may be circumstances where reducing principal is appropriate,” he stated.

White House spokeswoman Amy Brundage further states:

“The President will continue to expand on these efforts and look at new ways to help homeowners, just as he has over the past few months with new programs to help underwater homeowners and expanding forbearance so more unemployed homeowners can stay in their homes,” she said.

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