REALTOR® Magazine-Daily News-Fed and Lenders Meet Over Foreclosures

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Daily Real Estate News | July 28, 2009 | Fed and Lenders Meet Over Foreclosures
U.S. officials will meet Tuesday with mortgage companies to iron out a further commitment to helping trouble borrowers.

Executives from 25 mortgage companies along with officials from the Treasury and the Department of Housing and Urban Development, will discuss cumbersome paperwork and other problems that are hampering programs designed to keep underwater and overextended home owners in their homes.

Some observers are saying that the root of the problem is lender reluctance to give borrowers a break. The government hopes to overcome that reluctance with millions of dollars in incentives.

A study last month by the Federal Reserve Bank of Boston reported that lenders were lowering the payments for only 3 percent of delinquent borrowers. They were unwilling to help borrowers who might be able to catch up. The Fed point out that nearly one third of borrowers who miss two payments are able to find the money to get back on track.

Source: Reuters News (07/28/2009) and Washington Post, Renae Merle (07/28/2009)