Congress is Finally Talking About Loan Modifications

[Moe Bedard]

Sometimes news takes time to trickle on the internet and I do my best to follow what's happening in regards to foeclosure prevention and in particular what congress is doing to assist the American people.

Here's some excerpts from the latest news on Washington:

In an August 22 release, Senator Charles E. Schumer, chairman of the Joint Economic Committee and the Senate Banking Subcommittee on Housing, in letters to Federal Reserve Chair Bernanke, Treasury Secretary Paulson, Administrator of National Banks Dugan, and others in the subprime mortgage business, stressed that simply providing liquidity to the credit markets, as the Fed has been doing, does not address the fundamental problems of the mortgage markets. "It is essential that the Federal agencies overseeing the financial markets use their influence over the major market players to encourage them to engage in a major effort to modify or refinance the loans that have a high probability of defaulting, so that the upcoming wave of foreclosures...can be abated."

That's exactly what we need. Some major players to place pressure on lenders and servicers to step up loan modifications and loan workouts.