Senator Hunter Sponsors Bill Demanding That Big Banks Participate in “Help The Hardest Hit” Mortgage Program

Banks that benefited from taxpayer funds need to step up and assist struggling homeowners

LANSING, MI – September 8, 2010 – (RealEstateRama) — State Senator Tupac A.Hunter (D-Detroit) today introduced legislation that would prevent banks and other lending institutions from foreclosing on most homes unless they have signed up to participate in the “Help the Hardest Hit Program.”

“Many banks, credit unions, and mortgage companies are participating in this program and helping people keep their homes, but the largest banks— like Wells Fargo, Chase, Bank of America, PNC Bank and Citigroup—have not signed on,” said Hunter. “Banks that benefited from taxpayer help should return the favor now to those taxpayers who are struggling and would qualify for the ‘Hardest Hit Program’ if their mortgage lender were a participant.”

Hunter’s bill would state that a foreclosure may not proceed if the foreclosing party has not executed an agreement to participate as a servicer in the “Help for the Hardest Hit Program.” The “Hardest Hit Program” assists homeowners who are currently receiving unemployment compensation, homeowners who have fallen behind in their mortgage payments or taxes due to a temporary layoff or medical emergency, and homeowners who can no longer afford their mortgage payments due to lower household income. The program uses re-allocated federal Troubled Asset Relief Program (TARP) dollars for mortgage assistance. Struggling homeowners can only qualify for the program by going through their loan service provider.

“Governor Granholm has been calling officials at these major banks and pushing them to participate in this program, and I am glad to support her efforts by introducing this legislation,” said Senator Hunter. “This is a program targeted to certain homeowners in difficult situations, and it is only right that their bank or lender give them the opportunity to save their home through the “Hardest Hit Program.”

Michigan received $154.5 million in June to help approximately 17,000 struggling homeowners, and another $128.4 million in August to aid as many as 13,000 more families. A current list of participating servicer/lenders can be found at www.michigan.gov/HardestHit.

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Sen. Hunter represents the 5th district, which is comprised of Northwest Detroit, Dearborn Heights and Inkster. He serves as Minority Vice Chair of the Banking & Financial Institutions and the Homeland Security & Emerging Technologies Committees. He is also a member of the Senate Committees on Commerce & Tourism, Economic Development & Regulatory Reform, and Reforms and Restructuring.

Contact:
Sen. Tupac A.Hunter
(517) 373-0994