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Dodd Frustrated Over Slow Foreclosure Progress

Despite legislation, homeowners are still losing their homes

By Mark Huffman
ConsumerAffairs.com

July 20, 2009

"The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills," Dodd said.

At a hearing last week, Dodd asked officials from two of the nation's largest mortgage servicers, Wells Fargo and Bank of America, and officials from the Obama Administration to testify to explain the lack of progress.

"It's almost like 'Groundhog Day' here today," Dodd said at the hearing. "One of the first hearings I held two years ago when I became Chairman in February of 2007 was on this very matter. I am frustrated, and that's a mild word to use, that we have to hold this hearing at all. This is disgraceful."

Dodd said both the administration and lenders have some explaining to do.

"We've gotten plans and proposals from the administration," he said. "We've passed legislation, made changes asked of us, and passed even more legislation. We’ve received assurance after assurance from the industry."

Dodd said everybody agrees that the crisis in the housing market was the catalyst for the broader economic crisis. He says there's broad agreement that getting out of the recession requires that we stabilize our housing market and stem the tide of foreclosures.

"So I'm hoping that, with stakes this high, somebody can explain to me why nothing has changed over the last two years," he said.

More than 336,000 households received at least one foreclosure-related notice in June. The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.

"Why am I still reading about lost files, under-staffed and under-trained servicers, and hours spent on hold on the phone?" Dodd asked.

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