Durbin: New Mortgage Aid Plan Doesn't Go Far Enough

Statement

Durbin: New Mortgage Aid Plan Doesn't Go Far Enough

United States Senator Dick Durbin (D-IL) issued the following statement today, in response to the Treasury Department's creation of "Project Lifeline" - a new program to help homeowners facing foreclosure, keep their homes.

"Homeowners at risk of foreclosure are floating 50 feet from shore while Project Lifeline throws them a 30 foot rope."

"While I'm pleased that the lenders are starting to help those most in need, too many families are quickly being swept away - losing their homes and drowning in financial difficulties. We need a plan that goes farther. Preventing foreclosures should be the primary means of stemming the mortgage crisis"

"The Senate Judiciary Committee will consider my bill to help families avoid foreclosure as soon as Thursday. I hope the committee will pass the bill quickly so hundreds of thousands of people can keep their homes."

Last fall, Senator Durbin introduced the Helping Families Save Their Homes in Bankruptcy Act, which would allow those facing foreclosure to alter the terms of their mortgages in bankruptcy proceedings, allowing them to keep their homes while continuing to fulfill their obligations. Everyone, from lender, to homeowner, to community, would be better off under the terms of this bill than if the homes enter foreclosure.

According to the Center for Responsible Lending, 2.2 million homeowners are at risk of losing their homes because of the collapse of the subprime mortgage market. The Center estimates that more than 600,000 homeowners would keep their homes under the terms of Senator Durbin's legislation.

The Senate Judiciary Committee is expected to consider the bill this month.

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