Titus: Latest Changes To Housing Plan A Positive Step, But More Must Be Done

Press Release

Congresswoman Dina Titus of Nevada's Third District highlighted today the Obama administration's adjustments to the Home Affordable Modification Program and the Federal Housing Administration programs. For months, Titus has been pushing the Obama administration to do more to address the foreclosure crisis, which has hit her district especially hard.

"Addressing the foreclosure crisis has been one of my top priorities since coming to Congress, and I have long called on the Administration to take additional steps that target regions like Southern Nevada that are suffering from high foreclosures and unemployment," Congresswoman Titus said. "Today's announcement is a positive step forward; but for our efforts to be successful and help Nevadans who are at risk of losing their home, the same Wall Street banks that took a taxpayer-funded bailout need to step up and be part of the solution, rather than continue to contribute to the problem."

Among the changes announced today, services will be required to consider an alternative modification approach that emphasizes principal relief. This alternative modification approach will include incentive payments for each dollar of principal write-down by servicers and investors. The principal reduction and the incentive will be earned by the borrower and lender based on a pay-for-success structure. Additional changes were announced to provide temporary assistance for unemployed homeowners as they search for reemployment.

Today, Titus also sent letters to Bank of America and Wells Fargo, two banks which own some of the largest mortgage portfolios in Southern Nevada, demanding that they do more to help families struggling to avoid foreclosure. "It is important that these banks, who owe their continued existence to the American taxpayer, send staff to Southern Nevada with the authority to modify loans," said Titus. "These banks have lost too much paperwork and returned too few calls. It is time for them to do their part to help families in Southern Nevada."

Earlier this month, Titus outlined a plan for housing funds Nevada is set to receive that puts an emphasis on principal reduction to help people stay in their homes. "I am pleased the administration is focusing on principal reduction, a step that I believe is necessary to not only provide short-term assistance, but long-term stability as well. I hope the state will offer a plan to use the additional housing funds that expands upon these efforts," added Titus.

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