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The chairman of the House Financial Services Committee called on lenders to stop filing foreclosures until a new foreclosure-prevention program takes effect.
On Wednesday, Rep. Barney Frank (D-Mass.) had called on lenders to make immediate use of the program, which is included in a massive housing package that passed the House this week and is expected to be put to a vote in the Senate this weekend. President Bush has said he will sign the measure. Frank yesterday corrected those remarks, noting that the program would not take effect until Oct. 1.
The program seeks to move as many as 400,000 distressed borrowers into more affordable loans backed by the federal government. Erick Gustafson, a lobbyist for the Mortgage Bankers Association, said loan servicers would consider Frank’s request.
Comment from Moe: Barney, don’t ask, MAKE THEM!
