WASHINGTON – Sen. Barbara Boxer on Friday pressed for action from 21 banks and lenders that an advocacy group has accused of insufficient support for at-risk homeowners in California.
Boxer, D-Calif., sent letters to executives at the mortgage servicers urging them to participate in a federal program called Hope for Homeowners that provides financial backing to lenders who agree to renegotiate mortgages.
The $300 billion program was signed into law in July and took effect Oct. 1.
“The program will not work, however, if lenders and servicers fail to participate,” Boxer wrote in letters sent to executives at Wachovia Corp., Wells Fargo & Co., JP Morgan Chase & Co. and First Federal Bank of California, among others.
“Should they continue their reluctance to make reasonable loan modifications, Congress can be expected to take a closer look at lender and servicer practices to determine what additional measures will be needed.”
Comments on this entry are closed.