Accelerated Loan Modifications Request by HUD Secretary
HUD (Housing and Urban Development) Secretary Shaun Donovan said Friday that the federal government “must accelerate loan modifications” and mention a “desperate need” for mortgage wide standards to govern those amendment.
The White House is getting organized to roll out its own approach to deal with foreclosures and the housing market, and some $50 billion in money from the Troubled Asset Recovery Program has been allocated to facilitate stanch foreclosures. President Barack Obama could outline further steps next week during a trip through Denver and Phoenix, where home prices fell by 33% in 2008, amongst the worst such declines in the nation.
Mr. Donovan, the former New York City housing commissioner, presented few details about what steps the administration would take throughout a speech at New York University. The HUD secretary cited a need for bankruptcy alteration in order to create a “safety net” for those who couldn’t be helped by loan modifications, and said that if loan modifications accelerate, it was possible that “very few” homeowners would have to resort to declaring bankruptcy.
The HUD secretaries summarize a range of longer term goals that consist of repairing the mortgage-finance system, improving low-income rental housing and promoting sustainable growth. He also called for modernizing HUD programs, which he said were “at least a generation behind where they must be.”
Donovan also called for better responsibility within his agency so that it could better explain how it had spends its resources, and he referred to the association between Congress and HUD as “disturbing.”
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Posted by Carlos Sagastume on February 15, 2009. Filed under HUD Homes.
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