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Tierney Still Calling On FHFA To Allow Loan Modifications

Congressman John Tierney, along with Elijah Cummings, a ranking member of the committee on Oversight and Government Reform, have requested that the chairman of the committee, Darrell Issa, subpoena documentation that the Federal Housing Finance Agency committed to making available to the committee in November of last year. The provision of this documentation was committed to by the FHFA’s Acting Director, Edward DeMarco, who alleged in a November hearing that the FHFA’s refusal to pressure banks to keep Americans in their houses via loan modifications was a decision based on the agency’s own analysis. That analysis has been called into question by Tierney, and in the 2 months following the November hearing, the FHFA is yet to produce a single shred of documentation.

 

The FHFA has alleged that loan modification does not represent the lowest-cost approach for the taxpayer. It is an allegation that appears to dismiss substantial research and recommendations from a variety of other federal agencies, non-profits and policy groups. Tierney has stated that if the FHFA is going to make claims of this nature that goes against the assessment of numerous other authorities on the matter, the American public needs to have access to the data the agency is using to make this claim upon. The FHFA has in effect argued that foreclosures are the best solution in response to the ongoing housing market crisis.

 

DeMarco has additionally claimed that the FHFA does not possess the statutory power to run a program of principal balance reductions, a claim which is also as yet unsubstantiated by any documentation. The agency seems bent on hiding behind inconclusive arguments and on delaying concrete action that could result in tangible assistance for the millions of Americans who are struggling to keep their homes. Congressman Tierney has for some time now supported the idea of principal reductions for particular troubled home loans as a strategy for giving the ailing housing market a much needed boost.

 

Just think of the audacity of the FHFA. Forget about any initiatives to assist Americans to keep their own roofs over their heads. The best option is to put them onto the streets. It is a shameful attitude, based on empty claims that have not been backed by a single piece of supporting documentation. As anyone who is remotely informed about housing market antics in the United States during the last few years, it would by no means be the first time that a federal agency has gotten away with grossly unethical conduct.

 

Loan modification is the greatest source of hope for millions of American homeowners, and MyCaal.com remains as dedicated as ever to ensuring that these homeowners obtain the loan modification approval that they need.

 

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About Carla Ghosn

CEO and Founder of Caal (mycaal.com) keen on helping American homeowners save their home. If you need help with your loan modification, visit www.mycaal.com to get help on pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online.
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