Obama administration to unveil additional elements to ensure homeowners are treated fairly
By Alan Zibel, Associated Press
February 22, 2010
Obama administration is soon expected to unveil additional protections to ensure homeowners are treated fairly and consistently under its mortgage relief program.
The policies, outlined in a draft Treasury Department document obtained by the Associated Press, would address long-standing complaints from housing counselors. They have cited cases of lenders continuing with foreclosures while homeowners were being evaluated for help. That practice would be banned under the new rules.
Government officials acknowledge treatment of homeowners has been a problem under the $75 billion mortgage relief effort.
Some lenders, for example, continue foreclosure proceedings while evaluating a borrower for help under the program. Under the new policies, mortgage companies would have to stop all legal action once a borrower enrolls in the program.
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