Democratic Rep. John Conyers of Detroit, chairman of the U.S. House Judiciary Committee, has called on the Treasury Dept. to provide details of what lenders have done to help people avoid foreclosure since Congress passed a bill encouraging them to engage in voluntary loan modification programs.
In a Sept. 17 letter to Treasury Secretary Timothy Geithner, Conyers wrote on behalf of the committee:
As you may know, the Committee on the Judiciary is considering ways to respond to the mortgage foreclosure crisis. Among proposals under consideration is an amendment to the Bankruptcy Code to permit judicial modification of the rights of holders of claims secured only by a security interest in the debtor’s principal residence. In effect, the amendment would authorize judicial modification of home mortgages, under certain circumstances.
To assess the need for this relief, we want to gauge the effectiveness of the Treasury Department’s current foreclosure prevention and loss mitigation efforts over the past six months. To that end, we ask that you provide information regarding the Department’s efforts to facilitate modification of home mortgages, which we understand occurs only if the servicer voluntarily agrees to such modification. We realize that this timeframe covers a period preceding the date on which the Home Affordable Modification Program (HAMP) became effective on March 4, 2009.
According to Conyers, every day 195 homes enter into the foreclosure process in Wayne County, Michigan.