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August 5, 2010

DiNapoli Presses For Information on Foreclosure Relief

Letters to Major Lenders Seek Details on Bank Efforts to Ease Foreclosure Burden

New York State Comptroller Thomas P. DiNapoli announced today that he is sending letters to several large banks requesting detailed information regarding their efforts to help New Yorkers who are confronting the painful threat of mortgage foreclosure.

“In addition to the personal devastation families experience over the loss of their homes, foreclosures exact a heavy cost on lenders and neighborhoods,” DiNapoli said in the letters. “As the Chief Fiscal Officer of New York State, I am deeply concerned about the deleterious impact that rising home foreclosures and mortgage delinquencies can have on the housing market and, subsequently, on the State and local economies.”

DiNapoli and New York City Comptroller John C. Liu, who sent similar letters in July, have asked for responses by September 1, 2010. The letters are addressed to the chief executives of Bank of America, Citibank, HSBC, JPMorgan Chase, and Wells Fargo.

DiNapoli’s letters ask the banks to respond to the following questions:

  • What efforts are undertaken to respond promptly to customers’ requests and inquiries about loan modifications?
  • What efforts are undertaken to slow foreclosure proceedings while the bank evaluates a borrower’s eligibility for a loan modification or other foreclosure prevention options?
  • What efforts are undertaken to expedite the loan modification process?
  • What efforts are undertaken, in appropriate situations, to increase the number of loan modifications involving principal write-down, and to increase the number of loan modifications in which the principal is reduced to no more than the market value of the property?
  • What efforts are undertaken to work with qualified non-profit housing developers to purchase the homes of borrowers not eligible for loan modifications, and to allow the current owner or renter to remain in the property?


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