July 16th, 2009
01:48 PM ET
5 years ago

Obama turns up heat on mortgage servicers

NEW YORK (CNNMoney.com) – As complaints mount about President Obama's foreclosure prevention program, the administration is ratcheting up the pressure on mortgage servicers.

Financial executives will meet with Treasury and Housing officials on July 28 to discuss how the loan modification and refinancing plan has been implemented. The administration plans to grill servicers that have done few modifications or have had many complaints.

Officials also want financial institutions to hire more people and train them better, expand their call centers, and send more mailings to eligible borrowers, according to a letter sent to servicers last week. The government also said servicers need to establish a way for borrowers to contest their treatment or denial.

"There is a general need for servicers to devote substantially more resources to this program for it to fully succeed and achieve the objectives we all share," according to the letter, signed by Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan. "We are asking all servicers expand their servicing capacity and improve the execution quality of loan modifications."

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Filed under: CNNMoney.com • President Obama
soundoff (16 Responses)
  1. Randolph Carter

    And those call centers and servicers will be in the USA? Hahaha. Right. Have a nice day!

    July 16, 2009 03:04 pm at 3:04 pm |
  2. GI Joe

    They were loaned the money to try to make things better. What did THE LENDERS do with the money the received from taxpayers funds?

    Regulation – we need regulation – it was phased out starting with the Keating 5 several decades ago. We need regulation and it needs to be enforced.

    July 16, 2009 03:08 pm at 3:08 pm |
  3. Phil

    Worst.

    President.

    Ever!!!!

    July 16, 2009 03:11 pm at 3:11 pm |
  4. Zero.

    You! You American-States, elected the Muslim. But it is Canadians who are paying the price.

    July 16, 2009 03:14 pm at 3:14 pm |
  5. yuri

    No matter how hard BHO or anybody else try anything, there are plenty of bottlenecks and hurdles to go around. Hence it is not surprising to see frustrations are opn the rise.

    July 16, 2009 03:16 pm at 3:16 pm |
  6. Democrati Ignorati

    And if you don't do what Obama says, he will instruct Congress to send a bill to his desk, to buy the mortgage providers, and then he will write-off all of these loans at our expense.

    July 16, 2009 03:16 pm at 3:16 pm |
  7. Melissa

    Time to call the companies out on their crap. They are doing everything they can to keep rates the same.

    July 16, 2009 03:21 pm at 3:21 pm |
  8. IMPEACMENT

    IMPEACH OBAMA before he does more harm to this country!!

    July 16, 2009 03:22 pm at 3:22 pm |
  9. Bob in Pa

    This man won't stop until the government owns and controls every major aspect of our lives from cradle to grave.

    He is closer to controlling the types of cars we drive.

    It's bad enough that he has forced the passing of so many mortgages to Fanny and Freddy. Pretty soon, the government will hold all our Mortgages and will have to rent from them. The average person will own nothing and have no possessions to pass down to our children.

    July 16, 2009 03:23 pm at 3:23 pm |
  10. Obama Victim

    wow................something that the government is involved with that doesn't work..................who would have thought??

    July 16, 2009 03:24 pm at 3:24 pm |
  11. Rick CT

    Just another rushed through, less-than-well thought out program.

    July 16, 2009 03:26 pm at 3:26 pm |
  12. RNC = DNC = politics as usual

    This was the worry about some of Obama's plans. They sounded great in speeches, but were not really thought through.

    When things just don't happen with a wave of the hand, Umbama starts to blame everyone else.

    Messiah meets Reality.

    July 16, 2009 03:26 pm at 3:26 pm |
  13. Mark,B'ham,Al.

    Obama wants the mortage lenders to take the loss and give the people who got homes they could not afford their house with no payments. That is un-american and socialist behavior. I went through a foreclosure and built my credit back and saved enough to be able to afford to buy a home later. They can do the same, I have no sympathy for them!

    July 16, 2009 03:30 pm at 3:30 pm |
  14. Duh it ain't good business

    I guess the White House is about to learn that mortgage companies and banks have no interest refinancing loans to unqualified home buyers who had no business buying the homes in the first place. It is not good business to refinance a loan to a dead beat Mr President ...and your legislation to turn the US into a socialistic state has not passed yet,

    July 16, 2009 03:35 pm at 3:35 pm |
  15. Not a consitutional matter

    The constitution does not guarantee life, liberty, and a mortgage loan Mr President. Time for your dead beat supporters to pay their bills or go rent an apartment that can actually afford.

    July 16, 2009 03:36 pm at 3:36 pm |
  16. Barney Frank to the rescue

    If you want all those loans refinanced Mr President, ask Barney Frank to make the loans from all those campaign contributions he has been getting from AIG and Fannie Mae and Freddie mac for the past decade

    July 16, 2009 03:37 pm at 3:37 pm |