As part of his efforts to preserve homeownership for millions of American families and to strengthen local communities and our nation’s economy, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has announced that leading stakeholders in the subprime mortgage market have agreed to a comprehensive set of principles when working with families facing foreclosure on their homes.  The principles are based on the premise that everyone – investors, servicers, lenders, homeowners, and neighborhoods – benefits when families’ homes are protected from foreclosure to the extent possible.

For the full text of the principles, click here.

The following organizations and companies commented on the Summit and the principles that grew from it:

Mortgage Bankers Association

John M. Robbins, CMB, Chairman

“The Mortgage Bankers Association endorses the homeownership preservation principles developed under Chairman Dodd's leadership.  We appreciate the Chairman's efforts in bringing together important elements of the mortgage finance industry to ensure that all that can be done on behalf of borrowers facing foreclosure is being done.”

 

Citigroup

Carl Levinson, President and Chief Executive Officer of Citi's Consumer Lending Group

“Citi applauds Chairman Dodd's leadership in addressing the needs of families who are at risk of losing their homes to foreclosure. These are difficult times for low- and moderate-income homeowners and the industry must work together with advocacy groups and elected officials to provide needed relief now and long term solutions going forward. Recognizing this, Citi supports the Statement of Principles developed by Chairman Dodd and his Homeownership Preservation Summit and calls on other lenders to join Citi in advocating the adoption of these principles by the industry and helping homeowners remain homeowners.”

 

JPMorgan Chase

David Lowman, CEO of Chase Home Lending

“We support Sen. Dodd's efforts to help families who are struggling with their mortgage payments. We believe we can develop the best solutions by working with the Senate committee, our regulators, borrowers, investors and community representatives.”

 

Litton Loan Servicing

Larry B. Litton, Jr. President and CEO

“The principles that Senator Christopher Dodd and the Senate Banking Committee have developed are aligned with the homeownership preservation and loan modification practices Litton has been employing for years to help those borrowers stay in their homes. We have been actively working with the federal and local governments, community organizations, customers, investors, and regulators on this issue and we believe this is a great tool the industry can use to help reduce the number of foreclosures facing the subprime industry, while continuing to meet our obligations to our investors.”

 

HSBC Finance Corporation

Brendan McDonagh, Chief Executive Officer

“As part of its ongoing commitment to sustaining homeownership through responsible lending and servicing, HSBC supports the guidance provided by the U.S. Senate Banking Committee’s Statement of Principles announced today by Senator Dodd.  HSBC has been pleased to work with Senator Dodd, the Committee and industry colleagues in discussing the important issues facing homeowners today.  HSBC has been servicing customers for more than 125 years, through many credit cycles and a wide range of economic circumstances.  We take the current mortgage environment seriously and we are taking strong and proactive steps to minimize the impact on our customers.”

 

Freddie Mac

Richard F. Syron, Chairman and CEO

“We applaud Senator Dodd's leadership and support his principles to preserve homeownership. These principles complement Freddie Mac's longstanding commitment to putting people into homes that they can afford and keep.”

 

Fannie Mae

Daniel H. Mudd, President and CEO

“We're pleased to sign on to the statement of principles and we appreciate Senator Dodd's leadership in convening the Homeownership Preservation Summit. Fannie Mae is committed to being part of a solution that keeps people in homes, minimizes market disruption and improves practices and products for consumers.”

 

Self-Help Credit Union

Martin Eakes, Chief Executive Officer

“I commend Senator Dodd and all the industry participants in developing improved practices. “Without intervention by every segment of the mortgage industry along these lines, hundreds of thousands of American families who have been placed in subprime mortgage loans whose interest rates are set to explode in the near future will lose their homes to foreclosure. To avoid this fate, which serves neither borrowers nor investors, servicers should take advantage of their ability to extend the initial rate for the life of the loan and make any other adjustments so that families can stay in their homes and investors can continue to get paid.”

 

Leadership Conference on Civil Rights

Wade Henderson, Executive Director

“We support Sen. Dodd’s proposal to help thousands of Americans keep their homes. “Too many have lost their homes already.  The foreclosure crisis has especially devastated thousands of minorities and low-income Americans who saw their American dream – to own their own home – turn into a nightmare.”

 

AARP

David P. Sloane, Senior Managing Director, Government Relations and Advocacy

“AARP strongly supports the principles, which will help millions of families who are at risk of losing their homes because of unconscionable practices on the part of predatory lenders. We are hopeful that Congress will act to pass strong, consumer-oriented predatory mortgage lending legislation to prevent these practices from continuing in the future.”

 

ACORN

Maude Hurd, President

“We are proud to be a part of the efforts by Senator Dodd and the Committee to stop the massive foreclosure crisis that is ravaging our neighborhoods. … We also applaud those mortgage companies who have agreed to the principles for homeownership preservation and thus are taking the necessary steps to help families who are facing foreclosure.  For the last two years we have been advocating that when lenders modify a loan, they should make sure that it gives the homeowner long term affordability.  This is a major principle, and we are glad to see that some of the largest mortgage companies have agreed to this.  We call on all mortgage companies to adopt these same principles.”

 

Countrywide Financial Corp

Sandy Samuels, Executive Managing Director

“Countrywide applauds Senator Dodd's leadership and vision in bringing together industry leaders, regulators and community groups to develop practical, workable solutions for subprime borrowers facing delinquency and foreclosure.”

 

Wells Fargo Home Mortgage

Cara Heiden, Division President

“Wells Fargo appreciates the leadership role Chairman Dodd has taken in bringing together a diverse group of stakeholders at his recent Homeownership Preservation Summit to reach agreement on these important principles. The principles mirror Wells Fargo's long-standing affirmative fair and responsible lending practices, and reflect our commitment to finding solutions for the financial challenges some nonprime consumers are facing.”

 

American Financial Services Association

Chris Stinebert, President and CEO

“We appreciate Senator Dodd’s efforts in this area, as foreclosure is a result that neither borrowers nor lenders want. Lenders are in the business of helping people buy and keep their homes. We stand ready to work with Senator Dodd and the Senate Banking Committee as needed.”

 

Option One Mortgage Corporation

Bob Dubrish, Chief Executive Officer

“We congratulate Senator Dodd and the Senate Banking Committee on developing the Statement of Principles for mortgage servicers. From our founding, we have understood the important responsibility that we have as mortgage servicers to families and communities. Our highest priority is serving our borrowers well.”