HUD and Obama Administration Officials Host Illinois White House Forum on Housing

U.S. Department of Housing and Urban Development – Shaun Donovan, Secretary
Office of Public Affairs, Washington, D.C. 20410
Monday, June 11, 2012
______________________________________________________________________________

HUD and Obama Administration Officials Host Illinois White House Forum on Housing
HUD, Treasury, CFPD, USDA, Senior Administration Officials, along with local housing leaders and advocates discuss programs, initiatives and "best practices" for assisting Ill. communities hardest hit by the housing crisis

WASHINGTON - The White House, U.S. Department of Housing and Urban Development (HUD), U.S. Department of the Treasury, the Consumer Financial Protection Bureau (CFPD) and the U.S. Department of Agriculture (USDA) hosted a Illinois White House Forum on Housing to discuss programs and initiatives promoted by the Obama Administration that help responsible homeowners and struggling communities hit hardest by the housing crisis.

"Responsible homeowners deserve the chance to preserve their piece of the American dream. That's why President Obama is calling on Congress to act on a "to-do list" that will ensure access to simple, low-cost refinancing tools that sustain and strengthen home equity for all. American homeowners haven't walked away from their responsibilities and we can't walk away from ours," said U.S. Housing and Urban Development Secretary Shaun Donovan. "Illinois has achieved significant progress, but there is more that we can do at the federal, state and local levels to help these families. That's why this Administration remains focused on ensuring that every American homeowner gets a fair shot, their fair share and a fair deal."

The White House Housing Forum convened Illinois elected officials, regional and local leaders, housing and development alliances and community advocates in the Eisenhower Executive Office Building this afternoon for the discussion.

Forum sessions, led by Obama Administration officials, explored tools and resources offered by the federal government and detailed help for homeowners, assistance for underserved communities, insights for cultivating public-private partnerships and the future of housing. Additionally, the historic $25 billion Mortgage Servicing Settlement, the President's new housing initiatives and legislative proposals impacting housing reforms were discussed. Participants shared "best practices" and provided feedback on the effectiveness of targeted federal programs and initiatives.

On March 8, U.S. Housing and Urban Development Secretary Shaun Donovan joined Illinois Attorney General Lisa Madigan for a similar informal roundtable discussion of the $25 billion National Mortgage Servicing Settlement with housing advocates, and state and local government officials in Illinois.

The unprecedented Mortgage Servicing Settlement is the largest federal-state civil agreement ever obtained and is the result of extensive investigations led by federal agencies, including the Department of Justice, HUD, the HUD Office of the Inspector General (HUD-OIG), 49 state attorneys general and state banking regulators across the country. The joint federal-state group entered into the agreement with the nation's five largest mortgage servicers: Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC).

Under the $25 billion national agreement, Illinois will receive nearly $1.2 billion in benefits and assistance for homeowners whose loans were serviced by one of the five participating mortgage servicers. In addition to the mortgage and financial benefits intended for distressed homeowners, the agreement underscores significantly improved mortgage servicing standards and practices that each of the five banking institutions will be required to implement in order to better assist current and future borrowers with this settlement and all other mortgage servicing issues.

The March exchange centered on the needs of affected homeowners and the most effective ways to assist those impacted by the housing crisis, regardless of whether their mortgages were serviced by the five banks who are parties to the settlement.

Under the settlement, participating mortgage servicers are required to contact borrowers directly regarding loan modification options in some cases. However, borrowers should not wait to hear from the banks. They should, with the assistance of a HUD-approved housing counselor, contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under the terms of this settlement.

Illinoisans interested in learning more details can contact:

• The Office of Illinois Attorney General Lisa Madigan: (866) 544-7151
• Making Home Affordable: (888) 995-HOPE (4673)

Other useful resources are below:

• NationalMortgageSettlement.com (http://nationalmortgagesettlement.com/)
• Makinghomeaffordable.gov (http://www.makinghomeaffordable.gov/pages/default.aspx)
• Office of Illinois Attorney General Lisa Madigan (http://www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html)

###