HUD AND OBAMA ADMINISTRATION OFFICIALS HOST MARYLAND WHITE HOUSE FORUM ON HOUSING
The White House, HUD, Treasury and Obama Administration officials, along with local housing leaders and advocates discuss programs, initiatives and "best practices" for reviving MD communities hardest hit by the housing crisis

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

"The President's proposals to expand refinance options to homeowners are an important pathway to maintaining economic security for the middle class," said Carol Galante, Acting FHA Commissioner and Assistant Secretary for Housing. "Today's exchange underscores our commitment to ensuring that sustainable homeownership remains at the forefront of the President's vision for an America built to last. And together, we look forward to continuing our work with key partners to achieve our objectives."

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

"While we are acutely focused on deploying all the appropriate tools at our disposal to recover from the excesses of the housing bubble and keep families in their homes, we are also focused on the future of the housing system," said Timothy Bowler, Deputy Assistant Secretary of the Treasury for Capital Markets. "These forums provide us an unparalleled opportunity for engagement with key partners whose feedback and insight is invaluable as we work to reform America's housing finance market."

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.

"These forums provide an opportunity to engage our partners, stakeholders and customers on the housing issues that impact the well being of their local and regional communities," said HUD Regional Administrator Jane C.W. Vincent. "With the leadership of the Obama Administration, the collaboration among federal agencies and the input of forum participants, we can work together to keep people in their homes in sustainable communities that will strengthen our nation's economy."

On March 23, U.S. Housing and Urban Development Secretary Shaun Donovan joined Maryland Attorney General Douglas F. Gansler for a similar informal roundtable discussion of the $25 billion National Mortgage Servicing Settlement with housing advocates, and state and local government officials at Prince George's Community College in Largo, MD.

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, Maryland will receive nearly one billion in benefits and assistance for distressed homeowners who paid their mortgage to one of the five participating mortgage servicers. 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.

The majority of the benefits and assistance will help eligible homeowners in the following ways:

• Individual payments to borrowers who were victims of unfair mortgage servicing practices and were foreclosed upon between January 1, 2008 and December 31, 2011;
  
  
• Loss mitigation programs, such as loan modifications for homeowners with loans serviced by the five big banks who are behind on or very likely to soon fall behind on their mortgage payments (including interest and principal reductions), forbearance plans, and short sales;
  
  
• Refinancing for homeowners with loans owned and serviced by the five big banks who are current in their payments but who owe more than their homes are worth; and
  
  
• Housing counseling and other state-level foreclosure prevention and housing programs.

In addition to the mortgage and financial benefits intended for distressed homeowners, the agreement spells-out 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.

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.

Marylanders interested in learning more details can contact:

• The Office of Maryland Attorney General Douglas F. Gansler: (888) 743-0023 or (410) 576-6300
• Making Home Affordable: (888) 995-HOPE (4673)

Other useful resources are below:

• Holding the Mortgage Industry Accountable (Visit HUD's website)
• NationalMortgageSettlement.com
• Makinghomeaffordable.gov

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.