STATEMENT BY HUD SECRETARY STEVE PRESTON ON THE HOPE NOW ALLIANCE'S NEW MORTGAGE ASSISTANCE GUIDELINES

WASHINGTON - U.S. Department of Housing and Urban Development Secretary Steve Preston released the following statement today regarding the HOPE NOW Alliance's adoption of new guidelines to help homeowners more quickly obtain the assistance they need to avoid foreclosure. The new uniform guidelines will enable servicers working with HOPE NOW to reach homeowners more quickly about the status of their applications, and whether they have been approved for assistance.

"I applaud HOPE NOW for committing to a service standard that will provide homeowners in need with greater certainty and reliability. With today's announcement, families worried about how they are going to make their next mortgage payments can breathe a sigh of relief knowing that their servicers are working to give them both clear and timely assistance.

HOPE NOW's commitment and creativity has helped 1.6 million Americans, and today's actions will help many more families be able to receive the assistance they need to stay in their homes. We need to continue to put in place well-reasoned solutions like HOPE NOW has done. I strongly encourage Congress to send the President a good FHA Modernization bill and GSE reform measure that do not include other provisions that may have unintended consequences for homeowners and our overall economy."

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HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.