ST : More options to keep homes

Dec 4, 2009

More options to keep homes

WASHINGTON - A TOP US Treasury official said on Thursday that more needs to be done to prevent people from losing their homes, adding that the department is exploring a wide range of options to help responsible home owners.

'We particularly want to make sure that we have the tools we need to help people who are temporarily unemployed,' Assistant Treasury Secretary Michael Barr told reporters on the sidelines of a consumer conference.

The Obama administration has already created a US$75 billion (S$104 billion) taxpayer-financed program designed to help slow the rate of foreclosures. About 650,000 borrowers have completed trial modifications under the Home Affordable Modification Program.

Mr Barr characterised the program as an aggressive set of tools to engage people in the process, but said more needs to be done. 'We are looking at a wide range of tools to help people who are unemployed,' Mr Barr said. 'We need to look at a process, if we come to this point, that is fair to everyone, that is cost effective, that protects the taxpayers and that gives responsible home owners a chance to stay in their homes.'

Mr Barr expressed dissatisfaction with mortgage lenders' inability to fully execute the required steps to bring relief to borrowers who are struggling.

'It has been an area of frustration for us and for borrowers,' he told the consumer conference. 'It is up to the banks to finish the job and get borrowers into completed modification plans. We are examining their performance every day ... soon to be twice a day.' -- THOMSON REUTERS