Released: March 02, 2011

Congress: Don’t abandon homeowners mid-crisis

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Washington, DC, March 2, 2011 — As members of the U.S. House of Representatives threaten to dismantle help for struggling homeowners, Consumer Action warns that abandoning the only federal programs that stand to prevent foreclosures would put hundreds of thousands of families at risk.

The House Financial Services Committee will vote this week whether to terminate funds for bridge loans for unemployed homeowners via the Emergency Homeowner Loan Program (EHLP) and for mortgage modifications through the Home Affordable Modification Program (HAMP). HAMP has helped more than half a million families avoid foreclosure since 2009.

“Millions more families remain at risk of foreclosure while some in Congress seek political gain by gutting the limited government help now offered to struggling homeowners,” says Linda Sherry, Consumer Action director of national priorities. “Consumers have footed the bill for this financial crisis. Slashing consumer programs and stripping funds that help families and neighborhoods remain intact is mean-spirited and just plain wrong.”

Consumer Action calls on Congress to redirect its efforts to ensure that the financial services industry bears responsibility for helping families avoid foreclosure by creating long term, sustainable mortgage modifications.

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Consumer Action (www.consumer-action.org) has been a champion of underrepresented consumers nationwide since 1971. A nonprofit 501(c)3 organization, Consumer Action focuses on financial education that empowers low to moderate income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change.t78