Tuesday, April 12, 2011

Senators Propose Homeowner Advocacy Office for HAMP Grievances

The Homeowner Advocate Act of 2011 (S.690) would create an Office of the Homeowner Advocate for the purpose of protecting homeowners seeking mortgage modifications through HAMP.

Although the Treasury Department has vowed to hold mortgage servicers publicly accountable for their adherence to Home Affordable Modification Program (HAMP) guidelines, some senators want to go one step further. They have proposed establishing a new federal agency as a means of recourse for "families who face foreclosure but believe their mortgage servicers are breaking the rules." Legislators say if the bill passes, HAMP has the potential of reaching its original goal of helping 3 to 4 million homeowners.

The legislators say the new HAMP office would be modeled after the Office of the Taxpayer Advocate at the Internal Revenue Service (IRS).  And we all know how helpful and friendly they are.