Senators Want Better Servicer Response Times

Sen. Jack Reed, D-R.I., and 14 other Democrats are urging HUD secretary Shaun Donovan to get tough on servicers that are not responsive to troubled homeowners who need assistance. In a letter to the HUD secretary, the senators cite a recent NeighborWorks America study that found homeowners who reach out for help have to wait (on average) 45 to 60 days for a servicer to respond. "What steps are you able to take to address the concerns raised by our constituents who are unable to access answers or adequate help from servicers? Are there further legislative tools that you require to address this problem, or to meet the broader needs of struggling homeowners?" the June 9 letter says. At press time HUD officials had not commented on the Reed letter. However, Treasury deputy assistant secretary Seth Wheeler told a fair housing conference on June 8 that servicers are required to increase their capacity when they sign up to do loan modifications under the Making Home Affordable program. The Treasury will be tracking their results. "We will have a very frank dialogue about what kind of staffing is realistic," Mr. Wheeler said.