TNDP Applauds Efforts to Support State Homeowners, Housing Industry

NASHVILLE — The Tennessee Democratic Party issued a statement Thursday applauding efforts by President Barack Obama and Tennessee Attorney General Bob Cooper to help struggling homeowners get back on their feet and stabilize the state’s housing industry.

“Wall Street’s casino culture and predatory lending practices caused too many Tennessee families to lose their homes and much of their wealth,” said TNDP Chairman Chip Forrester. “The President’s administration, working with Attorney General Bob Cooper, has stood up to the big banks and stood up for middle class homeowners in Tennessee.

“It’s also good news for Tennessee’s housing industry. The settlement will be a much-needed source of housing finance, and will hopefully help put a floor under housing prices in state,” Forrester said.

Here’s how it will help homeowners: The biggest American banks, the ones that were rescued by taxpayer dollars in 2008, will be required to put billions of dollars toward homeowner relief. They’ll offer refinancing for borrowers who have high interest-rate mortgages. They’ll reduce loans for families who owe more than their homes are worth. And, according to the President, “they will deliver some measure of justice for families that have already been victims of abusive practices.”

Tennessee Attorney General Bob Cooper agreed to participate in the mortgage settlement agreement, which will provide an estimated $146 million in mortgage assistance loans to Tennessee homeowners. These funds are available to qualifying homeowners regardless of whether their mortgage is financed through the five participating banks: Bank of America, J.P. Morgan Chase, Citi, GMAC/Ally Financial, and Wells Fargo.

Eligible Tennessee homeowners who qualify for assistance may receive up to $25,000 toward current or past due monthly mortgage payments over an 18-month period. These payments are made directly to the loan servicer or lending agency. Homeowners in need of relief should contact their mortgage servicer directly to see if they are eligible. They can also speak to a foreclosure prevention counselor toll-free at (855) 690-4899 or visit the Tennessee Housing Development Agency’s Keep My Tennessee Home website at http://www.keepmytnhome.org for more information.

The contrast couldn’t be more stark between President Obama’s efforts on behalf of American homeowners and Republican front-runner Mitt Romney’s utter lack of concern for their plight. As he campaigns for the Republican presidential nomination, Romney has yet to offer a single proposal to lend a hand to Tennessee’s struggling homeowners, make it easier for them to refinance their homes, or help them avoid foreclosure.