“It’s time to face reality. The economy will never fully recover if the foreclosure crisis is not addressed in any real way. To that end, NCRC reiterates what it has long called on the federal government to do: enact mandatory mortgage principal reduction. While it is true that with nearly 11 million foreclosures starting us in the face, Wall Street, banks and their servicers have made attempts to stem the tide of foreclosures as outlined in today’s Wall Street Journal (“Mortgage Servicers Resist But Cut Debts“), let’s be honest: these efforts have been feeble at best and don’t begin to tackle the magnitude of the problem.”
“There was a glimmer of hope last week when the 50 State Attorneys General issued their initial proposal that would finally hold the mortgage servicing industry accountable for its fraudulent and abusive practices and require them to finance mortgage modifications. And while the naysayers are already out in force claiming that such action would create even more problems, you can’t just give up and throw the baby out with the bathwater and leave the American people, many of whom are facing foreclosure through no fault of their own, to fend for themselves.”
“The Administration and Congress need to step up to the plate and aggressively pursue effective remedies to the foreclosure crisis. It’s easy to cast a vote, to point fingers and blame others. The test of true leaders is marked by the ability to solve problems even against the strongest of headwinds. Let’s hope that our government heeds this call.”
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