Nessel urges feds to address failures in mortgage aid programs
Michigan Attorney General Dana Nessel has joined forces with a coalition of 20 attorneys general, pressuring the federal government to take "critical" action to help borrowers in the midst of a costly COVID-19 pandemic.
Nessel’s office says this starts by addressing failures to implement mortgage restructuring programs to ensure those most financially impacted by the COVID-19 pandemic can afford to stay in their homes.
"At a time when so many face ongoing financial hardships, we must deliver on assurances provided to those who are struggling," Nessel said. "I join my colleagues in urging our federal partners to verify proper implementation of this vital program."
During the pandemic, the Federal Housing Administration (FHA) has helped borrowers by implementing payment pauses and forbearance programs, through its COVID-19 Recovery Loss Mitigation Options. Programs showed a specific focus for low-income households, first-time homeowners, and households of color disproportionately affected by the pandemic.
However, a letter-led by District of Columbia Attorney General Karl A. Racine to the FHA, details that several mortgage loan servicers employed and approved by FHA have failed to adequately implement the FHA COVID-19 Recovery Modification, as well as other COVID-19 relief programs to support borrowers. The letter calls on the FHA to ensure that its approved and employed mortgage loan servicers are taking the necessary steps to implement the FHA COVID-19 Recovery Modification in its entirety.
Joining Attorneys General Nessel and Racine in sending the letter are the attorneys general from California, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington.