Frank To Lenders: Put Foreclosures On Hold

By Victoria McGrane

(The Politico)  With the massive housing package on a glide path to the president's desk, House Democrats Friday urged the mortgage industry to put pending foreclosures on pause until the law takes effect.

The bill's program to refinance distressed borrowers into affordable, government-backed loans kicks in Oct. 1.

"I would hope no one would be foreclosed upon between now and October 1st who would have qualified for this program had the effective date been immediate," said House Financial Services Chairman Barney Frank (D-Mass.) in a statement. "And that is within your power to do."

"It would be shameful for a single homeowner in California, or anywhere else hit hard by the foreclosure crisis, to lose their home if they could ahve been helped by this program but for this deadline," agreed Rep. Maxine Waters (D-Calif.), who chairs the panel's Housing and Community Opportunity Subcommittee.