WASHINGTON, DC- At a Senate Banking Committee hearing today on the response to the turmoil in the credit market and progress on the rescue package, U.S. Senator Bob Casey (D-PA) pressed Neel Kashkari, who is overseeing the $700 billion rescue package, for more specifics on when Treasury will act to help homeowners avoid foreclosure. Following the hearing, Senator Casey released the following statement:
“New data released today underscores what we have known and what some of us have been talking about for a couple of years: too many homeowners are facing foreclosure.
“Nationally, in the third quarter foreclosure filings increased 71% over the same period last year. The situation in Pennsylvania is worse where we experienced a 73% increase. In Pennsylvania, foreclosure filings increased nearly 18% from the previous three month period. That increase dwarfs the national increase of only 3.5%.
“Foreclosures not only hurt the homeowner who loses their home; it hurts entire communities and brings down property values. With dipping property values, people who are able to make their house payments lose equity in their home, there is continued instability in the housing market and more dangerous ripples are sent throughout the economy.
“I am disappointed that Treasury is not moving quickly enough to use all tools at their disposal to address the foreclosure crisis. Conversely, Chairman Sheila Bair and the FDIC should be commended for taking the initiative to modify mortgages through IndyMac, after the FDIC seized control of IndyMac and placed the Savings and Loan in conservatorship, and for pressing the importance of mortgage modification within the Bush Administration.
“I plan to follow up with Secretary Paulson and ask the same questions I posed to Neel Kashkari today on the Treasury Department’s plans and timetable for mortgage assistance. Given the help given to Wall Street and the clear need for mortgage modifications and implementation of the asset purchase program, a lot of people are rightly wondering what is taking the Treasury Department so long.”
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