Several hundred residents people seeking solutions to the foreclosure crisis packed St. Clare Catholic Church in Cincinnati to offer US Treasury and state officials recommendations for improving the Home Affordable Modification Program (HAMP).

The HAMP is an Obama administration initiative designed to save homes from foreclosure. Local organization, Working In Neighborhoods (WIN), hosted the meeting which was one of 10 hearings nationwide. “We are glad the Treasury came to listen to  our stories and to work with us,” said Mary Bridges, chairperson of the WIN Action Organizing Project. “We know it will take a lot of work to save our community, but this is a start. We hope to capture the ear of the Treasury Secretary himself. We know that if government will work with the people, we can defeat this foreclosure situation.”

The day before, WIN released a study of the foreclosure crisis in Cincinnati, where Bank of America is the top forecloser. CLICK HERE TO READ THE REPORT

Fifteen homeowners testified about the problems they had encountered trying to save their homes. Forest Park resident Theresa Davis brought her entire family to demonstrate the impact the HAMP process has had on her. In 2004, Ms Davis borrowed $84,000 to purchase bought her home.

After a series of medical problems, she fell behind on her payments. She negotiated a loan modification with her lender that extended the mortgage to 40 years and lowered her monthly payments by $500. However, at the end of the 40 years, Ms Davis will owe a balloon payment of $92,000.


“This is the kind of situation we are hoping the Treasury will address,” said S. Barbara Busch, WIN Executive Director. “Without principle reduction, we are just putting off the inevitable.”

The meeting featured Sarah Apsel, Policy Advisor for the US Treasury, Ruth Clevenger,  Vice President and Community Affairs Office of the Federal Reserve Bank, Susan Choe, Chief of the Ohio Attorney General’s Consumer Protection Section, and several local and state officials. As a result of the meeting, the US Treasury agreed to:

• Decrease the amount of time for homeowners to receive loan modifications.
• Recommend that lenders award principle reductions instead of balloon payments.
• Institute an appeals process for borrowers when their loan modifications are denied.

One of the group’s key concerns was not addressed. WIN and the homeowners present  recommended that, due to the distressed economy, the Treasury provide help for homeowners who are unemployed. Ms Apsel said that the Treasury was unable to provide any additional help for unemployed people.