Mortgage banks may not have the legal authority to foreclose homes. This is a surprising revelation brought up last week by several parties who testified in a Senate Banking Committee hearing.
With lenders being required to exert more effort to negotiate with troubled borrowers, experts are wondering if the new legislation will indeed reduce foreclosures in the state.
Chairman Sheila Bair, the frontrunner of FDIC’s proposal for a mortgage-restructuring program to stop foreclosures is targeted out of office by administration people.
Fed Governor Dan Tarullo believes that there is a need for US Congress to enact a new legislation that would set national standards for foreclosures. He said there is a need to make sure the same problems would not be encountered again in the future.
The New Jersey Senate and Assembly have approved the Mortgage Stabilization and Relief Act which would provide refinancing help to homeowners who are facing the threat of foreclosure.
Outgoing President George Bush may request Congress to release the second half of the $700 billion TARP fund which was approved in October 2008 to help solve the foreclosure crisis.
Obama faces his first big test in the Senate as Democratic and Republican senators debate whether to release the second $350 billion of TARP for his own foreclosure prevention program.
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