Statement from Banking Superintendent Neiman on State Foreclosure Prevention Working Group Report
February 7, 2008
Today the State Foreclosure Prevention Working Group, a coalition of state Attorneys General and Banking Supervisors, issued their first report reflecting months of work with subprime mortgage servicers. The report highlights important data on the number of loans serviced, the volume of delinquencies and modification efforts. Although the report clearly shows that progress is being made, it also exposes significant opportunities for further improvement. The group's focus on preventing unnecessary foreclosures where homeowners have the desire and reasonable ability to make payments on a loan is in the best interest of both the homeowner and the lender.
While I commend the 13 servicers who provided the data included in the analysis, the report re-emphasizes the importance of cooperation between state and federal efforts. It also highlights missed opportunities when institutions assert preemption to avoid collaborating on addressing the mortgage crisis. I believe it is important for everybody to be involved, so I call on nonparticipating servicers to see this as complementary to federal efforts and not contradictory.
A copy of the full report is available on the Banking Department website at www.banking.state.ny.us.