Banking Industry Faces Questions from Lawmakers

State Rep. Karen Yarbrough (D-Broadview) held a legislative hearing in Chicago earlier this week where she took questions leaders in the banking industry took questions from lawmakers.

Several items were discussed during this hearing, all of which were taken into consideration for future legislation. One representative from JP Morgan Chase spoke about her hope that policy tweaks to the Home Affordable Modification Program (HAMP) would lead to more mortgage modifications for borrowers. At this time the HAMP program has been seen largely as a failure.

In response to this State Sen. Jacqueline Collins (D-Chicago) said that such changes might come too late for many homeowners. Instead homeowners should be steered to community liaisons developed by banks. If a homeowner is given access to a bank representative then they have a better chance of working out a deal that would save their home from foreclosure.

Overall the communication between banks and homeowners continues to be a problem that has led to many foreclosures that could possibly have been avoided.

Are you trying to avoid foreclosure?  Contact our law firm now to learn more about your alternatives by consulting with a Chicago bankruptcy lawyer.