Treasury Dept to pressure banks into lowering monthly housing payments

As many homeowners continue to struggle with unaffordable mortgages, the Obama Administration says banks aren’t doing enough to keep people in their homes. Today, the US Treasury Department announced measures designed to pressure banks into permanently lowering monthly payments for homeowners. The pressure comes in response to new data on the federal government’s $75 billion Making Home Affordable program, which aimed to help millions of people lower mortgage payments to 31 percent of their income. But the program was voluntary for banks, and consumer advocates and homeowners say many lenders have been difficult to work with. The Congressional Oversight Panel, said in a recent report that less than one percent of borrowers in the program were able to secure permanent, lower monthly payments.

FSRN has been closely following the foreclosure crisis, including efforts to keep people in their homes. In August, we reported on the case of Rosemary Williams, a resident of Minneapolis who was facing foreclosure. Her decision to resist eviction mobilized a community. Williams had lived on her street for 55 years. In September, authorities forcibly removed her from the property and she lost her home.

We're joined by Rosemary Williams for an update on her situation.