U.S. Sen. Kay R. Hagan (D—N.C.), a member of the Senate Banking, Housing and Urban Affairs Committee, on Thursday, Feb. 9, commented after an agreement was reached on a national settlement to bring relief to American homeowners.
“Foreclosure affects every aspect of a family’s life," Hagan said. "Today’s settlement is a piece of welcome news for those North Carolina homeowners who have acted responsibly but have been wrongfully foreclosed on or who owe more than their homes are currently worth.
"North Carolina is the most military-friendly state in the nation, and I am pleased that this settlement includes a number of provisions designed to protect servicemembers and veterans. I am also proud that Joseph Smith, North Carolina’s widely-respected Commissioner of Banks, will oversee the settlement fund.
“While today’s settlement is a step in the right direction, we know it will not be enough to turn around our sluggish housing market. The housing crisis continues to be the main driver of our economic downturn, and many North Carolina families are hurting. We need to take a serious look at reforming our housing finance system to get more private capital into the system and make sure credit is available for well-qualified, responsible borrowers.”
Hagan is a co-sponsor of the Protecting Servicemembers from Mortgage Abuses Act of 2011, which would incentivize financial institutions to comply with the Servicemembers Civil Relief Act. Enacted in 2003, SCRA is intended to prevent active duty military from certain financial and legal hardships as a result of their absence due to military service. Financial institutions have repeatedly failed to comply with the SCRA. Major loan servicers have been responsible for mistakes that led to thousands of mortgage overcharges and a number of unlawful foreclosures and evictions.
Since taking office, Hagan’s constituent services team has worked on 851 mortgage assistance cases for North Carolinians. Hagan’s office cannot file modifications, but it can follow up on pending applications with bank regulators. If you need assistance following up on a pending mortgage modification, please contact Hagan’s office toll-free at 1-877-852-9462.