On July 16, House Financial Services Committee held a virtual hearing, entitled Protecting Homeowners During the Pandemic: Oversight of Mortgage Servicers’ Implementation of the CARES Act within the Subcommitee on Oversight and Investigations.
One of the witnesses, Marcia Griffin, is the Founder and President of HomeFree-USA, and one of NHRC’s national partners in housing counseling advocacy. She made the case before the subcommittee on the issues that housing counselors are seeing in CARES Act-related mortgage servicing during these early stages of economic impacts of the Covid-19 Pandmeic. Below is an excerpt from her testimony.
Today, about 4.2M homeowners, or roughly 9 percent of all homeowners are in some form of mortgage forbearance or CARES Act payment forbearance. While new forbearances are leveling off, we anticipate a modest increase once unemployment benefits run out which would cause the percentage to tick closer to 11 percent. Assuming one out of 10 homeowners need more advice and help in setting up repayment terms, the housing counseling industry needs at least $220M for one year and $700 million for a full program to address the needs of housing consumers in this crisis.
NHRC is grateful that partners like HomeFree-USA are making the case for funding. Congress is still in talks around a Phase 4 Stimulus Package to address Covid-19 and we are advocating for any package to include funding for housing counseling assistance.
You may read Marcia’s testimony HERE.
We are still advocating for S. 4098, the Coronavirus Housing Counseling Improvement Act, sponsored by Senators Brown(D-OH) and Menendez(D-NJ). This legislation would provide for $700 million for Housing Counseling Assistance during the pandemic. The Heroes Act, passed by the House, would provide for $100 million for Housing Counseling Assistance.
NHRC supports both pieces of legislation.
More information about the House Financial Services hearing can be found HERE.