Schumer Urges Aid
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WASHINGTON (AP) – Senator Schumer, Democrat of New York, said Wednesday that the federal government should quickly send an infusion of money – potentially in the hundreds of millions of dollars – to help homeowners with high-interest rate mortgages avoid foreclosure.
Mr. Schumer chairs the Joint Economic Committee, which issued a report Wednesday detailing the economic impact from the troubled market for loans given to homeowners with shaky credit.
With 1.8 million adjustable rate mortgages resetting to higher rates this year and next, foreclosures are sure to continue rising, the report said.
Areas expected to be hardest hit include Atlanta, Indianapolis, Denver, Dallas and Detroit. In that city, one of every 21 mortgages foreclosed last year, according to the report, which used statistics from RealtyTrac’s foreclosure database.
“We’d like to do something very quickly,” Mr. Schumer said. “These statistics are new and they’re startling. ”
Mr. Schumer declined to detail a specific proposal but said the federal government should provide support to national and state programs that are set up to help borrowers restructure troubled loans.
