HUD Secretary: Banks Must 'Step Up' on Foreclosure

WASHINGTON (AP) - Housing Secretary Shaun Donovan says it's
important that lending institutions "step up to the plate" to
help make certain the Obama administration's new home foreclosure
initiative succeeds.
Speaking a day after President Barack Obama announced the $75
billion program, Donovan said it's critically important for banks
to buy into the spirit of the program. He said that "what started
as a housing crisis has become a jobs crisis."
In addition to the new mortgage lifeline for millions of
Americans on the brink of foreclosure, the administration announced
$200 billion in new government assistance to mortgage giants Fannie
Mae and Freddie Mac. It's part of an effort to encourage them to
refinance homes for people "under water" - those whose mortgage
payments exceed the value of their homes.
Donovan, interviewed Thursday on NBC's "Today" show, said the
administration feels certain there are sufficient requirements to
ensure heavy bank refinancing, saying that could "tip the balance
for millions of homeowners."

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