
The Obama administration is anticipated to reveal additional protections to guarantee homeowners are treated fairly and consistently under its mortgage relief program soon.
The policies, outlined in a draft Treasury Department document would address long-standing complaints from housing counselors. They have quoted cases of lenders continuing with foreclosures while homeowners were being evaluated for help. That practice would be forbidden under the new rules.
Government officials acknowledge treatment of homeowners has been a problem under the $75 billion mortgage relief effort.
Borrowers rejected from the program would also have 30 days to appeal the decision. In that period, lenders could schedule a foreclosure sale but will not conduct it. Mortgage companies would be required to consider applications from homeowners in bankruptcy. That’s optional under the current rules.
Treasury spokeswoman, Meg Reilly, confirmed the document was genuine, but wrote in an e-mail that it “has not been approved and there are no immediate planned announcements on the issue.”
The $75 billion program is intended to lower borrowers’ monthly payments by dropping mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years.
To date, only 116,300 borrowers out 1 million enrolled have had the terms of their mortgages changed permanently.

