Helping Families Save Their Homes Act Of 2009 - Continued

Floor Speech

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Mr. KOHL. Mr. President, I rise to engage in a colloquy with my colleague from Connecticut and the chairman of the Banking Committee, Senator Dodd. As the chairman is aware, I have offered an amendment to S. 896, the helping families save their homes, which would require mortgage servicing companies to issue warnings to homeowners about foreclosure rescue scams. Foreclosure rescue scams have become more prevalent as more and more homeowners lose their homes. These financial predators claim to help desperate homeowners and often, walk away with their home and money.

The issuing of a simple disclosure from a mortgage servicing company would make it easier for people to identify the difference between scam artists and legitimate help. The disclosure requirement would provide the homeowner with a HUD hotline identifying the counseling agencies in their area and would give them a phone number in order to contact their lender. A simple disclosure will provide homeowners with relevant contact information so they can better understand their options and avoid scam artists. I hope that I can work with the chairman on this important issue as the Banking Committee moves forward with future legislation on financial reform.

Mr. DODD. I thank the Senator for raising this important issue. I will work with him to address this issue in future legislation so we can help homeowners avoid foreclosure rescue scams and make sure they get the necessary information to find real help.

Mr. KOHL. I thank the chairman of the Banking Committee for all his help and engaging in this colloquy.

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