Franken wants to create mortgage watchdog office

Sen. Al Franken is pushing an amendment to the financial reform bill that would create an office to investigate complaints by homeowners who believe their mortgage handlers are breaking the law. The amendment would create an Office of the Homeowner Advocate and has bipartisan support in the Senate.

“Too many Minnesotans have lost their jobs through no fault of their own, and are now in danger of losing their homes,” Franken said in a statement on Friday. “When they feel they’re being treated unfairly, they need to know there’s someone who has their back. My proposal creates an office dedicated to these families. They’re doing their best with an incredibly stressful situation in a tough economy that they didn’t create, and we ought to do what we can to help them.”

Republican Sen. Olympia Snowe of Maine is a cosponsor with Franken.

“For far too many Mainers and Americans, these turbulent economic times, in which we have witnessed record high unemployment rates, are confounded by the housing market crisis and certain mortgage servicers who are, frankly, taking advantage of our nation’s families,” said Snowe. “By creating an Office of the Homeowner Advocate, these Americans will receive the vital assistance they require when they are faced with the daunting foreclosure system.”

Franken and Snowe say the office will be paid for with existing funds from the Home Affordable Modification Program. The office would have the authority to take action against mortgage servicers who don’t play by the rules.

In Minnesota, the amendment has picked up considerable support from religious and charitable organizations including Catholic Charities of St. Paul & Minneapolis, Community Action Partnership of Ramsey & Washington Counties, Family & Children’s Service, Family Housing Fund, Greater Minnesota Housing Fund, Housing Preservation Project of St. Paul, Jewish Community Action, Legal Services Advocacy Project, Lutheran Social Service of Minnesota, Minnesota Community Action Partnership, Minnesota Housing Partnership, Northside Resident Redevelopment Council, and Project for Pride in Living.