February 13, 2009

Today, U.S. Rep. Ed Perlmutter (CO-07), a member of the House Financial Services Committee praised the decision by some of the nation’s largest banks, including JP Morgan Chase and Citi, to institute a moratorium on home foreclosures.

Citi’s plan includes a moratorium on foreclosures for Citi-owned first mortgage loans for primary residences and will extend until the Obama Administration finalizes details of its loan modification program or March 12, 2009.

JP Morgan Chase’s plan includes a three-week moratorium until Treasury implements a new modification plan through March 6, 2009, which replicates the 90-day freeze they instituted in October 2008.

These plans were announced in the wake of the House Financial Services Hearing held on Feb. 11, 2009, where the CEOs of the largest banks testified about their use of TARP funds received from the Federal Government.

“This is responsible action by the nation’s largest banks. Millions of Americans are struggling to stay in their homes and pay their mortgages. In these difficult economic times, it would be detrimental to our neighborhoods and communities for these foreclosures to move forward. I look forward to working with the Administration and my colleagues on the House Financial Services Committee to move forward with a smart, responsible plan to help ensure hardworking Americans can pay their mortgages, stay in their homes and live, work and raise their kids in the communities in which they’ve settled,” said Perlmutter.

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