Comptroller, unions press banks on foreclosure prevention

July 14, 2010 12:45PM

John Liu

New York City Comptroller John Liu and six large unions plan to begin a
campaign today to press the biggest banks — including Citigroup,
JPMorgan Chase, Bank of America and Wells Fargo — to do more to
prevent foreclosures in New York, the New York Times reported. Liu said
the group would send a letter criticizing them for dragging their feet
on modifying mortgages that are underwater or delinquent, and urging
them to do “everything possible” to avert foreclosures. The letter also
asks the banks to immediately name a high-level official to handle
appeals of borrowers who are denied mortgage loan
modification. Depending on the response, Liu and his coalition might
move pension funds and bank deposits to other institutions, according
to union officials. “The federal programs in place just aren’t having a
desired effect,” Liu told the Times. “People are losing their homes. It
continues to be a drag on our regional economy.” [NYT]