By Jay Heflin - 08/27/10 03:51 PM EDT
The report comes on the heels of a report issued this week by the State Foreclosure Prevention Working Group that shows more than 60 percent of seriously delinquent borrowers are not getting any assistance from mortgage servicing companies.
Julia Gordon, with the Center for Responsible Lending, said in light of the recent findings it might be time to reinstate a moratorium on foreclosures.
"With millions of homeowners at risk and only a fraction of them receiving any help from their mortgage servicer, it's time to implement mandatory measures to stop foreclosures and help the housing market recover," she said in prepared remarks. "In fact, it's past time."
Within days of President Obama being elected into office, mortgage backers Fannie Mae and Freddie Mac put a temporary hold on foreclosures as the housing market appeared to be in a freefall. Last year, regulators and lawmakers called on banks to stop foreclosures, which many complied with, but not all. It is unclear if the moratorium helped the industry or simply delayed foreclosures.
Jay Brinkmann, chief economist with the MBA, says the housing market will improve when jobs are created.
"Ultimately, the housing story, whether it is delinquencies, home sales or housing starts, is an employment story," he said in prepared remarks. "Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers."