5 Consumer, Civil Rights Groups Urge Action on Mortgage Modification Compromise

WASHINGTON, Jan. 8 /PRNewswire-USNewswire/ -- The following joint statement was issued today by the National Association of Consumer Bankruptcy Attorneys, Center for Responsible Lending, National Consumer Law Center (on behalf of its low-income clients), Consumer Federation of America and Leadership Conference on Civil Rights in response to the announcement that Citigroup is supporting mortgage modification in bankruptcy:

"We welcome the support of Citigroup, one of the nation's largest mortgage lenders, for responsible and urgently needed legislation that would help stem America's grave home foreclosure crisis by allowing judges to modify mortgages in bankruptcy. It is painfully clear that the continuing, and indeed worsening, foreclosure crisis is perhaps the single largest impediment to economic recovery. It is encouraging to see a major financial industry player and Congress working together to do what is most effective to keep Americans in their homes and to get this economy back on its feet.

We commend the efforts of Senators Durbin, Schumer and Dodd and Representatives Conyers and Miller, for reaching this agreement with Citigroup. This major breakthrough should alleviate any concerns about including this legislation in the economic recovery package now being developed by the incoming Obama administration and Congress. Now that a compromise is in hand, the time for action is now. We cannot afford to have the mortgage foreclosure crisis go on one day longer than is necessary as a millstone around the neck of our struggling economy.

We encourage the new Congress and the incoming Obama Administration to close ranks behind this compromise approach by taking action now."