May '10 Nevada Government—U.S. Congresswoman Dina Titus Column

Titus Urges More Accountability for Mortgage Servicers Failing to Follow HAMP Requirements

May 12, 2010 – Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District sent a letter to Treasury Secretary Timothy Geithner today on the need to improve the Home Affordable Modification Program by holding mortgage servicers accountable for failing to follow the program’s requirements. Titus has been sending monthly letters to the administration on the foreclosure crisis in Southern Nevada.

Below is the text of the letter.

May 12, 2010

The Honorable Timothy Geithner
Department of The Treasury
1500 Pennsylvania Ave. N.W.
Washington, D.C. 20220

Dear Secretary Geithner,

In a recent report by the Congressional Oversight Panel (COP), entitled "Evaluating Progress of TARP Foreclosure Mitigation Programs," released earlier this month, the Panel offers a number of suggestions to Treasury for improving foreclosure prevention efforts. As you know, the COP was created in 2008 as part of the passage of the Troubled Asset Relief Program and is charged with “reviewing the current state of financial markets and the regulatory system.”

While I encourage you to consider all of these recommendations, I write today to ask that you give special consideration to one proposal in particular that I believe will greatly increase accountability and responsiveness from mortgage servicers participating in the Home Affordable Modification Program (HAMP).

The COP report suggests that Treasury “prohibit HAMP-participating servicers from proceeding with a foreclosure unless a valid denial or cancellation reason is reported, and impose meaningful monetary sanctions for failure to properly report denial and cancellation reasons.” I agree that this reform is sorely needed.

My office was one of the first offices to work directly with homeowners and servicers to help families stay in their homes. One of the most common complaints I receive from my constituents is that they are denied a modification without a documented reason. According to the COP, “for 71% of denials no valid reason was provided.” I am seriously concerned about the lack of transparency surrounding the denial process. Servicers and mortgage holders are given too much power with a total lack of oversight. It is imperative that more is done to ensure lenders are strictly following the program guidelines and requirements. For those who do not, it is important that your department impose immediate and meaningful sanctions. While I understand that you have already instituted “claw backs” on incentives for servicers who violate the program guidelines, repeat offenders must face more serious punishments.

It is also important that you establish performance benchmarks for individual servicers and sanctions for those who fail to meet benchmarks. Despite the enormous length of time servicers have had for implementation, it is unfathomable that so many servicers still have dismal performance records. I am concerned that the attitude of many servicers is to hope that homeowners will stop trying to fight foreclosure and that Treasury will abandon its efforts to help homeowners.

It is my belief that servicers have had more than sufficient amount of time to implement the “Making Home Affordable Program.” If you do not believe that servicers are able or willing to fully engage in these efforts after more than a year, it may be time to consider alternatives to help families stay in their homes.

Sincerely,

Dina Titus
Member of Congress

C.C. Elizabeth Warren, Chairwoman - Congressional Oversight Panel

Titus Helps Cut Taxes to Lowest Level Since 1950

May 11, 2010 – Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District highlighted her efforts to cut taxes for Nevadans, pointing to an analysis by USA Today that shows Americans paid the lowest level of taxes last year since 1950.

“Since coming to Congress, I have worked to cut taxes for Nevada families and small businesses in order to foster an economic environment that will lead to growth and job creation,” Congresswoman Titus said. “By supporting the Recovery Act, which included the largest package of tax cuts in history, I provided a tax cut to 98 percent of Nevadans during this tough economic time when every dollar we put back in the pockets of middle-class Americans is so important. And through tax incentives to spur investments and create jobs, we will once again make small businesses the engines of growth that power our economy.”

The USA Today analysis found that federal, state, and local taxes consumed 9.2 percent of all personal income in 2009, the lowest rate since 1950, and well below the historical average of 12 percent for the last half-century. The tax rate paid by all Americans has fallen 26 percent since 2007 when the recession began. To read the full article, click here.

Titus Highlights $107 Million in Recovery Act Funds for Education in Nevada

May 11, 2010 – Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third district highlighted an additional $107 million in education funds that Nevada is receiving through the American Recovery and Reinvestment Act. The second installment of the State Fiscal Stabilization funds are on top of the nearly $500 million that Nevada has already received to help save education jobs and soften the blow of cuts to the state’s education budget.

“Education funds through the Recovery Act have come at a critical time for students and teachers in Nevada,” Congresswoman Titus said. “With the state’s education budget facing serious cuts during this tough economic time, funding through the Recovery Act has helped save more than 2,000 education jobs in our state. It is critical that we continue to invest in our nation’s future by ensuring that students receive a quality education. This money can help save more jobs for our teachers, administrators, and support staff and ensure that our children can compete in the global economy.”

Nevada received the additional $107,053,560 in State Fiscal Stabilization funds, which can help keep teachers employed and support the modernization, renovation, and repair of school and college facilities, after submitting a successful application. The application describes the state’s ability to collect critical data or a plan to collect data that will help lay the foundation for future education reforms.

To date, Nevada has received $493,888,870 for education through the Recovery Act in addition to the latest announcement. Funding for Nevada includes:

$289,529,237 in State Fiscal Stabilization funds through part one of the application;

$73,894,134 in IDEA funds to help state and local educational agencies ensure that children with disabilities have access to education that meets their unique needs;

$70,126,139 in Title I funds to support schools that have high concentrations of students from families that live in poverty;

$30,094,674 in Pell Grants to help students afford a higher education;

$19,836,315 in School Improvement Grants to support changes that are needed to turn around the nation’s persistently lowest-achieving schools;

$4,235,108 in Education Technology Grants to improve student academic achievement through the use of technology in schools; and

$4,217,502 in Vocational Rehabilitation Funds to help individuals with disabilities prepare for, obtain, and maintain employment.

Titus Statement on the Passing of Rev. Jesse Scott

May 11, 2010 – Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District released the following statement today on the passing of Reverend Jesse Scott.

“Yesterday, Nevada lost a true hero in lifelong civil rights leader Rev. Jesse Scott. As president of the local NAACP and executive director of the Nevada Equal Rights Commission, Rev. Scott was a loved and respected leader whose commitment to justice was unparalleled. His legacy will live on through the lives of all those he touched in his fight for equality, in his work at the Second Baptist Church, and in the works of many public servants, including me, whom he advised and mentored. My thoughts and prayers are with Rev. Scott’s family and friends during this sad time.”

Titus: In Light of Anthem Blue Cross Errors, Highest Level of Oversight Needed for Insurance Premium Increases

May 7, 2010 – Henderson, NV – Congresswoman Dina Titus of Nevada’s Third District sent a letter to Nevada Insurance Commission Scott Kipper today urging the highest level of oversight following reports that Anthem Blue Cross withdrew plans for insurance premium increases after parent company WellPoint Inc. made numerous errors in calculating rake hikes.

Below is the text of the letter:

May 7, 2010

Scott Kipper, Commissioner
Nevada Division of Insurance
Department of Business and Industry
788 Fairview Drive
Suite 300
Carson City, NV 89701

Commissioner Kipper,

As the head of the state agency tasked with reviewing health insurance rate adjustment requests, you, I know, take your responsibility of consumer protection seriously. Recent news reports, however, have highlighted the need for increased scrutiny of health insurance rate hikes.

Last week Anthem Blue Cross withdrew its plan for rate increases in California – after initially proposing to raise some rates by 39 percent – when the California Department of Insurance found that the proposed increase was based on unreasonably high assumptions about medical cost increases.

During these difficult economic times, keeping health insurance premiums affordable is more important than ever. No one should have to choose between paying for health insurance or putting food on the table; but as premiums rise, more people may be forced to make such a choice. That is why I urge you to do everything in your power to hold insurance companies accountable for their rate increases and to reexamine, with the highest level of oversight possible, proposed health insurance rate increases and the assumptions on which those increases are based.

Sincerely,

Dina Titus
Member of Congress