Iowa Assistant Attorney General Patrick Madigan says the deepening recession deepens, is impacting the calls coming to the Iowa Mortgage Help Hotline. The help line was established in the fall of 2007, to deal with the subprime lending problem.
Madigan says the hotline has already taken thousands of calls from all 99 counties from people with mortgage issues. Calls now involve new issues. Madigan says a lot of people are calling about losing their jobs, or a "severe curtailment of income" which he says if very different problem. He says it has become something that is impacting people with traditional mortgages.
Madigan says, "The problem is broadening and we’re seeing it creep into prime loans and away of some of the earlier loans." Madigan says callers to the mortgage help hotline are referred to a housing counselor who can help develop a budget. If that doesn’t work, homeowners can seek a loan modification.
Madigan says some of the major lenders are developing programs to help homeowners who’ve lost jobs, but you have to have income to pay your mortgage. Madigan made his comments on the Iowa Public Radio program "The Exchange."