Calif.'s Boxer urges more help from mortgage firms

Boxer, D-Calif., sent letters to executives at the mortgage servicers urging them to participate in a federal program called Hope for Homeowners that provides financial backing to lenders who agree to renegotiate mortgages.

The $300 billion program was signed into law in July and took effect Oct. 1.

"The program will not work, however, if lenders and servicers fail to participate," Boxer wrote in letters sent to executives at Wachovia Corp., Wells Fargo & Co., JP Morgan Chase & Co. and First Federal Bank of California, among others.

"Should they continue their reluctance to make reasonable loan modifications, Congress can be expected to take a closer look at lender and servicer practices to determine what additional measures will be needed."

The companies Boxer wrote to have been identified as "difficult to work with" by a nonprofit advocacy group, the California Reinvestment Coalition, that has been tracking the willingness of mortgage loan servicing companies to help borrowers avoid foreclosure.

Spokespeople at Wachovia, Wells Fargo, JP Morgan and First Federal either had no immediate comment or did not immediately respond to a request for comment.