U.S. Sen. Arlen Specter remembers mortgage lenders saying they couldn't help Wesley Snyder's victims very much because the costly loans were held by Fannie Mae or Freddie Mac.
That should no longer be an obstacle, says Specter.
Now that Fannie Mae and Freddie Mac have been taken over by the Federal Housing Finance Agency, the agency should provide relief to the borrowers, the senator says.
In a letter Wednesday to agency director James B. Lockhart III, Specter says the borrowers "deserve any assistance that can be provided, including mortgage modifications."
"I urge you to explore all options for helping those homeowners who need assistance," the Pennsylvania Republican says.
Snyder, a Berks County mortgage broker, tricked about 800 borrowers into getting costlier loans than they thought they had and pocketed $26 million of their payments. His victims include 300 Lancaster County residents.
Snyder is serving a 12-year prison sentence. But his borrowers find themselves stuck with the costlier, longer mortgages, pushing some to the brink of foreclosure.
Specter, fellow Sen. Bob Casey and U.S. Rep. Tim Holden held a hearing in Harrisburg in December about the situation.
"Because most, if not all, of the mortgages are held by Fannie Mae or Freddie Mac, I ask that you take action to ensure that the homeowners who need assistance receive it," says Specter.
Staff writer Tim Mekeel can be reached at tmekeel@LNPnews.com or 481-6030.
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