WASHINGTON, DC - Today, after the Obama Administration met with top executives from 25 mortgage servicers and encouraged the companies to have 500,000 trial loan modifications in the works by November 1, 2009, U.S. Senator Jack Reed (D-RI), a senior member of the Banking Committee, issued the following statement:

"We've heard many claims that the industry is working to prevent foreclosures and assist worthy borrowers, but sadly the reality is that they haven't lived up to those promises. I am encouraged that the Administration continues to take an aggressive stance toward preventing unnecessary foreclosures and tracking mortgage servicer performance, and I will continue to monitor the situation closely."

Senator Reed has been urging the Administration to use its leverage to help struggling homeowners by holding banks and loan servicers more accountable for answering requests for help. In June, he sent letters to both Secretary Geithner and Secretary Donovan, asking them to develop and implement a strategy requiring banks and loan servicers that have agreed to participate in the Obama Administration's foreclosure prevention initiatives to respond to homeowners in a timely fashion.