rssDodd: How’s That Foreclosure Plan Working?
Thursday, June 04, 2009 at 4:02 pm
- 7 Comments
Herb Allison, President Obama’s nominee to become the Treasury’s assistant secretary for financial stability, appeared today before the Senate Banking Committee, where Chairman Chris Dodd (D-Conn.) met him with a question that’s increasingly on the minds of the nation’s struggling homeowners: Just how well is the administration’s foreclosure-prevention plan working out? Dodd said:
First, we need good data on how many loans are being modified or refinanced. … How many are being rejected for assistance in order to hold the receiver — servicers accountable for their promises, and we need that data made public on a servicer-by-servicer basis. … We don’t want to wait weeks or months to find out whether or not this is working or not. The concern is it’s not working as well as all of us up here would like it to work. And we need to know whether or not we need to do something, what can you do and what can the administration do to get this back on track again.
The White House anti-foreclosure plan, of course, relies largely on the voluntary participation of the nation’s lenders and servicers to modify loans to help struggling homeowners. The New York Times pointed out this week that 100,000 such modifications have been offered, but, as Dodd indicated, it remains unclear how many of those offers have prevented foreclosures.
Also of note, that 100,000 figure pales in comparison to the 5.4 million homeowners who were either delinquent or already in foreclosure in the first three months of the year. And it’s a drop in the bucket next to the estimated 15.4 million homeowners whose outstanding mortgage debts are larger than the values of their homes.
Allison responded that the administration will “have to be agile as we look at this program as well.” He continued:
Let’s see how it’s working. If it’s not working as effectively as it needs to, we’ll make every effort to make it more efficient and more effective and to reach more people.
A little late for Rita Gillam.
7 Comments
Pingback posted June 4, 2009 @ 5:02 pm
[...] News Sources wrote an interesting post today onHere’s a quick excerptHerb Allison, President Obama’s nominee to become the Treasury’s assistant secretary for financial stability, appeared today before the Senate Banking Committee, where Chairman Chris Dodd (D-Conn.) met him with a question that’s increasingly on the minds of the nation’s struggling homeowners: Just how well is the administration’s foreclosure-prevention plan working out? Dodd said: First, we need good data on how many loans are being modified or refinanced. … How many are being rejected for as [...]
Pingback posted June 4, 2009 @ 5:54 pm
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Comment posted June 4, 2009 @ 7:17 pm
It's time to get rid of Sen. Dodd and install a senator who is competent and dedicated to the Constitution. Support Peter Schiff for U.S. Senate in 2010.
Comment posted June 15, 2009 @ 12:12 am
I guess I expected more from Obama, The Banks pulled the wool over his eyes and they walked away with billions in bonuses and the foreclosure problem just marches on. I just do not understand the banks inability to foregive a portion of a mortgage that exceeds the current market value. A bank would rather foreclose on a house and get about 50% of the fair market value, than to adjust the mortgage balance to the current market value and get more of their investment back. I wish I could get most of my 401k back. The banks created the problem, most home owners just purchased a home that was a stretch, because the banks created a housing buble with their lending practices. Most homeowners did not go out and buy mansions, they purchased average houses that were overpriced. Short term rate adjustments and extended payments do not solve the problem of the house that is siginifcantly underwater.
Comment posted June 15, 2009 @ 7:12 am
I guess I expected more from Obama, The Banks pulled the wool over his eyes and they walked away with billions in bonuses and the foreclosure problem just marches on. I just do not understand the banks inability to foregive a portion of a mortgage that exceeds the current market value. A bank would rather foreclose on a house and get about 50% of the fair market value, than to adjust the mortgage balance to the current market value and get more of their investment back. I wish I could get most of my 401k back. The banks created the problem, most home owners just purchased a home that was a stretch, because the banks created a housing buble with their lending practices. Most homeowners did not go out and buy mansions, they purchased average houses that were overpriced. Short term rate adjustments and extended payments do not solve the problem of the house that is siginifcantly underwater.
Comment posted June 20, 2009 @ 5:04 am
I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I'm looking to sell because i am engaged and will be moving into my fiancee's home. Check http://obamamortgage2009.blogspot.com/2009/03/o… If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.
Comment posted July 6, 2009 @ 10:43 am
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