rssPanel Cites Problems in Mortgage Modification Program
Wednesday, April 14, 2010 at 5:49 pm
- 8 Comments
Today, a report from the Congressional Oversight Panel faults the Treasury Department’s efforts to stem the tide of foreclosures:
Treasury’s response continues to lag well behind the pace of the crisis. As of February 2010, only 168,708 homeowners have received final, five-year loan modifications — a small fraction of the 6 million borrowers who are presently 60-plus days delinquent on their loans. For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes.
The Home Affordable Modification Program, the Obama administration’s flagship effort to help borrowers reduce their monthly mortgage payments and stop the foreclosure crisis, is not going well, the report concludes. Among the more distressing findings, flagged by the Huffington Post’s Shahien Nasiripour, is that homeowners who go through modifications often end up deeper underwater — owing more than their house is worth — than before modification. (The more underwater the homeowner, the more likely he or she is to walk away.) All in all, three-quarters of the program’s participants owe more than their house is worth.
In a separate report, the Treasury Department said that the number of homeowners who modified via HAMP but then still later defaulted doubled in March to 2,879. It also said that HAMP initiated just 57,000 new trial modifications in March, 15,000 fewer than in February, due to “servicers increasingly requiring upfront documentation from homeowners to comply with pending HAMP policy requirements.”
Follow Annie Lowrey on Twitter
8 Comments
Pingback posted April 15, 2010 @ 12:00 am
[...] Panel Cites Problems in Mortgage Modification Program « The … [...]
Pingback posted April 15, 2010 @ 1:39 am
[...] Panel Cites Problems in Mortgage Modification Program « The … [...]
Pingback posted April 15, 2010 @ 7:14 pm
[...] Panel Cites Problems in Mortgage Modification Program « The … [...]
Pingback posted April 15, 2010 @ 7:57 pm
[...] Panel Cites Problems in Mortgage Modification Program « The … [...]
Comment posted April 16, 2010 @ 7:16 pm
HAMP DOES NOT WORK – HAVE A MTG. WITH WAMU/CHASE AND GOT REFUSED BECAUSE OF NPV – HAVE BEEN ON TRIAL MODIFICATION FOR 10 MONTHS AND WAS TOLD TO CONTINUE TO PAY MONTHLY TIL MY DISPUTE WAS LOOKED AT. IF I WAS UNABLE TO PAY THE MOD.
AMOUNT WHY ARE THEY LETTING US CONTINUE. I CAN PAY AND WILL PAY BUT I NEED A MODIFICATION – THE BANK OWNS THE MTG. AND WILL NOT MODIFY IT. GET GOING GOVT DO SOMETHING FOR THE AMERICAN PEOPLE. I AM NOT IRRESPONIBLE AND DO NOT WANT TO SEE THE HOUSES IN THE NEIGHBORHOOD SUFFER BUT THE GOVT
WILL NOT LET ME BE RESPONSIBLE.
Comment posted April 29, 2010 @ 3:29 am
The most common mortgage modifications are listed below:
lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
Check out this public service site: http://mortgagemodificationinfo.org
Pingback posted May 12, 2010 @ 11:15 am
[...] of the underlying loan. The Obama administration’s Home Affordable Modification Program has not kept pace with the foreclosure crisis. But were it to be expanded, it would help companies like Freddie keep [...]
Pingback posted August 3, 2010 @ 1:23 pm
[...] and the parlous state of the housing market — as well as the need for Congress to press for principal reduction. Bookmark It Hide Sites $$('div.d114').each( function(e) { [...]
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
