THANKS2U
LoanSafe Member
Thank you Davephx
for the www link and your "A home loan named desire" below -
GREAT INSPIRATIONAL WRITING !!!
Gov't unveils rules to speed up 'short sales' - CNBC
A Home Loan Named Desire - By Davephx
No rest for the weary goes the saying. And in America these days, little help for troubled homeowners. The U.S. economy continues to shrink through growing unemployment and subsequent foreclosures. Congress urgently needs to find an effective remedy that will appease both financial institutions and the taxpaying public. Against a backdrop of Tennessee William's harsh social commentary, GoodB blogger Monika Mitchell reports on mortgage modification in the U.S.
Highlights of info not already commonly reported:
It’s official. The “save the drowning homeowner who got burned plan†aka the “Home Affordable Modification Program (HAMP)†is a Big Fat Dud. Only 2,000 (less than half a percent) have been permanently modified-a remarkable feat of failure only George W would envy.
The ten month old program offers lenders $1000 per year for up to three years if they modify a loan. Mortgage servicers make far more than that in late fees alone. The banks with these loans on their books must be laughing at the paltry sum in the wake of the tens of thousands of dollars they stand to make in foreclosure. Investor pools that hold mortgage securities and hide behind the servicers and banks would lose millions. In response, they slither away out of the public eye and simply ignore the Obama administration’s call to make homes “affordable.â€
There is no legally binding, real financial incentive, or even official threat to participate, so why bother say lenders? Hence the U.S. “Making Home Affordable†plan is a miserable failure. It is all bark and no bite.
Why bother indeed? Lenders might step up because they want to help their fellow countrymen? Let’s just forget that. How about doing it for the sake of the housing market, the economy, the country? No thanks, lenders say.
The HAMP program is not backed by any strings, nor is it mandated by any official agency, nor are there any penalties for noncompliance.
Lenders have embarked on a clear strategy of “let me string these idiots along as long as I can and maybe the Feds will look the other way.†These bad banks have “lost†paperwork, hung up the phones, put customers on indefinite “hold,†ignored borrowers, lied to borrowers, and generally run bureaucratic rings around them in an ultimate goal of foreclosure and default.
The New York Times reported this week, “$75 Billion Federal Push to Stem Foreclosures Is Falling Short.†The U.S. Assistant Treasury Secretary for financial Institutions, Michael Barr states, “The banks are not doing a good enough job.†That just might be the understatement of the year. He continued, “Some of the firms ought to be embarrassed, some will be.†Embarrassed? Banks? If “shame†were an effective factor in banking, we would not be in this mess.
So what is taking the Federal Reserve, the Treasury Department, and both houses of Congress so long to play their hand? Must we k“iss the backside of banks forever? Isn’t there some point when reason and rational thinking takes over?
The increased number of at-risk-homeowners directly corresponds to unemployment. As jobs continue to disappear and incomes continue to shrink, the number of defaulting loans grows.
Tens of millions of Americans have lost their incomes and are struggling to pull themselves out of the hole these bucket shop lenders created. Defaults are no longer limited to credit-marred borrowers. The new wave of failing loans has reached formerly credit-worthy borrowers with traditional 30year fixed rate mortgages.
Millions of at-risk homeowners are out of money and out of time. Like Blanche, they find themselves in “desperate circumstances†with only a phantom Shep Huntliegh to rescue them.
What is Congress waiting for? Hopefully not the Feds and hopefully not lenders.
Philadelphia, the city of brotherly love, has lived up to its name recently. City officials have created a proactive mortgage modification program that forces lenders and borrowers to negotiate in a “conciliation conference.†Volunteer lawyers have succeeded in helping 70% of troubled homeowners with mortgage modifications.
What sets the program apart from the fluffy Fed program are the forced face-to-face foreclosure hearings. The New York Times reports that in Philadelphia, “Mortgage companies have no choice but to participate. They have to attend the conferences and negotiate in good faith or they cannot proceed with a sheriff’s sale.â€
The success of the Philadelphians has inspired New York State lawmakers to follow suit. The state legislature is currently debating a bill to enforce compliance from lenders.
Thank you again Davephx
for the www link and your "A home loan named desire" below -
GREAT INSPIRATIONAL WRITING !!!
Gov't unveils rules to speed up 'short sales' - CNBC
A Home Loan Named Desire - By Davephx
No rest for the weary goes the saying. And in America these days, little help for troubled homeowners. The U.S. economy continues to shrink through growing unemployment and subsequent foreclosures. Congress urgently needs to find an effective remedy that will appease both financial institutions and the taxpaying public. Against a backdrop of Tennessee William's harsh social commentary, GoodB blogger Monika Mitchell reports on mortgage modification in the U.S.
Highlights of info not already commonly reported:
It’s official. The “save the drowning homeowner who got burned plan†aka the “Home Affordable Modification Program (HAMP)†is a Big Fat Dud. Only 2,000 (less than half a percent) have been permanently modified-a remarkable feat of failure only George W would envy.
The ten month old program offers lenders $1000 per year for up to three years if they modify a loan. Mortgage servicers make far more than that in late fees alone. The banks with these loans on their books must be laughing at the paltry sum in the wake of the tens of thousands of dollars they stand to make in foreclosure. Investor pools that hold mortgage securities and hide behind the servicers and banks would lose millions. In response, they slither away out of the public eye and simply ignore the Obama administration’s call to make homes “affordable.â€
There is no legally binding, real financial incentive, or even official threat to participate, so why bother say lenders? Hence the U.S. “Making Home Affordable†plan is a miserable failure. It is all bark and no bite.
Why bother indeed? Lenders might step up because they want to help their fellow countrymen? Let’s just forget that. How about doing it for the sake of the housing market, the economy, the country? No thanks, lenders say.
The HAMP program is not backed by any strings, nor is it mandated by any official agency, nor are there any penalties for noncompliance.
Lenders have embarked on a clear strategy of “let me string these idiots along as long as I can and maybe the Feds will look the other way.†These bad banks have “lost†paperwork, hung up the phones, put customers on indefinite “hold,†ignored borrowers, lied to borrowers, and generally run bureaucratic rings around them in an ultimate goal of foreclosure and default.
The New York Times reported this week, “$75 Billion Federal Push to Stem Foreclosures Is Falling Short.†The U.S. Assistant Treasury Secretary for financial Institutions, Michael Barr states, “The banks are not doing a good enough job.†That just might be the understatement of the year. He continued, “Some of the firms ought to be embarrassed, some will be.†Embarrassed? Banks? If “shame†were an effective factor in banking, we would not be in this mess.
So what is taking the Federal Reserve, the Treasury Department, and both houses of Congress so long to play their hand? Must we k“iss the backside of banks forever? Isn’t there some point when reason and rational thinking takes over?
The increased number of at-risk-homeowners directly corresponds to unemployment. As jobs continue to disappear and incomes continue to shrink, the number of defaulting loans grows.
Tens of millions of Americans have lost their incomes and are struggling to pull themselves out of the hole these bucket shop lenders created. Defaults are no longer limited to credit-marred borrowers. The new wave of failing loans has reached formerly credit-worthy borrowers with traditional 30year fixed rate mortgages.
Millions of at-risk homeowners are out of money and out of time. Like Blanche, they find themselves in “desperate circumstances†with only a phantom Shep Huntliegh to rescue them.
What is Congress waiting for? Hopefully not the Feds and hopefully not lenders.
Philadelphia, the city of brotherly love, has lived up to its name recently. City officials have created a proactive mortgage modification program that forces lenders and borrowers to negotiate in a “conciliation conference.†Volunteer lawyers have succeeded in helping 70% of troubled homeowners with mortgage modifications.
What sets the program apart from the fluffy Fed program are the forced face-to-face foreclosure hearings. The New York Times reports that in Philadelphia, “Mortgage companies have no choice but to participate. They have to attend the conferences and negotiate in good faith or they cannot proceed with a sheriff’s sale.â€
The success of the Philadelphians has inspired New York State lawmakers to follow suit. The state legislature is currently debating a bill to enforce compliance from lenders.
Thank you again Davephx
