Loan Modification

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Dropouts rise in gov’t loan modification program

By AP Real Estate Writer Alan Zibel

WASHINGTON – The number of homeowners dropping out of the Obama administration’s main mortgage assistance plan is growing, and is now almost equal to the number who have received permanent relief.
The Treasury Department’s report on Monday was the latest evidence of problems [...]

18May2010 | admin | 0 comments | Continued
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Banks Fall Short on Mortgage Help

Govt. Report Shows 15 Percent of Eligible Borrowers Offered Help; Bank of America, Wells Fargo Lag Behind Other Big Banks

By MATTHEW JAFFE and ALICE GOMSTYN
The Treasury Department today released the first report on the performance of loan servicers in the Obama administration’s home mortgage modification program — and the numbers weren’t pretty.
Only 15 percent of eligible homeownershave [...]

5Aug2009 | admin | 2 comments | Continued
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Promised Help Is Elusive for Some Homeowners

By PETER S. GOODMAN
MESA, Ariz. — She had seen the advertisements for the new government program offering relief. She had heard President Obamapromise that help was on the way for homeowners like her, people who had lost jobs and could no longer make their mortgagepayments.
But when Eileen Ulery called her mortgage company — Countrywide, now part of Bank of [...]

3Jun2009 | admin | 2 comments | Continued
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Should the Government Subsidize Mortgage Modifications?

By Edward L. Glaeser
Should the government be bribing mortgage servicers to modify loans and reduce payments?
Under the current housing plan, the federal government pays for one-half of the cost when lenders reduce mortgage payments to 31 percent of borrower income from 38 percent. When this plan was revealed, I was relieved because it seemed [...]

13May2009 | admin | 0 comments | Continued
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Mortgage modification proposal fails in Senate

By Nicholas Storie
A plan by the Obama administration to allow bankruptcy judges to modify troubled home loans failed in the Senate on Thursday.
The proposal involved so-called ‘cram-down’ measures, which essentially permit judges in bankruptcy court to reduce the principal on a struggling borrower’s mortgage.
Proponents say the successful passage of the bill would encourage lenders to [...]

4May2009 | admin | 0 comments | Continued
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Foreclosure Prevention Plan Expanded to 2nd Mortgages

By Renae Merle
The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors.
Under the expanded plan, some homeowners could see their payments fall significantly and the interest rate on their second mortgage pushed down to 1 percent. The announcement comes nearly two months after [...]

29Apr2009 | admin | 0 comments | Continued
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Six Lenders Join Mortgage Program

By Renae Merle
Washington Post Staff Writer
The Treasury Department said yesterday that it has signed contracts with six major mortgage lenders to participate in the Obama administration’s $75 billion foreclosure prevention effort.
Together, the lenders could be eligible for up to nearly $10 billion in incentive payments for helping troubled borrowers save their homes by agreeing to [...]

16Apr2009 | admin | 0 comments | Continued
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Mortgage modifications may not stem foreclosures, Fed economists say

By: Bloomberg News
They say the government should consider more direct aid to homeowners, such as loans to bridge the loss of income.
Policies aimed at easing home loan terms for troubled borrowers may not be as effective in preventing foreclosures as more direct aid to homeowners, Federal Reserve economists have found.
Job losses and falling home prices [...]

13Apr2009 | admin | 2 comments | Continued
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High Redefault Rates: Obama’s Loan Modification Nightmare

By: Luke Mullins
The backbone of the Obama administration’s plan to salvage the housing market is a program in which lenders reduce borrowers’ monthly mortgage payments down to a more manageable percentage of their income. In essence, the administration is betting that troubled borrowers will keep paying their mortgages as long as they can afford them–regardless [...]

8Apr2009 | admin | 0 comments | Continued
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Report Shows Loan Modifications Not As Effective As Needed

By: Ryan Fiore

A report by the Office of Thrift Supervision and the Office of the Comptroller of the Currency, which regulates mortgage lenders, shows that even though mortgage lenders have increased their foreclosure prevention efforts there are many challenges facing the industry and government efforts to stem foreclosures. The report showed that foreclosure rates are [...]

8Apr2009 | admin | 0 comments | Continued
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