About Us · Advertising · Disclaimer ·
Lawmakers Dissapointed With Foreclosure Help Programs
July 16th, 2009
Chairman of the Senate
Banking Committee, Sen. Christopher Dodd., D-Conn,
says that the overall lack of progress by the government is disgraceful as he
refers to borrowers hitting slow bumps in delays as they seek to get help.
The Obama
administration had launched a $50 billion plan early March 2009 to give the
lending industry incentives to modify mortgages so as to lower payments for
struggling borrowers. By mid-July, officials say that 160,000 borrowers were
enrolled in the 3-month trial modification program and claim that the number is
growing.
Herbert Allison, The Treasury
Department’s assistant secretary for financial stability, is urging
mortgage companies to increase training with the addition of hiring more staff.
Allison commented that although modifications are on the rise, his camp is
still not satisfied.
On July 28th, top
officials summoned executives from 27 participating mortgage companies to a
meeting so as to discuss the results and progress. In August, the government plans
to announce a detailed breakdown of how each company is fairing under the
program. Allison says that these companies have very strong incentives to
modify as many eligible loans as possible.
Lawmakers are not satisfied
with the results so far after the government has handed out billions of dollars
to troubled banks. Executives from the banking industry defended themselves by
saying that the program is complex and there is a need to hire and train
hundreds of employees. Mary Coffin, executive Vice President of Wells Fargo
mortgage division says that she is aware many at-risk customers are frustrated
and are anxiously in need of answers.
Curtis Glovier
who is managing director of Fortress Investment Group, a hedge fund, claims
that the program does not do much for borrowers who owe more than their homes
are worth. He says that even after loans are modified at below market-rate of 5
years, there are still considerable risks that homeowners may relapse into
payment defaults.
RealtyTrac Inc., states that the foreclosure crisis has claimed
1.5 million homes in the first half of this year. According to the
foreclosure-listing firm, more than 336,000 households received at least one
foreclosure related notice in June, up 33% from last year. This translates into
one in every 380
June was considered the
fourth-straight month where more than 300,000 households have received a foreclosure
filing which includes default notices and other legal notices. Banks have
repossessed above 79,000 homes, up from about 65,000 from the previous month of
May.
Comments
News Archive
New Jersey Attorney General Goes After Mortgage Scams - July 15th 2009
Chase And Bank of America To Experience 2nd Wave of Foreclosures - July 6th 2009
Obama Extends Mortgage Refinancing Program, Raising New Limit To 125% - July 1st 2009
Paper Avalanche, Lack of Trained Staff Add Obstacles To Loan Modification Program - June 29th 2009
Government Loan Modification And Refinance Program Shows Substantial Progress - June 18th 2009
Luring First Time Homebuyers, Tips To Beat The Competition And Sell Your Home - June 15th 2009
Bank Of America has modified 50,000 loans in Countrywide settlement - May 26th 2009
