U.S. Effort Aids Only 9% of Eligible Homeowners

[undeterred]

Source: The New York Times

By ANDREA FULLER
Published: August 4, 2009

WASHINGTON — The Treasury Department said on Tuesday that only a small number of homeowners — 235,247, or 9 percent of those eligible — had been helped by the latest government program created to modify home loans and prevent foreclosures.

In a report, Treasury officials identified lenders who had made slow progress in offering more affordable mortgages, naming Bank of America and Wells Fargo as among those failing to reach large numbers of eligible borrowers. While 15 percent of eligible homeowners have been offered help through the mortgage modification program, the low rate of actual mortgage reductions has frustrated administration officials.

Michael S. Barr, the assistant secretary for financial institutions, said in a news conference that there were “significant variations” in performance and that some institutions had made “an infinitesimally small amount” of progress. “I think it’s safe to say we’re disappointed in the performance of some of the servicers,” Mr. Barr said. “We expect them to do more.”

The release of data showing the progress of individual institutions is part of a Treasury effort to push banks to modify loans faster. Under the $75 billion program, homeowners whose monthly mortgage payments are more than 31 percent of their gross income are eligible for modified loans, with interest rates as low as 2 percent. Bank of America has modified only 4 percent of the eligible mortgages, and Wells Fargo has modified 6 percent.




Read more: http://www.nytimes.com/2009/08/05/business/05treasury.html

[nightrain]

1. WF and BOA are rats. I never do any business with them.

[Better Believe It]

2. The "Democratic controlled" Senate voted down "cramdown" legislation that would have allowed .....

judges to modify the terms of home mortgages.

That killed the ability of millions to avoid being thrown out of their homes.


Senate Defeats Mortgage ‘Cram-Down’ as Democrats Balk
By Margaret Chadbourn

April 30 (Bloomberg) -- The U.S. Senate rejected a measure that would let bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure, a victory for banks and credit unions that said the legislation would increase loan costs.

The proposed “cram-down” amendment to a housing bill was defeated today in a 51-45 vote, with 12 Democrats among the 51 opponents. The measure needed 60 votes to pass over Republican objections. The House passed its version 234-191 on March 5.


http://www.bloomberg.com/apps/news?pid=20601087&sid=abkxQPZoIGmw

[truedelphi]

6. I am not going to vote for any Dems who are not part of the

Democratic Progressive Caucus.

The Sellouts to Wall Street can get their votes from Wall Street.

Period.

[northernlights]

3. Fannie and Freddie don't return phone calls

at least according to my realtor. They simply refuse to answer the phone or return phone calls.

So it's a wierd situation. People who want to buy houses will only look at foreclosures or short sales, because they think they can get a better deal. But Fannie and Freddie don't answer phone calls, so everybody loses. Including those of us who own our homes and simply need to sell and are already taking a huge loss...nobody will look anyway because they think they can get a better deal with F&F. Nothing is moving in my neck of the woods. Nothing except local-bank foreclosures.

Maybe I should advertise mine as a foreclosure?

[jasi2006]

4. Re-redlining and taking back homes for those "undeserving" working class.

How dare they want to really live the American Dream. And believe me, the banks are NOT losing money. The money is going to a few well-heeled share holders, the banker-lenders, and the upper levels of management. They don't want to help people. They want to end up owning everything and reaping huge PROFITS when the dust settles. Most of the privileged class didn't think those who were helped to get homes and move into the middle-class during the Clinton years didn't deserve to make that kind of progress and this is their move to take back those gains. Most of the folks helped then were keeping up their mortgages until those draconian ARMs took hold and the lenders refused to re-negotiate rates as many promised. With the collapse of the economy...brought on by many of the greedy privileged class...jobs were lost and without re-adjusted rates or maintenece of original rates homes were lost by people who previously were paying their mortgages.

[WriteDown]

7. That's laughable...

As someone who worked in the mortgage servicing industry for years, I can tell you that almost every foreclosure results in a 60% loss on investment. Probably more like 70-80% now. I am always amused by those with no concept of business or economics. :eyes:

[conspirator]

5. Let's give more handouts to banks. Those poor board members really need it nt