Last week, ProPublica reported that it had finally obtained government audit reports of just one of the nation’s five largest loan servicers–GMAC–and that those documents had revealed significant flaws and lapses in the alleged governmental efforts to alleviate the national foreclosure crisis. Now, the site is following up that information with a comprehensive guide to the government programs intended (or …
Pro Publica Looks Beyond Claims of Modification Success
In Loan Modification Program Left Homeowners’ Fate in Hands of Dysfunctional Industry, Pro Publica looks at the realities surrounding the governmental effort to reduce foreclosures by encouraging loan modifications, and points out one obvious but often ignored flaw in the plan: current programs leave both decision-making and execution in the hands of the very people who broke the system in the …
21% HAMP First Year Redefault Rate
From Professor Adam Levitin on Credit Slips. The Congressional Oversight Panel has a new HAMP report out. Like all COP reports, it’s long and chock full o’ analysis. There’s an executive summary up front, but some of the most important points are only in the report proper (especially pp. 100-111). I think there are three big things to take away …
Overview of the Government’s Programs to Reduce Principal on Underwater Mortgages
Via ProPublica, Dec. 17, 2010, by Karen Weise The Obama administration has been increasing its support for programs to induce banks and others to trim loan balances for homeowners that owe more than their homes are worth. Here’s an overview of the three programs trying to increase the number of underwater borrowers who can get help. See related story: Fannie …
Banks Modifying Tiny Percentage of Mortgages in Need
by Paul Kiel ProPublica, Nov. 22, 2010. The government’s mortgage modification program has fallen short on any number of counts. Here’s yet another: It’s failed to boost the number of modifications relative to the need. Every month, we post a graphic rundown of the new numbers from the administration’s program. Here are the latest results, broken down by each bank …
Gov’t Has Spent Small Fraction of $50 Billion Pledged for Loan Mods
From ProPublica by by Paul Kiel. There are two main reasons why so little money has been paid out. First, there have been few modifications done through the program. The government only pays incentives for finalized modifications, not trials. For instance, even though $8.3 billion has been set aside for Bank of America, it won’t get that money unless it …
Intermission, at Best, in Battle Over Foreclosures
From the New York Times by DAVID STREITFELD. A day after the bank said it would once again pursue defaulting borrowers in the 23 states where foreclosures were overseen by the courts, judges in Florida said they were expecting even more challenges from defaulting homeowners. The White House is convening a meeting of regulators and administration officials on Wednesday to review …
Top Bank Regulator Doesn’t Believe Consumers Harmed By Foreclosure Fraud Scandal
Via the Huffington Post‘s Arthur Delaney. The nation’s top bank regulator doesn’t believe homeowners are being harmed directly by an ongoing foreclosure fraud scandal, despite multiple reports of banks mistakenly evicting homeowners who aren’t even in foreclosure. For example, Nancy Jacobini said she had been working on a mortgage modification with JPMorgan Chase after falling four months behind when the bank …
How We Can Really Help Families
Shaun Donovan, U.S. Secretary for Housing and Urban Development, posted a piece on the Huffington Post. No one should lose their home as a result of a bank mistake. No one. That is why the Obama Administration has a comprehensive review of the situation underway and will respond with the full force of the law where problems are found. The …
How Wall Street Shafted Main Street
“How Wall Street Shafted Main Street” is the title to this video going around on YouTube. But to be more accurate, I would say “How Wall Street Shafted, is Shafting and Will Continue to Shaft Main Street” — with the help of the U.S. Congress, the Obama Administration and ultimately, all American taxpayers.” I guess we should continue to remain bent …
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