Obama administration facing new pressure on foreclosures

[davephx]

Obama administration facing new pressure on foreclosures
Thu Oct 22, 2009 - Reuters Highlights

The Obama administration is facing stepped up pressure to provide more details about its efforts to help struggling homeowners stay in their homes.

"But the measure of success for the Home Affordable Mortgage Program (HAMP) is not only the number of borrowers who enter the process," said New York Bank Superintendent Richard Neiman, a member of the Congressional Oversight Panel (COP) which oversees the government's Troubled Asset Relief Program (TARP), the $700 billion bailout launched under the Bush administration.

"The real test is the number of families who complete the trial modification period and receive sustainable permanent modifications," Neiman said in a prepared statement released Thursday after Treasury Assistant Secretary for Financial Stability Herbert Allison testified Thursday before the COP.

And Rep. Maxine Waters, a California Democrat who chairs the House Financial Services Subcommittee on Housing and Community Opportunity, wants Geithner to send her detailed -- down to each congressional district - information about how many trial modifications have been converted into permanent modifications.

"Several issues continue to exist within the HAMP program, including the need for increased (loan) servicer participation and knowledge about the program and additional homeowner outreach," Waters wrote in an October 21 letter released Thursday and co-signed by Rep. Kathy Castor, a Florida Democrat. Waters wants an answer by next Wednesday.

The pressure comes just two weeks after a COP report found that government programs to fight the U.S. home foreclosure crisis look increasingly inadequate and should be reworked, expanded and supplemented with new ideas.

With a foreclosure filing occurring every 13 seconds, the United States is mired in a housing slump that is destroying billions of dollars in property values and threatening to choke off the economy's recovery from a stubborn recession.

[davephx]

HOPE NOW Pushes HAMP for Unemployed Homeowners

October 22, 2009 2:12 PM CST

The HOPE NOW Unemployment Committee collaborated with the Obama Administration to develop a new tool to help identify the eligibility of unemployed homeowners to for the Home Affordable Modification Program (HAMP).

The US Treasury Department allocates capped incentives to servicers participating in HAMP to modify loans on the verge of foreclosure. Servicers lower the debt-to-income ratio of a qualified borrower to 31% with a HAMP modification.

With the new tool, homeowners with nine months of unemployment benefits may use their unemployment income in determining HAMP qualification, according to a statement from Faith Schwartz, executive director of HOPE NOW, the private sector alliance of mortgage servicers, investors, insurers and non-profit counselors..

The web-based unemployment verification tool informs mortgage companies, housing counselors and homeowners of the correct amount of unemployment income and the duration of the payments.

“This is a highly useful tool for all parties as it really streamlines the process for unemployed borrowers to a faster resolution,” Schwartz said.

[davephx]

With Trial Mod Benchmark Met, Big Challenges Still Ahead for Full HAMP Implementation

The government’s Home Affordable Modification Program met the Obama administration’s goal of 500,000 trial mods, but experts this week said the real hurdle to the program’s success lies ahead in the path of both borrowers and servicers.

Speaking on an audio conference hosted by Inside Mortgage Finance, experts said the sheer scope and complexity of HAMP has contributed to the skeptical outlook many...

From Inside Housing Finance - have to pay a fee to get the full article but attention at least is being drawn to the problem.

[davephx]

Obama to release new home loan help program
10/22/09
WASHINGTON (MarketWatch) - The Obama administration is developing an alternative program to help troubled homeowners avoid foreclosure, beyond a mortgage modification program the White House launched in March, according to a key Treasury official on Thursday. "We are developing a foreclosure alternative program for HAMP [Home Affordable Modification Program], which will provide incentives for short sales and deeds-in lieu of foreclosure where borrowers are unable or unwilling to complete the HAMP," said Herbert Allison, assistant secretary for Financial Stability at a hearing. "We are aware that there are many borrowers whose modifications under HAMP will not be sufficient to keep them out of foreclosure; for example, borrowers who do not have sufficient income to support a modified payment." Allison did not provide additional information about the program, except to say that it could help prevent costly foreclosures.

[SillyWorld]

What a JOKE, they have a new Tool every week....Hahahaha And still no Help for the Many

[BadBobMo]

Timmy and the group have us beging to rent back our under water homes. We need the BK-Bill fired back period.
HAMP 8 months=1700 renters
MP2 7 months=No one doing anything! Lenders holding notes way way past 6 months w/no write off's
Once our great leaders turn tail an ran from then it's all down hill for all of us on main street. we will end up homeless!!! they will get thier bonus!

[ugh_2009]

Funny how Wells Fargo Home Mortgage an investor that is part of Hope Now does not even except unemployment income as qualifying source for HAMP. To quote their response - 'It's not a permanent source of income. Does not meet our guidelines.'

Time to make another post on their blog..

Originally Posted by davephx

HOPE NOW Pushes HAMP for Unemployed Homeowners

October 22, 2009 2:12 PM CST

The HOPE NOW Unemployment Committee collaborated with the Obama Administration to develop a new tool to help identify the eligibility of unemployed homeowners to for the Home Affordable Modification Program (HAMP).

The US Treasury Department allocates capped incentives to servicers participating in HAMP to modify loans on the verge of foreclosure. Servicers lower the debt-to-income ratio of a qualified borrower to 31% with a HAMP modification.

With the new tool, homeowners with nine months of unemployment benefits may use their unemployment income in determining HAMP qualification, according to a statement from Faith Schwartz, executive director of HOPE NOW, the private sector alliance of mortgage servicers, investors, insurers and non-profit counselors..

The web-based unemployment verification tool informs mortgage companies, housing counselors and homeowners of the correct amount of unemployment income and the duration of the payments.

“This is a highly useful tool for all parties as it really streamlines the process for unemployed borrowers to a faster resolution,” Schwartz said.