Obama Administration doubles down on HAMP

The Administration has sent a clear signal that its primary foreclosure mitigation initiative, the Home Affordable modification program (HAMP), is not working.  In a press release today, Treasury and HUD announced new efforts to convert three-month trial modifications to permanent mortgage restructuring.  Of 650,000 homeowners in 3-month deals so far, 375,000 are said to be coming to the end of their trial periods by December.  In October the Congressional Oversight Panel revealed that only about 1,700 permanent modifications had been completed. 

Treasury promises to tell us for the first time in its December report, due around the 8th or 9th, how many trial mods each servicer should have made permanent by now, and how many have actually converted.  While the tone of the release suggests that much of the problem lies with homeowners failing to provide documents on time, the evidence from counselors and mediators is that there is a massive systems failure on the part of the mortgage servicing industry.  While some of the temporary mods are likely to fail, so far reports are that 80% of homeowners in the program are making their payments.  It would be unconscionable for these homeowners to lose their homes on account of missing paperwork.

Comments

[Cheap lots in Costa Rica]

That is a problem, but president Obama is a great person and I think that he are going to find the solution.

[Gary Smith]

Why isn't America being told the truth? NO ONE will qualify for HAMP because it is under the control of the INVESTORS (Communist China) and NOT the SERVICING COMPANIES as proposed. It is a SHAM, you know it, I for sure know it after 7 months Trial Mod only to find out rejected because of, get this "You don't meet INVESTOR GUIDELINES". America has been given a false ray of hope because HAMP is a HOAX, a SHAM, and as my real estate attorney explained to me "OBAMA political BS' designed to raise America's hopes, make him look good. In reality we are in a terrific economic slump, I don't care what the news trys to portray, housing values have declined where I am at by 20% in just the last 9 months - so sooner or later Washington, who definitely does not have my support after this HAMP SHAM, will have to realize actions, not words and false promises get results. I am not bitter, just very disappointed and have absolutely no trust in my elected officials - sad part is, I can't do anything about it and they spend all their time scratching each other's back while sticking a knife in ours! You probably won't post this because it says exactly what is happening and is the truth but I thought you should at least hear it from an actual user who has been deceived along with the other 9 million home owners facing foreclosure.

[Christine Wilton]

I've had a client get declined on the HAMP program for simply not making the payment on time [3 days late] and the servicer explained that the government program is VERY strict as to the rules.

Once declined, the servicer will not allow another HAMP review, nor is the client eligible to start over and try again.

So, when the intent of the homeowner is to stay in their home, they should be given additional opportunity to make good on the HAMP program.

[Wendy]

I read things like this and I get so angry. I'm very sure that the biggest issue does lay with the mortgage service industry, it's rather large and over fed.
It's not to it's advantage to make sure that paper work is filed on time, rather loosing paper work is a convient way to keep all the money that has been paid in from the homeowners who have been making payments on time.

The homeowner who has been making their payments on time ends up loosing not only their home but all the payments including the downpayment and are left with nothing when the mortgage company can't find their paperwork.

Makes one wonder do these companies keep the files in the back of some cave somewhere? Can't they afford filing cabinates for hard copies? Maybe a pack of wild dogs ate their computers?
Or maybe they are in reality nothing but a bunch of greedy carpet beggers underneath their business suits after all.