Tag Archives: Foreclosure Prevention

If governmental policy on foreclosure prevention does not change, 11.5 million borrowers are in danger of losing their homes, according to the analysts at Amherst Securities. That staggering figure equates to one out of every five borrowers - an astronomical 20 percent default rate. So how can the administration fix deficiencies in its loan modification program? Amherst analysts say the answer lies in cutting borrowers' principal balances and boosting housing demand, including opening up financing channels for investors.

Marshall & Ilsley Corporation (M&I), a financial services institution based in Milwaukee, Wisconsin, has extended its foreclosure moratorium through December 31, 2010. The initial moratorium, which applies to owner-occupied residential loans in all M&I markets for customers who agree to reach a successful repayment agreement, was announced December 18, 2008, as part of the company's Homeowner Assistance Program.

Mortgage insurer Radian Guaranty Inc. has made a $200,000 grant to HOPE LoanPort to be used by borrowers, non-profit counselors, servicers, and other organizations to improve the execution of loss mitigation activities, including those under the Home Affordable Modification Program (HAMP). Radian's contribution will be used to support HOPE LoanPort in its mission to address some of the hurdles borrowers face when seeking foreclosure alternatives.

The Treasury Department has instructed three of the nation's largest mortgage servicers to make changes to the way they solicit distressed borrowers for the government's loan modification program and evaluate applicants for eligibility. In Treasury's latest report card on the Home Affordable Modification Program (HAMP), JPMorgan Chase, Wells Fargo, and Bank of America were called out by name as receiving sub-par grades in complying with the program's guidelines.

HUD has announced the availability of more than $5.1 million in grants for housing counseling training. HUD plans to fund eligible organizations to deliver full-spectrum training as part of the Obama administration's efforts to provide housing counseling to the nation's homeowners, buyers, and renters. The agency says right now, these counseling programs are critical to helping thousands of families avoid foreclosure, and it has increased the funding for such services by 36 percent in this year's HUD budget.

Legislation to stabilize the foreclosure crisis through the federal government's conservatorship of Fannie Mae and Freddie Mac was introduced in the U.S. House of Representatives Tuesday. The Housing Opportunity and Mortgage Equity (HOME) Act would require Fannie and Freddie to allow borrowers to refinance their mortgages by locking in today's record-low interest rates for longer fixed-term loans. The legislation would affect up to 30 million mortgages held or backed by the two GSEs.

New initiatives are under way in Washington to help service members who are struggling with their mortgage payments avoid foreclosure. The efforts include a mortgage payment forbearance of up to six months where the death or injury of an active-duty service member causes a hardship for military families with a mortgage obligation. Fannie Mae and the U.S. Army made the announcement at a Pentagon event Monday.

The credit quality of first-lien mortgages serviced by the nation's largest banks and thrifts remained steady during the second quarter of 2010, according to a new regulatory report. Mortgage delinquency levels were relatively flat but elevated after rising for several quarters. Completed foreclosures were up by 7 percent from the previous quarter, but mortgage modifications increased 18 percent, and the report found that newer mods are showing significantly lower re-default rates.

Bank of America reports that it has provided mortgage modification assistance to more than 680,000 homeowners since January 2008, 79,859 of which have been completed through the administration's Home Affordable Modification Program (HAMP). According to the company, it leads the industry in HAMP modifications. BofA officials say HAMP results have slowed in recent months due to the implementation of a full documentation requirement prior to initiating a trial mod plan.

According to the national nonprofit Homeownership Preservation Foundation (HPF), economists estimate that close to 4 million homeowners will face delinquency in the near future. In an effort to help thwart this assessment, HPF works to provide information and financial education to guide consumers toward sustainable homeownership. The foundation reports that its Homeowner's HOPE Hotline has aided more than 4 million distressed homeowners since the financial crisis began in 2008.