Tag Archives: Loan Modification

HUD and Treasury Department released the latest scorecard Friday, providing a look at a market in recovery but threatened by an expected increase in foreclosure activity. According to the report, foreclosure starts and completions both declined in June, painting a picture of continued recovery. However, officials expect foreclosure activity to pick up in coming months as firms lift delays in foreclosure processing.

Starting September 1, Fannie Mae and Freddie Mac will lower their standard modification interest rate from 4.625 percent to 4.25 percent. The GSEs stated the rates are adjusted based on market conditions.

The Aloha State recently passed three new bills related to mortgage servicing and mortgage origination. All three went into effect at the beginning of this month.

Defendants who operated a national loan modification scam were ordered to pay more than $4 million in penalties and restitution, including $2 million to consumers who were falsely promised loan modifications, California Attorney General Kamala D. Harris announced Tuesday in a statement.

Amherst Securities Group expressed in a Mortgage Insight release worries about loopholes in eligibility requirements under the expanded HAMP program. The release specifically points to a rule that requires investors to pledge that they actually intend to rent the home; the requirement has no provisions about reporting on the investor's actual efforts to rent or on the income collected.

Wells Fargo announced Friday that as of May 31, the company had in place 771,757 active trial or completed mortgage modifications. Of those modifications, approximately 84 percent (648,709) were done through the company's own programs, and 123,048 were through HAMP.

HOPE NOW released its May loan modification data Monday, revealing that the month saw nearly 38,000 completed short sales. The May short sale total brings the organization's overall total (since December 2009) to nearly 906,000. In addition, HOPE NOW reported that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month, 17,590 of which were completed under HAMP.

Once again, data compiled in the Obama administration's Housing Scorecard pointed to both signs of promise and reasons for concern. One positive indicator for housing was the 7.4 percent rise in home equity to $457.1 billion in the first quarter of 2012. On the downside, the impact of serious delinquencies and underwater mortgages continues to strain the housing market. One popular administration program for underwater borrowers is the Home Affordable Refinance Program (HARP). So far, HUD Acting Assistant Secretary Erika Poethig said almost half a million families have taken advantage of the program, and refinanced families save an average of $2,500 per year.

With high foreclosure rates still presenting a major hurdle to housing and economic recovery, GAO conducted a study to evaluate and find opportunities to enhance foreclosure mitigation efforts. The report asserts that government agencies participating in foreclosure mitigation programs need improve their existing strategies to help borrowers. The report specifically addressed loans modified by the Treasury (through HAMP), the United States Department of Agriculture (USDA), FHA, and the GSEs.

At a Long Island Housing Partnership event Monday, New York Attorney General Eric Schneiderman announced the launch of the Homeowner Protection Program, a commitment of $60 million over three years to fund housing counseling and legal services for the state's homeowners.