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Tag Archives: Loan Modification

HAMP Mods Slowing, Outnumbered by Rejections and Cancelations

Last week, the special inspector general for the Troubled Asset Relief Program, released a report to Congress saying servicers are not doing all they can to help facilitate the process of keeping borrowers in their homes. To date there have been 1,025,907 homeowners rejected for HAMP modifications by the eight largest servicers, and there have been 572,655 canceled trial modifications, which typically occurs because of insufficient documentation, program ineligibility, or because the borrower missed payments.

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HAMP Reaching Underwater and Middle Class Borrowers: Report

Treasury and HUD released a new report Monday on the state of the housing market, including new metrics that provide a more granular view of the Home Affordable Modification Program (HAMP). Most program participants are moderate and middle income distressed homeowners, with a median credit score of 570, who are underwater on their mortgages. Borrowers in active permanent modifications have seen their monthly mortgage payment cut by a median of 40 percent.

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TARP Special Inspector General’s Report Says HAMP is Failing

In his report to Congress this week, Neil Barofsky covered a number of controversial issues surrounding the Home Affordable Modification Program (HAMP) designed by Treasury as a foreclosure prevention effort. Barofsky says HAMP ""continues to fall dramatically short of any meaningful standard of success,"" and he faults servicers for compounding the program's problems with unnecessary delays and mishandling of paperwork. Barofsky is the special inspector general for the Troubled Asset Relief Program (TARP), which funds the HAMP initiative.

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Foreclosure Avoidance Site Offers Borrowers Satisfaction Guarantee

HomeAffordableGuide.com provides interactive software that guides borrowers through the application process for mortgage help programs, and the company now offers a 30-day satisfaction guarantee. If a homeowner is not happy with the site's abilities while applying for a loan modification or short sale, they may request a full refund within 30 days of purchase.

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Bank of America Loses $2.2B in 2010

The nation's largest bank reported this morning that it lost $2.2 billion in 2010. During the fourth-quarter period, Bank of America posted a net loss of $1.2 billion, which included a goodwill impairment charge of $2.0 billion in its home loans and insurance division. Had it not been for this charge, the company says it would have earned $756 million in the fourth quarter. The company called 2010 a year of ""necessary repair and rebuilding."" Bank of America is the only one of the 'Big Four' to report a loss.

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Association of Mortgage Investors Encourages Bank Transparency

Banks already facing many legal issues have yet another group on their hands that is closely examining servicing practices and demanding greater transparency. The Association of Mortgage Investors has released a white paper featuring remedies to restore and stabilize the U.S. mortgage and housing markets. The group of investors accuse servicers of making the mortgage process confusing. Their paper says they look forward to continued reviews and the involvement of state attorneys general.

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Free Online Resource Aims to Help Americans Facing Foreclosure

Free online software for the creation of personalized mortgage modification applications under the federal Home Affordable Modification Program (HAMP) and other lender programs is now available from FreeMortgageFix.com. The company says paperwork is undeniably the No. 1 reason for the delays with the HAMP loan modification program and unnecessary denials, and it believes its online program is the answer.

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Vacant Homes in Chicago Putting Added Burden on City Funds

According to a report released Thursday by the Woodstock Institute, vacant homes in the city of Chicago are piling up and costing the city millions of dollars while bringing crime and blight to neighborhoods. According to the report, there were more than 18,000 properties on the city of Chicago's vacant buildings index as of September 2010. Vacant and abandoned properties can rapidly spiral into disrepair, affecting the values of neighboring properties and attracting criminal activity.

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Losses on Private-Label Mortgage Securities to Increase: Moody’s

As the backlog of foreclosures continues to drive down housing prices, losses on private-label residential mortgage backed securities (RMBS) will increase in 2011, according to Moody's. The forecast for more red ink seeping from home loans sold to investors comes despite the fact that the agency believes the rate at which loans become delinquent will decline during the year. Moody's expects flaws in foreclosure practices that have recently come to light to delay foreclosures by three to six months, further extending the window of losses for investors.

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FDIC May Have Stricter Servicing Rules in the Works For Banks

Reports have surfaced that the FDIC is contemplating stricter requirements that would force banks to disclose what potential ramifications a loan modification on a first lien they service would have on an underlying lien. Industry analysts have speculated that servicers may be reluctant to modify a primary loan because the bank that services the loan also holds the second lien. Such an arrangement could be considered a conflict of interest and prompts some to wonder if investors would be swayed if they knew of the arrangement beforehand.

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