Modifications,Short Sales,Deeds in Lieu,WriteDowns

Regulators Report Performance of Serviced Mortgages Is Improving

Posted on Monday, July 04, 2011

The performance of first-lien mortgages serviced by large national banks and federal thrifts improved during the first quarter as a large number of troubled loans worked their way through the system, according to a report released Wednesday by federal regulators. The quarterly study issued by the O...

HAFA Short Sales up Over 70% in April

Posted on Thursday, June 30, 2011

Servicers completed 1,666 short sales and deeds-in-lieu (DIL) of foreclosure under the Home Affordable Foreclosure Alternatives (HAFA) program in April. That’s up 73.7 percent from the 959 HAFA transactions completed the month before. HAFA has been in place since April of 2010. According to Treasu...

3 big banks lose mortgage modification incentives

Posted on Thursday, June 30, 2011

Bank of America, JPMorgan and Wells Fargo must make 'substantial improvements' if they want Obama's Home Affordable Modification Program to start paying them again. The Obama administration has punished three of the nation's largest banks, judging them unworthy of receiving financial incentives thr...

Treasury Puts Performance of 10 Largest HAMP Servicers on Display

Posted on Thursday, June 30, 2011

The U.S. Treasury has released its regular monthly report card on the Home Affordable Modification Program (HAMP). New this time is an assessment of how the 10 largest HAMP servicers are performing. Four servicers have been designated as needing “substantial” improvement: Bank of America, JPMorgan ...

Servicers Respond to Treasury's Decision to Withhold Incentives

Posted on Thursday, June 30, 2011

Treasury says it will not pay program incentives to three of the nation’s largest mortgage servicers until it sees evidence that they’ve made improvements to the way they handle borrowers under the Home Affordable Modification Program (HAMP). After reviewing three key areas of program implementati...

Servicers Modify 210K Loans Through Own Programs in Q1: Report

Posted on Thursday, May 05, 2011

An estimated 210,000 homeowners received permanent, proprietary loan modifications from mortgage servicers during the first quarter of 2011, according to data released by HOPE NOW on Monday. That’s down nearly 20 percent from the 261,500 private-program mods reported during the fourth quarter of 20...

WHAT YOU NEED TO KNOW ABOUT SHORT SALES

Posted on Thursday, May 05, 2011

WPTV April 28 2011 8 PM EST Short Sale Homeowner sells home for less than what is owed to bank for mortgage. Bank agrees to accept less than what is owed to satisfy the mortgage. Reasons for Doing: Bank avoids costly foreclosure, home maintenance and resale (usually for a lower price than borrow...

GSEs Issue New Servicing Guidelines for Delinquent Mortgages

Posted on Thursday, May 05, 2011

Fannie Mae and Freddie Mac are issuing new guidelines to servicers in order to align their procedures for handling past-due mortgages. The objective is to ensure consistent servicing requirements for loans handled on behalf of the GSEs across four key areas: borrower contact, delinquency managemen...

Hardest Hit Fund

Posted on Tuesday, April 05, 2011

I. President Obama established the Hardest Hit Fund in February 2010 to provide targeted aid to families in states hit hard by the economic and housing market downturn. Each state housing agency gathered public input to implement programs designed to meet the distinct challenges struggling homeown...

Treasury Will Publish Servicer Scorecard Based on HAMP Performance

Posted on Monday, April 04, 2011

Timothy Massad, acting assistant Treasury secretary, said this week that beginning next month Treasury will start publishing a scorecard grading the largest servicers based on their compliance with the Home Affordable Modification Program (HAMP). Though members of the House voted yesterday to end t...

House Votes To Terminate Obama Administration's Anti-Foreclosure Program

Posted on Monday, April 04, 2011

The U.S. House of Representatives voted Tuesday to terminate the Obama administration's signature anti-foreclosure effort, the beleaguered Home Affordable Modification Program. The 252-170 vote broke down mostly along party lines, with Republicans in favor of ending the program. HAMP, as it's kn...

Foreclosure Aid Fell Short, and Is Fading

Posted on Monday, April 04, 2011

Last summer, as President Obama’s premier plan to save millions of Americans from foreclosure foundered, the administration tossed a new life preserver to homeowners. Officials unveiled a $1 billion program to offer loans to help the jobless pay their mortgages until they could find work again. It...

Foreclosure Aid Fell Short, and Is Fading

Posted on Monday, April 04, 2011

Last summer, as President Obama’s premier plan to save millions of Americans from foreclosure foundered, the administration tossed a new life preserver to homeowners. Officials unveiled a $1 billion program to offer loans to help the jobless pay their mortgages until they could find work again. It...

House Votes to Terminate Government's Mortgage Modification Program

Posted on Monday, April 04, 2011

UPDATED to reflect vote count of 252 to 170. The count was incorrectly stated previously as 218 to 109. The U.S. House of Representatives passed legislation Tuesday evening to end the administration’s flagship foreclosure prevention initiative, the Home Affordable Modification Program (HAMP). The...

Mortgage Servicers Resist But Cut Debts

Posted on Monday, April 04, 2011

U.S. banks are resisting efforts by state attorneys general to force them to cut the amounts owed by some borrowers facing foreclosure. Yet mortgage companies already have reduced home-loan balances for more than 100,000 borrowers. How much larger the number will grow is likely to be at the cent...

Report: Mods Often More Beneficial Than Foreclosures for Investors

Posted on Monday, April 04, 2011

A push for servicers to implement principal write-downs and provide screening for as many modification options as possible before proceeding to foreclosure has been met with stiff resistance from servicers and some lawmakers. Meanwhile, the number of loan modifications pales in comparison to the nu...

Sample DIL Courtesy of FNMA

Posted on Friday, April 01, 2011

Sample Conditional DIL Agreement [Name of Servicer] (“Servicer”) [Name of Borrower(s)] (“Borrower”) [Property Address] (“Property”) [Loan #] (“Loan”) CONDITIONAL DEED-IN-LIEU AGREEM...

Senators Introduce Own Legislation to End HAMP

Posted on Tuesday, March 22, 2011

With so much attention focused on the House of Representatives’ efforts to stamp out four separate federal foreclosure programs, a bill making its way through the Senate – which like its House counterpart would effectually terminate the Home Affordable Modification Program (HAMP) – has received less...

Obama Administration Issues Veto Threat Against Bill to End Controversial HAMP Housing Program

Posted on Sunday, March 20, 2011

President Obama would be urged to veto the House Republican bill that would kill his administration’s underperforming housing assistance program and replace it with a new program, a statement from the Office of Management and Budget said this afternoon. “The Administration strongly opposes House pa...

Midwest Firm Offers Service to Speed Up Fannie Mae Short Sales

Posted on Sunday, March 20, 2011

Midwest Real Estate Data LLC (MRED) has teamed up with Fannie Mae to provide its brokers and agents with a service designed to shorten the time they have to wait for approval from the GSE on short sale transactions. MRED is a real estate data aggregator and distributor that provides multiple listi...

Congressional Panel Report Says Foreclosure Mitigation "Largely Failed"

Posted on Sunday, March 20, 2011

The final report released on Wednesday by the Congressional Oversight Panel (COP) regarding the programs and uses of money under the Troubled Asset Relief Program (TARP) paid special attention to foreclosure mediation programs, particularly the Home Affordable Modification Program (HAMP). The pane...

Short Sale Success Faces Hurdles in California: Survey

Posted on Friday, March 18, 2011

Ninety-four percent of Realtors surveyed by the California Association of Realtors (C.A.R.) participated in a short sale transaction during 2010, demonstrating the growing presence of short sale listings in today’s distressed real estate environment. Despite increased market interest in the short ...

Early Workouts Central to Game Plan for 2011

Posted on Friday, March 18, 2011

Freddie Mac is in the process of transforming the way it measures mortgage servicer performance and one imminent change is designed to push servicers to help more delinquent borrowers within 60 days of the first missed payment. How? By retooling our 15-year-old Servicer Performance Profile metrics ...

Committee Advances Bills to End Two More Foreclosure Aid Programs

Posted on Friday, March 18, 2011

The House Financial Services Committee voted Wednesday in favor of two bills that would terminate the administration’s flagship Home Affordable Modification Program (HAMP) and HUD’s Neighborhood Stabilization Program (NSP), which provides funding to local governments and nonprofits for the acquisiti...

Loan mod program left homeowners' fate in hands of dysfunctional industry

Posted on Friday, March 18, 2011

Last February, with 6 million homeowners in danger of losing their homes, the mortgage industry was assembled at a luxury hotel in San Diego applauding themselves — literally. “As a group, we owe ourselves a round of applause,” said Yvette Gilmore, vice president of loss mitigation at Freddie Mac...

US considers mass mortgage write down

Posted on Friday, March 18, 2011

It was the rant from Chicago that resounded in Washington. In 2009, Rick Santelli, a reporter from CNBC, captured the mood of a sizeable portion of the country when he railed against government efforts to “subsidise the losers’ mortgages”. To cheers from the CME Group’s trading floor, he went on to...

Federal Foreclosure Programs to Cost Less than Expected

Posted on Friday, March 18, 2011

Members of the House Financial Services Committee are advocating for the termination of federal foreclosure relief programs largely based on the argument that their cost outweighs the benefits. The committee sent two bills to the full House last week that would end the Federal Housing Administratio...

Ability to Refinance

Posted on Friday, March 18, 2011

The ability for a borrower to refinance is determined by several factors: currentrates, credit quality, and collateral value being primary. Lenders know that higherfees have a negative impact on refinancing volumes going forward as FHLMC, FNMA and the FHA have all recently increased costs for certai...

Most Short Sale Transactions Taking Four or More Months to Complete

Posted on Thursday, March 17, 2011

Despite new rules for Home Affordable Foreclosure Alternatives (HAFA) short sales that went into effect on February 1, real estate agents responding to a survey said short sale transactions are still taking too long. A survey published recently by Santa Barbara, California-based property valuation...

Officials Tout HAMP Positives, with Nearly 540K in Permanent Mods

Posted on Thursday, March 17, 2011

Treasury released its new numbers for the administration’s Home Affordable Modification Program (HAMP) Wednesday, just hours before a House Financial Services subcommittee convened a hearing to terminate the government’s flagship foreclosure prevention program and three other federal housing program...

House to Determine Fate of Four Foreclosure Mitigation Programs

Posted on Thursday, March 17, 2011

Last week it was announced that a meeting would be held in front of the Insurance, Housing and Community Opportunity Subcommittee on Wednesday to determine the fate of four federal foreclosure mitigation programs. The Home Affordable Modification Program (HAMP), HUD’s Neighborhood Stabilization Pr...

Extension of the Home Affordable Refinance Program

Posted on Thursday, March 17, 2011

Announcement SEL-2011-02 On March 11, 2011, the Federal Housing Finance Agency announced two changes to the Home Affordable Refinance Program (HARP). This program is for borrowers who have demonstrated an acceptable payment history on their mortgage but, due to a decline in home prices or where ...

Refinance Program for Underwater Borrowers Open Through Mid-2012

Posted on Thursday, March 17, 2011

The Federal Housing Finance Agency (FHFA) has pushed the cut-off date for the Home Affordable Refinance Program (HARP) out by a year. HARP is one of several mortgage aid programs under the administration’s Making Home Affordable umbrella. It allows homeowners who owe more on their mortgage than th...

Servicers, Some Attorneys General Speaking Out Against Write-Downs

Posted on Thursday, March 17, 2011

Following last week’s statement by Bank of America CEO Brian Moynihan that principal reductions are unfair and not in everyone’s best interest, more banks and even some attorneys general have spoken out against the controversial clause in the settlement proposal. According to an article by Reuters,...

House Votes to Terminate FHA's Short Refi Program

Posted on Thursday, March 17, 2011

The U.S. House of Representatives has passed legislation to end the Federal Housing Administration’s (FHA) Short Refi Program aimed at helping homeowners who owe more on the mortgage than their home is worth obtain a new FHA-insured loan with a reduced principal. In a 256 to 171 vote Thursday eve...

Obama Administration's Foreclosure Program Shambles Along

Posted on Thursday, March 17, 2011

WASHINGTON -- The U.S. Treasury Department announced Wednesday that more than 600,000 homeowners across the country have been granted "permanent" mortgage modifications under the Obama administration's signature anti-foreclosure effort, the Home Affordable Modification Program. The latest monthly ...

Foreclosure Follies

Posted on Thursday, March 17, 2011

Recent price data show home values at nearly their lowest levels in the postbubble era, and a coming tide of foreclosures means prices will drop further. Seven million families have lost their homes so far, and another three million foreclosures are expected through 2012. The ongoing crash is furt...

Committee Votes to Kill Two Housing Programs, Delays Decision on Two

Posted on Thursday, March 17, 2011

The House Financial Services Committee voted Thursday to scrap two foreclosure relief programs – one that gives underwater homeowners a federal refinancing option, and a second that provides temporary mortgage assistance to unemployed homeowners. The FHA Refinance Program Termination Act (H.R. 830...

FHA Commissioner Says Short Refi Program Necessary for Recovery

Posted on Thursday, March 17, 2011

As the House prepares to debate on the future of the Federal Housing Administration’s Short Refinance option, FHA Commissioner David Stevens implored House subcommittee members to give the program a chance. The program is a voluntary option for lenders to agree to offer principal write downs and re...

Four Federal Foreclosure Mitigation Programs on the Chopping Block

Posted on Wednesday, March 16, 2011

Rep. Spencer Bachus (R-Alabama), chairman of the House Financial Services Committee, announced this week that he has scheduled a subcommittee hearing and full committee markup of four bills that will terminate what he says are “failed and ineffective housing foreclosure programs.” On the chopping b...

GSEs extend HARP. 2009, 10 numbers show uptick

Posted on Tuesday, March 15, 2011

FHFA will not be giving up HARP for Lent. It announced an extension of the Home Affordable Refinance Program, which is administered by Fannie Mae and Freddie Mac,to June 30, 2012. In addition, Fannie Mae and Freddie Mac will make the followingadjustments to their programs: Freddie Mac will exempt HA...

Fitch: Subpar Loan Mod Results Making U.S. Foreclosures a Reality

Posted on Monday, February 14, 2011

With loan modifications on a steady decline, the analysts at Fitch Ratings say the common thread running through the industry has become when will the servicer foreclose as opposed to how can a distressed borrower stay in their home. Fitch’s latest analysis of loan modification trends in non-agenc...

Barclays Capital Suggests Overhaul of Remittance Reporting

Posted on Monday, February 14, 2011

Barclays Capital says that as servicers perform complicated modifications and other actions, remittance reporting has been found wanting. A recent study by the research firm examines typical remittance reports and points out flaws in the reporting process, aiming to make a case for overhauling the ...

Mortgage Modifications Failing, Sparking More Economic Stress

Posted on Monday, February 14, 2011

Despite signs of economic improvement, the foreclosure crisis is far from over. According to a piece of fresh data released on Monday, low levels of mortgage modifications are likely to lead to more foreclosures, and more foreclosures will weigh heavily on the still fragile U.S. economy. Only 36,50...

Servicers Completed 1.24 Million Non-HAMP Loan Mods in 2010

Posted on Monday, February 07, 2011

Though servicers seem to be having minimal success with the Home Affordable Modification Program (HAMP), final 2010 data released by HOPE NOW shows that its members completed about 1.24 million proprietary loan modifications last year. That number is more than double the 512,712 HAMP modifications...

Three Congressmen Call for HAMP's End

Posted on Monday, February 07, 2011

In more bad news for the Home Affordable Modification Program (HAMP), three congressmen, Reps. Jim Jordan (R-Ohio), Patrick T. McHenry (R- North Carolina), and Darrell Issa (R-California) have proposed a bill to end the program. Issa is the chairman of the Oversight and Government Reform Committee...

Servicers Completed 1.24 Million Non-HAMP Loan Mods in 2010

Posted on Monday, February 07, 2011

Though servicers seem to be having minimal success with the Home Affordable Modification Program (HAMP), final 2010 data released by HOPE NOW shows that its members completed about 1.24 million proprietary loan modifications last year. That number is more than double the 512,712 HAMP modifications...

Is Inexperience Hampering the Short Sale Process?

Posted on Monday, February 07, 2011

Inexperienced real estate professionals are to blame for hampering the short sale process, according to two real estate professionals who specialize in distressed sales. "The banks know who's experienced and who's not," said real estate pro Travis Waller at a recent conference in New York. "If yo...

Moody's Takes a Closer Look at the Dynamics of Mortgage Re-Defaults

Posted on Monday, February 07, 2011

New statistics from Moody’s Investors Service might lead one to think that mortgage modifications are merely a temporary fix in most cases, serving to simply defer an eventual resolution of foreclosure, or in a best case scenario, another foreclosure alternative in which the homeowner relinquishes t...

Michigan Family Says Obama Foreclosure-Prevention Program Cost Them Their Home

Posted on Monday, February 07, 2011

After nine months of dutifully making lowered mortgage payments under the Obama administration's foreclosure-prevention program, Bea and Terry Garwood of Pinckney, Mich., are all set to move out. Despite the promise of relief, they are losing to foreclosure the two-story house that has been their fa...

How to Get Rid of a Second Mortgage Without a Loan Modification

Posted on Wednesday, January 05, 2011

Following the maxim that drastic times call for tepid measures, the banking industry continues to pay "lip service" to loan modifications while doing little. On Dec. 15, the Congressional Oversight Committee admitted the government's HAMP loan modification program has failed to help enough homeowner...

A Mortgage Nightmare’s Happy Ending

Posted on Monday, December 27, 2010

TWO and a half years ago, Robert and Amy Ahleman, a construction contractor and a financial services employee, were mired in a mortgage nightmare. After missing just one loan payment on their modest, well-kept bungalow in Bensalem, Pa., the couple began receiving notices from their lender. Default...

GSEs' Foreclosures Outnumber Modifications More than 2 to 1 in Q3

Posted on Thursday, December 23, 2010

For every home loan held by Fannie Mae and Freddie Mac that was modified during the third quarter, 2.3 loans were foreclosed on during the same period. The GSEs’ regulator, the Federal Housing Finance Agency (FHFA), released its quarterly foreclosure-prevention report to Congress on Tuesday. The...

In Obama Anti-Foreclosure Program, Thousands Of Homeowners Strung Along For A Year

Posted on Wednesday, December 22, 2010

More than 29,000 troubled American homeowners have been stuck in mortgage modification purgatory for at least a year, with no end in sight, under the Obama administration's anti-foreclosure program, according to a recently released report from a watchdog panel appointed by Congress. These homeowner...

Hope For Homeowners: The Squeaky Wheel Gets the HAMP

Posted on Wednesday, December 22, 2010

Meet Wadet. Wadet is a single mother of 3 beautiful girls. When Wadet purchased her home during the housing boom she was full of pride and joy for becoming a first time homebuyer. She didn't buy more than she could afford at the time. Wadet knew about being a wife, being a mother and working h...

Counseling Improves Mod Success, Nearly Doubles Payment Reductions

Posted on Tuesday, December 21, 2010

Data released by NeighborWorks America Monday illustrates the value of foreclosure prevention counseling for homeowners struggling to make their mortgage payments. The organization has found that a homeownerwho works with a housing counselor is nearly two times more likely to avoid foreclosure than...

Homes at Risk, and No Help From Lawyers

Posted on Tuesday, December 21, 2010

In California, where foreclosures are more abundant than in any other state, homeowners trying to win a loan modification have always had a tough time. Now they face yet another obstacle: hiring a lawyer. Sharon Bell, a retiree who lives in Laguna Niguel, southeast of Los Angeles, needs a modifi...

Wells Fargo To Modify 15K Option-ARM Loans In CA

Posted on Tuesday, December 21, 2010

LOS ANGELES — Wells Fargo & Co. has agreed to modify some 14,900 adjustable-rate loans made by banks it acquired, according to filings released Monday by state prosecutors who said the mortgages were harmful to borrowers. The agreement with the state attorney general's office will result in mo...

Obama's Foreclosure Program Will Reach Less Than One Quarter Of Administration's Target

Posted on Friday, December 17, 2010

The Obama administration's signature anti-foreclosure program will ultimately aid less than a quarter of the nearly four million distressed homeowners it was originally supposed to help, according to a Congressional report released Tuesday. President Obama initially portrayed the $50 billion init...

Geithner Blocking Legal Help For Foreclosure Victims

Posted on Friday, December 17, 2010

WASHINGTON -- Treasury Secretary Timothy Geithner has authorized big payouts to banks in an effort to encourage mortgage modifications, but is preventing borrowers in danger of losing their homes from accessing legal assistance under the Obama administration's foreclosure relief plan -- even when ba...

Half Of Bank Pay Could Modify Every Underwater Mortgage

Posted on Friday, December 17, 2010

Wall Street banks are on pace to pay out some $143 billion in compensation for 2010, just shy of their record year of 2007. But given the widespread layoffs of mid-level employees as a result of the financial crisis, average compensation set a record. At the top six banks, compensation rose 10 per...

HAMP Will Fall Short of Goal with Only 700K Helped: Report

Posted on Friday, December 17, 2010

he Obama administration’s signature foreclosure prevention program will help only 700,000 Americans save their homes, according to a scathing report released Tuesday by the Congressional Oversight Panel (COP). The group’s assessment falls far short of the 3 to 4 million homeowners that the presi...

U.S. foreclosure-prevention program fell short, Congressional Oversight Panel says

Posted on Tuesday, December 14, 2010

The Treasury Department's primary foreclosure-prevention program has failed to live up to expectations and has suffered from a lack of "meaningful goals," according to a report from a congressional watchdog panel due out Tuesday. The government's Home Affordable Modification Program, or HAMP, is...

Bank of America Gets Low Marks for Delinquency Resolution

Posted on Tuesday, December 14, 2010

The time mortgage loan servicers take to resolve delinquent loans through modification or foreclosure varies widely. According to an analysis by Moody’s Investors Service, Bank of America has demonstrated the weakest performance measured both by its speed in resolving the status of delinquent loa...

Obama's mortgage mod plan is still lacking

Posted on Tuesday, December 14, 2010

NEW YORK (CNNMoney.com) -- The Treasury Department's foreclosure prevention efforts have been found lacking -- again. Last April, the Congressional Oversight Panel found the program to be struggling to get off the ground despite having been in action for a year and a half. The latest evaluation of...

What Are Servicers Doing With Borrowers Denied a HAMP Modification?

Posted on Wednesday, December 08, 2010

A couple weeks ago, we wrote about some new Treasury data that found that most borrowers whose HAMP modifications were canceled have not yet lost their homes. We decided to dig a little deeper into the data and look at what individual servicers are doing with borrowers they did not approve for a per...

Industry Completes over 1.5M Loan Mods in First 10 Months of 2010

Posted on Wednesday, December 08, 2010

New data from HOPE NOW shows that the industry completed more than 1.5 million loan modifications for at-risk homeowners from January through October of this year. That translates to an average of 154,000 homeowners per month who have been able to remain in their homes with an affordable loan modif...

Farm Loan Crisis of 1980s Demonstrates How "Stripdowns" Worked without Working

Posted on Wednesday, December 01, 2010

The longer this foreclosure crisis drags on, the clearer it is that voluntary loan modification programs are inadequate to meet the needs of millions of borrowers with homes worth less than the mortgages. A recent commentary published by the Federal Reserve Bank of Cleveland shows how an old tool co...

Wells Fargo Clarifies Short Sale Criteria for Foreclosure Postponement

Posted on Wednesday, December 01, 2010

The National Association of Realtors (NAR) issued a notice this week explaining Wells Fargo’s new rules surrounding short sale transactions when a foreclosure is pending. Earlier this month, Wells Fargo advised NAR that it has modified its existing guidelines to allow the postponement of a sched...

HAMP's Progress Remains Sluggish, Officials See Other Gains in Housing

Posted on Wednesday, December 01, 2010

Fewer than 500,000 homeowners have received loan modifications through the federal government’s headline foreclosure prevention program and are current on their new mortgage payments since the initiative was launched in March 2009. Critics of the administration’s Home Affordable Modification Prog...

HAMP's Progress Remains Sluggish, Officials See Other Gains in Housing

Posted on Monday, November 22, 2010

Fewer than 500,000 homeowners have received loan modifications through the federal government’s headline foreclosure prevention program and are current on their new mortgage payments since the initiative was launched in March 2009. Critics of the administration’s Home Affordable Modification Progra...

Wells Fargo 'Nightmare' For Homeowner Applying For Help Under Administration's Anti-Foreclosure Prog

Posted on Wednesday, November 17, 2010

WASHINGTON -- Wells Fargo put an Illinois woman though a "nightmare of harassment, frustration, and relentless stress" when she tried to apply for a mortgage modification under the Obama administration's Home Affordable Modification Program, according to a lawsuit filed in federal court this week. ...

Homeowners Say Loan Modifications Led Them To Foreclose

Posted on Thursday, November 11, 2010

LOS ANGELES — Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up. The Cascos say they never missed a subsequen...

Treasury Department Says HAMP Doesn't Put People Into Default

Posted on Friday, November 05, 2010

A federal watchdog reported Monday that the Obama administration's signature anti-foreclosure program sometimes causes people to lose their homes to foreclosure -- a conclusion that had already been reached by some homeowners and their advocates. The Treasury Department, which administers the Home...

With Millions of Foreclosures on Horizon, Should States Mandate Mods?

Posted on Friday, November 05, 2010

The foreclosure crisis is far from over. According to figures released by the Center for Responsible Lending (CRL), since the crisis took hold, 2.5 million homeowners have already lost their homes and another 5.7 million are at imminent risk of foreclosure. Looking ahead, the nonprofit research gro...

3 New Anti-Foreclosure Strategies

Posted on Friday, November 05, 2010

Here are three programs that are considered promising replacements for the government’s Home Affordable Modification Program (HAMP), which has failed to stop foreclosures. Fannie Mae and Freddie Mac would be encouraged to refinance loans for some 30 million borrowers with high-interest rate mor...

Geithner Meets With Homeowner Advocates, Homeowners Bogged Down In HAMP

Posted on Thursday, November 04, 2010

WASHINGTON -- Treasury Secretary Tim Geithner met Wednesday with homeowner advocates and people who have struggled to get mortgage modifications from banks participating in the administration's anti-foreclosure program. Ken Kelly of Antioch, Calif. said he told Geithner he asked Bank of America fo...

Testimony of Julia Gordon, Center for Responsible Lending

Posted on Tuesday, November 02, 2010

October 27, 2010 Good morning Chairman Kaufman and members of the panel. Thank you for the invitation to discuss the Making Home Affordable program and other efforts to respond to the millions of foreclosures that have devastated families, destroyed neighborhoods, and triggered a global financia...

SHORT SAL:ES UPDATES AND BASICS

Posted on Tuesday, November 02, 2010

Due to current economic conditions, the number of short sale properties on the market is rising. The increasing number of short sales on the market presents challenges for REALTORS®. Below you'll find more information on: short sales and their challenges, the government's efforts to address these ch...

NAR on Short Sales

Posted on Tuesday, November 02, 2010

Homeowners who are underwater with their mortgage may find that relief is on the way from a bill strongly supported by the National Association of Realtors® that would impose a deadline on lenders to respond to short-sale requests. The legislation, H.R. 6133, “Prompt Decision for Qualification of S...

Treasury's Incredible Shrinking Mortgage Mod Program

Posted on Friday, October 29, 2010

The U.S. government's effort to help struggling homeowners is approaching a standstill, and the number of homeowners in ongoing mortgage modifications could start shrinking in several months if current trends continue, according to a ProPublica analysis of Treasury Department data. A year and a ha...

Short Sales Resisted as Foreclosures Are Revived

Posted on Wednesday, October 27, 2010

By MICHAEL POWELL NYTimes.com PHOENIX — Bank of America and GMAC are firing up their formidable foreclosure machines again today, after a brief pause. But hard-pressed homeowners like Lydia Sweetland are asking why lenders often balk at a less disruptive solution: short sales, which allow owne...

Mortgage Modifications Slow in September

Posted on Wednesday, October 27, 2010

By DAVID STREITFELD and BINYAMIN APPELBAUM NYTimes.com Even as banks, borrowers and regulators battle over how much faulty documentation by lenders should impede foreclosures, fresh evidence came Monday that the housing market remained very wobbly. Only 28,000 defaulting borrowers received per...

New HAMP Mods Decline by 16% in September: Report

Posted on Wednesday, October 27, 2010

By: Carrie Bay DSNews.com The Treasury Department released its monthly progress report on the administration’s flagship foreclosure-prevention program Monday, and the results show that the Home Affordable Modification Program (HAMP) is continuing to lose steam. Servicers completed just 28,000 per...

Homeowners Protest HAMP: 'It's Just A Scam And The Banks Are Getting Everything'

Posted on Wednesday, October 27, 2010

Arthur Delaney 10-26-10 Huffington Post WASHINGTON -- Judy Stratton said she and her husband Harry have tried since January 2009 to modify the mortgage on their home in Stayton, Ore. after a drop-off in demand for Harry's floor maintenance services. In August, Stratton said, they received a reje...

HAMP-Bashing Persists from Watchdogs and Regulators

Posted on Wednesday, October 27, 2010

By: Carrie Bay 10/26/2010 DSNews.com Treasury’s latest report on the administration’s Home Affordable Modification Program (HAMP) showed a 16 percent drop-off in permanent modifications completed during September, with over half of the 1.36 million trial plans started already canceled from the pr...

Why Banks Wont Give HAMP Mods

Posted on Friday, October 22, 2010

Lawyers for homeowners who have been denied mortgage modifications under the Obama administration's Home Affordable Modification Program make a straightforward argument when they sue banks. As a class-action complaint in Massachusetts puts it, "when a large financial institution promises to modify ...

NAR Meets with Major Lenders on Short Sales and REO Disposition

Posted on Wednesday, October 13, 2010

The National Association of Realtors (NAR) is holding meetings with the nation’s four largest lenders to address growing concerns about their processes for short sales and selling REO homes. The trade group’s leadership team has already met with representatives from Bank of America and Wells Fargo...

Bank of American "F" on HAMP

Posted on Monday, October 04, 2010

Bank of America stands out among the biggest mortgage servicers for an exceptionally poor performance under the Obama administration's Home Affordable Modification Program, according to data recently released by the government. The eight largest servicers have offered an alternative mortgage mod...

How Al Franklin Connects GMAC with HAMP - looks like he's still doing comedy

Posted on Friday, September 24, 2010

I love this story about how Al Franklin thinks the mess at GMAC shows we need to strengthen HAMP. There are a ton of things the GMAC story tells us need to be done. But spending more on a program that made little sense from the get-go is not one of them; The revelation that massive numbers of ...

HAMP Update. Goals was Millions. Outcome Not Even Close

Posted on Thursday, September 23, 2010

The number of homeowners receiving permanent relief under the Obama administration's primary foreclosure-prevention initiative hit a 10-month low as home prices dropped and repossessions jumped, threatening more homeowners just as the administration's aid program winds down. Just over 33,000 home...

Short Sales and DIL Increase at GSEs

Posted on Tuesday, September 14, 2010

Nearly 31,000 borrowers with Fannie Mae and Freddie Mac loans forfeited their homes through a short sale or deed-in-lieu during the second quarter of this year. The figure represents a 27 percent increase over the 24,000 short sale and deed-in-lieu transactions completed by the GSEs during t...

FHA and Freddie Try Short StrRefi Programs

Posted on Friday, September 10, 2010

Tuesday marked the start of a new, targeted government housing program designed to help the millions of Americans who, in the wake of plummeting property values, owe more on the mortgage than their home is worth. The government’s mortgage insurer, the Federal Housing Administration, is at the center...

New Short Refi Plan

Posted on Tuesday, September 07, 2010

The Obama administration on Tuesday will launch its most ambitious effort at reducing mortgage balances for homeowners who owe more than their homes are worth. Officials say between 500,000 and 1.5 million so-called underwater loans could be modified through the program, the first initiative to targ...

HAMP re-defaults

Posted on Wednesday, June 23, 2010

Fitch Ratings expects 55 to 66% of prime loans modified under HAMP to redefault within the next 12 months. For subprime and Alt A loans the prediction is 65 to 75%. Mods involving principal reductions, they say, may improve those numbers but those programs are not expected to roll out until later t...

Some Recent Short Sale Stats..

Posted on Wednesday, June 23, 2010

Short sales are on the rise and will continue. This far 50% have been in CA, 8% in Fla and 7% in AZ....

HAMP Update

Posted on Tuesday, May 18, 2010

April data shows 299,092 permanent modifications, an increase of 68,000/almost 13% over March, have been initiated. 3,744, out of about 300,000 permanent loan modifications given, cancelled or re-defaulted. So far, trail modification offers have been extended to 1.4 million of the 1.7 million el...

Help for the unemployed

Posted on Tuesday, May 18, 2010

The U.S. Treasury has issued a new Supplemental Directive introducing its payment relief program for homeowners who have lost their jobs. The Home Affordable Unemployment Program (UP), initially announced by the administration in March, becomes effective July 1, 2010, and offers eligible unemplo...

HAMP Re-default Stats March 2010

Posted on Tuesday, May 04, 2010

The administration’s Home Affordable Modification Program (HAMP) just isn’t doing enough to keep pace with the nation’s mortgage problems. Between February and March, the number of people who received assistance through HAMP but subsequently became delinquent again nearly doubled from 1,499 to 2,879...

HAMP Stats as of March 2010

Posted on Sunday, April 25, 2010

So far about 230,000 mortgages have been permanently modified. The median back end DTI is 61.3%, down from 77.5%. But that’s still too high, meaning many are still at risk of redefault. Hence the push for longer terms principal reductions and addressing firsts and seconds so homeowners can sustain...

HAFA April 5, 2010

Posted on Tuesday, April 06, 2010

The Philosophy behind HAFA (Home Affordable Foreclosure Alternative under Making Home Affordable) is to provide financial incentives for borrowers, servicers and investors to do short sale/deed in lieu over foreclosure with the goal of saving time and money, preserving property condition and value, ...

MHA HARP Refinances

Posted on Tuesday, April 06, 2010

March 1, 2010 HARP has been extended to June 30, 2011. ...

Recent FHFA HAMP and HARP Report Card

Posted on Tuesday, April 06, 2010

March 24, 2010 FHFA HAMP report (for November to January) indicated HAMP and HARP increasing for GSES but still only 540k HAMP trial modifications and 73K permanent as of January 31, 2010. 12.7% of all refinance are HARP. ...

HAMP Enhancements

Posted on Tuesday, April 06, 2010

March 25. 2010 HAMP Enhancements. Also FHA HAMP announcements (and Bank of America new principal write down program on 45k countrywide loans). 3 to 6 month help for unemployed. 2 year plan to help with negative equity (11 million u/w. 7 million behind on loans). Raised relocation ...

MHA NPV Updated

Posted on Tuesday, April 06, 2010

April 1, 2010 NPA updated based on new 110 local housing market data, REO and home price history, foreclosure and REO costs and time lines. ...

MHA 2MP...right from the horse's mouth

Posted on Thursday, April 01, 2010

2nd Lien Modification Program (2MP) Many homeowners may be struggling to make their monthly mortgage payments because they have a second lien. Even when a first mortgage payment is affordable, the addition of a second lien can sometimes increase monthly payments beyond affordable levels. Second l...

HAMP and FHA Enhancements

Posted on Monday, March 29, 2010

Details direct from Makinghomeaffordable.gov Making Home Affordable Program Enhancements to Offer More Help for Homeowners Today the Administration announced enhancements to the Home Affordable Modification Program (HAMP) to provide additional resources for struggling homeowners. These changes ...

Bank of America National Homeownership Retention Program

Posted on Thursday, March 25, 2010

Direct from the horse's mouth... Program Overview • This home retention program underscores Bank of America’s commitment to provide customers the resources and necessary help to sustain homeownership. • It is estimated that the loan modification program will result in permanent payment relief t...

Principal Reductions? Bank of America National Homeownership Retention Program (NHRP)

Posted on Thursday, March 25, 2010

The NHRP was launched in 2008 to provide assistance to Countrywide borrowers who financed their home with certain subprime and pay-option adjustable rate mortgages. Several enhancements are now being made to the program, including the introduction of an earned principal forgiveness approach to modi...

Washington Decide HAMP May Not Be Working...I HAVE to Say it...DUH!!!!

Posted on Thursday, March 25, 2010

The Home Affordable Modification Program (HAMP) will fall far short of the administration’s promise to prevent foreclosure for 3 to 4 million homeowners, according to one federal watchdog. Neil Barofsky, special inspector general for the Troubled Asset Relief Program, says HAMP’s “disappointing res...

HAFA Update

Posted on Wednesday, March 24, 2010

On March 12, 2010, the Treasury Department posted Frequently Asked Questions (FAQs) and two revised forms for the Home Affordable Foreclosure Alternatives Program (HAFA). HAFA takes effect on April 5, 2010, but servicers may implement early (apparently none have done so, to date). 1. Of particular ...

HAMP Feb 2010 Report Card

Posted on Monday, March 15, 2010

Even with a 45% increase since January, only 170,000 folks have seen permanent modifications. Even Treasury's estimate that 1.8 million of the borrowers behind on their payments are eligible for the program is frustrating given the original promise to help 3 to 4 million. February's HAMP report...

Second Lien Fall out

Posted on Monday, March 15, 2010

Based on their fourth quarter 2009 filings with the Securities and Exchange Commission (SEC),4 banks own more than $400 billion of the total $1 trillion second lien mortgage market. BofA $149 billion Citi $54 billion JPMorgan $101 billion Wells Fargo $115 billion. 1/2 of non-agency homeow...

Principal Write Downs

Posted on Wednesday, March 03, 2010

For the many people asking about principal write downs and how often those are being given... Q3 2009 13% of mortgage modifications Q2 2009 10% Q1 2009 3% ...

Short Sales

Posted on Tuesday, February 23, 2010

Short sales accounted for a substantial 15.9 percent of home purchase transactions in January. This was well above the share of other distressed property activity – with damaged REO accounting for 13.4 percent of activity and move-in ready REO making up 13.8 percent. Borrowers that agree to a shor...

Citi Announces Short Term Lease Back Plan

Posted on Thursday, February 11, 2010

Citigroup Inc. plans to let homeowners on the verge of foreclosure stay in their homes for six months - if they turn over the deed to their property. Citi said Thursday it is launching the pilot program, dubbed "Foreclosure Alternatives," this week in Texas, Florida, Illinois, Michigan, New J...

NAR Post On HAMP and HAFA

Posted on Monday, February 01, 2010

TIMELINE Notification If a servicer has not already discussed a short sale or DIL with the borrower, it must notify the borrower in writing of these options and give the borrower 14 calendar days to respond, orally or in writing. If the borrower does not respond, that ends the servicer’s duty to g...

MHA Mod New Guidance From Treasury

Posted on Thursday, January 28, 2010

"The updated process requires that key documents, including proof of income, be obtained from the borrower before a borrower evaluation can begin. This more robust requirement of upfront documentation will make it easier and quicker to convert trial modifications to permanent modifications and enabl...

Short Sale Insights From a Florida Lawyer

Posted on Wednesday, January 27, 2010

At a recent Bar meeting I heard from a Florida residential foreclosure defense attorney who had the following to say about short sales; Don't pay the taxes. Why bother if the lender can deal with it during the process anyway and you’re short on cash? Don't pay the mtg. Many banks are recently ...

Insights on Deficiencies from a Florida Attorney

Posted on Wednesday, January 27, 2010

What if the bank won’t release you from the deficiency? This lawyer says on commercial properties do the short sale anyway and deal with the deficiency later if you have to. But if the property is your residence he says don’t agree to a short sale without some kinds of agreement about the deficien...

Stretegic Defaults Commercial Style

Posted on Tuesday, January 26, 2010

"Tishman Speyer and BlackRock withheld their $16.1 million payment from senior mezzanine debt holders. At the time, the two companies said it was a strategic move to try and force the special servicer to restructure the debt. Tishman and BlackRock purchased the complexes from MetLife in 2006 at t...

Commercial v. Residential

Posted on Monday, January 25, 2010

Are commercial borrowers being treated differently as far as work outs and defaults that residential borrower? Example: The partnership that paid a record $5.4 billion for two of New York City's biggest apartment complexes is having money problems. The group led by Tishman Speyer and BlackRock R...

Strategic Defaults

Posted on Monday, January 25, 2010

What’s the problem with strategic residential defaults? • Ethical issues; Presumably shopped for, negotiated and agreed to loan terms. Had opportunity to ask questions, understand (goes to shared responsibility for these mistakes/do we want to hold borrowers responsible for their own choices an...

Some Stats and Thoungts on Walking Away

Posted on Monday, January 25, 2010

4. Stats • Negative Equity ? As of June 2009 32% of all US mortgaged homes underwater. ? Expected to reach 48% by Q1 2011. ? 42% drop from peak in some markets. ? Some areas as much as 89% underwater. Miami 48%. • Impacts of Negative Home Equity ? Reduces spending ? Inhibits mobi...

Strategic Defaults; Some Thoughts on Brent White's Paper

Posted on Monday, January 25, 2010

Arizona Assistant Law Prof. Brent White has observed that many borrowers are not walking away and attributes that to several factors; Result of two behavioral economic emotional forces; (a) desire to avoid shame and guilt and (b) exaggerated anxiety over perceived consequences (c) actively cult...

Principal Write Downs

Posted on Monday, January 18, 2010

A recent fed study shows that servicers who write down principal as opposed ot just lower rates see a much lower re-default rate. Many argue the principal write down is smaller than the loss from re-default. Cutting a payment by 25% by reducing interest reduces defaults by 11% for the first ye...

December 2009 Making Home Affordabel HAMP Mod Stats

Posted on Monday, January 18, 2010

The December 2009 Servicer Performance Report for Making Home Affordable show us some interesting things. • At this point about 89% of eligible mortgage debt is covered by HAMP participating servicers. During Q4 2009 servicers agreeing to participate rose from 63 to 102. Another 2300 lenders se...

Why Mods Arent Working

Posted on Tuesday, January 05, 2010

We were originally promised MHA HAMP would save 5 million homes (this was lowered to a promise that 500K applications would be processed by November - no mention of any homes actuallybeing saved). So far about 50K people have recevied permaant mods. Of those, as many as 50% may redefault, making th...

Some New Numbers on Modifications...

Posted on Tuesday, December 29, 2009

An estimated $75 billion is in default. As of November 728K trial modifications had been proposed. Only 31K had been made permanent. The biggest problem is allegedly borrowwers not turning in the required paperwork. Some banks only require some documentation to decide on a modification and t...

Recent Mod Stats

Posted on Sunday, October 11, 2009

Less than 3 in 10 mortgages that were modified by servicers in Q1 2008 are still current according to the Office of the Comptroller of the Currency. As mod age the chance of default increases significantly. 48.2% of those modified in Q4 2008 are current. 36% of those modified in Q1 2009 are delin...

Some Idea for Qualifying

Posted on Sunday, October 11, 2009

Credit counselors can help homeowners find ways to bring their debt down so they can qualify for a modification; use less electricity, temporarily decrease retirement contribution, withholding tax, etc. ...

Valuation Tip...

Posted on Wednesday, April 22, 2009

Most lenders and servicers aer using Zillow to value property when underwriting a modification. Since that service does not really accuont for upgrades and improvements you may have done since you;ve owned the home, make sure you lender has a written description and even an opinion from a local real...

QUESTIONS TO ASK YOUR LENDER

Posted on Tuesday, April 14, 2009

What do you need me to send you in order to see if I qualify for a modification? What types of modifications are you providing now? Do you expect to be providing any other types of modifications soon/are there any programs pending? Are there any bailout programs that you are offerring or ex...

QUESTIONS TO ASK YOURSELF

Posted on Tuesday, April 14, 2009

What is the problme that caused me to get into this situation in the first place? Is it a temporary problme or a permenant issue? Can I afford this property in the long run, am I better off with a short term solution until I can sell, or should I consider bankruptcy or just walking away? Hav...

Alternatives Available May Depdn on Your Type of Loan, Who Owns it or Who Insures It

Posted on Tuesday, April 14, 2009

FHA: reinstatement, forbearance, repyament plan, modification, deed in lieu, claim advance, pre foreclosure sale VA: reinstatement, forbearance, repayment plan, modification, deed in lieu, compromise agreement, refund. FNAM or Freddie: reinstatement, forbearance, repayment plan, modification...

Hardship Letters

Posted on Tuesday, April 14, 2009

Most people spend more time on their hardship letter than anything else. Maybe thats because its somehow cathardic to explain all of the things that have happened that are beyond our control??? Anyway the truth is this letter is not that important to the lender. It's basically something they need f...

A word about modification companies

Posted on Tuesday, April 14, 2009

Some of these are good guys doing a good job. But others are not. The problem of course is you dont always know whos good or who is not until after you've hired them. Some thoughts: 1. Before you hire someone to help you get your mod, ask yourself why it is you feel you can't do it yourself? An...

The Psychology Involved In Foreclosures

Posted on Thursday, April 02, 2009

I'm getting so many questions for people I have found have not and do not want to call their lenders. Lets face it, calling your lender (or servicer) is still a royal pain in the butt. Many of them are still completely unprepared for this. As a result the guy on the other end of the line does not s...

WARNINGS about Modifications

Posted on Sunday, March 29, 2009

Two things I want to be aure everyone knows. First, under some of the new bailout related plans, the modifications you may enter may only last for five years. After that you're interest rate will adjust back up to whatever the market rate was at the time you made the modification (which is around 5...

The Problem With Modifications

Posted on Wednesday, February 18, 2009

Many borrowers are defaulting on newly modified loans. Some call modifications a band-aid approach. 1.A BIG LOAN BY ANY NAME IS STILL A BIG LOAN. A modification addresses mortgage loan terms such as the interest rate and amortization period. A modifications to reduce principal are still rare...

Cash for Keys

Posted on

A reader recently asked "what is cash for keys?" Cash for keys is a negotiation some borrowers are having with their lender or servicer. Briefly, the lender/servicer may actually pay the owner to vacate the property in a timely manner without destroying the property. The point for the lender of ...

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