HAMP Homeowner Help Still Coming Too Slowly

The Obama administration continues to make halting gains in its efforts to help struggling homeowners, according to a new self-assessment released today, but those efforts are still falling far short of their initial promise.

More than 20,000 homeowners got trial loan modifications under the administration's Home Affordable Modification Program in December 2011, according to a report from the Departments of Treasury and Housing and Urban Development, up from 19,100 in November. So far, nearly 1.8 million homeowners have gotten trial modifications since the program was announced in February 2009, and 933,000 have received permanent modifications, according to the report. However, 932,449 trial and permanent modifications have been canceled since the program began, according to the Treasury Department, including more than 170,000 borrowers who have missed three or more payments even after getting permanent modifications, leaving only 762,839 active permanent modifications.

That is a far cry, however, from President Barack Obama's initial declaration that the HAMP program could help 3 million to 4 million homeowners with their mortgages. The administration last month announced it would extend the program through the end of 2013, and the pace of trial modifications has picked up a bit from the fall. But even with the extension, the program is unlikely to achieve the numbers projected by the president.

The program has been dogged by accusations of poor oversight and abuse by mortgage servicers, including the nation's biggest banks.

The Treasury Department has in the past refuted suggestions that its oversight of the program has been lacking. It has also said that any shortfall in hoped-for loan modifications under the program has been more than made up in private loan modifications, for which it says the HAMP program has set new industry standards.

The latest administration report card said the HAMP program has helped drive down new foreclosure actions, to just 58,300 in December from 71,700 in November and less than half the 121,500 in December 2008.

At least some of the slowdown in foreclosure activity has likely been due to uncertainty about the outcome of state and federal lawsuits over foreclosure practices. A broad settlement of those issues could be coming soon, which could open up the foreclosure pipeline again.

Even after getting loan modifications under HAMP, many homeowners have continued to struggle to make payments. According to a separate Treasury Department report today, 23 percent of all loans permanently modified under HAMP have fallen back into delinquency within 18 months.

Comments

[tuscanyb450]

09:43 PM on 02/10/2012

If you think the HAMP program helped ANYONE you are sadly mistaken. This was total political to ease the fall out for the bailout of banks that didn't need it. We were lied to ... show them how much they will pay for it with your vote. Vote out the old politicians...they are crooks.. we need people who really want to help this country and not line their pockets..I doubt if that is possible. We are screwed.

[anonymous67]

12:34 PM on 02/08/2012

America, our government is corrupt. The Department of Treasury represents the interests of banks -- ahead of the interests of the American public.

Money has trumped votes. It is time to rise up and reclaim your government.

[Lindytindy]

08:34 AM on 02/07/2012

Help for homeowners, what a cynical lie..they have no intention of helping us. Just making it look like they 'care'. We are on our own as usual.

[scandaliciousreserve]

08:20 AM on 02/07/2012

Obama is Going to Pay for My Gas and My Mortgage:

www.youtube.com/watch?v=P36x8rTb3jI&feature=related

[scandaliciousreserve]

08:16 AM on 02/07/2012

That is a far cry, however, from President Barack Obama's initial declaration that the HAMP program could help 3 million to 4 million homeowners with their mortgages. The administration last month announced it would extend the program through the end of 2013, and the pace of trial modifications has picked up a bit from the fall. But even with the extension, the program is unlikely to achieve the numbers projected by the president.

*****

Another EPIC FAILURE - under the Obama Administration - with Shaun Donovan as Head of HUD - bearing a close "working" relationship with ACORN - since the time that he was a New York Housing Authority official.

Shaun Donovan provides ACORN affiliates with US taxpayer money - in spite of the signing of the DEFUND ACORN Act of 2009 = Political Theatre.

[seekthetruthplease]

07:16 AM on 02/07/2012

Man I wish I could use the same logic on the IRS! I did not understand the forms. The IRS is predatory. My income is now underwater - worth far less then it once was...... How bout it? Can I get a tax modification? I say all of us who did the right thing, lived below our means, got 30 year fixed rate loans, continue to pay our loans should get an IRS modification!

[1oldhippie]

01:09 AM on 02/07/2012

The programs are great for those that can get in and navigate the system. Its not an easy process because so many customer service depts have employees of whom English is a second language.
The other day the Pres was talking about 'small business' one site, one stop shopping. They need the same thing for mortgage relief. There are dozens of agencies who can help but they should be streamlined.The process takes several hectic hours for many repetitive days. Paperwork gets directed wrong, they want copies of things most folks don't have and will take weeks to get, all the while the people on one end the the phone are board to death, working off a script and the home owner is suffering PTSD because they're weeks away from being HOMELESS and can't get the help!
Some plans are for underwater, some are freddie fannie only, some are certain banks, its a mess as it is...find a way to put the info in the hands of those you're trying to help and lets get this behind us!

[jannas2cents]

08:57 PM on 02/06/2012

This program is such a joke. It was very naive of the Obama administration to trust big banks to "play nice" and offer loan modifications to stressed homeowners in return for the huge federal bailout, but there's just no incentive for the banks to do this. They're supposed to get $1,000 from the federal government for each mocification, but that's l ike no incentive at all. I've been struggling with Chase for two years now to get my loan modified, but they keep coming up with more creative contradictory and conflicting excuses why my loan cannot be modified. There's a formula used to qualify borrowers for a modification called "Net Present Value" where the homeowner provides the data and the bank comes back with a response, but the banks will not release to homeowners how this formula is actually calculated, like it's some big, deep dark secret. I'm a 25-year veteran loan officer so I understand very well how to underwrite a loan, and perhaps can do it better than any of the nitwits who have worked on my file, but Chase says "we don't have to tell you that" when I try to get the formula, which is ridiculous, unethical and corrupt (so much for the Freedom of Information Act). Most federal programs are a joke and this is no different. They are invented by people with no background on the subject and sound good in theory and on paper, but nothing comes of them.

[BillyBob99]

12:22 AM on 02/07/2012

I know a guy that has the formula. We sent all the paperwork to our mortgage holder, They came back with denied. We asked them if they were using the numbers we gave them. Guess what they added the numbers wrong! They said they would do it again, Guess what, they added the numbers wrong again. I am taking about just a few numbers, They said they would correct their mistake and use the correct numbers, guess what, they doubled my home yearly home insurance and I did not qualify. Meanwhile, the guy I used that has the formula told me that I DID qualify. He did a three way conversion with my mortage holder, HAMP and him. He explained why we did qualify and HAMP told my mortage holder that we DID qualify. We got our mod and it is saving us $1500 a month. Bottom line is, the mortgage lenders DONT want to give you a mod. Maybe someone should tell the President that the banks DONT want to do a loan mod and will screw up the numbers so they can tell you that you dont qualify for the mod. I am gratefull to the guy that helped us. He kept telling us that we DID qualify. Because of that, we kept going over the figuers with the bank and finally, finally we got the mod. It took 3 months to get it. Banks are not your friend and they DONT want to give you a mod.

[PinkRibbon Farmer]

03:50 AM on 02/07/2012

I think our President knows, but he doesn't care. He can say, well I tried. I gave you all programs. Sorry they didn't work, but I did my token effort. Now elect me again, cuz I deserve it.

[Lindytindy]

08:36 AM on 02/07/2012

Not naive, Obama did this deliberately, he thinks it's our fault that we fell victim to the economic meltdown of the housing market caused by Wall Street crooks, who are his buddies. He's done nothing but make the situation worse. As usual. He works for Wall Street, Geithner has been running the country, read "Confidence Men".

[Steve Rockett]

08:14 PM on 02/06/2012

somebody put eyebrows on this guy

[Demos 0]

07:02 PM on 02/06/2012

Well,

I worked hard, I researched banking institutions, I researched types of mortgages, I researched home prices.

I paid more for a 30yr fixed mortgage to ensure no 'bumps' in interest. I purchased a smaller house than I could have afforded at the time because there is no guaranteed future.

I honestly don't mind if a mortgage modification is of the terms - refinance it to a 40 or 50 year loan to make the payments lower until they get on their feet and refinance again at a later date.

But, if the government assists in lowering principle.

Well, where is my cut?

Because I bit the bullet and got the 30yr fixed, because I bit the bullet and purchased less than I could have. Now I have to bail out those who didn't.

I'm not allowed to state the depth of my feeling toward this. I am forced to pay off the rich above me and the poor below me. This is not what our country was founded on.

Everyone should be treated equally under the law! However much longer we have the rule of law.

[Collapsing House Price]

07:40 PM on 02/06/2012

You want to burden these borrowers even more by extending the mortgage term to 40 or 50 years?!!!!

Let me guess.... You work for a bank.

[Demos 0]

09:50 PM on 02/06/2012

Not at all. If mortgage institutions are guilty of predatory lending, I not only want fines, but the people involved to see jail time.

But....

We all agreed to pay a certain amount for the property we own. Just because some are underwater doesn't rate a 'do-over'. I don't want to harm them, I don't want to increase their burden. In the short term a longer mortgage would lower the monthly payments. Yes, in the long term they end up paying more for the property. To alleviate this it could be written into the re-finance an agreement to change the terms back to a 30 year or even shorter.

[Steve Rockett]

08:25 PM on 02/06/2012

Great comment. I am a democrat. We bought what we could afford and stayed within our means. Don't want to pay for rich speculators, corporate subsidies, farm subsidies, tax breaks, bailouts, etc. I am okay with short term welfare, and social security assistance. Sorry about choppy note, broke my wrist. I like health care insurance for everyone and better coverage for the poor, because I love my fellow Americans, and that is an extraordinary tragedy. Sick and tired of the 1% having so much power and getting disproportionately richer.

[legalgirl]

06:56 PM on 02/06/2012

Fire Treasury Secretary Geitner !!!

[Steve Rockett]

08:26 PM on 02/06/2012

why?

[Lindytindy]

08:38 AM on 02/07/2012

Who will fire him, he's in charge. Obama isn't running the country, he is.

[AmericanWomanStL]

06:36 PM on 02/06/2012

Seriously, I have found over 1800 payday loan type mortgage companies that had rooms full of people cold calling from sheets that they had bought from banks or others that had people coiming up on foreclosure or in foreclosure. They sent people out to hassle them over selling their property cheaply to them and telling they were their only way out, without using everything. Then they would take all the information back to these hack shacks and tell them to call them in a couple days and see if they had any different loans, stated income, interest only etc. These are loans on top of the bigger and big banks. They preyed on the desperate, those that lost their lost and was underpaid or could not find jobs. This is just one tactic they used. I had applied for a phone receptionist job, disabled R.N. and my couple weeks there I learned so much about there scams
Barb D
MO

[krist6804]

06:31 PM on 02/06/2012

True that a prospective home purchaser must take responsible to understand their mortgage contract obligations; and The Truth in Lending Law was designed to assist.
However, giving the great efforts that lenders deliberately went to in making designer mortgage products to deceive all but the most diligent, The Truth in Lending Law failed because it was designed to fail.

There was not enough Vaseline on the planet earth to make this a sweet outcome. However, please know that your congressman really cares.

[krist6804]

06:00 PM on 02/06/2012

What happened to the Truth in Lending Law?

A. Fannie Mae in business since 1938.

B. Freddie Mac in business since 1970.

C. Banks providing mortgages, in business since dirt was invented.

D. Constructional Mortgage abuse, in business since dirt was invented.

E. Mortgage lending fraud oversight, in business but not implemented since dirt was invented.

1. The truth about the truth in lending law is that there is no truth.

2. Who is protected from the financial God of justice = the lender.

3. Who is unprotected protected from lender fraud = the borrower.

[mrcobbynot]

05:29 PM on 02/06/2012

That hairpeace is so bad