Housing: Treasury to announce new ‘resources’ for homeowners seeking modifications Monday

Update: WaPo has some scoop on what they are announcing tomorrow, sounds like way too much UE, way too little pressure on the banks and FAN FRED, now it is way too late to stop the coming second leg down, they should have done the damned HOLC:

(…) The Treasury Department already releases monthly reports on how many trial loan modifications lenders have completed. It has shown, for example, that some major lenders such as Bank of America have lagged behind competitors in signing up borrowers to the program. But beginning in December, the report card will also detail how many of the borrowers that lenders enrolled have made enough payments and provided enough documentation to move into a permanent modification, according to a Treasury official, who spoke on the condition of anonymity because the plan had not been publicly announced.

Are they kidding? They think announcing which banks have had the documentation for months and done nothing is going to somehow embarrass them into acting? This is coming from the people we have in charge? Yeah Timmeh, who really knew how to talk tuff with the AIG CDS holders, pullleze!

The administration will also be announcing partnerships with state and local entities to help borrowers move into permanent modifications and more resources for borrowers looking for help, the Treasury official said.

Gee, more slush funds for NACA and their ilk, Hmmmm coinkydink that Justice just released a decision saying HUD had to fund ACORN Housing grants? Hmmmnn? Frakkers.

“It’s true that we are taking additional steps to enhance servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications,” the official said. “Additional details about this effort — which will also include partnerships with a broad array of organizations and new resources for borrowers — will be announced on Monday.

The administration has also been under pressure to prove its program does enough to help unemployed borrowers, a growing part of the foreclosure problem. Borrowers with little or no income have fewer options to save their home, housing advocates say. And government officials are set to announce rules as soon as this week on an expansion of the program, giving lenders incentive money to allow borrowers to sell their homes for less than their outstanding balance, which is known as a short sale….

Now taxpayers are going to PAY OFF the banks to do short sales?? OMG are you frakkin kidding me?

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Sounds like Treasury bought a frakkin clue and realizes a steep second dip in housing is coming if they don’t take action. Our EXTENSIVE posts on housing here.

CNBC:

The U.S. Treasury Department wants lenders and companies that process monthly mortgage payments to do more to rework troubled home mortgage loans and will announce new measures Monday aimed at achieving that goal, a department spokeswoman said Saturday.

The New York Times in its Sunday edition quoted Michael Barr, the Treasury Department’s assistant secretary for financial institutions, as expressing dissatisfaction with lenders over the slow pace at which they are amending loan agreements to help borrowers make their monthly payments.”The banks are not doing a good enough job,” the Times quoted Barr saying in a Friday interview. “Some of the firms ought to be embarrassed, and they will be.

Treasury spokeswoman Meg Reilly said Saturday the department was “taking additional steps to enhance (mortgage) servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications.” That could include new resources for borrowers, Reilly said without offering details. The department will announce new measures Monday, Reilly added.

The Treasury Department has said lenders have boosted efforts to modify mortgage payments — essentially by reducing monthly payments so that chances of foreclosure decrease. But there are widespread reports that borrowers continue to have problems negotiating with banks and mortgage brokers to get their payments lowered….

November 29, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Music, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St.

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