Update: Housing: Barney Frank D-MA House Financial Svcs Cmte hearing on HAMP & Loan Modifications…

Update 3: CSPAN will have the hearing up later at this linky. Three panels included the following:

The House Financial Services Committee held a hearing titled, titled “The Private Sector and Government Response to the Mortgage Foreclosure Crisis.” Panel One * Ms. Molly Sheehan, Senior Vice President, Chase Home Finance * Mr. Jack Schakett, Risk Management Executive, Credit Loss Mitigation Strategies * Ms. Julia Gordon, Senior Policy Counsel, Center for Responsible Lending * Dr. Anthony B. Sanders, Distinguished Professor of Real Estate Finance, Professor of Finance School of Management, George Mason University * Ms. Laurie Goodman, Senior Managing Director, Amherst Securities, LLP * Mr. Bruce Marks, Neighborhood Assistance Corporation of America Panel Two * The Honorable Herbert M. Allison, Jr., Assistant Secretary for Financial Stability, U.S. Department of the Treasury * Mr. Michael H. Krimminger, Special Advisor for Policy, Office of the Chairman, Federal Deposit Insurance Corporation * Mr. Douglas W. Roeder, Senior Deputy Comptroller Large Bank Supervision, Office of the Comptroller of the Currency

Update 2: WSJ has some highlights. The Banks should pay attention, b/c TheHill is reporting the judicial modification aka cramdown bill is back, this time in the regulatory reform bill.

House Financial Services Chairman Barney Frank (D, Mass.) harshly criticized the Obama administration’s efforts to keep people in their homes.”We have a great frustration with the failure of the combined efforts of elements of the federal government to make a substantial impact on the foreclosure crisis,” Mr. Frank said in opening remarks at a hearing before his panel Tuesday on lender and government responses to soaring foreclosures.

…Critics have ratcheted up attacks on the administration’s Making Home Affordable Program, which they say is ill-suited to address what they contend are the current causes of spiking foreclosures: negative equity, high unemployment and a wave of resets on complex mortgages that are difficult to modify. The program relies on hefty incentives for servicers to lower borrower payments to 31% of income.

…Executives from J.P. Morgan Chase & Co. and Bank of America Corp. testified that the banks were struggling to move borrowers into permanent loan modifications because eligible borrowers weren’t submitting the required paperwork….

…Treasury Assistant Secretary for Financial Stability Herbert Allison will argue that the administration should reach more borrowers in need of assistance and help more of them to convert to permanent modifications.

“We can all do better in ensuring that the Making Home Affordable programs are a success,” he will say, according to his prepared remarks.

Douglas W. Roeder of the Office of the Comptroller of the Currency will argue the dismal conversion rate in the Home Affordable Mortgage Program is being driven more and more by the worsening finances of borrowers….

Update: Looks like we are SOL if we are trying to watch this hearing.l CSPAN 3 and streaming video are covering Eikenberry and McChrystal testimony, clearly a priority. And CSPAN and CSPAN2 are watching the House and Senate frak around. We will post any breaking word from this hearing. Please post in comments if you hear anything!!

Hearing begins at 10:00am EST. CSPAN will cover it and it will air on CSPAN 3.

Full Committee Hearing

The Private Sector and Government Response to the Mortgage Foreclosure Crisis

10 a.m., Tuesday, December 8, 2009, 2128 Rayburn House Office Building.

The topic for the hearing is the private sector and government response to the Mortgage Foreclosure Crisis

Assess the extent and effectiveness of the federal government’s programs and initiatives (including the Making Home Affordable Program) for addressing the mortgage default and foreclosure crisis and for creating more sustainable mortgage payments for at-risk homeowners.

Assess the performance of private sector participants, including mortgage investors and servicers, in making loan modifications and in participating in the Making Home Affordable Program.

Address reasons why there appears to be a low level of principal write downs for underwater mortgages, including any suggestions you may have to increase such actions.

Are there disparities regarding foreclosure avoidance activities with respect to borrower income, race and ethnicity, or geographic location?

Identify any market, statutory, or regulatory impediments to effective foreclosure avoidance activities and to creating more sustainable homeowner mortgage payments.

There is an article in the WSJ today on how the flippers are back. It focuses on Phoenix. I knew it. The damned fool banks are goving houses away to flippers after forcing families out, So they will take a loss from a strange flipper who created the damned bubble but not from a family. The Frakkers.

Investors compete mostly with other full-time professionals who monitor foreclosure auctions at county courthouses across the country. The bidders often haven’t had a chance to inspect the property or determine whether it’s occupied by tenants, who may be hard to evict.

Flippers swoop in at public auctions of foreclosed homes, known as trustee or sheriff sales. In many states, the lender sets the minimum bid, and takes possession of the property only if no one bids more. In the past, the minimum generally was about equal to the mortgage balance due. But in today’s market, in which many home values have dropped far below the loan balance, lenders wouldn’t attract investors if they set the minimum at that level.

So lenders, or the loan-servicing firms that represent banks and investors, are increasingly likely to set the minimum much lower. Their goal is to tempt others to buy the house and spare banks the headaches and costs that come with taking possession.

But they WON’T LOWER THE PRICE for the family. Nice.

Sean O’Toole, chief executive officer of ForeclosureRadar.com, a research firm, estimates that in November about 21% of homes sold in trustee sales in California went to investors rather than to a foreclosing lender, up from 6% a year earlier. The trend is similar in some other areas with high foreclosure rates, including Phoenix and Miami.

Gee wonder why the banks arent doing modifications? Are you frakkin kidding me??

Outside the Maricopa County court building in downtown Phoenix, trustees, companies that are hired to handle foreclosure auctions, offer as many as 600 or 700 houses every weekday. A typical auction lasts only a few minutes. On a recent afternoon, a few dozen bidders and onlookers were clustered around a trustee employee seated on a lawn chair conducting auctions. He kept track of the bids on a laptop computer perched on one knee.

Many of the bidders are regulars at the sale, bidding for themselves or on behalf of investor clients. “We’re all kind of like a little dysfunctional family,” says Steve Mutsaers, a representative of PostedProperties, who was wearing black sunglasses, a white polo shirt and gray plaid shorts. During the summer, Mr. Mutsaers says, he wears a sombrero to cope with temperatures well above 100 degrees.

People who attend trustee sales here and in other foreclosure hot spots around the nation say the auctions have recently been attracting more bidders. “Properties are getting bid up,” says Hal Feinberg, a Phoenix property investor. “You can still get good deals, but you’ve got to be more patient than you were a year ago.” He and other investors in the Phoenix area say they have been flipping a lot of the homes they buy to Canadians taking advantage of a weak U.S. dollar….

Some people NEVER LEARN. And the taxpayers will pay the price.

December 8, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St.

2 Comments

  1. Housing: Barney Frank D-MA House Financial Svcs Cmte hearing on … Private Me replied:

    […] from: Housing: Barney Frank D-MA House Financial Svcs Cmte hearing on … By admin | category: private house | tags: barney-frank, combining-two, […]

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  2. slamdunk replied:

    Interesting post. I had no idea the real estate speculators would be back soon.

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