Elizabeth Warren ~ TARP/HAMP August Congressional Oversight Panel Report

Update: Heh! Warren was at the WH yesterday when we were posting, lol., the ‘professional’ left will go ballistic if they pass over Warren, but hey they appointed the CARLISLE GROUP TO RUN GM!!! BWAAAAHAA! CHANGE!! HAAAAA!!!

Elizabeth Warren, whom many Democrats want to see nominated as head of a new consumer financial agency, met with White House officials on Thursday.

The Obama administration has repeatedly said Warren is under consideration as the inaugural head of the Consumer Financial Protection Bureau, which was a centerpiece of the president’s effort to overhaul financial regulations.

“The president believes that Elizabeth Warren is a champion for middle class families and consumers and she, among others, is a strong contender for this position,” said White House spokeswoman Amy Brundage. “The president has not yet made a decision and no announcement is imminent….

Tim and Larry are terrified of Warren getting the spot as the first chief of the Consumer Protection Board. She won’t toe the line. I hope she gets it, she is the only one telling Tim, hey your plans are EPIC FAIL!

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August 12, 2010. Tags: , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 2 comments.

Housing Update & Mortgage Modification Plan and Foreclosure Assistance Resources; HEMAP – targeting Treasury’s housing funds to loans for unemployed homeowners, Barney Frank’s proposed bill…

housinginyourhands

Our previous post on Rep Frank (D-MA) proposal on extending some of the TARP and/or stimulus funds targeted for housing to a program that loans money to unemployed homeonwers to make their mortgage payments here.

A model is emerging in the hearings on the Hill, HEMAP (WSJ):

(…)The proposal to keep out-of-work homeowners in their homes, which was discussed at an oversight panel field hearing last month in Philadelphia, could be based on Pennsylvania’s Homeowners’ Emergency Mortgage Assistance Program.

With HEMAP, which was established in 1984, Pennsylvania state officials provide a two- or three-year loan to a jobless homeowner, depending on the individual’s finances and the economic situation. Using that program, homeowners aren’t responsible for repaying the vast majority of the principle or any of the interest on the loan until he or she finds a job.

Specifically, a struggling homeowner participating in the Pennsylvania program, which has depleted resources, requires jobless homeowners pay a token $25 a month until they get another job and their gross income surpasses 35% of their monthly housing costs, including mortgage and utility payments.

In some cases, when the household has some income, the payments would be made partly by the homeowner and partly by the state…

HUD has been lobbied for the legislation/program and they and Treasury sound positive on its implementation, my problem is the Frank legislation wants to use repaid TARP loans and I think they need to end TARP in December and use stimulus money or some of the 50b sitting in the HAMP fund instead:

…According to people familiar with the Obama administration mortgage modification program, officials from the Housing and Urban Development agency have met with Pennsylvania officials responsible for the development of the HEMAP program to discuss whether the state program could be expanded nationally. The presentation was met with a positive response from the HUD officials, they said. A federal official familiar with the mortgage modification program said the meeting took place and “a range of options are being discussed to expand the mortgage modification program nationally.”

Meanwhile, Neiman said he plans to discuss the HEMAP program with key Treasury officials as well as HUD Secretary Shaun Donovan. “I would propose that Treasury consider using TARP funds to fund existing or future state emergency mortgage assistance programs,” Neiman said.

Treasury spokeswoman Meg Reilly said the department continues to study further ways to help unemployed homeowners. …She pointed out that the Treasury’s $50 billion modification program, known as the Home Affordable  Modification Program, or HAMP, is open to the unemployed.

Sadly since Treasury has not agreed to open their NPV test and have the servicers give detailed explanations for denials on HAMP applications (as FDIC did with the IndyMac mods), there is no way to verify that underwriters are in fact properly considering the unemployed. Anecdotally I can say from all interviews I have seen with servicers they say the unemployed cannot be helped, I would not count on them considering these apps until I have seen it.

However, Dodds argues that even though the HAMP program is open to the jobless, it isn’t being used effectively to help them. “It’s real chaos with the mortgage companies trying to get HAMP going,” Dodds said.

He adds that, unlike the HAMP program, a federal loan approach to the jobless could help a large number of people in a short period of time. It also solves the concerns of mortgage servicers who complain they will be sued by mortgage securities investors who argue that these lenders will file lawsuits against them for modifying mortgage payments, he said….

WSJ

WSJ

I can attest to the chaos with HAMP applications and servicers 😦 I will recuse myself from commenting further on this program, cause there but for the grace of God go I…I will say if the banks arent going to modify loans effectively and Team TOTUS cannot see that tax increases, increased deficit spending and regulation will hamper growth and job creation, well in that scenario which seems more and more likely, we may see extended high unemployment for years (in the economic forecasts of PIMCO for one example the ‘new normal pretty much sucks). Anyway if this is the case we may really want to consider programs like this, if nothing else it is a way to directly stop the housing bleeding as a result of the rolling foreclosures tied to unemployment…

but it burns me to think of taxpayers loaning other taxpayers money to pay the banks that all the taxpayers loaned all our money to to begin with because the banks will not modify the damned loans.

Since fannie and freddie are backing most of these loans, that is ALSO the taxpayers funding the losses! so we are loaning ourselves money to pay banks who we loaned money to service loans and transfer funds to FANNIE FREDDIE whom we own and whom we also are loaning money to keep afloat. What the hell kind of outfit is this government running? How many times do we have to loan ourselves money in and out of many government pockets with banks making transfers? Why cant we just do the damned HOLC like HRC proposed in oh what 2007 now, she first raised it in 2005…we could have bought the houses many times over and stopped the bleeding, but then we couldn’t line many pockets eh? the frakkers.

Other Resources:
Making Home Affordable Treasury Program
e.Fannie Mae.com (servicer updates)
HUD- Department of Housing & Urban Devlopment
Fannie Mae mortgage customers call Fannie Mae at 1-800-7FANNIE (1-800-732-6643) or www.fanniemae.com/homeaffordable
Freddie Mac mortgage customers call Freddie Mac at 1-800-FREDDIE (1-800-373-3343) or www.freddiemac.com/avoidforeclosure
VA mortgage customers (thank you for your service) vall VA Financial Counselors at 1-877-827-3702 or www.homeloans.va.gov
FHA –www.fha.gov
Hope Now Alliance (Hank Paulson’s Plan) 1-888-995-4673 or www.hopenow.com

October 20, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, TARP, Unemployment Statistics. 8 comments.

Housing Update: WSJ: Obama Housing Plan spends $42.5 Billion to modify 2 million mortgages?! Huh?

Update: Diana Olick reviews the TARP watchdog report and concurs with MiM, esp note the number of principal reductions out of 500,000 loans, it flies in the face of the claims by Treasury and the Office of the Comptroller that lenders were reducing principal:

(…) they did get a look at some data I’ve been unable to find, and that is that under HAMP only five, yes five, modifications of the half million involved principal forgiveness. There’s your headline. Treasury officials issued a polite retort, admitting that “the housing crisis was never going to be fixed overnight,” and that “While HAMP is open to the unemployed, we continue to study further ways to help unemployed homeowners,” but still, of course, they defended the program.

This appears to date to be just a total ripoff. The banks get 42.5 BILLION to modify 2 MILLION mortgages? Are you frakkin kidding me? We could BUY the houses IN FULL and have how much left over?! What a ripoff. And the TARP Treasury Watchdog Panel agrees:

WSJ:

The Obama administration’s loan modification effort is ill-suited to tackle the causes of the foreclosure crisis, financial rescue watchdogs concluded in a new report.The foreclosure crisis has shifted from being driven by exploding subprime mortgages to defaults on prime mortgages, many of them caused by job losses, two of the three members of the Troubled Asset Relief Program’s Congressional Oversight Panel concluded.

Meanwhile, the Home Affordable Modification Program, or HAMP, wasn’t designed to address these problems, nor is it geared towards averting a looming wave of foreclosures caused by resetting option adjustable-rate mortgages, they wrote.

“It increasingly appears that HAMP is targeted at the housing crisis as it existed six months ago, rather than as it exists right now,” the report, released early Friday, concluded.

But as we noted the other day, Treasury just gave the HAMP a glowing status update, what does the TARP watchdog say about that?

“The foreclosure crisis began with home flippers, speculators, reach borrowers who purchased or refinanced properties with very little money down and non-traditional mortgage products, and homeowners who were sold subprime refinancings,” the watchdogs wrote.

“Increasingly, however, because of the severity of the recession, declines in home prices, and the persistence of job losses, foreclosures involve” families who paid sizeable down payments and took out conventional loans, they continued.

According to the report, Treasury estimates it will spend about $42.5 billion of the $50 billion of TARP funds devoted to foreclosure mitigation. That will support about 2 million to 2.6 million modifications, the report said.

The watchdogs found that HAMP loan modifications completed so far were achieved almost exclusively through interest rate reductions. “Principal forbearance was rare and principal forgiveness rarer still,” they wrote. Lenders deferred principal in just 261 cases and forgave principal in only five, the report said.

About that NPV model Treasury is using in HAMP and which they WILL NOT MAKE PUBLIC:

(more…)

October 9, 2009. Tags: , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Popular Culture, TARP, Unemployment Statistics, Wall St. 2 comments.

TARP Oversight Hearing: Geithner Q&A parts 1 and 3 – CNBC.com

Vodpod videos no longer available.

Vodpod videos no longer available.

more about “TARP Oversight Hearing: Geithner Q&A …“, posted with vodpod

April 21, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Uncategorized, Wall St. Comments off.

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