Housing: FINALLY! Some data on the trial mods! Treasury reports more than 27% of homeowners in trial modification are delinquent…

They were forced to answer the inquiry on status of the 600,000+ trial mods finally, and it ain’t good. Not good at all. What IS good is that we are getting some data. Just last week HUD Treasury was claiming no one was late on these payments. On tv in fact, in an interview with Diana Olick which we posted here.

The real shxtstorm is gonna hit us when FANNIE and FHA run out of money. Their book is over 3 TRILLION at FAN alone now and their delinquency rate is EXPLODING. A month after saying they Absolutely Positively did not need a bailout, the FHA is raising it’s premiums, cuz guess what? They need a frakkin bailout…

When will these fools stop trying everything BUT the damned HOLC!!!?!? AARRRGLE! This Admin is so frakking enamored of everything ELSE FDR did why not this? Oh yeah HRC suggested it in 2007 and 2008, thus Obama won’t do it. Frakkers. Their next ingenius plan will be the HEMAP model so taxpayers can LOAN homeowners their mortgage payments. Again padding servicers pockets and not addressing the underlying issue. Via FAN FRED we OWN THE DAMNED HOUSES ALREADY!! Why not buy them outright under HOLC and cut a deal with the homeowners directly with the government. It would be less ongoing intervention and cost less dammit. This is yet ANOTHER example of an actual CRISIS that Team Obama has FAILED to address successfully, while they focus all their attention on health care, housing is falling off a cliff and it WILL drag the entire economy down with it…again.

ABCNews:

More than one-quarter of homeowners receiving help under a U.S. government foreclosure prevention plan are behind on their new mortgage payments, a Treasury Department survey has found. Some 650,000 borrowers are participating in the trial phase of the Obama administration’s Home Affordable Modification Program, a $75 billion taxpayer-financed program launched this year….

…A Treasury Department survey of large mortgage servicers found “over 73 percent of borrowers are current in their trial plan payments,” Assistant Treasury Secretary Herbert Allison told a congressional oversight panel.

That leaves about 27 percent who are delinquent on the payments.

Allison provided written answers to questions raised at an October hearing before the Congressional Oversight Panel, which monitors the government’s foreclosure prevention plan and other financial rescue efforts.

Allison said that “while not all eligible borrowers will convert to permanent modifications, it is too early to estimate a failure rate, diagnose causes and predict future success rates.”

Let me give them a hand. The diagnosis of the underlying cause is UNEMPLOYMENT. The failure rate is TOO LARGE. The future success rate will FALL as UE rises. DO THE DAMNED HOLC! (Read HRC WSJ OPED on the HOLC from September 24, 2008 at link)

Experts say the conversion rate to permanent loans is the key to determining the program’s ultimate success or failure.

The Treasury has not published figures on how many trial loan modifications have been made permanent, but it said it will start doing so this month.

The next monthly report on the program will be released next week, Treasury Department spokeswoman Meg Reilly said.

This week Treasury officials threatened to fine mortgage lenders unless they speed efforts to give hard-pressed homeowners a permanent break on monthly payments….

December 6, 2009. Tags: , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

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. Comments off.

Treasury: Millions more foreclosures coming…

housinginyourhands

Our previous posts on the Making Home Affordable program here

Treasury says Millions more foreclosures coming, but their Making Home Affordable program is a success!

Uh, wha? Way to set your high standards there Treasury! They have put only 360,000 loans in modification out of an estimate of 7-9 MILLION homeowners that TOTUS Treasury Team put forward on February 18th of this year.

Maybe TOTUS should have given his, ‘you owe it to the country to do your best’ speech to his Treasury officials instead of our kids, eh?

CNBC:

…Michael Barr, assistant treasury secretary for financial institutions, told a House Financial Services subcommittee that the Home Affordable Modification Program, or HAMP, launched earlier this year was on target to help a half million at-risk homeowners by Nov. 1.

But, “even if HAMP is a total success, we should still expect millions of foreclosures” as efforts continue to stabilize the crisis-stricken housing sector, he said.

In a report released Wednesday, the Treasury said only 12 percent of the troubled U.S. homeowners believed to be eligible for loan modifications under the Obama administration’s housing rescue plan have had their mortgages reworked….

Gee they have a pretty low bar for success there in D.C….God Bless the American people

September 9, 2009. Tags: , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration. Comments off.

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