Update 2: Program not on hold- in ‘finalization’; Treasury reports program ‘suspended’; Housing: HAMP – 2MP (Second Lien) Modification Program Guidelines issued…

Update 2: 1/9/10 – See HousingWire: Treasury pushes back, says 2MP program is being ‘ramped up’ and will be rolled out:

.”.I recently gave a hopeful thumb up to Calculated Risk’s evidence that the Treasury Department’s $75 billion Housing Affordable Modification Program (HAMP) had abandoned its ill-advised scheme to guarantee modifications on second-lien mortgages.

HousingWire quotes Treasury spokeswoman Meg Reilly as saying, “That rumor is wrong.”

And in an email to Calculated Risk, Reilly also says that the progress ramp-up to systematization will soon lead to finalizement:

The Second Lien program is moving forward. Treasury has been working to create program infrastructure and technology, including a new platform that matches second liens to first liens modified under HAMP. Because there has not been a systematic method of notification to second lien holders when a first lien on the same property is modified, ramp up has taken some time. We have made enormous progress and continue to move forward with innovative technological development and program implementation and expect to finalize servicer contracts soon….”


August 28, 2009. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Unemployment Statistics. 6 comments.

Obama Housing Plans: LTV without limits for ‘hardship’ cases only…rest of refis still hit 105% LTV max…

aww man! the LTV uncapped limits ONLY APPLY TO THE FIRST HALF OF THE PLAN, the one for those who prove ‘hardship’

The refis for the rest of Americans are STILL LIMITED TO 105% LTV ratios…since CA AZ NV FL have lost about 40% of their LTV ratios that pretty much leaves out MOST of the homeowners under water…the good news is if you lose everything they will help you, if you are working and struggling to hang on,…not so much….

So if you bought a McMansion in AZ with a no doc loan that is underwater $100,000 and your ARM is going to adjust Uncle Sam will bail you out. If OTOH you were ‘good’ in your 30 yr fixed and your  LTV has fallen off a cliff BECAUSE of the irresponsible yahoos who bought the McMansions you are SOL…..(caveat, since appraisals are not required under these refis with FAN FRED for the non hardship program, you MAY still be able to get refi’d to current rates  without being disqualified by being so far underwater)


March 4, 2009. Tags: , , , , , , , . Foreclosures, Housing, Obama Administration, Politics. 4 comments.

Obama’s Housing Plan – CNBC.com

Diana Olick reports hilights

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March 4, 2009. Tags: , , , , , , . Economy, FDIC, Foreclosures, Housing, Obama Administration, Politics, Uncategorized. Comments off.

Update: Obama Housing Plan Details and Eligibility Released….


March 4, 2009. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Jazz, Music, Obama Administration, Politics, Popular Culture, Uncategorized. 3 comments.

Market Mover Wednesday: Homeowner Affordability and Stability Plan Details Announced…

Hold on and keep your fingers crossed, it;s going to be a bumpy ride :0)

Via Businesweek:

For millions of troubled homeowners, help may finally be on the way. On March 4 the U.S. Treasury Dept. is expected to begin implementing the Obama Administration’s $75 billion, Homeowner Affordability and Stability Plan.

The biggest change is the introduction of a simple formula for calculating monthly payments…..Under the new program, mortgages will be restructured so that home payments account for no more than 31% of the borrower’s monthly income. All debt payments, including car loans and credit cards, will be no more than 55% of pre-tax income.

Under the current plan, borrowers will not have to be late in their payments to qualify for a loan modification. Borrowers who are “underwater,” i.e. they owe more than their house is worth, will also be allowed to refinance so long as their first mortgage does not exceed 105% of their home’s value. Previously only borrowers with at least 20% equity in their homes could refinance. The real estate Web site Zillow.com estimates that only about 25%—or 14 million borrowers—have home values high enough to support refinancing under the new program terms….

The Obama plan will not address all homeowners in trouble. Only loans insured or owned by Fannie Mae and Freddie Mac will be part of the program. Borrowers can call their lender and find out if that is the case with their loan. Many borrowers unlikely to benefit are those who took out “jumbo” loans when the old limit was $417,000 as well as those with poor credit who took out toxic subprime loans which Fannie and Freddie did not insure. The government-run Web site, financialstability.gov, will have more information about the program.

…The Treasury is also expected to unveil a formula that will help lenders decide if it makes sense to foreclose on the property or work out some kind of modification with borrowers. The formula will be based on the net present value of the home, with discounts applied to the expected loss a bank would take in a foreclosure.

March 4, 2009. Tags: , , , , , , , , , . Film, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 1 comment.

Housing Cram Down Bill : House vote pushed to next week…


From HousingWire:

The bill had potentially been slated for possible vote today, but various media reports as well as sources that spoke with HousingWire have suggested that negotiations over the hot-button issue are yet continuing. Read the full legislation.

“To allow time for more discussion, I expect to complete consideration and vote on the bill likely Tuesday of next week,” House majority leader Steny Hoyer (D-MD) told MarketWatch Thursday.

Some of those discussions include linking any bankruptcy cramdowns to the Obama administration’s newly-announced mortgage modification plan, as well as potentially limiting cramdown authority (at least initially) to subprime mortgages only. Marketwatch reported Thursday afternoon that a group of 67 centrist House Democrats are pushing for an explicit loan modification-cramdown link, meaning that no mortgage could see its principal balance reduced by a bankruptcy judge unless the borrower had first sought out relief under the terms of the administration’s loan modification guidelines. See earlier coverage of the Homeowner Affordability and Stability Plan.

Senator Richard Durbin (D-IL), the lead sponsor of the cramdown legislation, suggested to American Banker on Tuesday that Democrats might be willing to limit cramdown authority to just subprime mortgages, in an effort to quell industry unrest and long-standing opposition to the proposal. Subprime loans are not available for modification under the administration’s HASP.

February 26, 2009. Tags: , , , , , , , , , . Foreclosures, Housing, Obama Administration, Politics, Uncategorized. 1 comment.

Cavuto Tries to Reason with ACORN on Foreclosures….


February 26, 2009. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Uncategorized. 1 comment.

Memo to Team Obama: When TIME agrees with Rick Santelli you are losing the argument….Tea Party Update

Joel Stein at TIME:

…The only people affected by plummeting real estate prices are the ones who bought a house that cost more than they could afford, hoping for a spike in value so they could sell at a profit or take out a new loan based on an increased value. Their home wasn’t just a place to live; it was an investment they thought they could liquefy at will. If we’re saving these poor souls from the 26.7% drop in their investment, we should give twice as much aid to everyone who has lost approximately 50% in the stock market since its peak. Especially those in Vanguard’s Tax-Managed Capital Appreciation Fund.

Meanwhile, mortgages held by the responsible people Obama says he is trying to help only go into foreclosure when the owners lose their jobs. But the best way to help them is through increased unemployment benefits and job creation. In fact, James Lockhart, who regulates Fannie Mae and Freddie Mac, says he hopes this backward plan keeps at best 40% of the people it dishes out money to from redefaulting on their mortgage. The only plan worth pursuing that works at best 40% of the time is hitting a baseball. I would love to yell that in front of the traders at the Chicago Board of Trade. I would also like to yell at them to get computers like everyone else so they can stop executing trades by waving their hands like idiots.


Much as it pains me, housing prices need to come down a lot more for the sake of the country. It’s not that the housing market has suddenly gotten sick and needs medicine. It was sick, and it’s getting better. Just like $4 gas, Pets.com and Jim Carrey’s career, we are undergoing a needed correction. So I want in on the Chicago tea party that Santelli, in his rant, promised to organize, only I’m hoping it isn’t in Chicago and is more of a cocktail/wine thing or maybe just a Facebook group. But I’m with him on standing back and letting the housing market lose some of its vaulted ceilings, guarded gates and Argentine Balmoral granite tops. It’s not going to be a pretty few years. So let’s save our government money for things we need. Like high-definition television converters.

Tea Party Update from MM:

A reminder of the main resources for activists looking to join:


February 25, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture. 1 comment.

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