Treasury unveils new Making Home Affordable ‘servicer schedule’…

Update 2: Details released, an epic fail IMO. It could not be more clear they are tinkering to try to make the December modifications data release look better. Obama was to the right of McCain on housing and his team’s total failure to get the job done reflects that.  (a la HOLC, which would have been far cheaper and less ‘interventionary’ if you will).

Diana Olick has the scoop:

The new effort, called a “Modification Conversion Drive,” is a nationwide campaign to “help borrowers who are currently in the trial phase of their modified mortgages convert to permanent modifications,” the Treasury said.Treasury officials said of the 650,000 trial modifications now in place, roughly 375,000 are scheduled to convert to permanent modifications by the end of the year. This new program includes outreach tools, borrower resources and servicer accountability.

The drive will also include what Treasury called “servicer accountablilty” which will require top loan servicers to submit a schedule demonstrating their plans to reach a decision on each loan.

If they don’t meet performance obligations they could be fined, but there are no details yet on how high the fines could go. Servicers will be required to report to the Administration the status of each modification for additional transparency.

In turn, the Treasury is rolling out more web tools for borrowers, including links to documents, and reaching out to state and local community stakeholders to help with outreach.

Last month, the Congressional Oversight Panel for the TARP found less than 2,000 of the more than half million loan mods made since the program began in June had become permanent. The trial period has been extended to five months due to overwhelming paperwork.

The plan was purported to save 3 to 4 million homeowners from foreclosure. It is now estimated there are 7 million delinquent loans in the pipeline….

Update: This part of the WSJ piece today sums it up perfectly:

…Meanwhile, the number of borrowers falling behind on their loan payments continues to outpace the administration’s efforts to help them. Roughly 1.56 million loans that were current in March were at least 60 days past due in October, according to LPS Applied Analytics. That’s more than double the number of trial modifications….

Nothing to write ‘home’ about. They are STILL trying to work on the modifications that have already been in the trial period (before they are FORCED to release the FAILURE RATE!) And they are FAILING to address the real issue that is now in the housing pipeline, JOB LOSS:


November 30, 2009. Tags: , , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 2 comments.

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