Housing: Treasury HAMP/Making Home Affordable Modification Servicer Status Report: just 31,000 mods made permanent

Vodpod videos no longer available.

EPIC fail. Will have video up shortly. Diana Olick broke it down, of the 3 million delinquent mortgage pool in the report,  1 million eligible, then down to 700,000 made trial mods then 30,000 of those FAILED trial mods and 31,000 passed into permanent mod status.

The % they are reaching is laughable (in an hysterical crying and screaming sort of way). The program was supposed to help 4 MILLION HOMEOWNERS. They have helped 31,000. THIS MORNING Geithner was claiming they were making meaningful progress. Gawd help us.

CNBC:

So far the 78 banks and servicers in the HAMP, which represent 85 percent of the total mortgage market, have just over 3 million loans on their books that are at least 60 days past due. So they sent out notices to those 3 million borrowers requesting more information.

A lot of those borrowers (as high as 50 percent) didn’t respond, according to the banks. Some don’t even live in the houses anymore. Gone. Of those that did respond, just over a million had at least the verbally stated income to qualify for a modification under the program. Others were either not owner-occupants, didn’t have the income level, or were unemployed. So 1,032,837 were offered modifications. But only 759,058 modifications were started. Why? Because a lot of the borrowers just didn’t want them. They would rather try to sell the house or go into foreclosure and walk away. Remember, some borrowers are so underwater on their loans, that they will never see equity again, so why bother making any modification payment, even if it is affordable.

Of the 759,058 modifications started, 697,026 are still in the three month trial phase. That’s when you’re supposedly making your monthly payment and gathering all the necessary documentation for the modification. Since the program really kicked into gear over the summer, we didn’t have any numbers on how many succeeded in the trial period and went permanent, until today.

Treasury reports that 31,382 trial modifications are now permanent. It also reports, well I had to do the math because they didn’t put it on the report, but a spokesperson did independently confirm, that 30,650 modifications were disqualified.

Presumably, the vast majority were either determined ineligible when all their paperwork came in at the end of three months, or they weren’t current on their payments,” the Treasury spokesperson told me….

Advertisements

December 10, 2009. Tags: , , , , , , , , , , , , , , . Cabinet, Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 1 comment.

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:

(more…)

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

%d bloggers like this: