Top Banks Have Poor Loan Modification Rates.
Bank of America, J.P. Morgan Chase and Wells Fargo have all been penalized by the government for poor performance in the Obama administrations HAMP plan (home affordable modification program). The government will not pay them when they modify delinquent loans.
This is the first time that the administration has decided to do something about lenders and their participation in the HAMP program. It is using what it can right now – money to entice the banks to do better. Each servicer is eligible for up to $4500 over three years if a borrower enters a trial loan modification and the loan stays modified through those three years.
Diyloanmodkit.com feels that more needs to be done. The financial crisis has been going on since 2009. How much longer will the banking system be allowed to drag this out? Nobody want to be in a state of limbo unsure of what is happening with their loan or what is going to be their next move. Most people donot want to be in foreclosure.
Lenders need harsher penalties if the don’t modify a certain amount of loans per month or meet a quota. This crisis is not in its infancy and it is about time lenders worked out a solution that can appease both the lender and the borrower and let us all move on.
As Always,
Diyloanmodkit.com
Categories: foreclosure, HAMP, Loan Modification, Obama plan Tags: Bank of America loan modification Bank of America HAMP program, diy loan modification, do it yourself loan modification, Loan Modification
Obama Pushes For Principle Reduction
NEW YORK (Reuters) – The Obama administration is trying to push a settlement that could force the largest U.S. banks to pay for reductions in loan principal worth billions of dollars following breakdowns in mortgage servicing, The Wall Street Journal said.
Should a settlement be reached, some state attorneys general are also pushing for banks to pay more than $20 billion of civil fines or to fund a similar amount of loan modifications for troubled borrowers, the newspaper said on Wednesday, citing people familiar with the matter.
Regulators are looking to settle with as many as 14 servicers, including three of the nation’s four largest banks: Bank of America Corp, JPMorgan Chase & Co and Wells Fargo & Co, the newspaper said, citing people familiar with the matter.
The administration wants a commitment from loan servicers to reduce loan balances for borrowers who owe more than their homes are worth, and that such costs would not be borne by investors who bought mortgage-backed securities, the newspaper said, citing people familiar with the matter.
read more @ http://finance.yahoo.com/news/Obama-pushes-rb-3441462619.html?x=0&sec=topStories&pos=8&asset=&ccode
Categories: HAMP, Loan Modification, Obama plan Tags: diy loan modification, diyloanmodkit.com, do it yourself loan modification, Loan Modification, Obama plan, principle reductions
Loan Modification Approvals Increase
In December the amount of homeowners receiving permanent Loan modifications using the Obama HAMP program outnumbered those dropped from the program.
The Treasury Department stated that 30,030 homeowners received permanent loan modifications in December under the Home Affordable Modification Program, or HAMP, slightly above the 29,972 that received permanent modifications in November.
A total of 18,448 borrowers were cut from both permanent and trial modifications in December about the same level as in November and less than the month’s tally of new permanent modifications.For much of 2010, dropouts had outnumbered new permanent modifications as documentation requirements became more stringent.
However, 792,529 borrowers had been dropped from the program through December, or about 54 percent of the 1.47 million modifications that had been started since the program was launched in 2009.
The Treasury data showed that there were about 521,630 borrowers that had received a permanent modification at the end of December, compared to about 505,000 at the end of November and 483,000 at the end of October.
But this was far short of the administration’s initial goals of helping 3 million to 4 million homeowners, a goal that has since been scaled back. Under the tougher guidelines put in place last year, about 1.42 million borrowers were eligible for the program.
The Treasury also released new data about the borrowers who are receiving loan modifications under the program. The median gross annual income for a homeowner entering a trial modification was $46,344, while the median loan balance for those starting a trial modification was $223,283.
The top five metropolitan areas for active permanent modifications were Los Angeles, with 6.9 percent of the total volume, New York with 6.1 percent, Riverside-San Bernardino with 5.4 percent, Chicago with 5.3 percent and Miami-Fort Lauderdale with 4.6 percent.
you can read more @
http://www.reuters.com/article/2011/01/31/us-usa-housing-workouts-idUSTRE70U68K20110131
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