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
Principle Reduction Maybe Coming Soon!
diyloanmodkit
A 27-page proposal was received by U.S. banks last Thursday from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers.
The proposal details a code of conduct for banks on how they should treat borrowers going through a loan modification of foreclosure.
The proposal represents the clearest indication that the 50 state attorneys general are working hand-in-hand with the Obama administration and other regulators to pursue a significantly broader settlement against the banks than any of the federal agencies might be able to win by themselves.
The proposal outlines formulas that would force banks to consider offering loan write-downs to troubled borrowers more regularly during the modification process. Banks have resisted reducing loan balances in part because of concerns that it could encourage more borrowers to stop making payments in order to receive smaller loan.
In the next few weeks, State and federal officials plan to begin meeting with banks to negotiate a final agreement on the code of conduct.
Let’s see how this works out.
Categories: foreclosure, Loan Modification Tags: : changes to loan modification program, Loan Modification, principle reductions, reduce loan balances
HSBC stops foreclosures
When issues of robo-signing came to light last year, many banks were quick to distance themselves from the backlash. Some banks did stop or halt foreclosures…..just for a moment….a couple of weeks, to symbolize that they were aware of the problem but didn’t really do much about it. Think about it does it really only take a few weeks to check all your foreclosures against improper paper work or robo -signing violations? No!
Now HSBC has halted foreclosures due to document problems and lax oversight of law firms handling proceedings. The company is reviewing foreclosures where a final judgment has not been entered and will correct and re-file documents where necessary.
In Palm Beach County, at least 75 percent of HSBC foreclosures that were sent to auction were handled by law firms under investigation by the state attorney general’s office, including the Law Offices of Marshall C. Watson, the Florida Default Law Group, and the Law Offices of David J. Stern.
As always,
http://www.diyloanmodkit.com
