Obama’s ‘conceptually flawed’ mortgage lifeline effort to end this year

foreclose_article_large.article_large

http://nypost.com/2016/12/18/obamas-conceputally-flawed-mortgage-lifeline-effort-to-end-this-year/

The foreclosure crisis is still raging, but on Dec. 31, President Obama’s first and largest mortgage-modification program ends.

In February 2009, when a tidal wave of foreclosures threatened America’s ailing economy, Obama launched the Home Affordable Modification Program, or HAMP, touted as a lifeline for up to 4 million struggling homeowners.

It didn’t work out that way. Lenders have granted just 1.6 million permanent modifications — while canceling nearly 800,000 trial HAMP modifications.

Meanwhile, American families, including a disproportionate number of minority households, have lost 6.5 million homes to foreclosure since 2008.

Big financial institutions, however, have collected $16 billion from Uncle Sam for HAMP and related programs. HAMP did not force lenders to slash the total amounts owed, the surest route to helping troubled borrowers. Instead, the government paid lenders to modify loans at their discretion, with no obligation to convert trial modifications to long-term affordable deals.

“HAMP … was conceptually flawed,” said Damon Silvers, special counsel to the AFL-CIO and former deputy chair of the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP). “Americans paid on mortgages that were worth more than their homes, when the principal should have been written down. It was a massive unreasonable wealth transfer to the banks.”

Roughly 3 million homeowners nationwide owe more in mortgage debt than their homes are worth, according to Core­Logic, while serious delinquencies are on the rise in New York.

In a July report detailing nonbinding post-HAMP recommendations, the government [Treasury, Housing and Urban Development, and Federal Housing Finance Agency] acknowledged that “there will no longer be a standard loss mitigation option that cuts across servicer and investor types.” Legal aid attorneys fear high interest rates on proprietary modifications — if troubled borrowers can even secure them.

HAMP’s income-based modifications with interest rates as low as 2 percent will remain an option for some borrowers, including those with Federal Housing Administration-insured loans.

“Home Affordable changed how mortgage servicers handled homeowners in distress; not only by developing a template for loan modifications focused on affordability, but also by creating and enforcing standards of care that have been widely adopted by the entire industry,” a Treasury spokesperson said.

12 Responses

  1. Hi Neil and NY Post, I’m Ronda in Illinois and I’ve been fighting Wells Fargo in court for seven years to keep my home…finally a victory. The court denied summary judgement to foreclose in November but the war is not over, in fact the really big battle is about to begin.

    Banks are sneaking up to the Dec. 31 HAMP deadline that protected homeowners from foreclosure, if they were brave enough to fight back. A whole battlefield of homeowners is now left exposed to a huge new wave of foreclosure by banks who have strategized to obliterate loan modifications.

    Please be open minded and listen to my story. I owed just $67k when I asked for a modification in 2009. The bank has denied me over and over as a tactic to add high interest and fees to my loan. Apply the strategy to millions of homeowners and it reaps profits in the billions.

    I have documented all the details and the courts are starting to listen but even they are stunned by what the banks are doing.

    My judge after hearing all of my claims of wrongdoing to prevent a modification since March 2010, said “I can’t decide this. She claims she qualified for a modification and the bank claims she didn’t. Summary judgement for foreclosure is denied”.

    I have to go back on Jan. 15, 2017 to find out if Wells Fargo is still going to trample me with their endless resources to fight the denial. I’m a single woman taking on the largest bank in the world and accusing them of fraud against millions of families losing their homes. I had a small victory. But the crimes are devastating with all the homes that have been handed over to produce wealth for the banks and Families without homes.

    There is a class action lawsuit going on in a similar case Richard vs BofA where the 10th US Circuit court of appeals found similar claims of racketeering on modifications were supported and the case is ongoing.

    I’ve been fighting without a lawyer and I am a journalist who has researched and gathered facts to show that the foreclosure battle is still raging and yet not reported in the media

    Now at least 9.3 million families have lost their homes to foreclosure since the bailout. And banks have profited $16 billion as Catherine Curan points out.

    Please follow up with homeowners fighting the war and winning victories against big banks engaging in fraud for profit.

    Ronda Scott

    815-990-8379

    Sent from my iPhone

    Sent from my iPhone

    >

  2. Hi Ny Post, I’m Ronda in Illinois and I’ve been fighting Wells Fargo in court for seven years to keep my home…finally a victory. The court denied summary judgement to foreclose in November but the war is not over, in fact the really big battle is about to begin.

    Banks are sneaking up to the Dec. 31 HAMP deadline that protected homeowners from foreclosure, if they were brave enough to fight back. A whole battlefield of homeowners is now left exposed to a huge new wave of foreclosure by banks who have strategized to obliterate loan modifications.

    Please be open minded and listen to my story. I owed just $67k when I asked for a modification in 2009. The bank has denied me over and over as a tactic to add high interest and fees to my loan. Apply the strategy to millions of homeowners and it reaps profits in the billions.

    I have documented all the details and the courts are starting to listen but even they are stunned by what the banks are doing.

    My judge after hearing all of my claims of wrongdoing to prevent a modification since March 2010, said “I can’t decide this. She claims she qualified for a modification and the bank claims she didn’t. Summary judgement for foreclosure is denied”.

    I have to go back on Jan. 15, 2017 to find out if Wells Fargo is still going to trample me with their endless resources to fight the denial. I’m a single woman taking on the largest bank in the world and accusing them of fraud against millions of families losing their homes. I had a small victory. But the crimes are devastating with all the homes that have been handed over to produce wealth for the banks and Families without homes.

    There is a class action lawsuit going on in a similar case Richard vs BofA where the 10th US Circuit court of appeals found similar claims of racketeering on modifications were supported and the case is ongoing.

    I’ve been fighting without a lawyer and I am a journalist who has researched and gathered facts to show that the foreclosure battle is still raging and yet not reported in the media

    Now at least 9.3 million families have lost their homes to foreclosure since the bailout. And banks have profited $16 billion as Catherine Curan points out.

    Please follow up with homeowners fighting the war and winning victories against big banks engaging in fraud for profit.

    Sent from my iPhone

  3. The banks are the crooks and the new Trump appointees are the foreclosure lords…. but it’s always nice to have a black man to tie to the whopping post. Rules were set up to help homeowners and the banks violated them. Every problem is blamed on the president especially if he’s black. Nice ……

  4. Trump will succeed in moving this economy forward. Not sure how he will handle the bank situation. DOJ, Treasury, Fed Res, all on one side, and it’s not ours.

  5. Yeah Al we now have all the foreclosure and derivative kings in charge. Today’s the day if electors are real patriots and call out the traitors. If not it will be up to us. Every homeowner that voted for Trump or has supported Obama needs to call them out.

  6. As it was Obama was attacked for being a Muslim and a socialist. Imagine if he was surrounded with people making deals w Cuba like Trump’s people are w Russia. White America’s heads would have exploded! Trump played fake media and middle class fears like a violin.

  7. More proof the country’s “first Black President” did nothing for Blacks except collect their vote.

  8. Why can’t president Obama extend mortgage modification program? Just because his party didn’t get the White house doesn’t mean that people need to loose their houses. USA politics has become childish or third world like one.

  9. Only Bernie Sanders discussed the mortgage/foreclosure fraud. Mr. Trump and Ms. Clinton rarely discussed. Ms. Clinton did once blame the homeowners. The media is also to blame. No questions were ever asked during the debates regarding this huge problem. It was as if all has been resolved. Obama did nothing to help homeowners during his presidency. In fact, much has been concealed. No wonder the media, and perhaps Mr. Trump, thinks all is fine. Up to us to tell them — all is not fine.

  10. Hammer: I agree with you and only hoping for some sort of secret agenda comes out of this. Believe me, those two crooks know all of the ropes to deception and fruad….hmmmm…possible whistle blowers….nah…imagine that for Making America Great Again…..
    or we are just letting the crooks have access to the printing presses

    Guess we all have new Christmas wishes… I am going to leave out all kinds of cookies and a gallon of milk

  11. While alternative for Republicans was do nothing and they did nothing. Only gonna get worse w Trump’s Wall St cabinet.

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