Doc Loco Posted February 27, 2011 Share Posted February 27, 2011 (edited) This is really disgusting and sickening to see in the Congressional Oversight Panel Files of Testimony in recent hearings. A 1% success rate is a failing, abysmal rate to be had after throwing billions at this problem. Eleven million (11,000,000) homes are forecast for foreclosure in 2011. This number is projected to rise to 13,000,000 by 2012. Mortgage modification failure has become the norm and it is stated to be even worse in the future. COP Report Quote: HAMP WILL NOT PERFORM AS EXPECTED... but Treasury Can Still Take Steps to Help More Homeowners Avoid Foreclosure WASHINGTON, D.C. - 12/16/2010 The Congressional Oversight Panel today released its December oversight report, "A Review of Treasury's Foreclosure Prevention Programs." In the eight months since the Panel's last report on the Home Affordable Modification Program (HAMP), Treasury has made minor tweaks to the program, but the changes have not resolved the Panel's core concerns. The Panel now estimates that, if current trends hold, HAMP will prevent only 700,000 foreclosures (a false and inflated numbers) -- far fewer than the three to four million foreclosures that Treasury initially aimed to stop, and vastly fewer than the eight to 13 million foreclosures expected by 2012. (Note: It is stated in T Geithner's 12/16 2010 COP Hearing testimony that only 71,000 borowers have recieved mortgage modifications nationwide since the implementation of Modification Laws and Regulation. The 700,000 number above represents failed attempts to modify mortgages to the tune of 629,000 failures of the process. Reference to testimony 12/16/2010.) While HAMP's most dramatic shortcoming has been its poor results in preventing foreclosures, the program has had other significant flaws. For example, despite repeated urgings from the Panel, Treasury has failed to collect and analyze data that would explain HAMP's shortcomings, and it does not even have a way to collect data for many of HAMP's add-on programs. Further, Treasury has refused to specify meaningful goals by which to measure HAMP's progress, while the program's sole initial goal -- to prevent three to four million foreclosures -- has been repeatedly redefined and watered down. Treasury has failed to hold loan servicers accountable when they have repeatedly lost borrower paperwork or refused to perform loan modifications. Treasury has essentially outsourced the responsibility for overseeing servicers to Fannie Mae and Freddie Mac, but Freddie Mac in particular has hesitated to enforce some of its contractual rights related to the foreclosure process, arguing that doing so "may negatively impact our relationships with these seller/servicers, some of which are among our largest sources of mortgage loans." Treasury bears the ultimate responsibility for preventing such conflicts of interest, and it should ensure that loan servicers are penalized when they fail to complete loan modifications appropriately. It is too late for Treasury to revamp its foreclosure prevention strategy, but Treasury can still take steps to wring every possible benefit from its programs. Treasury should enable borrowers to apply for loan modifications more easily -- for example, by allowing online applications. Treasury should also carefully monitor and, where appropriate, intervene in cases in which borrowers are falling behind on their HAMP-modified mortgages. Preventing redefaults is an extremely powerful way of magnifying HAMP's impact, as each redefault prevented translates directly into a borrower keeping his home. Treasury should acknowledge that HAMP will not reach the expected number of homeowners and should provide a meaningful framework for evaluating the program in the future. Treasury continues to state that HAMP will expend $30 billion in Troubled Asset Relief Program funding, yet the Panel's estimate based on Congressional Budget Office figures is that HAMP will likely spend only around $4 billion. Had Treasury acknowledged this reality before its crisis authority expired, it could have reallocated the money to a more effective program. Now, that option is gone. Absent a dramatic and unexpected increase in HAMP enrollment, many billions of dollars set aside for foreclosure mitigation may well be left unused. As a result, an untold number of borrowers may go without help -- all because Treasury failed to acknowledge HAMP's shortcomings in time. The full report is available at http://www.cop.senate.gov The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and to provide recommendations on regulatory reform. The Panel members are former Senator Ted Kaufman; J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO; and Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky. -------------------------------------------------------------------------------- Congressional Oversight Panel to Hold Hearing with Treasury Secretary Timothy Geithner December 10, 2010 On Thursday, December 16, the Congressional Oversight Panel will hold a hearing with Treasury Secretary Timothy Geithner in room 538 of the Dirksen Senate Office Building. Congress created the Congressional Oversight Panel to oversee the Troubled Asset Relief Program (TARP), which was originally authorized to spend $700 billion in taxpayer dollars. WHO: Members of the TARP Congressional Oversight Panel WHAT: Hearing with Treasury Secretary Timothy Geithner WHEN: Thursday, December 16, 2010; 10:00 a.m. WHERE: 538 Dirksen Senate Office Building The hearing is open to press and public and will be webcast on the Panel's website at cop.senate.gov. Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact the Panel's staff at 202-224-9925 at least two business days in advance of the hearing date. The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 and to provide recommendations on regulatory reform. The Panel members are former Senator Ted Kaufman; J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO; and Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky. -------------------------------------------------------------------------------- Congressional Oversight Panel Examines "Robo-Signed" Foreclosures and Other Mortgage Irregularities November 16, 2010 WASHINGTON, D.C. - The Congressional Oversight Panel today released its November oversight report, "Examining the Consequences of Mortgage Irregularities for Financial Stability and Foreclosure Mitigation." The Panel reviewed allegations that companies servicing $6.4 trillion in American mortgages may in some cases have bypassed legally required steps to foreclose on a home. The implications of these irregularities remain unclear, but it is possible that "robo-signing" may have concealed deeper problems in the mortgage market that could potentially threaten financial stability and undermine foreclosure prevention efforts. In the best-case scenario, concerns about mortgage documentation irregularities may prove overblown. In this view, which has been embraced by the financial industry, a handful of employees failed to follow procedures in signing foreclosure-related affidavits, but the facts underlying the affidavits are demonstrably accurate. Foreclosures could proceed as soon as the invalid affidavits are replaced with properly executed paperwork. The worst-case scenario is considerably grimmer. In this view, which has been articulated by academics and homeowner advocates, the "robo-signing" of affidavits served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. The risk stems from the possibility that the rapid growth of mortgage securitization in recent years may have outpaced the ability of the legal and financial system to track mortgage loan ownership. In essence, banks may be unable to prove that they own the mortgage loans they claim to own. If documentation problems prove to be pervasive and throw into doubt the ownership of pooled mortgages, the consequences could be severe. Borrowers may be unable to determine whether they are sending their monthly payments to the right people. Judges may block any effort to foreclose, even in cases where borrowers have failed to make regular payments. Multiple banks may attempt to foreclose upon the same property. Borrowers who have already suffered foreclosure may seek to regain title to their homes and force any new owners to move out. Would-be buyers and sellers could find themselves in limbo, unable to know with any certainty whether they can safely buy or sell a home." This was supposed to be fixed...but it seems beneficiaries of the program (the Lenders) are too busy counting the money for nothing and the insurance payments on foreclosures to raise their snouts out of the trough long enough to do what they are being paid to do. Another shameful breach of the public "trust". I believe we may have reached the point of absolutely no 'trust' whatsoever in this regard as well as to most all related subjects involving the public trust in political and economic matters. The HAMP program was sabotaged through inaction and inappropriate actions...funds were wasted and misused...Suprize, Are we at all suprized??? Central Planning/ Social Engineering by Government is what is wrong at the core of our problems today. Edited February 27, 2011 by Doc Loco Quote Link to comment Share on other sites More sharing options...
Last Resort Posted February 27, 2011 Share Posted February 27, 2011 http://www.youtube.com/watch?v=yJmjf_gZOUs Quote Link to comment Share on other sites More sharing options...
secinv Posted February 28, 2011 Share Posted February 28, 2011 This is very depressing and unfortunately an honest statement. Quote Link to comment Share on other sites More sharing options...
Tahoe Chief Posted February 28, 2011 Share Posted February 28, 2011 Finally, I'm a 1%ter. Only took 9 months and several hundred phone calls. (seriously called several times a day for the 9 months). 3.5 % interest 1st 5yrs 4.5 % next 5yrs Then 5.5% final 20yrs Also held out 80,000 as a interest free balloon payment at the end. No reduction of actual owed principle amount, but it lowered my payment over a grand a month. Not great but hey, I will be keeping my house. Quote Link to comment Share on other sites More sharing options...
indian terry Posted February 28, 2011 Share Posted February 28, 2011 I am Cali Real Estate Broker who got a Modification Certification from one of the best Real Estate Universities In the Nation 2 years ago .Here is what I see.First off H.A.M.P is a fricking joke.I had 5 mods started 1 to 2 years ago. None of them have closed even tho all qualified under HAMP rules. Banks took TARP money gave themselves bonuses and ran. Hired $8.00 hr customer service people, half of which can barely speak English.Lose paper work with never ending up dates for no reason then promptly lose it again. They rather short sale or foreclose because its easy. They just call the escrow co. and say --FORECLOSE--then turn it to a Realtor to sell for 30% to 40% under present market value. when they could cram down principle to market and save money for investors and keep people in their homes.-Moral--if your pension is invested in mortgages, dump them the servicers are loosing your asses. P.S. did u know that the National Mortgage Bankers association recently built themselves a 79 million dollar office complex in D.C. and then walked away from the loan because they were upside down, all the while trying to make people feel guilty about walking from their loans cause they couldnt afford them ---sweet---fuck em 1 Quote Link to comment Share on other sites More sharing options...
Doc Loco Posted February 28, 2011 Author Share Posted February 28, 2011 I am Cali Real Estate Broker who got a Modification Certification from one of the best Real Estate Universities In the Nation 2 years ago .Here is what I see.First off H.A.M.P is a fricking joke.I had 5 mods started 1 to 2 years ago. None of them have closed even tho all qualified under HAMP rules. Banks took TARP money gave themselves bonuses and ran. Hired $8.00 hr customer service people, half of which can barely speak English.Lose paper work with never ending up dates for no reason then promptly lose it again. They rather short sale or foreclose because its easy. They just call the escrow co. and say --FORECLOSE--then turn it to a Realtor to sell for 30% to 40% under present market value. when they could cram down principle to market and save money for investors and keep people in their homes.-Moral--if your pension is invested in mortgages, dump them the servicers are loosing your asses. P.S. did u know that the National Mortgage Bankers association recently built themselves a 79 million dollar office complex in D.C. and then walked away from the loan because they were upside down, all the while trying to make people feel guilty about walking from their loans cause they couldnt afford them ---sweet---fuck em Nice I must say, Scott you are the second person that I know who got through the process...looks good except for the balloon at the end - plenty of time to win the Lotto, huh? What would Danny say? I have no f~ckin idea. Quote Link to comment Share on other sites More sharing options...
Tahoe Chief Posted March 1, 2011 Share Posted March 1, 2011 Nice I must say, Scott you are the second person that I know who got through the process...looks good except for the balloon at the end - plenty of time to win the Lotto, huh? What would Danny say? I have no f~ckin idea. Funny you mention this, in the very beginning of this mess he ( Danny ) put tons of hours into trying to get me a mod, thing is the banks were doing zero mods back then. Yea the balloon sucks, but keeping my house at the time meant more Quote Link to comment Share on other sites More sharing options...
indian terry Posted March 3, 2011 Share Posted March 3, 2011 BYE BYE HAMP ????? (home affordable modification program) Daily Real Estate News Update: 1) In case you didn’t know…4 of the Obama Administrations housing programs (HAMP etc) are slated to be elliminated. For those of you who have been wishing for the Government housing intervention programs to go bye-bye…you may be about to get your wish. “The initiative, known as the Home Affordable Modification Program, or HAMP, aims to reduce borrowers’ monthly payments to affordable levels. When it was launched in March 2009, the administration projected that it would prevent 3 million to 4 million foreclosures before it expired in December 2012. But the program is far off track, having permanently modified about 521,000 mortgages as of December. Republican lawmakers say the results are not worth the costs, which is why a House Financial Services subcommittee will consider killing the program and three others at a hearing Wednesday afternoon. As of February, the program has disbursed $1.04 billion in incentive payments to mortgage servicers that permanently modified loans, said Katie Jones, a housing policy analyst at the Congressional Research Service, in prepared testimony. The Treasury Department had initially set aside $75 billion for the initiative.” Quote Link to comment Share on other sites More sharing options...
Last Resort Posted March 3, 2011 Share Posted March 3, 2011 But will they change this? http://www.youtube.com/watch?v=yJmjf_gZOUs Nope ... Quote Link to comment Share on other sites More sharing options...
Doc Loco Posted March 3, 2011 Author Share Posted March 3, 2011 (edited) But will they change this? http://www.youtube.com/watch?v=yJmjf_gZOUs Nope ... Profits first... What other government programs have left over $74 BILLION in allocated funds out of $75 billion ignored & untouched? The 520,000 figure is false, by the way...doesn't count false mods and cases of redefault with subsequent foreclosures. What is to be done with the projected 13 milliom home foreclosures and untold commercial real estate foreclosures? This is a gold mine for lenders who hold paper & even those who can't prove ownership due to paper work destroyed through the securitization process. 'Who can reep that which has not been sown?' The well connected elite Banksters and LoanSharks can. Edit to add: I want to mention that the waste of literally millions of man hours by mortgage modifiers of good character to secure nonforthcoming mortgage modifications must only have a negative effect on an already floundering economy. These concessions given to big banks like Bank of America, Bear Sterns, Countryside Lending, Goldman Sacks, et al are a huge drain on what little vitality is left in our economy. On the other hand there are many mortgage modifiers who just take the money from people and do nothing but laugh all the way to the bank. You never see or hear of any fraud inditements over this. Edited March 3, 2011 by Doc Loco Quote Link to comment Share on other sites More sharing options...
secinv Posted March 5, 2011 Share Posted March 5, 2011 The foreclosure situation is an outrage and all created by our government. I can't even imagine how horrible of a situation this is for the family who loses everything. I have read so much involving these personal tragedies that it makes my blood boil. Are we ever going to wake up that government never is a solution, but the creator of problems. I can't think of one thing that government has done that is positive! Quote Link to comment Share on other sites More sharing options...
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