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Obama Expands Mortgage Modifications

From an approving Associated Press:

Obama administration to expand housing plan

By Alan Zibel, AP Real Estate Writer

WASHINGTON – The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a foreclosure if they don’t qualify for other assistance.

The new initiatives are expected to streamline the process of selling a home that is worth less than the mortgage, or transfer ownership of a home to the lender. Both options will still ding the homeowner’s credit score, but less than a foreclosure.

Since the program, called Making Home Affordable, was launched in March, Mortgage companies have made more than 55,000 offers to modify borrowers’ loans.

"We’re seeing the first signs of homeowners being able to take advantage of lower monthly payments that the program makes possible," said Treasury Secretary Timothy Geithner…

The government program, unlike others before it, requires numerous changes to how the mortgage industry does business. To get a loan modification, borrowers must provide proof of their income and send in a letter stating why they need help.

So far, 14 companies that service about three quarters of the mortgage market have signed up and will be paid for each loan they modify.

Since the program involves taxpayer dollars, "you want the rigor," said Faith Schwartz, executive director of Hope Now, a mortgage industry group formed in response to the foreclosure crisis. "This is a very well-thought out plan," she said

‘Hope Now’ is Henry Paulson’s brainchild from several money-hole programs back.

That didn’t work either.

This article was posted by Steve on Thursday, May 14th, 2009. Comments are currently closed.

15 Responses to “Obama Expands Mortgage Modifications”

  1. proreason says:

    All politics aside, wouldn’t you think people might begin wondering whether the TMCC’s growing track record of dismal failures might carry into the future:

    – the mortgage bailouts have done nothing. Foreclosures are going up, not down.
    – unemployment continues to climb
    – Chrysler is bankrupt. GM is on the verge.
    – Lending apparently hasn’t increased (not that it was ever that bad for consumers who intend to pay loans back)
    – the projected 2009 deficit has climbed 50% above the initial estimate in just 3 months
    – the gov’s own OMB projects hugely higher national debt than the Liar in Chief does
    – just 6% (yes SIX PERCENT) of the Depression Stimulus has been paid-out after 3 months. At that clip, it will take 4 years to disperse the money. Pretty stimulating, huh?
    – repeated failed appointees
    – backtracks / reversals / denials of untold loonie programs / statements / lies
    – time restricts this list

    So much for jolting the economy.

    Is the public blind? Is the press asleep?

    Oh wait a minute…..

    • heykev says:

      How many more months of BHO’s unworkable policies for growth will it take before the press awakes and starts to do some real reporting. While I realize that that asking a lot, I do believe that there will be such an outcry soon, they they will be forced to do their jobs.

      So…do you think by July 4th, Labor Day, Thanksgiving, or next year?

    • proreason says:

      Follow-up. See the graph in the link below.

      http://michaelscomments.wordpress.com/2009/05/08/the-april-numbers-are-in-its-official/

      It’s kind of hard to tell what the guy is talking about so I’ll simplify it:

      Unemployment is exceeding the frightening estimate of what your loving government projected for “NO STIMULUS”, no matter rosie projections thay had for “WITH THE STIMULUS”. In the graph, the upper line is what they predicted with no action, and the lower line is what they predicted with the “recovery” package. Strangely enough, the early results for unemployment are even higher than what they told us the results would be without the porkulus package.

      shocking isn’t it?

      Ed Morrissy of Hot Air has a good column about it here:

      http://www.americanissuesproject.org/blogs/columns/archive/2009/05/14/was-the-stimulus-irrelevant.aspx

    • proreason says:

      “So…do you think by July 4th, Labor Day, Thanksgiving, or next year?”

      I’m with Rush. The answer is Thanksgiving……..of 2099.

      In other words, they will NEVER report the truth about the destruction of the economy and our country.

      The most telling statistic comes from Media Matters. In the first 100 days, the msm did no once use the word “socialist” in their reporting. They used the word “liberal” one time….when quoting a conservative.

      From the perspective of hiding the truth, their track record is perfection itself.

      And 60-80% of the country gets all of their news from the msm, if you include jon stewart and stephen colbert.

  2. heykev says:

    At least Turbo Tax Timmy (my that’s fun to say) is consistent. I do not believe there has been one idea or one place he’s worked at/for that he’s assisted them in making money or developed any ideas that have benefited those in need.

    A good example would be how he handled the Asian Monetary crisis a few years back. Here’s a link to an article where Paul Keating, former Australian Prime Minister, savages his work there: http://www.nakedcapitalism.com/2009/03/former-australian-prime-minister.html

    Am expecting Turbo Tax Timmy will work similar destruction to our economy.

    • catie says:

      Interesting article. Did you catch old Turbo Tax Timmy shaking his head up and down like a bobble head when the Messiah was saying he was going to catch up with all the tax cheats? I was laughing so hard I almost pee’d my pants.

    • Liberals Demise says:

      “DOH”

  3. Dangerous says:

    “Companies will be paid for each loan they modify”? – So, the company will get a small kickback to continue taking a loss on loans to people who shouldn’t have had them in the first place. Lovely.

    I’m sorry, I’m not sure I see the problem with people who can’t afford the houses they’re living in getting kicked out on their deadbeat backsides and having the banks put them up for sale. There’s nothing wrong with a foreclosure, just like there’s nothing wrong with a bankruptcy now and then. I want the market back on the right track, even if it’s at the expense of poor Betty and Bob who feel the banks ‘misled’ them to believe they could afford a $500,000 house on $30,000 a year.

    Overinflation of housing prices hurts me, personally, as I’m enough of a sucker to do the honest thing and try to actually buy a house that I can pay for during my lifetime. And, once I get one, I’ll be enough of a sucker to put my money towards my mortgage, rather than vacations, big screen tvs, or the latest fashions in clothing.

    Now, me, I’m in Canada, and the market here has been hurt less because our banks are a bit more tight-fisted. But still, when the US sneezes, Canada catches a cold, and that worries me. As a result, I have precisely zero sympathy for people too dumb to realize that they can’t refinance their parents’ home five times, stop making payments and then continue to live there.

    I think that’s enough ranting for me, I’ll open up the floor for the next in line.

  4. pdsand says:

    “”We’re seeing the first signs of homeowners being able to take advantage of lower monthly payments that the program makes possible,” said Treasury Secretary Timothy Geithner…”

    I noticed a paucity of statistics backing up that claim.

    • MinnesotaRush says:

      He left off .. “and those signs are just as dismal as the original ones were.”

  5. Right of the People says:

    Let’s just drop all the pretense and posturing about helping the lenders and the borrowers and do what Barry O’Bama (he’s part Irish ya know) really wants to do and flush all of these loans down the crapper and just give these houses to this undeserving pack of mooches and losers. This would make AholeCORN happy as hell and that’s what really counts, isn’t it?

    My wife and I who have moved more than a few times have had a total of 6 mortgages in the past 30+ years and we’ve never been late even once although I was once unemployed for six months. These leeches make me want to puke. I’d move over the border to Canada if it wasn’t even more f**ked up than here just to get away from The One and his crap.

    Buy all the ammo you can, I Hope, Change is coming soon!

  6. pdsand says:

    I continue to say that the current crisis continues to serve as a historical example of how to respond to the current crisis. In the source article, the mortgage industry types and consumer advocate types all talk about how the original program, making home affordable is unwieldy, and hasn’t particularly worked. Most lenders and borrowers are avoiding it because of the red tape and murky water that surrounds it. Typical government boondoggle and bureacracy. But still the big fool says push on.

  7. Confucius says:

    Where is Hank Paulson these days?

    • pdsand says:

      I know wherever he is, he’s keeping the people around him whipped up in a panic. It seemed like that’s all he ever did in office.

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