• About
    • Who am I? What am I doing here? How did I get here? (updated 10/29/2013)
  • Contact Form
  • FAIR USE NOTICE

PUMABydesign001's Blog

~ “I hope we once again have reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts.” Ronald Reagan.

PUMABydesign001's Blog

Tag Archives: Homeowner Affordability and Stability Plan

Obama’s Offer To Banks Not Helping Many Consumers

11 Wednesday Nov 2009

Posted by bydesign001 in Uncategorized

≈ 1 Comment

Tags

Foreclosure, Homeowner Affordability and Stability Plan, Homeowner Lender Practices, Housing Crisis, Housing Foreclosures, Mortgage


Americans must realize that everything the Obama administration and fellow Democrats does is about moving us that much closer to socialism.  They are intentionally guiding Americans into situations and/or programs that will make them more dependent upon government. 

GOVERNMENT CONTROL over the citizenry is the ultimate endgame for Democrats; therefore, it makes sense that these programs will achieve nothing the government said it would.  Stop drinking the kool-aid because this is not about saving your homes. 

Think about it.  Step outside of the box.  If Americans do not move to make it happen, then it will not because the government is setting people up to fail.  The endgame has been in the works for some time and for many Americans is now coming to fruition.

Obama offers the banks $75 billion of our taxpayer money for banks to re-work troubled mortgages, i.e., banks receive $4,500 for every loan they modify.  However, said modifications are re-worked upward and in a fashion that increases the monthly mortgage payments of homeowners, thereby prolonging the pain.  Somebody is being set up here. 

Homeowners many of whom should not have purchased a home in the first place will be blamed for failing.  In turn, the government and banks walk away free and clear.

STARTRIBUNE.COM

“Nine months ago, the Obama administration offered banks $75 billion in taxpayer money to rework troubled mortgages.

Yet so far, $75 billion hasn’t been enough to compel many lenders to permanently reduce monthly mortgage payments for millions of cash-strapped homeowners. Indeed, tens of thousand of borrowers who have asked for relief have instead seen their payments and loan balances increase under the Obama plan. A surprisingly high percentage are sliding back into default.

The Treasury Department announced Tuesday that 650,994 homeowners nationwide, including 12,933 in Minnesota, have received temporary, three- to five-month trial modifications under the administration’s foreclosure-prevention plan. That represents one in five eligible homeowners at least 60 days behind on their mortgage payments, according to the Treasury.

‘We’re reaching borrowers at a larger scale than any other modification program to date,’ Assistant Treasury Secretary Michael Barr declared Tuesday.

The $75 billlion approved for the plan, known as the Home Affordability Modification Program, or HAMP, was never meant to go to borrowers directly. Instead, the money would be used to encourage lenders to modify mortgages rather than foreclose on properties. Banks would receive up to $4,000 for every loan they modified. For banks, a loan modification may be less costly than a foreclosure, particularly if a house is worth much less than the value of the mortgage.

But despite the financial carrot, the percentage of homeowners who have seen their trial modifications become permanent loan restructurings, with payments reduced for more than just a few months, remains abysmally low. A mere 1,711 borrowers nationwide had successfully completed their trial period and received permanent loan modifications as of Sept. 1, according to a report by the Congressional Oversight Panel.

And many more who have been approved for relief under the plan have actually seen their loan payments and balances increase — as lenders simply roll back payments, fees and taxes into the remaining life of the loans. ‘It’s relief of a kind, but a lot of these modifications don’t get to the root cause of why the person defaulted in the first place — the mortgage payment was too high,’ said Mary Bujold, president of Maxfield Research Inc., a Minneapolis-based market research firm.

It’s too early to determine if these patterns will continue, but many experts say the HAMP plan overpromised and under delivered by giving lenders too much leeway in how they could modify loans. Others argue that banks have an incentive to keep borrowers in temporary loan modifications in order to delay having to foreclose on the house and take a loss.

‘I think the Obama administration probably underestimated how difficult it is to solve the mortgage problem,’ said Rick Sharga, senior vice president of RealtyTrac, a firm that tracks foreclosure.

Mortgage modifications come in many forms. In some cases, lenders can lower interest rates, extend the loan term, or reduce the amount of the loan by forgoing part of the principal. Of loans modified during the second quarter, 22 percent were either left unchanged or saw their payments increased, according to a recent report by banking regulators.

Yet, government data show that success rates on loan modifications are highest when payments are reduced. Indeed, only 34.1 percent of modifications that decreased monthly payments by 20 percent or more were seriously delinquent, compared with 63.4 percent of modifications that left payments unchanged, according to the Office of the Comptroller of the Currency, a federal bank regulator.

‘A lot of these modifications set people up to fail, rather than to succeed,’ said Thomas Bloomquist, a supervisor of financial counseling at Lutheran Social Service in Minnesota.

Even so, the HAMP program, which got off to a weak start this spring, is gaining momentum, and many housing counselors and lending experts say it’s had a meaningful impact on the national foreclosure rate. Celia Chen, a housing economist at Moody’s Economy.com, expects at least another 3 million loan modifications next year.

Wells Fargo, the nation’s largest home lender, has begun 93,652 trial modifications, or 29 percent of its eligible mortgages, under the HAMP program so far this year, according to U.S. Treasury data released Tuesday. After initially being criticized for its slow pace of modifications, the San Francisco-based bank now has among the highest modification rates among large banks in the nation. U.S. Bancorp has modified 15 percent of eligible mortgages, even though the Minneapolis-based bank did not enter the program until September.

‘Many of these people who are in trial modifications will be able to convert to full modifications, and that will mean fewer foreclosures,’ Chen said. ‘It’s still a benefit…”

Next page

Share this:

  • Facebook
  • Gab.ai
  • MeWe
  • Tea Party Community
  • Tumblr
  • Twitter
  • LinkedIn
  • Pinterest
  • Pocket
  • Reddit
  • Email
  • scoop.it
  • Telegram
  • WhatsApp
  • More
  • Print

Like this:

Like Loading...

Frustrated Home Owners, Lenders Clash Over Obama Program

05 Thursday Mar 2009

Posted by bydesign001 in Uncategorized

≈ Comments Off on Frustrated Home Owners, Lenders Clash Over Obama Program

Tags

Fannie Mae, Freddie Mac, Homeowner Affordability and Stability Plan, Hope for Homeowners, Mortgages, obama


Many Michigan homeowners contacted the Free Press throughout the day today with word that lenders and loan servicing companies seemed to lack an understanding of what the Obama plan hoped to accomplish. Some were told they were not eligible when, under the guidelines, it appeared they might be; others were told that since they’d already gotten a loan modification earlier, they wouldn’t be able to get another – a premise the Treasury Department flatly denied to the Free Press on today.

Kenya Brown, a 39-year-old foster care worker for the state, got a previous modification through Countrywide and was told Wednesday she wouldn’t be eligible for another under the new program. Meanwhile, she’s spending about half her monthly income on a $115,000 home in Harper Woods with a $146,000 note on it.

The lender’s comment notwithstanding, she’s going to keep at it – calling regularly in hopes of getting her loan modified so she can pay less each month.

“It’s getting to the point where I’m getting desperate,” she said.

Countrywide’s owner – Bank of America – said Wednesday it intended to take part in the modification program – at least as much as its contractual obligations would allow it to do so. Many other loan servicing companies did so as well.

LINK

Everytime I hear this, I think of the telephone call I received from a neighbor one night.  I was working late, doing a marathon and a neighbor called me and said “I need your opinion on something.  I got a call today from this lady who told me that she could help me get a house.  She said that all I needed to do was give her my social security number.  What do you think?”

My response to my neighbor was this.  “You do not work.  You have never worked.  How are you going to pay for this house?  She then asked me again, “What do you think? Should I give her my social security number?”  My response was a resounding “HELL NO!”

To be honest, it was not my neighbor but a very young, streetsmart yet stupid niece of mine.  I just did not want to admit that I had someone with that mentality in my family, but decided to because we all have one.  After all this is America.  However, to her credit, this was the one time she actually listened.  I found later that the caller was a woman who worked for….you guessed it….ACORN.

Clearly the woman in this article is in over her head and just as clear is the fact that she should never have purchased a home in the first place.  I might be wrong, but I suspect ACORN had a hand in this sale somewhere along the line.  I also suspect that she voted for Obama under the false premise that he was going to help her out of this dilemma.  Another Obama lie.

Obama with all his promises will do nothing for people in this type of situation.  It is unfortunate because this debt will not go away.

Michigan’s unemployment rate jumped to 11.6% in January

Share this:

  • Facebook
  • Gab.ai
  • MeWe
  • Tea Party Community
  • Tumblr
  • Twitter
  • LinkedIn
  • Pinterest
  • Pocket
  • Reddit
  • Email
  • scoop.it
  • Telegram
  • WhatsApp
  • More
  • Print

Like this:

Like Loading...

THE RISK FROM UNDERWATER HOMEOWNERS

19 Thursday Feb 2009

Posted by bydesign001 in Uncategorized

≈ 1 Comment

Tags

Fannie Mae, Freddie Mac, Homeowner Affordability and Stability Plan, Hope for Homeowners, Mortgages, obama


Obama’s $75 billion mortgage rescue plan doesn’t address the danger that more homeowners whose equity has evaporated might just walk away

The Obama Administration’s $75 billion homeowner-rescue plan offers a lot of help to people in imminent danger of losing their homes. It does far less for those who are deep underwater on their mortgages but have the wherewithal to keep making their monthly payments. And that could be a problem-not only for those homeowners themselves, but for the banking system and the economy in general.

Here’s the dilemma: Many homeowners owe more on their mortgages than their homes are worth, and-rightly or wrongly-increasing numbers of them may decide to give up and mail in the keys. The taboo against reneging on debts already shows signs of fading in hard-hit markets like Phoenix and Las Vegas. More abandonments would increase losses for lenders while damaging the vitality of neighborhoods.

There’s not much in the Homeowner Affordability and Stability Plan announced on Feb. 18 to deal with this looming problem. Provisions to reduce monthly loan payments for homeowners who are struggling don’t prevent these so-called “voluntary foreclosures,” since in many cases the payments already are affordable. The most effective way to keep underwater homeowners from walking away en masse would be a big writedown of the principal they owe. That would give them positive equity in their homes-or at least the hope for it once prices begin creeping upward again-and with it, a reason to stay put. Although the Obama plan permits principal writedowns-and even pays off up to $5,000 of principal for homeowners who remain current on their payments-they aren’t required, or even central to the proposal….

….Coasts Hit the Worst

Moreover, “private-label” mortgages that lack Fannie or Freddie’s backing-particularly in California and the Northeast, where home prices are higher and subprime mortgages more common-aren’t eligible for Fannie and Freddie refis at all. “Where the markets have been hardest hit on the coasts, where private mortgages are the biggest, this program won’t really help,” says a fixed-income portfolio manager for a major mutual-fund management firm.

The senior Administration official said the 105% cap seemed advisable in part because re-default rates tend to rise with high loan-to-value ratios. And the government excluded private-label loans from the refinancing program because it little or no authority to dictate rate changes where government-affiliated entities don’t provide guarantees.

Obama’s plan is broader and stronger than Hope for Homeowners, the unwieldy, mostly voluntary program passed by Congress last summer. On the other hand, that’s not saying a lot. Hope for Homeowners has refinanced a microscopic 25 mortgage loans so far. Even a thousandfold improvement over that would still constitute failure for the Obama Administration. That’s why this plan may require some changes in the months ahead.

LINK

Share this:

  • Facebook
  • Gab.ai
  • MeWe
  • Tea Party Community
  • Tumblr
  • Twitter
  • LinkedIn
  • Pinterest
  • Pocket
  • Reddit
  • Email
  • scoop.it
  • Telegram
  • WhatsApp
  • More
  • Print

Like this:

Like Loading...

Blog Stats

  • 2,627,305 hits

Google Translate

Archives

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,261 other subscribers
  • RSS - Posts
  • RSS - Comments

2016 Cry and Howl Conservative Blog Award

NRA Member

Ammo.com

Veterans’ Tales – A Forum for Veterans & Family Members of Vets

RSS Veterans’ Tales

  • An error has occurred; the feed is probably down. Try again later.

Wow!

WowMagazine

RSS Wow! Magazine — Recent Posts

  • An error has occurred; the feed is probably down. Try again later.

Blogroll

  • 1389 Blog – Counterjihad!
  • Bare Naked Islam
  • Be Sure You're RIGHT, Then Go Ahead
  • Boudica BPI Weblog
  • Cry and Howl
  • Fix Bayonets!
  • FREE NORTH CAROLINA
  • GRUMPY OPINIONS
  • Ike Jakson’s Blog
  • Legal Insurrection
  • LUPUS AND CHRONIC ILLNESS
  • Michelle Malkin
  • Old West Tales (Thoughts from Afar)
  • Pacific Paratrooper
  • PAJAMAS MEDIA
  • Political Clown Parade
  • Publius-Huldah’s Blog
  • Rifleman III Journal
  • The Acceptable Digest
  • The Christian Gazette
  • The Daily Rant
  • The Last Tradition
  • The Mad Jewess
  • The Religion of Peace

Ephesians 6:13

Therefore take up the whole armor of God, that you may be able to withstand in the evil day, and having done all, to stand firm.

Minds.com

Gab.ai – #SpeakFreely – Join Me

@PUMABydesign

Grumpy Opinions Conservative News and Opinions 2016

Grumpy Opinions Conservative News and Opinions 2016

Tweets

My Tweets

Creative Commons License

Creative Commons License
This work by PUMABydesign001's Blog is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Permissions beyond the scope of this license may be available at http://pumabydesign001.com/fair-use-notice/.

CREEPING SHARIA

SAY NO TO ONLINE CENSORSHIP

RSS Front Page Magazine

  • Muslim UK Soldier Conspired With Terrorists
  • 7 Killed in Muslim Terror Attack on Jerusalem Synagogue
  • Charging Black Officers in Black Man’s Death is Racist
  • 2 Years After Early Release, ‘American Taliban’ Was Meeting With ISIS Recruiter
  • Trump’s Facebook Ban Means Elections Take Place by UN Speech Rules
©2017 PUMABydesign001’s Blog.

RSS Lifezette

  • The Ghouls At Pfizer Don’t Know When To Stop
  • Warning not Acknowledged: Six-Year-Old Shooting Teacher Could Have Been Prevented
  • Is There Hope For Justice in America? Two J6 Verdicts Today
  • Naysayers Owe The Freedom Caucus An Apology!
  • Ivan Provorov Didn’t Do Anything Wrong And Neither Did Pink Floyd!!! – Press For Truth [VIDEO]

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.com

Create a website or blog at WordPress.com

  • Follow Following
    • PUMABydesign001's Blog
    • Join 474 other followers
    • Already have a WordPress.com account? Log in now.
    • PUMABydesign001's Blog
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
%d bloggers like this: