The Real Deal New York

Posts Tagged ‘loan mods’

  • So-called loan modification “specialists” are coming under fire for taking thousands of dollars from struggling borrowers in exchange for the promise of lower monthly mortgage payments and not following through. According to the Wall Street Journal, a group of pro bono foreclosure attorneys filed a lawsuit yesterday in state Supreme Court in Nassau County that named several loan modification companies operating out of Garden City, which have allegedly scammed homeowners into believing that they had better chances of getting their mortgage payments modified if they paid for the companies’ services. … [more]

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  • Loan modifications are declining to the point where eventual foreclosures for distressed U.S. homeowners are becoming all but certain, if somewhat delayed, according to a report from Fitch Ratings, released yesterday. Just 36,500 mortgage modifications were completed in December 2010, down from a high of 86,500 in April 2009, the report says, and Fitch says it expects the majority of those modified borrowers to default again within one year, which could lead to another spike in foreclosures. TRD[more]

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  • The Obama administration’s $75 billion foreclosure prevention program has been widely criticized for its failure to, well, prevent very many foreclosures, and ProPublica has been investigating why the program has come up short. According to the publication, one major factor has been a possible “fatal” lack of oversight by the Treasury Department, which said this week that it doesn’t have the power under the Home Affordable Mortgage Program, known as HAMP, to punish mortgage servicers for denying loan modifications without cause. … [more]

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  • Poor oversight by the Treasury Department and errors by servicers has led to what may be thousands of homeowners being wrongly denied mortgage modifications under the Obama administration’s Home Affordable Mortgage Program, a government audit has revealed. According to the Government Accountability Office report, “15 of the largest 20 participating servicers [in HAMP] did not comply with various aspects of program guidelines,” when determining which borrowers were eligible for modifications. That determination is supposed to be made based on a calculation using factors like the borrower’s income and equity in the home, but the process is beset with errors, in part because the Treasury Department has failed to issue specific guidelines and standards for servicers to follow, according to the Huffington Post. The number of struggling homeowners rejected from HAMP in error “could range from a handful to thousands,” the report says, and yet the Treasury “has yet to establish specific consequences or penalties for noncompliance,” and has issued no fines. [Huffington Post]

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  • Poor oversight by the Treasury Department and errors by servicers has led to what may be thousands of homeowners being wrongly denied mortgage modifications under the Obama administration’s Home Affordable Mortgage Program, a government audit has revealed. According to the Government Accountability Office report, “15 of the largest 20 participating servicers [in HAMP] did not comply with various aspects of program guidelines,” when determining which borrowers were eligible for modifications. That determination is supposed to be made based on a calculation using factors like the borrower’s income and equity in the home, but the process is beset with errors, in part because the Treasury Department has failed to issue specific guidelines and standards for servicers to follow, according to the Huffington Post. The number of struggling homeowners rejected from HAMP in error “could range from a handful to thousands,” the report says, and yet the Treasury “has yet to establish specific consequences or penalties for noncompliance,” and has issued no fines. [Huffington Post]

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