The Obama administration met yesterday with mortgage companies who are participating in the Making Home Affordable loan modification program to identify ways to improve and accelerate the program. They set a goal of initiating 500,000 loan modifications by November 1, 2009. To date, roughly 200,000 borrowers have been enrolled in three-month trial loan modifications, out of about 370,000 who were offered modifications by mortgage companies.
To help reach this goal, the administration plans to:
- Publicly report the number of trial modification offers each servicer has extended, the number of trial plans that are underway, and the number of final modifications. The first report is expected to be released by August 4th.
- Set more specific metrics to measure the performance of the program, such as average borrower wait time for inbound borrower inquiries, the completeness and accuracy of information provided applicants, document handling, and response time for completed applications.
- Have Freddie Mac audit a sample of MHA modification applications that have been declined, with the goal of addressing weaknesses in the program.
These plans seem to rely on publicly disclosing servicers who are making progress in this program and then comparing them to those who are not. It will be interesting to see if this type of incentive works to significantly move the needle.
Last 5 posts in Loan Modification
- Bank Accidentally Sells House as Foreclosure - November 11th, 2009
- Loan modifications are lowering monthly payments - October 4th, 2009
- More Homeowners are Late on Their Mortgages - September 21st, 2009
- Successful Short Sales…I mean plural…more than one! - September 14th, 2009
- FHA Mortgages Now Qualify For Government Help - September 3rd, 2009
- Stumble it!
- Categories: Loan Modification
Comments
4 Comments so far
Kathleen McDonald
I got an e-mail yesterday telling me that they can reduce my loan at 5% and made an offer to my mortgage company but they denied it and wanted more money. They asked me to come up first with 2500.00 and then with 1200.00. Am not sure what to do….Is this a normal request? This has been going on since February and I haven’t had to pay any out of pocket expense so far. Is Lend America a reputable company? I called H4H and nobody has called me back so far. I also called a MFPP program for which I attened a seminar and nobody has called me back. Not sure what to do.
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Mary Miller
Kathleen,
Please read this recent post by Kevin Sandridge about potential Loan Modification scams http://www.zillow.com/blog/mortgage/2009/07/25/loan-modification-and-the-boiler-room-effect-dont-get-burned/. Specifically, he states:
“There’s really only one place to go should you find yourselves in need of loan modification services, and that’s the official Making Home Affordable website http://www.makinghomeaffordable.gov/about.html. There, you’ll find information designed to inform and educate you about the mortgage modification process. Some key facts you’ll learn there include the following:
There is never a fee to get assistance or information about Making Home Affordable from your lender or a HUD-approved housing counselor.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay – walk away!
Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
Never submit your mortgage payments to anyone other than your mortgage company without their approval.”
Mari Golden
We have researched the make home affordable program., we agree its great! it is absolutely the best! but how do we participate in it when our Leander (AHMSI) American Home Mortgage serving Inc. tells us they do not offer this program. They are a conventional Leander. so basically there is nothing they can do for us.