Permanent Loan Modifications Difficult To Achieve

The Making Home Affordable Program has begun trial modifications for more than 650,000 eligible borrowers since being launched in February.  According to data released by the Treasury Department, 1 in 5 eligible homeowners has enrolled in the program.  Almost 900,000 borrowers have been offered trial modification plans and servicers have distributed over 2 million request [...]

Strategic Mortgage Defaults A Cause For Concern

A new report from the National Consumer Law Center (NCLC) titled “Why servicer’s foreclose, when they should modify, and other puzzles of servicer behavior”, says the number of borrowers expected to walk away from their homes is projected to increase.

This is known as strategic default, when a borrower decides to stop making payments on a [...]

Making Home Affordable?

A new study out from the Federal Reserve Bank of Boston concluded that “lenders expect to recover more from foreclosure than from a modified loan”.

The reason?  Only about 30% of homeowners that fall behind on their mortgage payments are able to start paying again without lender intervention.  When loans are modified, 30% to 45% of [...]

More Mortgage Woes Ahead

When the Obama administration established programs in March to help home owners modify mortgage payments or refinance for a lower interest rate, the intent was to curb the foreclosure crisis and keep families in their homes.

Now, seven months later, rates are ticking up, programs are expiring and foreclosure numbers are still on the increase.

Mortgage rates [...]

California Legislation Tightens Restrictions On Lenders

Governor Arnold Schwarzenegger has approved new legislation that will provide a wide range of protection to the borrowing consumer.  The Governor signed seven new laws that will take effect at the beginning of next year starting with AB 260 which was authored by Assemblyman Ted Lieu (D-Torrance).

AB 260 tightens restrictions on mortgage brokers which inhibits [...]

Fannie and Freddie Planning to Aide Lenders

Mortgage insurers Fannie Mae and Freddie Mac are planning aide to mortgage lenders.  The plan is to create a program to help independent mortgage banks get access to short term credit needed to make home loans.

Fannie Mae and Freddie Mac will provide advance commitments for the purchase of home mortgages that meet specific standards.

The intent [...]