Financial Crisis News Center

HAMP Servicer Agreements Released

This story appeared in Bank Digest.

The Treasury Department has posted the following servicer participation agreements for the Home Affordable Modification Program (HAMP). These agreements are the first step servicers need to take to participate in HAMP for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac: iServe Servicing Inc. and Urban Trust Bank.

Monthly Servicer Performance Report Issued

This story appeared in Bank Digest.

The Treasury Department and the Department of Housing and Urban Development have released their February data for the administration's Home Affordable Modification Program (HAMP). As of the end of February, more than one million borrowers were receiving a median savings of $500 each month—a 36 percent median monthly payment decrease. Permanent modifications have been granted to 170,000 homeowners, and an additional 91,800 permanent modifications have been approved by servicers and are pending only borrower acceptance.

Assistant Secretary Barr Encourages Access to Affordable Mortgage Credit

By J. Preston Carter, J.D., LL.M., Editor, the CCH Federal Banking Law Reporter, CCH Financial Privacy Law Guide, CCH State Banking Law Reporter and Bank Digest.

In remarks before the National Council of State Housing Agencies on March 8, 2010, Treasury Assistant Secretary Michael S. Barr gave an update on the progress of the “Homeowner Affordability and Stability Plan,” a broad set of programs designed to stabilize the U.S. housing market and help keep millions of homeowners in their homes. He noted that programs partnering with the Housing Finance Agencies--the HFA Initiative and the HFA Hardest Hit Fund-- are key parts of the Administration's broad set of housing initiatives.

FHFA Extends Refinance Program by One Year

This story appeared in Bank Digest.

The Federal Housing Finance Agency has announced the extension of the Home Affordable Refinance Program (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2011. The program is a key component of the Administration's Making Home Affordable Program announced last February. The HARP program expands access to refinancing for qualified individuals and families whose homes have lost value. The program was set to expire on June 10, 2010.

HAMP Report Shows Permanent Modifications Nearly Doubled

This story appeared in Bank Digest.

The Treasury and Housing and Urban Development Departments have released January data for the Home Affordable Modification Program (HAMP), demonstrating that the number of homeowners receiving immediate relief and converting to permanent modifications continues to rise. More than 116,000 homeowners now have permanent modifications, nearly doubling the number from December, which also marked record progress. An additional 76,000 permanent modifications have been offered, and are waiting only for the borrower's signature. In total, over 1 million homeowners have started trial modifications and nearly 1.3 million offers for trial modifications have been extended to homeowners.

Towns Opens Investigation into Treasury's Mortgage Modification Efforts

This story appeared in Bank Digest.

The House Committee on Oversight and Government Reform has announced that it is investigating the Treasury Department's Making Home Affordable (MHA) program, after receiving “concerning information” about the effectiveness and efficiency of MHA and the extent to which it has assisted struggling homeowners. In a letter to Treasury Secretary Timothy Geithner, Committee Chairman Edolphus Towns, D-N.Y., asked for specific data to help the Committee in its efforts to investigate the Home Affordable Modification Program (HAMP). The letter states, “... it is my understanding that Treasury has thus far refused to reveal in detail how it defines 'net present value,' one of the key criteria for homeowner participation in the mortgage modification program. Moreover, if a homeowner is denied a permanent mortgage modification, the specific reasons for the denial are not revealed. Finally, Treasury has not established a process for homeowners to appeal the denial of a permanent mortgage modification.”

Refinance Volumes and HAMP Modifications Increased in December

This story appeared in Bank Digest.

The Federal Housing Finance Agency has released the latest data regarding loan modifications under the Home Affordable Modification Program (HAMP) and total refinance volume for December 2009. According to the Foreclosure Prevention Report, Fannie Mae and Freddie Mac initiated more than 485,000 mortgage loan modifications through December 2009 under HAMP. Total refinance volume increased in December as a result of a gradual June to November 2009 decline in interest rates.

Kucinich Criticizes Reported Proposal to Streamline HAMP Paperwork

This story appeared in Bank Digest.

Rep. Dennis Kucinich, D-Ohio, Chairman of the House Domestic Policy Subcommittee, sent a letter to Treasury Secretary Tim Geithner criticizing proposed changes, as reported by the New York Times, to the Home Affordable Modification Program (HAMP). The New York Times article indicates that the Treasury Department will make changes in an effort to streamline paperwork. Kucinich said, “Treasury seems to be preoccupied with improving the appearance of HAMP, rather than its substance.” He said that the paperwork reduction risks repeating the lending errors that fueled the mortgage bubble in the first place.

Monthly Servicer Performance Report Issued

This story appeared in Bank Digest.

The Treasury Department has released the latest Making Home Affordable Program Servicer Performance Report which provides a transparent and public accounting of individual servicer performance. The report provides: the number of trial modification offers extended; the number of trial modifications underway; the number of official modifications offered; and the long term success of modifications.

HFA Transactions Completed

This story appeared in Bank Digest.

The Treasury Department, Housing and Urban Development Department and Federal Housing Finance Agency have announced the completion of all transactions under the recently-introduced state and local Housing Finance Agency (HFA) Initiative, a key element of the Obama Administration’s Homeowner Affordability and Stability Plan. The HFA is intended to support low mortgage rates and expand resources for low- and middle-income borrowers to purchase or rent homes that are affordable over the long term. The HFA Initiative is expected to come at no cost to taxpayers.