* U.S. loan modifications up 55 pct in Q1 from Q4
* Seriously delinquent mortgages up 9 pct in Q1 from Q4
* Foreclosures in process up 22 pct in Q1 from Q4
WASHINGTON, June 30 (Reuters) - The pace of home loan modifications shot up during the first quarter, but so did mortgage payment delinquencies and foreclosures, U.S. bank regulators said on Tuesday. The quarterly report on mortgage metrics showed that the quality of modifications improved, with more than half of them resulting in lower monthly principal and interest payments.
But the report released by the Office of the Comptroller of the Currency and the Office of Thrift Supervision presented mixed signals of improvement and distress as rising unemployment and other economic pressures weighed on borrowers.
"While I'm very concerned about the rise in delinquent mortgages and foreclosure actions, the shift in emphasis by servicers to more sustainable, payment-reducing modifications is a positive step that should show significant benefits in the coming months," Comptroller of the Currency John Dugan said in a statement.
As the Obama administration's Making Home Affordable loan modification plan gains traction, he said, regulators will continue to see progress in future reports. more ...
Tuesday, June 30, 2009
Housing Secretary Shaun Donovan Address Chicago Conference on State and Local Housing Policy
June 30, 2009
Secretary Donovan delivered a speech at the Solutions for Working Families: 2009 Learning Conference on State and Local Housing Policy in Chicago. Following is an excerpt. The full text is available from the Chicago Sun-Times here.
Secretary Donovan delivered a speech at the Solutions for Working Families: 2009 Learning Conference on State and Local Housing Policy in Chicago. Following is an excerpt. The full text is available from the Chicago Sun-Times here.
And our work continues with the President's Making Home Affordable plan. Nearly a million homeowners have received information about the plan and participating services have extended offers on nearly a quarter-million trial modifications so far. Over the next few months, we expect these numbers to grow significantly, and we already have some early signs that the overall housing market is recovering.
But as we work to help our economy recover and put a halt to foreclosures, we are also laying the foundation for sustainable growth.
We have made the highest amount of competitive funds available in HUD's history through the Recovery Act - encouraging state and local governments to develop new and innovative ways to improve public housing, rebuild communities, and increase energy efficiency.
One of the most important competitive investments in the Recovery Act is the additional $2 billion we've invested in the Neighborhood Stabilization Program to help communities purchase and convert foreclosed and abandoned properties into new affordable housing, land banks, or other options that preserve neighborhoods.
These competitive funds will not only turn foreclosed properties into homes again, but also ensure that communities go about the rehabilitation and purchase process in a smart, collaborative, and, above all, sustainable way.
Chase modifies 138,000 mortgages
June 30, 2009 - Business First of Louisville
Chase bank has approved 138,000 trial mortgage modifications since the federal government implemented the Making Home Affordable program on April 6.
The figure includes 87,100 modifications through the Making Home Affordable program and another 50,900 through its own mortgage-modification program. more ...
Chase bank has approved 138,000 trial mortgage modifications since the federal government implemented the Making Home Affordable program on April 6.
The figure includes 87,100 modifications through the Making Home Affordable program and another 50,900 through its own mortgage-modification program. more ...
Protesters demand mortgage help from loan firms
June 30, 2009 - by Kathy Matheson - Associated Press Writer
PHILADELPHIA—Several key mortgage companies that benefited from federal bailout funds have yet to sign onto the Obama administration's plan to help more homeowners avoid foreclosure.
The community group ACORN held 15 protests around the country Tuesday to draw attention to the slow progress of the administration's plan, which was launched four months ago. Demonstrators called for the companies, including Litton Loan Servicing, HomEq and OneWest, to sign onto the Obama administration $75 billion initiative called "Making Home Affordable." more ...
PHILADELPHIA—Several key mortgage companies that benefited from federal bailout funds have yet to sign onto the Obama administration's plan to help more homeowners avoid foreclosure.
The community group ACORN held 15 protests around the country Tuesday to draw attention to the slow progress of the administration's plan, which was launched four months ago. Demonstrators called for the companies, including Litton Loan Servicing, HomEq and OneWest, to sign onto the Obama administration $75 billion initiative called "Making Home Affordable." more ...
Advocates say housing aid doesn't go far enough
Minnesota Public Radio reports that homeowners are having difficulty receiving timely loan modificaitons, even under the Obama administration's Making Home Affordable program. The report, which aired on All Things Considered, quotes a University of Minnesota law professor who advocates for a more robust and systematic implementation of loan modifications for struggling homeowners:
Two earlier Pubic Radio reports also profiled homeowners who were having difficulty obtaining loan modifications:
"Here is what needs to happen," he says, "we need to stop talking about this and we need the government to come in with a clear set of mandates, clearly enforced with transparent rules. If we have that, we are going to have real loan modifications happen in a systemic way."The full report is available here.
Cox says modifying or refinancing more loans is critical now, because keeping foreclosures from flooding the market and continuing to drive down home prices is the only way to stabilize the economy.
Two earlier Pubic Radio reports also profiled homeowners who were having difficulty obtaining loan modifications:
Homeowners Find Mortgage Program Not So EasyAnd here is a link to the initial report from Public Radio covering the launch of the Making Home Affordable program in March:
All Things Considered, June 9, 2009
Homeowners Find Loan Modification Slow Going
Morning Edition, May 7, 2009
Obama Announces Home Affordability Program
Morning Edition, March 5, 2009
Monday, June 29, 2009
Community banks involved in relatively few foreclosures
An investigative report by the Green Bay Press-Gazette shows that, of all foreclosures filed in Brown County, community banks are involved in only a handful. The paper’s research found that Wells Fargo was involved with 69 of 498 foreclosure filings in 2008 (13.9%), the highest of any single financial institution. The financial institution with the next highest number was Deutsche Bank with 38 filings (7.6%). US Bank was third on the list, with 33 filings (6.6%). The report makes no mention of the volume of loans made or serviced by national banks as compared to community banks.
The full report is available here.
The findings are similar to those in a report commissioned by Community Bankers of Wisconsin, an industry trade group, released in August of last year. The Community Bankers’ report found that, of the top dozen financial institutions commencing foreclosure actions in Wisconsin--accounting for 67% of all actions filed--all were headquartered outside the state. During the first half of 2008, the top five were Wells Fargo, US Bank, Deutsche Bank, Countrywide Home Loans and JP Morgan Chase Bank.
The full release is available here.
The full report is available here.
The findings are similar to those in a report commissioned by Community Bankers of Wisconsin, an industry trade group, released in August of last year. The Community Bankers’ report found that, of the top dozen financial institutions commencing foreclosure actions in Wisconsin--accounting for 67% of all actions filed--all were headquartered outside the state. During the first half of 2008, the top five were Wells Fargo, US Bank, Deutsche Bank, Countrywide Home Loans and JP Morgan Chase Bank.
The full release is available here.
Sunday, June 28, 2009
Marion: Former judge and PSC official now working to ease foreclosure mess
June 19, 2009 - by Brian E. Clark - For WisBusiness.com
Ed Marion, former state Public Service Commission general counsel and administrative law judge, lauds Iowa County Judge (and former Madison mayor) Bill Dyke for instituting a mediation program in his county.
“Judge Dyke is the first and I believe the only Wisconsin judge who has instituted a mandatory form of foreclosure mediation program that requires people who are faced with foreclosure and lenders to sit down with an attorney mediator and try to mediate a resolution,” he says.
Marion, who's helping with the effort, says the first foreclosure mediations started in June. He notes Milwaukee and Dane County judges are considering similar programs. more ...
Ed Marion, former state Public Service Commission general counsel and administrative law judge, lauds Iowa County Judge (and former Madison mayor) Bill Dyke for instituting a mediation program in his county.
“Judge Dyke is the first and I believe the only Wisconsin judge who has instituted a mandatory form of foreclosure mediation program that requires people who are faced with foreclosure and lenders to sit down with an attorney mediator and try to mediate a resolution,” he says.
Marion, who's helping with the effort, says the first foreclosure mediations started in June. He notes Milwaukee and Dane County judges are considering similar programs. more ...
9% of all Wisconsin borrowers are in trouble
A quarterly report issued by the Mortgage Bankers Association earlier this year revealed that nearly 9% of Wisconsin borrowers are in trouble: 5.75% of residential mortgage loans in the state were delinquent (at least 30 days past due) as of March 31 and an additional 3.11% were in foreclosure. Nationwide figures showed a record number of borrowers in distress: the delinquency rate was 8.22% and the foreclosure rate was 3.85%, a total of more than 12%. The situation is not likely to improve until unemployment stops rising, the report concludes. With unemployment not expected to peak until mid 2010, the performance of mortgages is unlikely to improve much until after that.
Press release from Mortgage Bankers Association
Milwaukee Journal Sentinel Report
Press release from Mortgage Bankers Association
Milwaukee Journal Sentinel Report
Can Obama keep up with home prices?
June 27, 2009 - by Carla Fried - CNNMoney.com
Good news or bad news? The National Association of Realtors reported Tuesday that 33% of May existing-home sales were distressed (read: foreclosures and short sales) and the median sales price is now $173,000.
If you’re employed by the glass-half-full NAR, you need to spin that as good news, and the eternal optimists did not disappoint. The trade association pointed out that the share of sales that were distressed has declined from the 45% rate in April. more ...
Good news or bad news? The National Association of Realtors reported Tuesday that 33% of May existing-home sales were distressed (read: foreclosures and short sales) and the median sales price is now $173,000.
If you’re employed by the glass-half-full NAR, you need to spin that as good news, and the eternal optimists did not disappoint. The trade association pointed out that the share of sales that were distressed has declined from the 45% rate in April. more ...
Friday, June 26, 2009
Obama Administration to Launch National Outreach Campaign
MIAMI – The Obama Administration today kicks off a nationwide campaign to promote the Making Home Affordable Program, a plan to stabilize our housing market and help millions of Americans reduce their monthly mortgage payments to more affordable levels. The campaign starts today in Miami and then travels to nine additional housing markets that have been hit hard by foreclosure, with the goal of empowering local partners to connect homeowners with much needed relief under the Administration's housing program.
The campaign will engage local housing counseling agencies, community organizations, elected officials and other trusted advisors in the target markets to build public awareness of Making Home Affordable, educate at-risk borrowers about options available, prepare borrowers to work more efficiently with their servicers and drive them to take action. more ...
The campaign will engage local housing counseling agencies, community organizations, elected officials and other trusted advisors in the target markets to build public awareness of Making Home Affordable, educate at-risk borrowers about options available, prepare borrowers to work more efficiently with their servicers and drive them to take action. more ...
Thursday, June 25, 2009
Lender acknowledges difficulty in getting MHA program up and running
An article appearing in the Tulsa World today reports that, so far, not many Oklahomans have advantage of the Making Home Affordable program. One lender intereviewed for the story notes "[t]he details are a little confusing, and getting our processors used to looking at it this way was a trick, too," which may help explain the slow start to the program. more ...
Obama asks Treasury Secretary Geithner to evalute the Making Home Affordable to determine what's working, what's not
During a round-table with a handful of reporters in the West Wing, President Obama said he asked Treasury Secretary Timothy Geithner, just days ago, for a top-to-bottom evaluation of the administration’s homeowner relief program, Making Home Affordable, to determine “what’s working and what’s not, and whether there’s more that we can do.” more ...
Wednesday, June 24, 2009
Antonio Reilly quoted in CNNMoney.com article reporting on NSP
NEW YORK (CNNMoney.com) -- Home prices are at their most affordable in many years, which has opened up homeownership to many who had been locked out during the housing boom. And now, the federal government -- and many states - are launching plans to hook up buyers of repossessed properties with very attractive terms. The feds made nearly $6 billion available for the Neighborhood Stabilization Program, which intends to combat blight by reducing the number of foreclosed homes on the market. more ...
It's Time We Talked: Mandatory Mediation in the Foreclosure Process
A new report released by the Center for American Progress suggests that it's time for the federal government to take a more direct role in providing opportunities for mediation. more ...
Monday, June 22, 2009
Foreclosure Prevention: New Program Shows Big Jump
June 22, 2009 -- by Stephen Gandel -- Time
The government finally seems to be making progress in its efforts to stem the foreclosure crisis. Housing and Urban Development (HUD) officials say lenders extended loan-modification offers to 40,000 borrowers who were struggling to pay their mortgage in the second week of June. That is nearly triple the weekly average of about 15,000 workouts that loan servicers had extended in the prior 10 weeks since the government's latest foreclosure-prevention plan was announced.
"Foreclosures were becoming a self-reinforcing problem for the housing market," said HUD head Shawn Donovan, speaking to journalists last week at the National Association of Real Estate Editors' annual conference. "Already we are seeing signs that the housing market is better off than when President Obama took office."
more ...
The government finally seems to be making progress in its efforts to stem the foreclosure crisis. Housing and Urban Development (HUD) officials say lenders extended loan-modification offers to 40,000 borrowers who were struggling to pay their mortgage in the second week of June. That is nearly triple the weekly average of about 15,000 workouts that loan servicers had extended in the prior 10 weeks since the government's latest foreclosure-prevention plan was announced.
"Foreclosures were becoming a self-reinforcing problem for the housing market," said HUD head Shawn Donovan, speaking to journalists last week at the National Association of Real Estate Editors' annual conference. "Already we are seeing signs that the housing market is better off than when President Obama took office."
more ...
Sunday, June 21, 2009
Helping Homeowners Stay Put
At work: Patricia Hull, housing counselor
Jun 21, 2009 -- By Nancy Jones-Bonbrest -- The Baltimore Sun
BALTIMORE--Patricia Hull, a former real estate agent, has changed the focus of her counseling from guiding people into homeownership to showing them how to keep their homes.
... It typically takes 60 to 90 days to get an answer from lenders as to whether they are agreeable to refinancing or modifying a loan or lowering a mortgage payment. During this time, Hull recommends that clients call their lenders weekly or every other week to check in.
Hull said the housing atmosphere has changed from seeing primarily clients with unfavorable loans to those who need assistance because of economic hardship. The federal Making Home Affordable program has helped open up options to homeowners, Hull said. This includes greater access to lenders and a consistency in how lenders work with customers.
more ...
Jun 21, 2009 -- By Nancy Jones-Bonbrest -- The Baltimore Sun
BALTIMORE--Patricia Hull, a former real estate agent, has changed the focus of her counseling from guiding people into homeownership to showing them how to keep their homes.
... It typically takes 60 to 90 days to get an answer from lenders as to whether they are agreeable to refinancing or modifying a loan or lowering a mortgage payment. During this time, Hull recommends that clients call their lenders weekly or every other week to check in.
Hull said the housing atmosphere has changed from seeing primarily clients with unfavorable loans to those who need assistance because of economic hardship. The federal Making Home Affordable program has helped open up options to homeowners, Hull said. This includes greater access to lenders and a consistency in how lenders work with customers.
more ...
Saturday, June 20, 2009
7 Lenders Get Immunity from State Foreclosure Prevention Act
June 20, 2009 -- By Jim Wasserman -- Sacramento Bee
SACRAMENTO--Bank of America Home Loans, CitiMortgage and Carrington Mortgage Services are among the first seven lenders and loan servicers granted immunity from the state's foreclosure prevention act launched this week in California. The new law makes lenders prove to the state that they have a comprehensive loan-modification program that helps borrowers stay in their homes. Those that can't prove it to the state's satisfaction must wait an extra 90 days before foreclosing on borrowers.
... Bank of America Home Loans spokesman Rick Simon said Friday the Charlotte bank's adherence to federal Making Home Affordable guidelines provided it the exemption from 90-day delays in foreclosing in California.
Column: Government homeowner efforts almost too little, too late
June 20, 2009 -- By Wayne A. Capurro, Special to the RGJ -- Reno-Gazette Journal
RENO--As Notice of Default filings climb to unprecedented levels throughout our community, through the Western region, Florida and other parts of our country, the Federal Government is, once again, on it’s way to the rescue. Through the Obama Administration’s “Making Home Affordable Program”, they claim they will save as many as nine million homeowners from foreclosure. Considering the crime that brought about the need for such a plan has the government’s fingerprints all over it, it’s the least they can do.
more ...
RENO--As Notice of Default filings climb to unprecedented levels throughout our community, through the Western region, Florida and other parts of our country, the Federal Government is, once again, on it’s way to the rescue. Through the Obama Administration’s “Making Home Affordable Program”, they claim they will save as many as nine million homeowners from foreclosure. Considering the crime that brought about the need for such a plan has the government’s fingerprints all over it, it’s the least they can do.
more ...
Friday, June 19, 2009
Federal Housing Administration to play expanded role
June 19, 2009 -- By Alan J. Heavens -- Inquirer Real Estate Writer
WASHINGTON--With some early signs that the housing market is stabilizing, HUD Secretary Shaun Donovan said yesterday that President Obama's continuing efforts to "fix a financial system that's broken" meant that the Federal Housing Administration would play an increasingly larger role in mortgages.
"While we prefer to have the private market be more involved, we have asked . . . to expand our authority to provide $400 billion more for the FHA insurance program," Donovan said at a conference of real estate reporters and editors here
more ...
WASHINGTON--With some early signs that the housing market is stabilizing, HUD Secretary Shaun Donovan said yesterday that President Obama's continuing efforts to "fix a financial system that's broken" meant that the Federal Housing Administration would play an increasingly larger role in mortgages.
"While we prefer to have the private market be more involved, we have asked . . . to expand our authority to provide $400 billion more for the FHA insurance program," Donovan said at a conference of real estate reporters and editors here
more ...
Homeowners report confusing, frustrating loan modification process
Homeowners report confusing, frustrating loan modification process
To battle foreclosures, the Obama administration launched programs with hopeful names such as Making Home Affordable, but as many homeowners seeking assistance are learning, such programs have added more confusion than help.
Many people look at the criteria for refinancing, loan modifications and assistance, then approach their lenders because it appears they qualify for help. But many find that, for one reason or another, they aren’t getting assistance.
more ...
Foreclosures grind on as lenders fail to modify loans
June 19, 2009 -- Stephanie Armour -- USA TODAY
The Obama administration's $75 billion program to reduce foreclosures has been beset by backlogs and delays, leading many overstretched homeowners to complain about unreturned phone calls and inaccurate information from lenders, while others say they were denied help for reasons that weren't clear.
Details of the plan were unveiled in early March. The goal is to prevent up to 4 million foreclosures by having banks modify loans into more affordable monthly payments.
Since its debut, the plan has led to offers of more than 190,000 mortgage modifications with lower monthly payments, according to the Treasury Department. During that time, lenders either have started or advanced foreclosure proceedings against more than 1 million homes, according to RealtyTrac. About 20% of those were foreclosed upon and repossessed. The Center for Responsible Lending says 2.4 million Americans are at risk of foreclosure in 2009, and 8.1 million could be over the next four years.
more ...
The Obama administration's $75 billion program to reduce foreclosures has been beset by backlogs and delays, leading many overstretched homeowners to complain about unreturned phone calls and inaccurate information from lenders, while others say they were denied help for reasons that weren't clear.
Details of the plan were unveiled in early March. The goal is to prevent up to 4 million foreclosures by having banks modify loans into more affordable monthly payments.
Since its debut, the plan has led to offers of more than 190,000 mortgage modifications with lower monthly payments, according to the Treasury Department. During that time, lenders either have started or advanced foreclosure proceedings against more than 1 million homes, according to RealtyTrac. About 20% of those were foreclosed upon and repossessed. The Center for Responsible Lending says 2.4 million Americans are at risk of foreclosure in 2009, and 8.1 million could be over the next four years.
more ...
Obama’s Mortgage Refinancing Program May Be Expanded
June 19, 2009 -- By Dawn Kopecki and Jody Shenn -- Bloomberg
Fannie Mae and Freddie Mac may get permission to begin refinancing mortgages with loan-to-value ratios above 105 percent as the Obama administration seeks to boost participation in its anti-foreclosure programs.
“We’re actively considering how to structure a program that makes sense over 105 percent,” Federal Housing Finance Agency Director James Lockhart said yesterday. He said a ratio of 125 percent “is a number” that’s on the table, though “not necessarily the number we’re going to end up with.”
more ...
Fannie Mae and Freddie Mac may get permission to begin refinancing mortgages with loan-to-value ratios above 105 percent as the Obama administration seeks to boost participation in its anti-foreclosure programs.
“We’re actively considering how to structure a program that makes sense over 105 percent,” Federal Housing Finance Agency Director James Lockhart said yesterday. He said a ratio of 125 percent “is a number” that’s on the table, though “not necessarily the number we’re going to end up with.”
more ...
Fannie and Freddie May Refi Deeper-underwater Mortgages
June 19, 2009 -- Seattle Post-Intelligencer
The government may soon let mortgage giants Fannie Mae and Freddie Mac refinance mortgages whose balances are higher than 105 percent of a home's value, according to a Bloomberg report.
"We're actively considering how to structure a program that makes sense over 105 percent," Federal Housing Finance Agency Director James Lockhart said, according to Bloomberg. The story quoted him saying a limit of 125 percent was under consideration, but "not necessarily the number we're going to end up with."
more ...
The government may soon let mortgage giants Fannie Mae and Freddie Mac refinance mortgages whose balances are higher than 105 percent of a home's value, according to a Bloomberg report.
"We're actively considering how to structure a program that makes sense over 105 percent," Federal Housing Finance Agency Director James Lockhart said, according to Bloomberg. The story quoted him saying a limit of 125 percent was under consideration, but "not necessarily the number we're going to end up with."
more ...
Local Bank, Sheriff's Office Work To Cut Down Foreclosures
June 19, 2009 -- WFMZ
MONTGOMERY COUNTY, PA--It's a partnership that could give a lot of homeowners some peace of mind: Chase Bank and several county sheriffs are working together to cut down on foreclosures. As WFMZ's Stephanie Esposito reports, those sheriffs are now delivering good news, instead of delinquency notices.
more ...
MONTGOMERY COUNTY, PA--It's a partnership that could give a lot of homeowners some peace of mind: Chase Bank and several county sheriffs are working together to cut down on foreclosures. As WFMZ's Stephanie Esposito reports, those sheriffs are now delivering good news, instead of delinquency notices.
more ...
Thursday, June 18, 2009
Fannie, Freddie in Limbo as Geithner Seeks More Time
June 18, 2009 -- By Dawn Kopecki -- Bloomberg
Fannie Mae and Freddie Mac will remain in limbo as the U.S. Treasury secretary said the government doesn’t have time now to deal with the future of the two mortgage-finance companies it seized in September.
“We did not believe that we could at this time -- in this time frame -- lay out a sensible set of reforms to guide, to determine what their future role should be,” Treasury Secretary Timothy Geithner told the Senate Banking Committee in Washington today. “We’re going to begin a process of looking at broader options for what their future should be.”
more ...
Fannie Mae and Freddie Mac will remain in limbo as the U.S. Treasury secretary said the government doesn’t have time now to deal with the future of the two mortgage-finance companies it seized in September.
“We did not believe that we could at this time -- in this time frame -- lay out a sensible set of reforms to guide, to determine what their future role should be,” Treasury Secretary Timothy Geithner told the Senate Banking Committee in Washington today. “We’re going to begin a process of looking at broader options for what their future should be.”
more ...
Tuesday, June 16, 2009
HUD Offers $58 Million for Housing Counseling
Funding to help hundreds of thousands of homeowners, homebuyers and renters find and sustain housing
WASHINGTON--The U.S. Department of Housing and Urban Development today announced that more than $58 million is available for a broad range of housing counseling programs to help families find and preserve housing. The funding is an increase of $11 million, or 23 percent, over last year. These grants will be awarded competitively to hundreds of HUD-approved counseling agencies and State Housing Finance Agencies that offer a variety of services including how to purchase or rent a home, how to avoid foreclosure, how to improve credit scores, and how to qualify for a reverse mortgage.
"Now, more than ever, it is crucial that American families make informed decisions about their housing choices," said HUD Secretary Shaun Donovan. "These counseling agencies are also vital to the success of the President's Making Home Affordable Plan which is helping families avoid foreclosure and remain in their homes."
more ...
WASHINGTON--The U.S. Department of Housing and Urban Development today announced that more than $58 million is available for a broad range of housing counseling programs to help families find and preserve housing. The funding is an increase of $11 million, or 23 percent, over last year. These grants will be awarded competitively to hundreds of HUD-approved counseling agencies and State Housing Finance Agencies that offer a variety of services including how to purchase or rent a home, how to avoid foreclosure, how to improve credit scores, and how to qualify for a reverse mortgage.
"Now, more than ever, it is crucial that American families make informed decisions about their housing choices," said HUD Secretary Shaun Donovan. "These counseling agencies are also vital to the success of the President's Making Home Affordable Plan which is helping families avoid foreclosure and remain in their homes."
more ...
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