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Govt’s Loan Mod Program Crippled by Lax Oversight and Deference to Banks

With millions of homeowners still struggling to stay in their homes, the Obama administration’s $75 billion foreclosure prevention program has been weakened, perhaps fatally, by lax oversight and a posture of cooperation—rather than enforcement—with the nation’s biggest banks. Those banks, Bank of America, Wells Fargo, JPMorgan Chase, and Citibank, service the majority of mortgages.

Despite a dismal showing for the program, rising complaints from homeowners, and repeated threats from officials, the government has levied no penalties against even the most error-prone banks and mortgage servicers. In fact, despite issuing public warnings for more than a year about imposing penalties, the Treasury Department told ProPublica this week they don’t even have the power to punish servicers for wrongfully denying help to homeowners. Instead of toughening the program, Treasury has actually loosened it in the face of industry lobbying.

http://www.propublica.org/article/loan-mod-program-crippled-...

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Who is being helped by Obama's HAMP program?

More than half a million Americans have received permanent mortgage modifications from the Obama administration's flagship foreclosure prevention program, the Home Affordable Modification Program.

So who are these homeowners?

To begin with, the reason they are falling behind on their mortgages isn't because their loans are unaffordable, according to a report released Monday by the Treasury Department.

Read the rest:

http://finance.yahoo.com/news/Who-is-being-helped-by-Obamas-...

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reedr3v's picture

Every official in this program should

be fired, no 2-week notice; just clear out and let the people handle it in local courts. Bring the perpetrators to trial.

I have a personal family member...

that has been trying to get a loan modification for almost two years. Just when she gets close to completion; her loan is transfered to another lender and she has to resubmit the paperwork all over again. This has happen three times. This is why many have quit trying except my daughter...time will tell...

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bump

Thanks for posting Bobby.

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