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HAMP - Administration Releases December Loan Modification Report, Update on Conversion Drive

HAMP - Administration Releases December Loan Modification Report, Update on Conversion Drive

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Published by Foreclosure Fraud
More Than 850,000 Homeowners Now with Median Payment Reductions Exceeding $500; More Than 110,000 Permanent Modifications Approved to Date

Aggressive Administration Campaign Significantly Accelerates Conversion Rate; December Push Doubles Number of Permanent Modifications Over Life of Program

WASHINGTON - The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released an update on the Administration's aggressive nationwide campaign to help borrowers in the trial phase of their modified mortgages convert to permanent modifications under the Home Affordable Modification Program (HAMP). The new December data demonstrates that there has been a significant acceleration in the rate at which borrowers are being approved for permanent modifications. As of December, more than 110,000 permanent modifications have been approved, including 66,000 that borrowers have accepted and 46,000 awaiting only the borrower's signature. Under HAMP, more than 850,000 homeowners have had a median payment reduction exceeding $500.



"Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Chief of Treasury's Homeownership Preservation Office (HPO) Phyllis Caldwell.



HUD Senior Advisor for Mortgage Finance William Apgar echoed this commitment: "HUD will continue to work with our Administration partners and utilize our broad network of housing counseling agencies to increase the number of borrowers receiving sustainable and affordable modifications under HAMP."

The Administration has taken a number of steps to assist servicers in ramping up to give eligible homeowners the opportunity to participate in HAMP. Over the past month, Administration representatives were on-site in servicer offices to ensure that servicers increased efforts to deliver decisions to borrowers in trial modifications who have submitted all of their documents and to obtain any missing documents from borrowers. The Administration also implemented a temporary review period to ensure that all borrowers are being fairly evaluated for the program. The temporary review period extends until January 31, 2010.



HAMP was designed to offer through 2012 up to 3-4 million homeowners reduced monthly mortgage payments that are affordable and sustainable over the long-term. Currently, several million homeowners are estimated to be eligible for the program and more than 1 million have already received modification offers. At this pace, the program is on track to meet the goals that President Obama laid out in announcing the Homeowner Affordability and Stability Plan. This Plan included several housing initiatives beyond mortgage modifications, including broad support for Fannie Mae and Freddie Mac to keep interest rates low and facilitate mortgage affordability across the market, increased flexibilities for Fannie Mae and Freddie Mac in refinancing mortgages to provide homeowners with lower monthly payments, tax credits to support development of affordable housing, and support to state and local housing finance agencies. In just the first year, the Administration has launched all of these critical initiatives.



As part of an ongoing commitment to continuously provide greater transparency in all of the Administration's financial stability efforts, the December report includes several new measurements including a breakdown of permanent modification characteristics. These characteristics include predominant hardship reasons and monthly payment savings.

4closureFraud
More Than 850,000 Homeowners Now with Median Payment Reductions Exceeding $500; More Than 110,000 Permanent Modifications Approved to Date

Aggressive Administration Campaign Significantly Accelerates Conversion Rate; December Push Doubles Number of Permanent Modifications Over Life of Program

WASHINGTON - The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released an update on the Administration's aggressive nationwide campaign to help borrowers in the trial phase of their modified mortgages convert to permanent modifications under the Home Affordable Modification Program (HAMP). The new December data demonstrates that there has been a significant acceleration in the rate at which borrowers are being approved for permanent modifications. As of December, more than 110,000 permanent modifications have been approved, including 66,000 that borrowers have accepted and 46,000 awaiting only the borrower's signature. Under HAMP, more than 850,000 homeowners have had a median payment reduction exceeding $500.



"Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Chief of Treasury's Homeownership Preservation Office (HPO) Phyllis Caldwell.



HUD Senior Advisor for Mortgage Finance William Apgar echoed this commitment: "HUD will continue to work with our Administration partners and utilize our broad network of housing counseling agencies to increase the number of borrowers receiving sustainable and affordable modifications under HAMP."

The Administration has taken a number of steps to assist servicers in ramping up to give eligible homeowners the opportunity to participate in HAMP. Over the past month, Administration representatives were on-site in servicer offices to ensure that servicers increased efforts to deliver decisions to borrowers in trial modifications who have submitted all of their documents and to obtain any missing documents from borrowers. The Administration also implemented a temporary review period to ensure that all borrowers are being fairly evaluated for the program. The temporary review period extends until January 31, 2010.



HAMP was designed to offer through 2012 up to 3-4 million homeowners reduced monthly mortgage payments that are affordable and sustainable over the long-term. Currently, several million homeowners are estimated to be eligible for the program and more than 1 million have already received modification offers. At this pace, the program is on track to meet the goals that President Obama laid out in announcing the Homeowner Affordability and Stability Plan. This Plan included several housing initiatives beyond mortgage modifications, including broad support for Fannie Mae and Freddie Mac to keep interest rates low and facilitate mortgage affordability across the market, increased flexibilities for Fannie Mae and Freddie Mac in refinancing mortgages to provide homeowners with lower monthly payments, tax credits to support development of affordable housing, and support to state and local housing finance agencies. In just the first year, the Administration has launched all of these critical initiatives.



As part of an ongoing commitment to continuously provide greater transparency in all of the Administration's financial stability efforts, the December report includes several new measurements including a breakdown of permanent modification characteristics. These characteristics include predominant hardship reasons and monthly payment savings.

4closureFraud

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Published by: Foreclosure Fraud on Jan 16, 2010
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12/02/2010

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Making Home Affordable Program
Servicer Performance Report Through December 2009
Overview
 
of 
 
Administration
 
Housing
 
Stability
 
Initiatives
Initiatives
 
to
 
Support
 
Access
 
to
 
Affordable
 
Mortgage
 
Credit
 
and
 
HousingInitiatives
 
to
 
Prevent
 
Avoidable
 
Foreclosures
 
and
 
Stabilize
 
Neighborhoods
1
Making Home Affordable –Modifications:
Goal of offering 3-4 million homeowners lower mortgagepayments through a modification through 2012.Over 900,000 homeowners have started trialmodifications and over 1 million offers for trialmodifications have been extended to borrowers.Homeowners in permanent modifications are saving amedian of over $500 per month on mortgage payments.In aggregate, homeowners have saved over $1.5 billionthrough modifications.
Making Home Affordable –Refinancing:
Refinancing flexibility and low mortgage rates, whichhave allowed over 3.8 million borrowers to refinance,saving an estimated $150 per month on average andmore than $6.8 billion in total over the first year.
Neighborhood Stabilization and CommunityDevelopment Programs:
Support for the hardest hit communities to help stabilizeneighborhoods.
 
Lower Mortgage Rates and Access to Credit:
Continued financial support to maintain affordablemortgage rates through the Government SponsoredEnterprises (GSEs)Interest rates down a full percentage point over the pastyear. Every 1% reduction in interest rate saves aborrower a median of $1500 annually in mortgagepayments.Access to sustainable mortgages through the FederalHousing Administration (FHA).
State and Local Housing Initiatives:
Access for Housing Finance Agencies to providemortgages to first-time homebuyers, refinanceopportunities for at-risk borrowers, and affordable rentalhousing.
Tax Credits for Housing:
Homebuyer credit to help homebuyers buy new homes.Low-Income Housing Tax Credit (LIHTC) programs tosupport affordable rental housing.
 
Making Home Affordable Program
Servicer Performance Report Through December 2009
Mortgage RatesHousing InventoryHome PricesNew and Existing Home Sales
5070901101301501701902102301999 2002 2005 2008
Case/Shiller 20
city
 
compositeFHFA
 
purchase
only
 
indexIndex: Jan
 
2000
 
=
 
100Loan
 
Performance
 
National
 
Home
 
Price
 
IndexCase/Shiller 20
city
 
compositeFHFA
 
purchase
only
 
indexIndex: Jan
 
2000
 
=
 
100Loan
 
Performance
 
National
 
Home
 
Price
 
IndexCase/Shiller 20
city
 
compositeFHFA
 
purchase
only
 
indexIndex: Jan
 
2000
 
=
 
100Loan
 
Performance
 
National
 
Home
 
Price
 
IndexCase/Shiller 20
city
 
compositeFHFA
 
purchase
only
 
indexIndex: Jan
 
2000
 
=
 
100Loan
 
Performance
 
National
 
Home
 
Price
 
Index
02468101214161820
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008Conventional
 
30
year
 
Fixed
 
Rate10
year
 
Treasury
 
Rate
     P    e    r    c    e    n    t
Note: Shaded areas indicate recessions.
Source: Federal Reserve.Source: National Association of Realtors.Sources: S&P/Case-Shiller Home Price Index; LP/Haver Analytics; FHFA.Source: National Association of Realtors, Census Bureau.
01,0002,0003,0004,0005,0006,0007,00002004006008001,0001,2001,4001,600
1999 2002 2005 2008
Sales
 
of 
 
new
 
homes
 
(left
 
axis)
 
Sales
 
of 
 
existing
 
homes
 
(right
 
axis)
     T     h    o    u    s    a    n     d    s
2
024681012141999 2002 2005 2008
Months' supply
 
of 
 
new
 
homes
 
at
 
the
 
current
 
sales
 
paceMonths' supply of 
 
existing
 
homes
 
at
 
the
 
current
 
sales
 
pace
     M    o    n    t     h    s

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