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Thread: Defaults Rise in Loan Modification Program

  1. #1
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    Defaults Rise in Loan Modification Program

    http://www.nytimes.com/2010/04/15/bu...mortgages.html

    The number of homeowners who defaulted on their mortgages even after securing cheaper terms through the government’s modification program nearly doubled in March, continuing a trend that could undermine the entire program.

    Data released Wednesday by the Treasury Department and the Housing and Urban Development Department showed that 2,879 modified loans had been ended since the program’s inception in the fall, up from 1,499 in February and 1,005 in January.

    The Treasury Department said it could not explain the growing number of what it called cancellations, almost all of which were apparently prompted by the borrower’s being unable to make the new payment. A scant number — 37 — were because the loan had been paid off, presumably because the borrower sold the house.

    About seven million households are behind on their mortgage payments.

    The Obama administration’s modification program has been widely criticized for doing little to help them. The program received another bad review on Wednesday with the release of a report from the Congressional Oversight Panel.

    Sixty percent of modifications undertaken by banks in late 2008 were in default a year later, according to the latest Mortgage Metrics Report compiled by the Office of Thrift Supervision and the comptroller of the currency.
    1. Devastating.

    2. SIXTY PERCENT of HAMP recipients RE-DEFAULTED within a year.

    3. And TODAY we learn that killer calculus alarmingly ACCELERATED in MARCH.

    4. Obama's answer---more of the same.

    5. We're SUB-PRIMING the SUB PRIMED who SUB PRIMED us into SUBMISSION.

    6. HAMP was called A DUD by Associated Press.

    7. Labeled "not a failure, but a dismal failure," by democrat congresswoman Jackie Speier of California.

    8. FOUR POINT FIVE MILLION FORECLOSURES are expected in 2010.

    9. Up SIXTY PERCENT over woebegone 2009.

    10. The HOUSING MARKET is no bottom in sight.

    11. Consumer spending is near an all time low.

    12. The mere cost of remaining in operation---not a single new hire---for megagiants like AT&T and Verizon is suddenly an Obamacare-bound extra BILLION DOLLARS---EACH.

    13. Personal income is down 3.2% in these last miserable FIFTEEN MONTHS.

    14. Public pensions are popping.

    15. Our biggest, neediest and most expensive STATES are hopelessly underwater.

    16. Obamacare puts an extra TWO HUNDRED BILLION DOLLAR burden on their already broken backed budgets.

    17. Y'see, these things are a matter of SCALE.

    18. Gas prices are rising and always top in Summer.

    19. Service on the debt---MERE INTEREST ALONE---has been projected by the deepest thinkers at the New York Times to approach A TRILLION DOLLARS PER YEAR in just over 5 years.

    20. Uncertainties abound at every turn, paralyzing economic activity---hundreds of questions surround Obamacare, cap and trade, reg reform---just how are all these high magnitude SOCIAL and economic changes gonna exactly affect us, and ours?

    21. EIGHTY SIX PERCENT of YOUR NEIGHBORS believe the current state of our economy is a CRISIS.

    22. IT ALL STARTED WITH HOUSING.

    23. Half those HAMP'ed have hustled us.

    24. Except IN MARCH there were TWICE AS MANY more.

    The Prof
    Last edited by The Prof; 04-15-10 at 12:17 AM.

  2. #2
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    Re: Defaults Rise in Loan Modification Program

    wow, 2,879 loans returned to a default status in march, from a modification enabled thru this administration's assistance
    and from your cite, 227,922 loan modifications were made permanent in march. that means 227,922 borrowers had succeeded in the trial period of making revised payments before their loan mods were finalized


    how dare Obama help 227,922 families protect their homes from foreclosure recognizing that 2,879 were not able to maintain their revised payment schedule [/sarcasm]


    and that report in the OP does not disclose what portion of those failed efforts were from the lenders which INCREASED the payment of the borrower as part of the loan modification. like raising the payments of those in default is going to accomplish something

    the sore losers certainly want to major in the minor; especially when it comes to Obama reaching out to help Americans in need
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

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    Re: Defaults Rise in Loan Modification Program


  4. #4
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    Re: Defaults Rise in Loan Modification Program

    Quote Originally Posted by The Prof View Post
    but your own cite establishes the number of mod defaults in march to have been 2,879
    for the numerically challenged that number is 47 TIMES less than your predicted number
    so, should we accept your estimate, recognizing your inability to understand basic math, or should we accept the data from your own cite
    notice, either way you are wrong
    i am not laughing with you
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

  5. #5
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    Re: Defaults Rise in Loan Modification Program

    in march...

    LOL!

    More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report.

    The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.

    The number of homes with mortgage payments at least 60 days late climbed 2.39 million in the fourth quarter, up 13.1 percent from the prior three months and 49.6 percent from the year earlier period, the quarterly Mortgage Metrics report said.

    A government watchdog report released today criticized the government’s main foreclosure prevention effort, the Home Affordable Modification Program, or HAMP, for “spreading out the foreclosure crisis” over several years by failing to help enough troubled borrowers.

    “The program will not be a long-term success if large amounts of borrowers simply re-default and end up facing foreclosure anyway,” said the report by the Special Inspector General for the Troubled Asset Relief Program, prepared for a Congressional hearing today.
    Half of U.S. Home Loan Modifications Default Again (Update1) - Bloomberg.com

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