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March 4th, 2009

Treasury Releases Loan Mod Guidelines

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Two weeks after President Obama announced his Homeowner Affordability and Stability Plan (HASP), the Treasury has released the guidelines to the loan modification portion of that plan. The initiative is aimed at targeting three to four million “responsible” borrowers who are struggling to stay current on their monthly payments.

“Today, we are providing servicers with the details they need to begin helping eligible borrowers,” said Treasury Secretary Tim Geithner in this morning’s press release.

Washington is betting a lot of their chips on the loan mod process despite its history of marginal success. If, having bet that money, a significant percentage of the modified mortgages re-default, what’s Plan B? Will those homeowners be allowed to go into foreclosure? Or, like AIG, will we end up bailing them out again… and perhaps again after that?

Despite the controversy, the modification details still include “Pay-for-Performance Success Payments” of up to $5,000.

The program which will begin today is set to conclude December 31, 2012.

Click here to view a “consumer friendly” Q&A of the Making Home Affordable (MHA) plan.

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2 Responses to “Treasury Releases Loan Mod Guidelines”

  1. Beth B Says: March 10th, 2009 at 6:53 pm

    I’m here to share my story of how the number 1 voted best loan modification company 21st Century Legal Services helped me save my home and hopefully it will help someone.

    My husband lost his job and we fell 5 months behind on our mortgage payment. I was so positive that we had lost our home that i began to pack our belongings. Then a very good friend of mine at my work told me about this company that help her save her home. The company is called 21st Century Legal Services located in Rancho Cucamonga California U.S.A., I told my husband that night when I got home. So the next morning we called 21st century Legal Services and much to my shock they saved our home. 21st Century Legal Services and Wells Fargo came up with a loan modification agreement that took our monthly payment to a very affordable rate that I could afford. I highly recommend 21st Century Legal Services to anyone in danger of losing their home. 21st Century Legal Services saved my home I know they can save yours. 1-21st Century Legal Services voted best loan modification company.

    -Good Luck
    Beth B.

  2. Ravi Says: April 20th, 2009 at 3:28 am

    Great question

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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