Weekly Recap (10/18/10-10/23/10)by Tim Manni
Homeowners and government watchdogs agree: The much-vaunted Home Affordable Modification Program (HAMP) has so far been a failure. Likewise, the mortgage servicing companies charged with implementing the program aren’t too happy with it either. But do servicers’ complaints have merit? Or are they improperly and deliberately denying HAMP claims?
Unemployed? Underwater? Can’t refinance? If so, why not head to the D.C. area next week and voice your struggles and concerns to our people in power.
Beginning on Monday, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve are hosting a two-day symposium regarding the future of the mortgage and housing markets. From October 25-26, professionals from the public, private and academic sectors will meet to discuss everything from loan mods to mortgage securitization…
Will borrowers walk away from their mortgages just because they’re underwater?
In the last few years, home prices have fallen exponentially — by about 30%. This massive drop in prices has depleted homeowners’ equity, resulting in millions of borrowers owing more on their mortgages than their homes are worth. I’m sure you’ve heard of this infamous phenomenon, it’s known as being “underwater” on your mortgage. As the number of underwater borrowers grew, so did the number of homeowners who simply walked away — a.k.a. strategically defaulted — from their mortgages (voluntarily defaulting, even though you can still afford to make the payments)…
The robo-signing crisis has resulted in an immediate and closer examination of how servicers are processing the influx of foreclosures. What started out with one servicer halting foreclosures in about 23 states has quickly turned into a national crisis affecting servicers in every state.
Federal regulators and attorney generals are working with servicers to determine if their improper procedures resulted in unjust foreclosures. Whether the foreclosures were justified or not, “No one should lose their home as a result of a bank mistake,” writes HUD Secretary Shaun Donovan...
After reading the title of this post you may be saying to yourself, “Why would I want rates to rise?” Don’t get us wrong, historically-low mortgage rates have been one of the only things keeping the housing market moving. However, these rock-bottom rates are also an indication of just how poor things are, economically speaking.