As of last Friday, HSH.com reported that mortgage rates had once again dipped back to new record lows. The streak has continued into this week.
According to HSH.com’s latest Weekly Mortgage Rate Radar, rates on two of the most popular types of mortgages eased back even more, breaking new record low territory.
In a recent article entitled “Is it time to sue your mortgage lender,” HSH.com offered a rundown of the kinds of mortgage lawsuits making their way through the country’s court systems. Among those filings are mass joinder lawsuits, which cost as much as $10,000 upfront to join.
HSH.com warned that these filings could be deceptive, designed to get around laws that prohibit upfront payments for mortgage modification help.
Kamala Harris, the State of California’s Attorney General, agrees. Today she unleashed a suit against prominent foreclosure attorneys Philip Kramer and Mitchell Stein and at least 17 other individuals and businesses. They’ve been charged with luring borrowers into a scheme that falsely promised a share in future settlements.
The same complaints this blog has been receiving (for years) from frustrated homeowners regarding the federal modification program, HAMP, have reached the Huffington Post:
…the bank told him he had to miss payments to qualify for help. When he missed the payments, the bank began pursuing a foreclosure. One day someone from Chase would say one thing, the next, someone else would say something completely different.
On this blog, the comments from readers frustrated with their mortgage servicers never seem to stop rolling in. By now, most of you are likely familiar with the complaints we’ve been hearing for years.
Whether it’s HAMP trial payments that extend past the stated three months (often continuing for a year or even more), or an unexplained denial from one of the government’s housing-preservation efforts, the crux of most of our comments deal with a frustration over the lack of communication between borrower and servicer.
You would be pretty hard-pressed to find a market observer out there who is impressed with the strides the Home Affordable Modification Program (HAMP) has made since it was introduced in February 2009. I’ve often been extremely critical of its success, or lack thereof, and the money we’re spending, or wasting, on its behalf. For one, I get especially irritated when Washington forgets about HAMP’s original goals and functions and tries to turn nothing into something.
As much as I have lambasted HAMP in this blog, I can honestly say that, until recently, I’ve never thought too much about clipping the initiative before its slated expiration date. However, recent comments from several lawmakers have got me thinking: maybe it is time for HAMP to go.
At least one congressman thinks so, and said as much yesterday:
A top Republican on the House Financial Services Committee said Monday that the government should abandon its efforts to save homeowners from foreclosure.
If you’re a struggling Citi mortgage customer, today’s your chance to get a Citi representative on the phone to help you answer your questions about a loan modification or any other foreclosure-prevention effort Citi has to offer, reports Jean Chatzky on WalletPop.com:
On Wednesday, the company’s foreclosure prevention experts will be on hand to answer questions and provide advice. The lines will open at 7 a.m. December 15 Eastern Standard Time and stay open until 1 a.m. December 16, specifically for CitiMortgage customers who have foreclosure concerns. Experts can provide information about various homeowner assistance programs that may be available. Homeowners can call 1-877-617-9465 or log onto: CitiMortgage.com, New.Citi.com, or Blog.CitiMortgage.com.
Saturday
“5 reasons people don’t refinance“:
There are millions of homeowners out there who have already refinanced their mortgages. Some are even considering refinancing for a second time. However, it may surprise you that there are still many borrowers out there who haven’t refinanced. Here are five reasons why:
1. Small Loan Amount
“If you want successful modifications, you have to do principal reductions.”
-Laurie Goodman, Senior Managing Director of ASG
How many times have we heard that before? To put it simply, “a lot.”
Principal reductions are a very gray area in this era of loan modifications, especially when it comes to Fannie Mae and Freddi Mac. While neither the public or private market has yet to claim much success in terms of loan modifications, statistics are starting to sway in the favor of private-market modifications, rather than HAMP modifications.
If you ask a borrower “who is to blame for your HAMP denial?” They’ll likely say the servicer. If you ask the servicer, chances are they’ll say it’s the borrower’s fault. Wherever the proper blame lies, a few things are for certain: the foreclosure epidemic is steady if not rising, and failed modifications are still outnumbering permanent mods.
But as the Treasury Department reiterated this month, it’s the participating servicers who are the ones with the obligation to the borrower. If a borrower doesn’t provide the proper paperwork, then their denial is their own fault; however, “participating servicers are required to certify they tried a variety of solutions including a HAMP modification, a proprietary one, a short sale or some other option to help borrowers avoid foreclosure,” according to National Mortgage News: Read the rest of this entry »
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.
