Obama Administration “Shames” Mortgage Servicers
ByPosted To: MND NewsWire
HUD and the Treasury Department are taking another crack at moving its foreclosure prevention efforts from concept to reality. And now it is adding "shame" to its list of weapons. The Treasury Department announced today that it intends to increase pressure on lenders and servicers to move borrowers from trial loan modifications into actual restructured loans. The action comes amid reports that the administration's $75 billion Making Homes Affordable Program (HAMP) is floundering. While the government has been trumpeting the success of the trial modification program – some 650,000 troubled borrowers had entered the program by the end of October – only a very small percentage of those borrowers have transitioned into a permanent loan modification. It is estimated that November figures…(read more)