On the heels of a letter sent by the federal government to step up the mortgage loan modification process, mortgage servicers met with officials from the Obama administration and provided assurance to improve efforts to modify mortgage loans for struggling homeowners facing foreclosure. Treasury secretary Timothy Geithner said yesterday, “Today’s meeting was an opportunity to identify ways to accelerate the program and bring relief faster.” Geitherner was referring to the Making Home Affordable program that was designed to help millions of Americans either modify or refinance their existing mortgage terms.
It has been widely speculated that mortgage servicers have been less-than-willing to assist homeowners facing foreclosure because they reason their lost funds can be recovered more through foreclosure, rather than loan modifications. Of the millions the Making Home Affordable program was expected to help, only an approximate 275,000 homeowners have benefited from the program thus far.
During the meeting, bank executives and government officials acknowledged the need to simplify the loan modification process and establish definite guidelines to manage applications by Fannie Mae and Freddie Mac. Administration officials allege that over 200,000 loan modification trials have already begun, and have set a deadline of November 1 to reach their goal of 500,000.
Earlier this month, Senator Christopher Dodd (D-Connecticut), the Senate Banking Committee Chairman, blamed the Obama administration for the lack of results in the fight against foreclosure. Industry executives agreed with Dodd while speaking of confusion and the implementation of gradual changes within the government’s rules for the program. In the end, however, homeowners can expect increased cooperation from their mortgage servicers in the coming days and months.
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Mortgage Refinancing
July 30, 2009 @ 1:57 am
Interesting!
The loan modification process can be frustrating and confusing for many distressed homeowners. But you have to know what exactly is loan modification. A loan modification is a permanent change in one or more terms of a borrower’s home loan.
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