February 18, 2010 |
The number of mortgages with permanently lowered monthly payments under the Obama administration's foreclosure prevention program increased dramatically in January. In all, the number went up to 116,297, with an additional 76,482 modifications approved and awaiting acceptance by the borrower, the Treasury Department reported Wednesday. Administration officials said that the program, which offers banks and other mortgage servicers cash incentives to reduce monthly payments, has saved homeowners a total of $2.2 billion.
March 6, 2012 |
Up to 3 million homeowners could save about $1,000 a year because of a reduction in fees, announced Tuesday by President Obama , on refinancing their government-backed mortgages. In addition, the White House said it was taking new steps to help military members whose homes were improperly foreclosed by large mortgage servicers. Among the steps, the servicers have agreed to conduct a review overseen by the Justice Department of all foreclosures of military members since 2006 to determine if they violated a federal ban on such actions for active duty service members. Any violations will result in the servicer paying the military member's lost equity, plus interest, plus $116,785.
February 17, 2011 |
Major U.S. banks are about to get penalized for "critical deficiencies" and shortcomings in how they handled foreclosures, a top federal regulator said Thursday at a Senate Banking Committee hearing examining the Dodd-Frank Act six months after its congressional approval. "These deficiencies have resulted in violations of state and local foreclosure laws, regulations or rules," said John Walsh, acting comptroller of the currency. Banking regulators are preparing sanctions and "remedial requirements," he said.
April 29, 2013 |
WASHINGTON -- Goldman Sachs and Morgan Stanley will begin sending $247 million in payments on Friday to nearly a quarter-million people under a settlement of foreclosure-abuse allegations with regulators, the Federal Reserve said. The two Wall Street giants are the last of 13 mortgage servicers to begin making the payments to borrowers whose homes were in foreclosure proceedings in 2009 and 2010. The servicers, which also included Bank of America Corp. , Wells Fargo & Co. and JPMorgan Chase & Co., agreed to pay $3.6 billion to more than 4.2 million borrowers in a settlement reached in January.
March 28, 2013 |
In a push to simplify mortgage modifications, federal regulators announced a streamlined process that doesn't require borrowers to prove a hardship. "This new option gives delinquent borrowers another path to avoid foreclosure," Edward J. DeMarco, acting director of the Federal Housing Finance Agency, said in a statement announcing the modifications Wednesday. The new modifications, however, would not include reducing the loan balance, a move promoted by housing advocates and others but resisted by DeMarco, who says it would end up costing taxpayers money and would encourage defaults.
October 2, 2009 |
A report from federal regulators contains bits of encouragement for struggling homeowners seeking to have their mortgages modified. In the second quarter, 78% of loan modifications involved actually reducing borrowers' payments, up from 54% in the first quarter, the report says. The shift came as mortgage servicers became less likely to merely add missed payments to the balance of a reworked loan. The joint report from the Office of the Comptroller of the Currency, which regulates national banks, and the Office of Thrift Supervision, the federal overseer for savings and loans, surveyed servicers of 64% of all U.S. home loans.
April 3, 2013 |
Banks aren't living up to pledges they made as part of a $26-billion settlement of government investigations into mortgage servicing and foreclosure abuses, according to an advocacy group's survey of California housing counselors and lawyers. The survey, the ninth in a series conducted by the California Reinvestment Coalition, also found that providers of mortgage customer service are violating consumer-protection provisions in the California Homeowner Bill of Rights, the package of foreclosure-prevention laws sponsored last year by state Atty.
April 29, 2012 |
WASHINGTON — If you're one of the estimated 11 million homeowners burdened with an underwater mortgage, a new federal policy change could be good news: Starting in June, when you want to do a short sale to shed your mortgage and avoid foreclosure, you may not have to wait for months to hear back from your bank when you submit an offer from a potential purchaser. Instead, if your loan is owned or securitized by either of the dominant conventional mortgage market players — Fannie Mae or Freddie Mac — you can expect a response within 30 business days, with a final decision taking no more than 60 days.
November 8, 2009 |
For most of the growing legion of financially stretched families in danger of losing their homes, there is help available -- as long as they don't bury their heads in the sand. According to industry estimates, half of all owners who lose their homes to foreclosure have no contact with the "servicers" that mail out the statements and collect payments. That's a mind-numbing statistic given the government's efforts to keep people in their homes. "Never in history have more resources been devoted" to solving the foreclosure crisis, says Faith Schwartz, executive director of the HOPE Now Alliance, a collaboration of housing counselors and mortgage-industry participants created to reach out to owners who cannot pay their mortgages.
June 28, 2009 |
Even with the Obama administration's loan modification and refinancing programs moving forward, the end of the foreclosure glut is not around the corner, a panel of government officials and consumer advocates told attendees of the recent National Assn. of Real Estate Editors conference. Among the factors slowing progress are loan servicers still gearing up for the task, the recession, re-defaults and for-profit foreclosure prevention firms handing out misinformation.