Chairman Towns Opens Investigation into Treasury’s Mortgage Modification Efforts

Just for Perspective purposes this is the SAME CONGRESSMAN and the SAME CONGRESSIONAL COMMITTEE that couldn’t FIND FRAUD in  the actions of Countrywide giving Senator Chris Dodd head of the Senate Finace Committee, any special treatment by giving him TWO OWNER OCCUPIED LOANS at the SAME TIME that saved the Senator Thousands in Loan fees! Everything WAS completely ABOVE BOARD…. Wink ~ but why digress?

and we continue the Show….

For immediate release: Saturday, February 6, 2010
Contact: Oversight and Government Reform Press Office, 202-225-5051
Chairman Towns Opens Investigation into Treasury’s Mortgage Modification Efforts

WASHINGTON – Chairman Edolphus “Ed” Towns (D-NY) is taking steps to ensure success of the Federal government’s efforts to mitigate home foreclosure. The Committee is investigating the Treasury Department’s (Treasury) Making Home Affordable (MHA) program after receiving concerning information about the effectiveness and efficiency of MHA and the extent to which it has assisted struggling homeowners. Chairman Towns, who represents the New York’s 10th Congressional District located in Brooklyn, New York, is a strong proponent of efforts to ease the burden on struggling homeowners.

CONCERNING Information LIKE THIS?

 I would Call this ABJECT FAILURE! Courtesy of the U.S. Treasury… http://www.financialstability.gov/docs/MHA%20Public%20121009%20Final.pdf

“I am pleased that Treasury has developed a plan utilizing a variety of techniques and resources to assist struggling homeowners under the overarching banner of the Making Home Affordable program,” said Chairman Towns. “While I applaud Treasury’s efforts,numerous concerns have been brought to my attention regarding the effectiveness and efficiency of the MHA program and the extent to which it has assisted struggling homeowners.”

CONCERNS? Again we are back to the CONCERNS characterization? I have NEVER heard a homeowner characterize the FORECLOSING of their home as CONCERNING?

Aren’t WE PAST CONCERNS? How many Congressional Meetings must Congress conduct before they admit MAKING HOME AFFORDABLE IS A INSIDIOUS FAILURE? Only 66,000 Permanent Loan Modifications since March 4th 2009  VS. 2.82 Million Foreclosures is MORE than CONCERNING!  IT’S A DISASTER!

A centerpiece of the MHA program is the Home Affordable Modification Program (HAMP) which commits $75 billion for the purpose of reducing mortgage payments of qualified borrowers to no more than 31 percent of their monthly income. Based on complaints, the Committee is concerned that loan servicers have been slow to modify loans, inconsistent in their application of the program and are not communicating clearly with eligible homeowners.

They left out CONCERNS over the Inept training of Ex-McDonald’s Employees answering the phones or and continual loss of faxed loan documents, or the incessent harassing calls from the collection departments while participating in an approved 3 MonthTrial Payment Program. That, by the way, IS NEVER 3 THREE MONTHS! As PROMISED….Shall I GO ON?

In a letter to Treasury Secretary Timothy Geithner, Chairman Towns asks for specific data to help the Committee in its efforts to investigate HAMP and explains the basis for his concerns and request for information about Treasury’s efforts to embrace transparency and accountability for its mortgage modification programs.

Chairman Towns wrote to Secretary Geithner, “… it is my understanding that Treasury has thus far refused to reveal in detail how it defines ‘net present value’, one of the key criteria for homeowner participation in the mortgage modification program. Moreover, if a homeowner is denied a permanent mortgage modification, the specific reasons for the denial are not revealed. Finally, Treasury has not established a process for homeowners to appeal the denial of a permanent mortgage modification.”

Here at Uppity Banker we have editorialized many times before about the inequity and insidious Proprietary NPV Formulas the Banks use to Game the System in their favor! BANKS FORMULA’S PURPOSE: How to MAKE the “MOST” MONEY off a Particular Borrower and  YOU FAILED “OUR NPV FORMULA”…So We are Foreclosing!

According to the Congressional Oversight Panel, home foreclosures across the nation have increased faster than the rate of new HAMP trial modifications, by more than 2 to 1. However, the December 2009 “MHA Program Servicer Performance Report” demonstrates that certain institutions have made dismal progress in modifying loans, even though they service a large number of homeowners potentially eligible for HAMP.

NO $H!@ Sherlock….DISMAL….DISMAL? I just home SOMEDAY you and  Congress get CONSERNED enough to apply a REAL SOLUTIONS!

A REAL SOLUTION would be using DU Desktop Underwriter or LP Loan Prospector Underwriting Programs to underwrite the Loan Modifications in seconds instead of MONTHS! As a Mortgage Broker with 20 years experience I could SOLVE the Problem in a Day! The Reality is that the BANKS don’t want to do Loan Modifications THEY PREFER TO FORECLOSE!

So what is a distressed Homeowner when faced with an INEPT Treasury and a INEPT Congress…. Sue the Bastards? See this California based solution offered at http://www.lenderrefund.com

Chairman Towns is expecting a response to his inquiry from the Treasury Department by February 18, 2010.

GOOD LUCK AT GETTING AN HONEST RESPONSE FROM THE TREASURY!

Uppitybanker