We received this statement this morning Patrick Lawler, chief economist of the FHFA on the president’s "Making Home Affordable" program. Here’s the claim for how many homeowners can be helped:
Through the Making Home Affordable program, up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future.
Here’s a preliminary clue into how many people are actually being helped:
Director Lockhart announced the Streamlined Modification Program in November. It was developed jointly with the U.S. Treasury, HUD, Fannie Mae, Freddie Mac, and HOPE NOW’s members. More than 90,000 solicitation letters and modification agreements were sent to eligible borrowers. We have been carefully monitoring the success of the program, but it is clear that the program needs to be more aggressive to reach more troubled borrowers.
Did you catch the "we need to be more aggressive" comment? I read that, "Uh, we aren’t getting a good response to our 90,000 letters- even though we included modification agreements. Maybe we need to do TV ads or something."
I don’t believe this program will help 9 million people. I’m wondering now if they are going to help 90,000 people. This program is more about "Making Political Capital" than Making Home Affordable".
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maybe they can hire that crazy guy on tv that looks like the riddler. you know…the one that screams at you about how, with his book, you can get free government money to go to school or start a business…and wears a green outfit with question marks all over it.
i stated earlier that i’d be surprised if it helped 1-2 million. by trying to eliminate the speculators and deadbeats they eliminated a great deal of others. they also completely disqualified anyone who is unemployed. for the refi side of the program, you have to have a fannie/freddie loan….count me out of that. for the modification side, you have to be behind in your note….count me out for that. now i don’t need help and would not have asked for it anyway. however, i am self employed, my income is down, we are expecting our third child in October, and I would bet that i’m just now at a 100% loan to value (no recent comps, but the way it’s gone down i think i’m right near a break even…but to sell, with the costs involved, i’d have to bring money to the table). I would have thought that someone like me is who they were trying to target??? guess not. again…i’m using myself as an example….i don’t want any part of bailout. also, the previous comment may have come across in the wrong way……i’m self employed (and love it!), my income is down (but at least i am working!), we are expecting our third child in october (whoo hoo!!), and at 100% loan to value (and grateful for that!!).