Comments on: Treasury Suffering From An Appalling Lack Of Curiosity On Loan Mods http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/ "He who defends everything defends nothing." - Frederick the Great Mon, 15 Mar 2010 16:26:50 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: John M. http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21185 John M. Thu, 12 Nov 2009 02:14:10 +0000 http://housingdoom.com/?p=5261#comment-21185 GYSC - We had this one up earlier, but it's been spun clear off Doom's sidebar. <a href="http://www.cnbc.com/id/33834317" rel="nofollow">"Shadow Inventory Dwarfs Loan Mods"</a>, by Diana Olick, <em>CNBC</em>, November 10, 2009. GYSC -

We had this one up earlier, but it’s been spun clear off Doom’s sidebar.

“Shadow Inventory Dwarfs Loan Mods”, by Diana Olick, CNBC, November 10, 2009.

]]> By: GYSC http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21184 GYSC Thu, 12 Nov 2009 00:45:31 +0000 http://housingdoom.com/?p=5261#comment-21184 Extend and Pretend should be printed on all new dollars, it is our national policy. Of course the numbers are bad. I thuink Diana Olick had some commensts about this today (its pretty poor on the mod numbers) but i do not have it handy. Extend and Pretend should be printed on all new dollars, it is our national policy. Of course the numbers are bad. I thuink Diana Olick had some commensts about this today (its pretty poor on the mod numbers) but i do not have it handy.

]]> By: Tobby http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21181 Tobby Wed, 11 Nov 2009 17:46:33 +0000 http://housingdoom.com/?p=5261#comment-21181 Much of the data suggests that modifications of any kind are experiencing high redefault rates. However, I am willing to concede the Treasury's assertion that we won't have a clearer picture until about January. The mod program(s) have been a morphing project, and any recent monthly data is going to be an apple to oranges comparison. I still suspect that you are correct in assuming failure. The better options appear to be what Wells Fargo is doing by keeping borrowers in their houses via low interest only modifications (essentially renting the house to the borrower). But this, like most modifications, only kicks the can down the road. It does spread out the pain though. Much of the data suggests that modifications of any kind are experiencing high redefault rates. However, I am willing to concede the Treasury’s assertion that we won’t have a clearer picture until about January. The mod program(s) have been a morphing project, and any recent monthly data is going to be an apple to oranges comparison. I still suspect that you are correct in assuming failure.

The better options appear to be what Wells Fargo is doing by keeping borrowers in their houses via low interest only modifications (essentially renting the house to the borrower). But this, like most modifications, only kicks the can down the road. It does spread out the pain though.

]]> By: twist http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21180 twist Wed, 11 Nov 2009 17:11:31 +0000 http://housingdoom.com/?p=5261#comment-21180 AZSaluki- According to the report, there were 386,865 trial mods at the end of September. Now of course many of those would not have completed the three month trial, but there were 143,276 trial mods in place at the end of June. Any way you look at it, the program is the failure we assumed it would be. I'm not surprised that private mods would have a higher success rate. In a voluntary program the lender would be doing it because they genuinely wanted to keep borrowers in their home. If SimpleLife is right, this program is another opportunity for lenders to milk the system. What a surprise. AZSaluki-

According to the report, there were 386,865 trial mods at the end of September. Now of course many of those would not have completed the three month trial, but there were 143,276 trial mods in place at the end of June.

Any way you look at it, the program is the failure we assumed it would be.

I’m not surprised that private mods would have a higher success rate. In a voluntary program the lender would be doing it because they genuinely wanted to keep borrowers in their home. If SimpleLife is right, this program is another opportunity for lenders to milk the system.

What a surprise.

]]> By: AZSALUKI http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21179 AZSALUKI Wed, 11 Nov 2009 16:49:28 +0000 http://housingdoom.com/?p=5261#comment-21179 first i've heard of this too!!! we all knew the prgram was unsuccessful, but i had NO IDEA it was this unsuccessful, or that these mods were only on a trial basis. although, i suspect there are really 2 different programs goin on here...the gov't one and the voluntary one by the lenders??? i have a few clients that were able to get mods (ING has been the BEST to work with) well over a year ago and they are still in place. but this was with a foreign bank and was done by them (ING) voluntarily. first i’ve heard of this too!!! we all knew the prgram was unsuccessful, but i had NO IDEA it was this unsuccessful, or that these mods were only on a trial basis. although, i suspect there are really 2 different programs goin on here…the gov’t one and the voluntary one by the lenders??? i have a few clients that were able to get mods (ING has been the BEST to work with) well over a year ago and they are still in place. but this was with a foreign bank and was done by them (ING) voluntarily.

]]> By: John M. http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21178 John M. Wed, 11 Nov 2009 15:12:10 +0000 http://housingdoom.com/?p=5261#comment-21178 simplelife - I was astonished at your key assertion, but I've found a source in the MSM. <a href="http://www.startribune.com/business/69715632.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUUr" rel="nofollow">"Obama's offer to banks not helping many consumers"</a>, by Chris Serres, <em>Star Tribune (Minneapolis MN)</em>, November 10, 2009.<blockquote>But despite the financial carrot, the percentage of homeowners who have seen their trial modifications become permanent loan restructurings, with payments reduced for more than just a few months, remains abysmally low. <strong>A mere 1,711 borrowers nationwide had successfully completed their trial period and received permanent loan modifications as of Sept. 1, according to a report by the Congressional Oversight Panel.</strong></blockquote> Would you like to consider expanding on your comment a bit and possibly submitting it for consideration as a post under your own suggested title "Making Foreclosure Affordable"? I suspect one of us might eventually do the same, but I'd like to offer you first refusal :) simplelife -

I was astonished at your key assertion, but I’ve found a source in the MSM.

“Obama’s offer to banks not helping many consumers”, by Chris Serres, Star Tribune (Minneapolis MN), November 10, 2009.

But despite the financial carrot, the percentage of homeowners who have seen their trial modifications become permanent loan restructurings, with payments reduced for more than just a few months, remains abysmally low. A mere 1,711 borrowers nationwide had successfully completed their trial period and received permanent loan modifications as of Sept. 1, according to a report by the Congressional Oversight Panel.

Would you like to consider expanding on your comment a bit and possibly submitting it for consideration as a post under your own suggested title “Making Foreclosure Affordable”? I suspect one of us might eventually do the same, but I’d like to offer you first refusal :)

]]> By: simplelife http://housingdoom.com/2009/11/11/treasury-suffering-from-an-appalling-lack-of-curiosity-on-loan-mods/comment-page-1/#comment-21177 simplelife Wed, 11 Nov 2009 14:33:30 +0000 http://housingdoom.com/?p=5261#comment-21177 Twist- What the banks are doing is putting them into "trial mods" recouping 3-6 months worth of "trial mod" payments and then denying them for no reason what so ever. Even when the borrower made every trial payment right on time. They are doing it to recoup some of the legal fees in the foreclosure process that the bank has and will be paying. If anybody is blind to this scheme they are a fool. Only 1,700 actual modifications finalized in the nation. You thought we saw a real estate crash in 2008, just wait to all of these foreclosures hit the market. People need to remember the bank is the servicer in most instances and not the one with actual skin in the game. That is usually Freddie/Fannie unless its a jumbo and or a private investor. Banks actually make money on the foreclosure process from fees etc. Making home affordable should be called "Making Foreclosure Affordable" for you bank Twist- What the banks are doing is putting them into “trial mods” recouping 3-6 months worth of “trial mod” payments and then denying them for no reason what so ever. Even when the borrower made every trial payment right on time. They are doing it to recoup some of the legal fees in the foreclosure process that the bank has and will be paying. If anybody is blind to this scheme they are a fool. Only 1,700 actual modifications finalized in the nation. You thought we saw a real estate crash in 2008, just wait to all of these foreclosures hit the market. People need to remember the bank is the servicer in most instances and not the one with actual skin in the game. That is usually Freddie/Fannie unless its a jumbo and or a private investor. Banks actually make money on the foreclosure process from fees etc. Making home affordable should be called “Making Foreclosure Affordable” for you bank

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