Obama Administration to step up loan modification efforts

Shared by Jenkin7 on Wed Sep 09, 2009 3:16 am
Hi all, The Obama Administration has stepped up its efforts to achieve the goal of modifying more than half a million delinquent mortgages by November 1, 2009. According to Dave Stevens, Federal Housing Administration Commissioner, mortgage servicers have been able to extend loan modification offers to more than 571,000 delinquent borrowers last month. This data is pretty encouraging given the fact that only about 400,000 such modification offers were extended in the month of July. It is also noteworthy that around 360,000 borrowers, who got modification offers, are currently in the 90-day trial period and are all set to receive a permanent modification plan. Besides, the Federal Housing Administration has started a high level review to assess the progress of the housing rescue efforts. They have also started looking for alternatives to address the issue of rising delinquencies among borrowers of multi-family mortgages. Source: http://www.reuters.com/article/politicsNews/idUSTRE5876IN20090908

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Niicss
Niicss

Joined: 03 Oct 2005

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Location: New Jersey

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Posted: Wed Sep 09, 2009 3:43 am Post subject:

It's really great to know that loan modification efforts of the Obama Government is back on track. Earlier it was seen that the administration officials were frustrated due to the fact that very few mortgages have been modified under the Home Affordable Loan Modification plan which was announced in February. The Obama administration would also go for a "high level review" of the housing rescue effort in order to explore options so that stabilization in the housing market is maintained. _________________ Good is the Enemy of Great.

Jessica
Jessica

Joined: 08 Jun 2004

Community Mentor
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Location: OHIO

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Posted: Sat Sep 12, 2009 4:44 am Post subject:

It's good that the Government has finally geared up to make their loan modification program effective. Banks and mortgage companies participating in Obama's Home Affordable Modification program have started making efforts to step up their pace of loan modification. For instance, Bank of America Corp. and Well Fargo & Co. have increased the number of loan modifications by at least 60% in the month of August (source: "http://www.bloomberg.com/apps/news?pid=20601103&sid=aDFdlC9CYQEQ"). Now, the primary concern here is the rate of unemployment which is still around 10%. So, even if banks and lenders allow mortgage modification, there are not many borrowers who have the ability to make a reasonable monthly payment. Regards, Jessica. _________________ http://jessica.mortgagefit.com/


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