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Economy
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Title: Treasury slams big banks' mortgage modifications
Source: USA TODAY
URL Source: http://www.usatoday.com/money/econo ... odifications-obama-banks_n.htm
Published: Jun 10, 2011
Author: Julie Schmit
Post Date: 2011-06-10 01:30:26 by lucysmom
Keywords: Banks Behaving Badly
Views: 2909
Comments: 4

The nation's largest mortgage loan servicers have done a poor job in modifying distressed home loans through the government's foreclosure prevention program and need "substantial improvement," the Obama administration said Thursday.

Based on a recent audit, Bank of America, Wells Fargo and JPMorgan Chase will lose government financial incentives — which reach at least $1,000 for a permanent loan modification — until they improve, the Treasury Department said. They received $24 million in such incentives last month.

snip

The audits checked performance areas such as how well servicers dealt with homeowners and evaluated them for modifications, which could include lower interest rates.

snip

The government's auditor found that BofA, JPMorgan Chase and Wells Fargo all calculated incomes incorrectly on more than 22% of audited loans.

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#1. To: Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#0)

"It's about time," the government took action to penalize bad servicer behavior, he says.

It is our responsibility to protect that child once that child’s born too. When we start debating a budget, let’s make sure we don’t cut 100,000 vaccines. Let’s make sure we’ve got health insurance. We seem to worship what we cannot see, but as soon as that baby’s born, oh no, we don’t want to be intrusive. Texas is going to shrink government until it fits inside a women’s uterus. Senator Leticia Van de Putte

lucysmom  posted on  2011-06-10   1:32:24 ET  Reply   Trace   Private Reply  


#2. To: lucysmom (#0)

the government's foreclosure prevention program and need "substantial improvement," the Obama administration said Thursday.

I'm snickering AND bending over. A true yukon moment.

socalv8  posted on  2011-06-10   2:50:24 ET  Reply   Trace   Private Reply  


#3. To: lucysmom (#1)

Ironic.

Proxy IP's are amusing.....lmao

Badeye  posted on  2011-06-10   9:51:30 ET  Reply   Trace   Private Reply  


#4. To: lucysmom (#1)

ZeroHedge:

""Charles and Jill Segal have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home....Lynn, from St. Petersburg, Fla., has been living without paying for three years....In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home...."

In other words, what were once isolated incidents are becoming an epidemic, and like it or not, are creating a massive capital shortfall in bank balance sheets (after all "assets" are supposed to generate cash in most cases), which will likely involve yet another broad taxpayer bailout of these same banks that now have no recourse to do much if anything to evict these same squatters who instead of paying their mortgage (or rent), prefer to purchase trinkets and gizmos.

"Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years."

mcgowanjm  posted on  2011-06-11   8:24:03 ET  Reply   Trace   Private Reply  


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