From the New York Times:
Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview Friday that the government would try to use shame as a corrective, publicly naming those institutions that move too slowly to permanently lower mortgage payments. The Treasury Department also will wait until reductions are permanent before paying cash incentives that it promised to mortgage companies that lower loan payments.
“They’re not getting a penny from the federal government until they move forward,” Mr. Barr said.
I am wondering if shame is the new step to take in getting the banking industry to do what the government wants them to do? It worked when I was young and my Mother used it, but I think there really may be a more adult way and I am wondering who the adult in this situation really is?
Last month it was reported that fewer than 2000 of the 500,000 loan modifications that were then in progress had become permanent. Has the Making Home Affordable program worked with any of your clients? We throw the term “loan modification” out there but who has seen real progress in this? I know of only a few and then not personally but “someone who heard of someone who”.
I am seeing progress in the time frames of processing Short Sales and the ease of doing so. By 2010, I do think that there will be a more standardized system and would welcome that. I certainly prefer a Short Sale over a foreclosure.
Until then “shame on you” – feel better now???
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