The Irony - HAMP Offered Stated Income Loan Modifications

Mortgage and Lending with Canopy Mortgage, LLC NMLS 124492

HAMP - We Offer Stated Income Loan ModificationsWith so much talk about the Federal Open Market Committee's press release yesterday, Apple's new iPad, the lackluster state of the union address last night and a variety of other business related news, I wouldn't blame you for missing the anti-climatic revisions to President's Obama foreclosure prevention plan.

Today's press release by the Treasury Department was to have been the next step forward to improve the effectiveness of the Making Home Affordable Program (HAMP). If you recall, HAMP was launched last April to slow down the rapid rise in foreclosures through loan modifications. Here are some interesting results of HAMP as of year end 2009.

In the haste of rolling out HAMP last summer, the Treasury Department allowed applicants to get approved for a temporary loan modification based on an oral application. It was then left to the servicers to chase down the paperwork over the 3 month trial period. If everything was accurate and the homeowner made the new payments on time, then the temporary loan modifications would become permanent.

Right now the HAMP only has a 7.4% success rate from application to permanent loan modification. Consequently, the Obama administration and the Treasury Department want to improve their success rate.

Can you guess what the big announcement was today?

In order to improve their success rate, they want to be able to get more homeowners converted from their trial loan modifications to permanent loan modifications. How will they accomplish this task?

From now on, homeowners will be required to submit all paperwork in advance of being offered a temporary loan modification. This way all that is left is for the homeowner to make their payments for 3 months. There are other things that were revised and updated, so go ahead and read the complete Supplemental Directive 10-01, Home Affordable Modification Program - Program Update and Resolution of Active Trial Modifications.

The Irony - HAMP Offered Stated Income Loan Modifications


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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Endre Barath, Jr. 01/28/2010 01:15 PM
  2. Rosemary Brooks 01/31/2010 04:03 PM
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

James this is just unbelievable, I have to re-blog this.

Jan 28, 2010 01:11 PM #1
James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

Endre - It is funny how this BIG announcement took a back seat to almost everything. The Treasury Department obviously wants to improve it's "success" rate by lowering the actual number of trial modifications. If only 66,500 honestly were eligible, then they would have had a 100% success rate. It seems as if they need good PR right now.

Jan 29, 2010 01:34 AM #2
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James K Barath, CMPS

FICO Pro, Certified Military Housing Specialist
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