Keith Jurow has been a regular contributor to BUSINESS INSIDER for three years. His new real estate subscription report – Capital Preservation Real Estate Report – launches at the end of May. Here We Go Again
Obama had lofty goals of helping 4 million Americans keep their homes with his Home Affordable Mortgage Program (HAMP).
Here are some quick facts:
HAMP modified 1.2 million mortgages (70% less than the target)
Another 88,000 at risk
The re-default rate is an alarming 30%
The re-default rate of those in since 2009 is 46%
Steven HorwitzYou may recall that one of the Obama Administration's attempts to deal with the mortgage crisis was to create the "Home Affordable Modification Program" to help underwater mortgage holders to modify and renegotiate the terms so that they would be able to make payments and avoid foreclosure. Supporters hailed this as good policy, while critics suggested it was yet another government bureaucracy that would inevitably fail at the task. Wanna guess who was right?
Richard Suttmeier submits: Housing Remains Weak as Mortgage Rates RiseThe Mortgage Bankers Association reported that its mortgage application index fell 18.6% last week led by a decline of 24.6% for the refinance index. The sixth consecutive weekly drop has happened as the 30-Year fixed rate mortgage rose to 4.85%.Existing home sales increased 5.6% in November to an annual rate of 4.68 million units.
Inquiring minds are digging into a Fed white paper regarding The U.S. Housing Market: Current Conditions and Policy Considerations.
Here are a couple of key snips. The bold headings are mine.
Overriding Private Contract Rights
As a result of many reader requests, we’ve turned our series based on testimony from whistleblowers at Bank of America and PNC on the whitewash more formally known as the Independent Foreclosure Reviews into an ebook, which we are releasing today. This was the very same OCC mandated process, billed as a way to provide wronged mortgage borrowers with the opportunity to get a measure of justice, that instead turned into a costly and embarrassing fiasco. But it still worked out well for the banks.