Tag Archives: HAMP

Moody's Investors Service says it expects home price appreciation to be ""soft"" for the next couple of years. The company says there were 1.8 million more vacant homes sitting on the market than what is considered the norm at the end of the second quarter, reflecting a rise in the number of homes that lenders are repossessing. According to Moody's, it will not be until 2012 that demand and supply conditions are balanced enough to drive price appreciation that matches the pace of inflation.

The administration released new numbers Friday on the Home Affordable Modification Program (HAMP). Housing analysts and market observers say the results are disappointing at best. The latest report shows that nearly half of the homeowners approved for trial modifications have fallen out of the program. And during July, servicers converted just 36,695 HAMP trials to permanent status, a significant slow-down considering growth in permanent mods averaged more than 50,000 a month throughout the first half of this year.

The number of permanent Home Affordable Modification Program (HAMP) mortgage restructurings completed by Bank of America through July has reached more than 76,000, a number that BofA says continues to lead the industry. In addition, nearly 100,000 Bank of America customers have received non-HAMP modifications this year, including many that did not qualify under the federal program. BofA also reported that it completed 25,000 short sale transactions during the second quarter of this year.

The industry has completed about 975,000 permanent loan modifications so far in 2010, according to estimates released this week by the HOPE NOW Alliance. Of those, only a third have been processed under the umbrella of the federal government's Home Affordable Modification Program (HAMP). Two-thirds have been servicers' own proprietary mod programs. HOPE NOW also reports, though, that servicers have initiated more than 1.2 million foreclosures this year.

Struggling Atlanta homeowners with Fannie Mae-owned home loans can now take advantage of the company's new mortgage help center. The third facility in a series of planned, nationwide mortgage help centers, the Atlanta center provides counseling and other services for borrowers to help them avoid foreclosure. Both English- and Spanish-speaking housing counselors will be on hand to explain options to homeowners and help finalize documentation for modifications or other loan workouts.

When the Treasury Department released its latest progress report for the Home Affordable Modification Program (HAMP) in late July, it showed the redault rate for permanently modified loans to be around the two percent mark. An outcry from analysts - and some of you discerning DSnews.com readers - immediately followed, questioning the validity of the government's math. Last week, the Treasury quietly corrected its redefault assessment. The revised numbers are between 6 and 10 percent.

Could the U.S. economy slip back into the throes of the recession that nearly crippled the nation's financial system and protracted any semblance of a housing recovery? The analysts at Moody's think so. They say the odds of a near-term double-dip recession have increased to one in four. And they warn that if the economy sinks back into recession, housing activity will follow. If such a scenario were to play out, Moody's says home prices are likely to fall by another 20 percent before they stabilize in early 2012.

A former Fannie Mae VP has gone public with accusations that the nation's largest mortgage company mishandled its stewardship of the Home Affordable Modification Program (HAMP). The whistleblower claims that HAMP was impeded by intentional delays and slip-ups because Fannie executives placed their institution's short-term financial interests above helping homeowners avoid foreclosure. A spokesperson for Fannie Mae told DSNews.com that there is ""no merit to [the] allegations.""

Figures released Friday put July's job loss at 131,000 with the unemployment rate holding steady at 9.5 percent, though 71,000 jobs were added to the private sector. A recent report released by the Pennsylvania Association of Realtors revealed job loss as one of the top factors contributing to home foreclosures in the state. Across the country, too many Americans have learned that the loss of one's job can be directly related to the loss of one's home.

Rumors of a new government-led mortgage refinancing program have begun to surface. DS News has received word from sources inside the administration and from high-ranking executives at some of the largest banks, confirming that the White House is indeed considering a refi push that would allow homeowners to lower their monthly mortgage obligations by locking in today's rock-bottom interest rates. Some industry insiders are viewing the move as a concession by the federal government that its existing housing programs aren't doing enough.