Treasury
By Carrie Bay | 02/06/2012
More than 930,000 homeowners have received a permanent modification through the government's Home Affordable Modification Program (HAMP), saving an estimated $10.5 billion in monthly mortgage payments, according to Treasury. While this tally - nearly three years after the program's launch - falls well short of the results initially promised by President Obama of helping 3 to 4 million homeowners restructure their loans, federal officials continue to tout a key success of HAMP as improving standards and processes within the industry.
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By Carrie Bay | 02/01/2012
The mortgage servicing system is badly broken and would benefit from a single set of federal standards, according to White House officials. President Obama on Wednesday introduced what he's termed the Homeowner Bill of Rights - principles that he says will ensure borrowers and lenders are playing by the same common-sense rules. These rules address disclosures, conflicts of interest posed by investors and junior lien holders, assistance for at-risk homeowners, and safeguards to prevent wrongful foreclosures.
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By Carrie Bay | 01/31/2012
Was the nation's second largest mortgage company betting against mortgage refinancing? Allegations supporting the affirmative which were made public this week have prompted the U.S. Treasury to launch an official probe. Analysts say the story is less sensational than it appears and only highlights the conflict that comes with being neither fully public nor fully private. The GSE's main business is guaranteeing mortgage credit risk, but it needs to turn a profit to stay in this business, all the while being told its duty is to foster a housing recovery.
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By Krista Franks | 01/11/2012
With a common goal of economic recovery, Congress and the Federal Reserve diverge on the best means to that end. Should the housing sector finance the government's economic policies, or should the government help boost the housing sector? Federal Reserve Chairman Ben Bernanke submitted a white paper to Congress last week as a framework for policymakers to help the housing market, but that move has drawn the ire of at least one senator.
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By Carrie Bay | 01/09/2012
Treasury released a new report Monday highlighting results from the Home Affordable Modification Program (HAMP). Nearly 910,000 homeowners have received a permanent HAMP modification, saving $9.9 billion in monthly mortgage payments. Officials say they will continue to press servicers to assist underwater borrowers and address second-lien issues. A total of 38,243 principal-reducing permanent HAMP mods have been granted, and 54,828 second-lien mods have been started under the federal program.
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By Krista Franks | 01/03/2012
The two-month extension of the Temporary Payroll Tax Cut, signed by President Obama December 23, holds immediate implications for the GSEs. The law requires the Federal Housing Finance Agency (FHFA) to increase Fannie Mae's and Freddie Mac's guarantee fees by at least 10 basis points over the 2011 average for all single-family mortgage-backed securities. FHFA says the increase will be remitted to the U.S. Treasury, rather than retained as reserves by the two mortgage financiers.
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By Carrie Bay | 12/08/2011
The Consumer Financial Protection Bureau (CFPB) is still headless. Senators had scheduled a confirmation vote Thursday for Richard Cordray - President Obama's pick to lead the newly formed watchdog agency. Republicans, though, blocked the process before lawmakers could even get to a final vote. Without a director, the CFPB does not have full authority to supervise non-bank mortgage lenders and debt collectors. President Obama told reporters that he is not giving up on putting Cordray in the top CFPB post.
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By Carrie Bay | 12/07/2011
The U.S. Treasury said Wednesday that it will continue to withhold incentives from JPMorgan Chase and Bank of America for modifications, short sales, and deeds-in-lieu completed through government programs. JPMorgan is the only servicer participating in Treasury's Making Home Affordable program that was determined to need "substantial improvement" in complying with program guidelines during the third quarter. Bank of America moved up a notch on the assessment scorecard to needing only "moderate improvement."
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By Krista Franks | 12/02/2011
The Office of the Comptroller of the Currency (OCC) has launched an investigation into the possible wrongful foreclosures of about 5,000 military members by 10 of the nation's largest banks. The Servicemembers Civil Relief Act (SCRA), signed into law in 2003, protects military members from foreclosure while on active duty. Rep. Brad Miller of North Carolina is calling for officials to pursue criminal charges should SCRA violations be substantiated.
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By Krista Franks | 12/02/2011
Three government agencies are combining efforts to address mortgage modification scams through a joint task force. With the announcement of the task force, the participating agencies -- the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau (CFPB), and the Treasury Department -- released a consumer fraud alert to ensure homeowners understand that only their mortgage servicer has discretion to grant a loan modification.
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