Nearly 50 percent leave Obama mortgage-aid program - Yahoo! Finance
The biggest question that comes to mind when reading an article like this is, "why"? The loan modification program was to be one of the corner stones of the recovery package and benefit millions of Americans. After the inflated prices of homes and the predatory loans offered to customers the loan modification plan was supposed to bring things back into balance and allow the foreclosures to stop. Citizens were to have the value of their homes reviewed and payment plans adjusted accordingly with fixed rates. What happened? The news story would lead one to believe that it was the plan itself or the government bureaucracy. The article even suggests that it was the homeowners themselves who failed to follow through with the proper paperwork.
I don't buy it. Not for a minute. And, here's why:
At the end of 2009 there were 3,356,844 estimated eligible 60+ day delinquency. As of the end of the year only a measly 66,465 loan modifications had been approved by the major banks.
Bank of American had 1,046,008 estimated eligible 60+ day delinquencies. At the end of the year 3,183 loans modifications had been approved. If this is not pathetic I don't know what would qualify.
Take a look at the attached link. All the big banks are listed. Chase, Citibank, Wells Fargo and more.
http://www.financialstability.gov/docs/report.pdf I had to dig to find these numbers, they were not easy to find. I was unable to locate a summary for 2010.
The fox is guarding the hen house.
There is no other explanation. The ones who started the crisis in the first place are not going to easily concede to being fair, reasonable, and doing what is in the best interest of their customers. Remember when the TARP money went to pay for jets, bonuses and other luxury living? The same thing is going on here. We have seen it time and time again.
If you want more information on this check out the link to America For Fair Banking blog on the side bar. There are key articles headlining the on going battle. Guys, if you like football than this is going to be even more rough. Another 1.5 million families may be displaced in 2011.
More on the subject:
Link added on 8/23/10 http://news.yahoo.com/s/ap/20100826/ap_on_bi_go_ec_fi/us_economy