Last week, the Obama administration sends “swat teams” into mortgage servicers’ offices to investigate the problem of loans under the Home Affordable Mortgage Program (a $75 billion taxpayer-financed program put in place to curb foreclosure rates) as servicers are blamed for frequently losing paperwork, missing details and failing to complete applications.
With mortgage delinquencies rising, 375,000 borrowers are eligible for permanent loan modifications by the end of December and the Administration wants to make sure the banks make good on granting these modifications. Proof of reluctance to move past trial offer periods is that only 1,711 permanent mortgage modifications had been offered by September.
Today, the House Finance Committee Meeting was filled with raised voices toward the administration that their efforts are subpar. According to cnnmoney.com, Chairman Rep. Barney Frank said, “we are terribly frustrated,” which was met with agreement by others on the committee. “Why can’t we do so something? I am frustrated,” Rep. Emanuel Cleaver said.
Is it ironic that Frank is leading the screams of bloody murder given his role in the mortgage bloodbath, or is it is he nobly leading the charge to hold the administration, lenders and others accountable and get to the bottom of this mess to help out stranded homeowners?