Mortgage Relief Program Released
The Obama administration is kicking off a new program designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
The Treasury Department on Wednesday released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month.
To help borrowers determine if they are eligible, the government has put answers to common questions and assessment tools on the Web site www.FinancialStability.gov.
"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement.
"The housing program needs no approval by Congress -- it starts now," CBS News' White House Correspondent Chip Reid reports. The White House says if you think you qualify, call your mortgage company. They warn callers to be patient because those companies are getting flooded with calls.
On Tuesday, key moderate Democrats in the House wrote a compromise to a housing bill that requires bankruptcy judges to consider whether banks offered homeowners reasonable loan restructuring deals before they weigh in with judicial remedies.
The new language is expected to ease the bill onto the House floor for a vote as early as Thursday.
"The concern is that we want to ensure that those people who get relief have tried other avenues," House Majority Leader Steny Hoyer, D-Md., said Tuesday.
Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court.
Rep. Zoe Lofgren, D-Calif., one of the centrist negotiators on the bill, said homeowners in fear of losing their homes would have to show that they provided their financial documents to their lenders, "not just a phone call to an answering machine."
The deal would require judges to consider whether homeowners were offered a "qualified" loan workout - defined as one that would set monthly payments equal to about one-third of a homeowner's income.
Bankruptcy judges would have to deny a judicial mortgage adjustment in cases where the homeowner is deemed able to afford the loan.
The changes bring the legislation closer in line to what President Obama's administration has sought and what the banking lobby finds acceptable. The mortgage industry has argued that unfettered access to bankruptcy court mortgage modifications would impose steep and unpredictable costs on its companies that would be passed along to borrowers as higher fees and interest rates.
Their opposition helped derail the bill last week, even after leading Democrats agreed to restrict it to people who had tried other means of reworking their mortgages and those who couldn't afford their home loans.
The industry has "been giving it everything they've got," said Rep. Brad Miller, D-N.C., an architect of the legislation. "They still have remarkable influence."
Still, Miller and some other backers of the idea said they support the new plan.
"It would encourage lenders to make modifications and there would be consequences if they don't do it," Miller said.
Democrats discussed the compromise in a closed meeting Tuesday with Housing Secretary Shaun Donovan, who told them the legislation would dovetail with the administration's overall efforts to reduce foreclosures. Obama unveiled a $75 billion housing initiative two weeks ago that included a call for legislation to permit adjustments to mortgages in bankruptcy court.
Following the session, Lofgren and two other moderate Democrats - Ellen Tauscher and Dennis Cardoza of California - circulated a letter seeking support for their compromise.
"Some may think the changes made to the bill go too far while others will contend that they do not go far enough," the "Dear Colleague" letter said. "Given the ever-deepening housing crisis, however, we ask you to place such differences aside - as we have done - and support this effort."
Some liberals said the new limits were inappropriate. Rep. Maxine Waters, D-Calif., said many mortgage companies make it impossible for homeowners to even complete a phone call to their lender, much less work out more affordable loan terms.
"I don't think people ought to have to go through that mess" to get mortgage relief in bankruptcy courts, Waters said.
She said the banking industry still has a stranglehold on Congress. "These guys rule this place," Waters said.
CBS/ AP The Treasury Department on Wednesday released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month.
To help borrowers determine if they are eligible, the government has put answers to common questions and assessment tools on the Web site www.FinancialStability.gov.
"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement.
"The housing program needs no approval by Congress -- it starts now," CBS News' White House Correspondent Chip Reid reports. The White House says if you think you qualify, call your mortgage company. They warn callers to be patient because those companies are getting flooded with calls.
On Tuesday, key moderate Democrats in the House wrote a compromise to a housing bill that requires bankruptcy judges to consider whether banks offered homeowners reasonable loan restructuring deals before they weigh in with judicial remedies.
The new language is expected to ease the bill onto the House floor for a vote as early as Thursday.
"The concern is that we want to ensure that those people who get relief have tried other avenues," House Majority Leader Steny Hoyer, D-Md., said Tuesday.
Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court.
Rep. Zoe Lofgren, D-Calif., one of the centrist negotiators on the bill, said homeowners in fear of losing their homes would have to show that they provided their financial documents to their lenders, "not just a phone call to an answering machine."
The deal would require judges to consider whether homeowners were offered a "qualified" loan workout - defined as one that would set monthly payments equal to about one-third of a homeowner's income.
Bankruptcy judges would have to deny a judicial mortgage adjustment in cases where the homeowner is deemed able to afford the loan.
The changes bring the legislation closer in line to what President Obama's administration has sought and what the banking lobby finds acceptable. The mortgage industry has argued that unfettered access to bankruptcy court mortgage modifications would impose steep and unpredictable costs on its companies that would be passed along to borrowers as higher fees and interest rates.
Their opposition helped derail the bill last week, even after leading Democrats agreed to restrict it to people who had tried other means of reworking their mortgages and those who couldn't afford their home loans.
The industry has "been giving it everything they've got," said Rep. Brad Miller, D-N.C., an architect of the legislation. "They still have remarkable influence."
Still, Miller and some other backers of the idea said they support the new plan.
"It would encourage lenders to make modifications and there would be consequences if they don't do it," Miller said.
Democrats discussed the compromise in a closed meeting Tuesday with Housing Secretary Shaun Donovan, who told them the legislation would dovetail with the administration's overall efforts to reduce foreclosures. Obama unveiled a $75 billion housing initiative two weeks ago that included a call for legislation to permit adjustments to mortgages in bankruptcy court.
Following the session, Lofgren and two other moderate Democrats - Ellen Tauscher and Dennis Cardoza of California - circulated a letter seeking support for their compromise.
"Some may think the changes made to the bill go too far while others will contend that they do not go far enough," the "Dear Colleague" letter said. "Given the ever-deepening housing crisis, however, we ask you to place such differences aside - as we have done - and support this effort."
Some liberals said the new limits were inappropriate. Rep. Maxine Waters, D-Calif., said many mortgage companies make it impossible for homeowners to even complete a phone call to their lender, much less work out more affordable loan terms.
"I don't think people ought to have to go through that mess" to get mortgage relief in bankruptcy courts, Waters said.
She said the banking industry still has a stranglehold on Congress. "These guys rule this place," Waters said.
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Is Your Lender A Patriot Or Terrorist?
http://reno.broowaha.com/article.php?id=3462
Beware Of Fraudulent Foreclosure Notices
http://reno.broowaha.com/article.php?id=3825
Many of these Notices of Default are not real, they are fraudulent and they are just another way to steal houses. Then the fraudster ?sells? the stolen house under a fraudulent Trustee?s Deed.
Rachel And Her Children: Homeless Families In America @ http://reno.broowaha.com/article.php?id=3206
The illegal three million foreclosures have also added to the homeless despair.
illegal Is Your Lender A Patriot Or Terrorist?
http://reno.broowaha.com/article.php?id=3462
Just Do The Required Home Loan Modification
http://reno.broowaha.com/article.php?id=4070
Beware Of Fraudulent Foreclosure Notices. Many of these Notices of Default are not real, they are fraudulent and they are just another way to steal houses. Then the fraudster ?sells? the stolen house under a fraudulent Trustee?s Deed. http://reno.broowaha.com/article.php?id=3825
Reno, Nevada?s Countrywide Home Loans manager Sue Barry should also be charged with Mortgage Fraud, along with Prudential Nevada Realty former Regional Manager Valerie Mapes, former Prudential Nevada Realty Realtor Keith W. Gledhill, Mortgage Fraudster Reno landlords John and Kay Sickler, Mortgage Fraudster Reno escrow officer Jenna Kay Clark and her company Reno?s First American Title, Reno Realtor Allan Zane and his Broker Magi Bird, and Reno?s First American Title.
http://reno.broowaha.com/article.php?id=3415
http://reno.broowaha.com/article.php?id=3300
http://reno.broowaha.com/article.php?id=3320
http://reno.broowaha.com/article.php?id=3351
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http://reno.broowaha.com/article.php?id=3404
http://reno.broowaha.com/article.php?id=3421
http://reno.broowaha.com/article.php?id=3430
http://reno.broowaha.com/article.php?id=3448
For copies of the supporting documents that have been uploaded, see http://renomortgagefraudexposes.ning.com/
Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court.
Rep. Zoe Lofgren, D-Calif., one of the centrist negotiators on the bill, said homeowners in fear of losing their homes would have to show that they provided their financial documents to their lenders, "not just a phone call to an answering machine."
The deal would require judges to consider whether homeowners were offered a "qualified" loan workout - defined as one that would set monthly payments equal to about one-third of a homeowner's income.
Bankruptcy judges would have to deny a judicial mortgage adjustment in cases where the homeowner is deemed able to afford the loan. "
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First off, I'm against all bailouts for anyone. But that said does anyone besides me see a double standard?
1. Banks and Wallstreet who got BILLIONS did not have to prove need or trying other avenues or anything--just free money and let the partying begin
2. OK--the new mortgage should be only 1/3 of their monthly income? Fine for all the deadbeat mortgagees that still have jobs--but what is 1/3 of NOTHING? If they lost their job due to layoff and their mortgages are going under due to no job? What do they pay?
What will Obama and the Dems do when the number of people with NO JOBS who begin defaulting EXCEED the number who should only pay 1/3 their income? Or what happens when a person goes from say 7500.00/month down to maybe 1000.00 per month? All of a sudden, their 500K home has a 330.00 mortgage?
Nothing like thinking....apparently that is a rare trait in Washington politics.
Posted by blog_fever2
Didn't know there had to be a "time" people helped others without judging. And I also believe over the past few years some war widows and mothers would certainly have a word or two about righteous. Kinda like saying God bless America???? I am not speaking from a money standpoint, but from a good vs. bad. We are NOT always the good guys. We are now a country in moral decay. If rules and laws are not enforceable, change them. Everyone is concerned about Constitutional rights etc: Best I can tell there are only 10 laws. They are not race-gender specific just mankind specific. But these are only my opinions.
And back to the subject at hand, yet another example of Government divine intervention, more paper work, more job created, more money to the top under the guise of helping middle income. No democrats or republicans, only politicians that would pimp their mother for a dollar, yen, or euro.
If they get foreclosed on, the bank gets less stable, housing prices in the area decline (affecting all homeowners, no matter how 'virtuous' they think they are), and a few more people likely end up needing public assistance -more of our tax dollars.
Posted by bozworth4 at 4:21 PM : Mar 4, 2009
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We were just having a conversation on how God will not let the righteous be forsaken and how we are living in a time where people deserve help without judgment. You are welcome to scroll through the dialogue and view for yourself.
Posted by caco58 at 4:01 PM : Mar 4, 2009
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I hope you found the info to be useful.