In last weeks Blog, I spoke about the banks inability to service new loans in a timely manner, and most importantly, to assist homeowners who are trying to restructure their existing loans so they can avoid foreclosure. On July 15, 2009, the California Association of Realtors issued the following message:
The Obama administration recently sent a letter to the chief executives of the 25 lenders who have signed up for the Making Home Affordable program, urging them to quickly help troubled homeowners.
In the two-page letter, Treasury Secretary Timothy F. Geithner and Secretary for Housing and Urban Development (HUD) Shaun Donovan, asked the servicers to hire more staff, expand call centers and improve the training of employees handling calls from borrowers. The banks also were told to designate a senior liaison for the program and to prepare for a July 28 meeting with senior Treasury and HUD officials to discuss how to fully implement the effort.
“We are asking that all servicers expand servicing capacity and improve the execution quality of loan modifications in order to help the sizable number of homeowners at risk of foreclosure and eligible for the program,” the letter said.
The administration will begin issuing monthly reports by Aug. 4 detailing lenders’ performance, including how many modifications they have implemented. They will be judged by new criteria, such as how long it takes borrowers to get help over the phone and the accuracy of the information they are provided. Freddie Mac, the government-controlled mortgage financing company, is developing a “second look” program to audit the applications of borrowers who have been denied help under the program.
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Based on this article, I will be surprised, but pleased, to see SOMETHING POSITIVE being done to help undo this quagmire we have been engulfed in these past 3-4 years. Perhaps I’m a skeptic, but I’ll believe it when I see it!
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Would you like to make a comment on this article? At the end of each of these weekly messages, there’s a place at the end of each article for you to add comments. Just Click on “No Comment,” it will open up and you can write your comments here. It’s a great place for you to “let YOUR thoughts be known on the various articles written. Be My Guest………I‘d love to hear from you! Others would too!
Brought to You By Your Favorite Realtor,
Nancy Hankin
www.PalmSpringsHomesAndEstates.com
I don’t see anything that adresses the practices that Nancy discussed in the previous article. Why would the banks and other lenders need the Feds to tell the to get their act together? This whole thing is beond belief!
Beyond Belief describes this exactly as it is. It’s time the “public” knows how these banks are operating…which is a step beyond total ineptness.
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