According to the January report from the Obama administration, the federal government has provided at least $50 billion dollars to 110 mortgage loan servicers to encourage them to modify mortgages for homeowners. According to this report, 89% of all mortgage loans in the United States are eligible for consideration under the HAMP guidelines.
The full text of the report can be viewed here and I strongly encourage everyone to review it. The program continues to be an abysmal failure, with an embarrassingly small number of homeowners who have benefited from the program. (Not to worry though as reported elsewhere, the fat cat bankers continue to make massive profits.) Some low lights from the report:
- In addition to the 116,000 permanent modifications, an additional 76,000 permanent modifications have been approved by servicers and are pending borrower acceptance. (That’s less than 200,000 nationwide people.)
- The median savings to borrowers in permanent modifications is more than $500 each month. (That’s chump change.)
- Trial modifications canceled 60,476
- 57.4% of modifications were based on loss of income
- 10.7% were based on excessive obligations
- The numbers in Florida were very low and show only 101,971 trial modifications and 14,598 permanent modifications for a grand total of 116,569
- The numbers in the Tampa/St. Petersburg area were likewise very low with only 12,752 trial modifications and 1,943 permanent modifications for a grand total of 14,695
The disappointing thing about these numbers is the banks continue to report record profits and payouts to their executives and the taxpayers are shouldering a massive burden, but it results in very little in actual benefits to consumers. It is important that judges, legislators (such as those considering the fraudulently titled “The Florida Consumer Credit and Homeowner Protection Act”) and consumers know these numbers so they understand just how little is being done to actually assist consumers who are in need. Spread the disappointing word…..