Since Feb. not ONE permanent mortgage modification has been made by banks.

[dixiegrrrrl]

From Denninger:
"only 20% of those "eligible" have been offered, accepted, and are in a trial but zero percent - zero - have actually turned into a permanent loan modification that the homeowner can count on."
and
" The administration program requires banks that received federal aid from the Treasury’s Troubled Asset Relief Program, or TARP, as well as mortgage-finance companies Fannie Mae and Freddie Mac to lower monthly payments for borrowers at “imminent risk” of default.

That's some "requirement" eh? Zero percent completion from June to October? That's five months, and the "trial" period is supposedly 90 days, so this means that either (1) nobody did anything for the first two months, or (2) not one borrower successfully completed a trial between June and now."
There are NO consequences to the Big Banks for failure to meet the "requirement."

Worth a read....banks took the Tarp money, have made no permanent loan modifications for
mortgage holders.

Link is the 3rd article down on the column:
http://market-ticker.denninger.net/archives/P1.html

[MNDemNY]

1. And a disincentive for loan servicers to "play ball".

[redwitch]

2. That is appalling.

No one is being held accountable and that is wrong.

[enlightenment]

3. That's why I'm always troubled when I see

weasel words in government documents. To say that something is 'required', but not spell out the details of what that means - or to say that something will be 'monitored' or 'reviewed', but not spell out what, if any, penalty would be attached if the 'review' finds fault . . . well, that makes those pretty little 'action words' worth less than the paper they're printed on.

[laughingliberal]

4. And is anyone surprised by this?

Here's how I see this working. The banks are only required to work with people at "imminent risk" of default. Remember, this is the people who have not fallen behind as yet but are hanging on by a thread. So, they set them up on a 90 day trial period, knowing a lot of these people could default in those 90 days. Once they default they are not eligible for the program. I'm just guessing here but it makes sense to me.

[marketcrazy1]

5. over 650,000 home owners

have been enrolled in this program. for each of these the bank or servicer gets a 1000 dollar

processing fee paid by taxpayers, thats 650 MILLION dollars for doing NOTHING!!!!

[laughingliberal]

6. How convenient-get paid for pretending to participate in the program nt

[sabrina 1]

7. They will not even talk to people they are foreclosing on.

A CNN report a few months ago looked into what the banks were doing to try to help with the housing crisis as they were supposed to do. They interviewed several people who had tried to get in touch with their lenders, Wells Fargo received the most complaints for not even bothering to respond to borrowers who contacted them. Almost everyone stated that the Banks would not return their calls, answer their letters or if they got a response, were given a run-around.

I thought after that report, something would be done to put pressure on them. But looking at the bills that passed, Congress for some reason, did not make it mandatory for them to try to work with people. They simply included a 'sense of Congress' type clause, sort of hoping the Banks, after receiving all that money. would 'do the right thing'.

There is a phone number to call to complain, but that's about it. There is apparently no one in charge of these banks and since Henry Paulson demanded there be no oversight of how they used the funds tax-payers were forced to give them, there is apparently no consequence for their behavior.

[Froward69]

9. NOR will they sell

the foreclosed home for the amount of what is owed to the bank. ONLY after the trustee auction and when someone makes an offer at or above the original sales amount. The ONLY way to wrestle the bank off that property is to pay cash at the trustee sale.

so the bank
1) makes any and all profit off of the property.
2) as well as all the interest paid originally.
3) plus the interest on the new note.
4) finally at at the end of the year, gets a tax deduction off of those vacant houses as a "Loss"

[truedelphi]

8. Hey shouldn't we Dems focus on how many times Obama has

Urged the banks to be good to us.

He's done that at least three or four times - a whole lot of urging going on.

[dixiegrrrrl]

10. We do the "hoping and wishing", he does the "urging" and

and the banks do the screwing.
I feel sooooooo satisfied now.

[truedelphi]

11. Dixiegrrrrl I just saw a commercial tonight

I don't know if it has played previously but I paid attention to it because it was on this subject.

It was a Bank of America commercial stating that they have spent over Blank amount (I wanna say 219 million) on helping people buy new homes or get re-financing on their current old home.

It was interesting to me that there is not any way to sort this out - after all, the article you cite shows that nobody is getting help who is in more desperate straits, but the B of A commercial is stating how B of A is moving new home mortgages and probably helping people with decent credit to be re-fi ed.
But the commercial had this tone of being super friendly and super compassionate.

Maybe you have seen the commercial I am mentioning?

[dixiegrrrrl]

12. I actually did see it....

And I do not watch commercials, so strange that this one I saw, I think it was on KO.
the article I posted, that came from Denninger, says banks HAVE put people in trial agreements for mortgage modification, but NO permanent mortgage modifications.
Many commercials are running for insurance and for banks....that alone tells me something.

Did you see the DU thread/link to the YouTube vid of a woman who ratted on the BOA loan scam?
It is a must see..
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7104524

[truedelphi]

14. Thanks for that link. Saw it somewhere last week, and

Wanted to refer to it.

And you are probably right abt commercial being aired on Olbermann - that is the only TV I think I watched yesterday, except for House.

[dixiegrrrrl]

Olbermann was the only thing I watched last night.

Watched his special comment twice.
Otherwise I have volume OFF when ever there is a commercial break.
so yes, the BOA was on Olbermann,, pretty sure.

[dixiegrrrrl]

15. Olbermann was the only thing I watched last night.

Watched his special comment twice.
Otherwise I have volume OFF when ever there is a commercial break.
so yes, the BOA was on Olbermann,, pretty sure.

[Crewleader]

13. Is "Helping Homeowners" Washingtonspeak for Bailing Out the Banks?

Another $70 Billion to the Lenders

Is "Helping Homeowners" Washingtonspeak for Bailing Out the Banks?

By DEAN BAKER

Unfortunately, what passes for help to homeowners in Washington might look more like handing out money to banks anywhere else.

http://www.counterpunch.org/baker12012009.html

[roamer65]

16. They have so much zero percent "hot money", they don't care.