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Gov’t Has Spent Small Fraction of $50 Billion Pledged for Loan Mods

Data obtained by ProPublica show how much has been spent through the government’s mortgage modification program (HAMP). Our data show how much has gone to each mortgage servicer.

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(Robyn Beck/AFP/Getty Images)

When the Obama administration launched its flagship foreclosure prevention program in early 2009, it pledged to spend up to $50 billion helping struggling homeowners. But the government has so far only spent a tiny fraction of that.

A recent Treasury Department report summarizing TARP spending put the total at $600 million through October.

Although the Treasury Department posts the maximum amount that could go to each mortgage servicer on its website, it doesn’t report the details of the spending. So we filed a Freedom of Information request for the data, and can now show for the first time exactly how much money has gone to each servicer. (A Treasury Department spokeswoman said they’re considering regularly releasing the information going forward.)

The program, which uses TARP money, tries to prevent foreclosures by paying mortgages servicers incentives to make loan modifications. The largest payout, $79 million, has gone to JPMorgan Chase. Next on the list is Bank of America with $45.1 million. That’s a drop in the bucket for BofA, which reported net servicing income of $780 million in the third quarter. (You can use our bailout tracker to see how much money has gone to each mortgage servicer. The figures, which come from our FOIA request, only go through August.)

With the government’s program showing signs of slowing down, the small payout so far shows that Treasury won’t come close to using the full $50 billion, said Guy Cecala, publisher of Inside Mortgage Finance. “It’s a joke, because everyone’s asking ‘is [the program] really worth the $50 billion we’ve committed?’” he said. “We’ll never spend anywhere near that.”

There are two main reasons why so little money has been paid out. First, there have been few modifications done through the program. The government only pays incentives for finalized modifications, not trials. For instance, even though $8.3 billion has been set aside for Bank of America, it won’t get that money unless it provides modifications.

Second, incentives are paid out over time. For instance, homeowners in the program receive a $1,000 reduction to their mortgage each year for five years if they stay current on the modified loan. The program is less than two years old, and few modifications were given during the first year.

Incentives are paid to three different groups: homeowners, investors, and banks and other companies who service the loans (The four biggest servicers of mortgages are also the U.S.’s largest banks: Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup.) So far, the servicers have kept most of the money paid out: $231.5 million all told. Investors (lenders and mortgage-backed securities investors) and homeowners have received $129.2 million and $34.7 million, respectively. Our database breaks those amounts down for each servicer.

It’s hard to estimate just how much Treasury will ultimately use of the $50 billion. One reason is that a portion of the modifications will default, so all the incentives for each modification will not be paid out. Of modifications completed a year ago, about 21 percent have already defaulted, according to Treasury data.

If a homeowner keeps up payments on a modified mortgage for the full five years, it could cost the government in the range of $20,000 over five years, according to a ballpark estimate provided by the Treasury spokeswoman. But many homeowners in the program are expected to default on their mortgages well before that.

The government has set aside billions of dollars from the TARP for other, related programs – but it also remains to be seen how much of that money will be spent. The government pays incentives for other ways of avoiding foreclosure, like short sales, but those programs started relatively recently. It’s also allocated $7.6 billion to 18 different states (plus Washington, D.C.) for local plans to avert foreclosure. Another $8.1 billion has been reserved for a plan to refinance homeowners in underwater mortgages into Federal Housing Agency loans.

Separate from the TARP, Fannie Mae and Freddie Mac, both under government control, also participate in the loan modification program. Administration officials have said Fannie and Freddie could pay up to $25 billion in incentives to their servicers and homeowners, but it’s also doubtful that whole amount will be spent. As the TARP inspector general recently noted, they’ve only paid out $451 million through September.

1 million letters by Nov 16th 2010 to Washington DC from homeowners
Bank of America, J.P. Morgan home loan officials to testify before Congress on November 16th 2010

http://voices.washingtonpost.com/pol…rgan_home.html

This is our Chance to let the elected officials know how we feel. I believe if we flood them with letters we the people might have a Chance for our voices to be heard. I know they will not read all letters, but can you imagine when a committee receive this much mail?

I sent the following email to Propublica. You should send one too to your local media.

Bank of America, J.P. Morgan home loan officials to testify before Congress on November 16th 2010
Please help, by announcing on your website that we need to send a minimum of 1 million letters from homeowners with troubled mortgages to this address by NOV 16th 2010.

Maybe this way elected officials will be paying attention to solve the current housing crisis.

U.S. Senate Committee on Banking, Housing, and Urban Affairs
534 Dirksen Senate Office Building
Washington, D.C. 20510
(202) 224-7391


http://banking.senate.gov/public/ind…formation.FAQs

Ronald Lenhart

Nov. 11, 2010, 2:22 p.m.

When I tried to go to this web site:

http://banking.senate.gov/public/ind…formation.FAQs

I got the following:

The webpage cannot be found

nissim sasson

Nov. 11, 2010, 4:29 p.m.

Yes ineither could i go in to the website lets unite send letters !

Thomas Solyan

Nov. 11, 2010, 5:08 p.m.

All this TARP money and “help” for foreclosures is crazy, and a dream (not unlike someone who makes $30,000 a year signing a loan on a $1,000,000 house).

What needs to happen is that the loan officers and bank people who fraudulently gave loans so they could collect short term percentages need to be prosecuted under criminal codes.

As well, those who signed loans that were way beyond their income to repay, need to move out, period. No one can ever convince a janitor that he can afford a bankers house, unless both the janitor and the banker believe they are getting away with something, which these government bailouts clearly let both them do?????

Nissim Sasson. and Ronald

try this

www. banking.senate.gov/public

Or just put in google banking senate and maybe it will work Propublica should make an announcement .

we have about 100 hours so they can hear our voices.

I put up the website but it is under moderation.

This is what I emailed our elite scum.

Our entire system is corrupt. Banks are rotted out.  First, they give loans to people who should never have been approved. Then, they package them up, put lipstick on them and dumped them on Wall Street just like Internet Stocks.  Then, over 30 years the Wall Street wizards work with our politicians to send jobs overseas, then re-write the bankruptcy laws, just in time for the big collapse.  Now, the banks get trillions from the same people they are foreclosing on, so they can foreclose on the same people who they made billions on, giving loans they new would never be paid back. And, while the rest of the western world is rioting, Americans are in a stoper. I would rather see a total collapse of the entire system and see riots in the streets than see the rich elite bankers on Wall Street walk away with all the power.  You, Bush and Obama have handed the keys to every American’s home and job to Wall Street’s most corrupt. You have given the entire system to them and they have created the downfall of the American dream. You all should be ashamed.  Bailing out the bankers did nothing. You should have bailed out the people. BUT, you knew that already, because you are the slaves to the bankers. How do I know? Because I worked for the scum and I am a lawyer and I saw this coming over 10 years ago. I only wish now that I had abandoned this country like you all have.

Thomas Solyan: Some of us have lost our jobs, lost our income through illness and accidents.  Bank of
America added over $41K to my principal in interest and ‘other services’, and I did get accepted for a loan modification, but my monthly ‘affordable’ payment was only $200 less than my payment that I could no longer afford.  My property taxes here on Long Island are $10,000.00 a year!  My taxes are no different than everyone elses who own a simple 3 bedroom, one car garage, 1 1/2 bathroom, no basement house.  I’m not living large by any stretch of the imagination.  I actually live in a school district that is so bad that people DON’T move to this neighborhood because of it.  So $200 might be a lot in other parts of the country, but here it’s not even one electric bill.  If I could sell, I’d get out of here and rent.  I’m sick of the stress of trying to keep this ‘palace’.  But no one is buying houses around here… not even on short sales.

1 million letters by Nov 16th 2010 to Washington DC from homeowners
Bank of America, J.P. Morgan home loan officials to testify before Congress on November 16th 2010

Less then 100 hours left to send your letters.

This is our Chance to let the elected officials know how we feel. I believe if we flood them with letters we the people might have a Chance for our voices to be heard. I know they will not read all letters, but can you imagine when a committee receive this much mail?

Bank of America, J.P. Morgan home loan officials to testify before Congress on November 16th 2010
Please help, by announcing on your website that we need to send a minimum of 1 million letters from homeowners with troubled mortgages to this address by NOV 16th 2010.

Maybe this way elected officials will be paying attention to solve the current housing crisis.
U.S. Senate Committee on Banking, Housing, and Urban Affairs
534 Dirksen Senate Office Building
Washington, D.C. 20510
(202) 224-7391


OR FAX YOUR LETTER TO
(202) 224-5137

Thanks Garbor i sent mine with the following

One of the most damage things committed to homeowners is that even some borrowers that are current in their mortgage are losing their home to foreclosure do to the following criminal practices by banks
1- Customer is current but straggling
2- Bank tells borrower that he is pre-qualified for a reduce payment
3 Borrower enters in to a 3 month trial period reduce payment with promises that after the 3 payments and sending some other documents he will be qualify for the permanent modification
4- bank requests the same documents again and again for months and months
5-The Three month trial period becomes 8-10-12 month trial periods
6- The trial period payments are not being apply to the debt and is a accumulating fees and interest, etc
6- in the meant time borrower starts getting statements that he owes thousand of dollars
7-After many months on the trial period and sending same documents more a dozen of times, Bank denies the permanent modification and ask the borrower to pay thousands of dollars that now he is behind plus fees, accumulated interest, etc or bank will foreclose (remember borrower was current)
8- borrower now is in a worst situation than before so the bank put the borrower in this situation
9- Bank foreclose on the house
10- Borrower loses home
This is the new America today

On top of that we find out that banks are doing fraud with foreclosures? were are the property rights in this country? property rights are the core of the American freedom and capitalism and is being systematically violated by these banks
not to mention the the thousand of dollars they make when they foreclose on the borrowers home, because they collected their Insurance (AIG)

Gabor,
I am sorry your situation is what it is and I truly wish you were not in this situation. But, as a US citizen with my own very high income taxes ($500+ every two weeks), student loan repayments, etc., why should I as a tax payer be expected to do for you and the others in your situation what would not be done for me if I defaulted on my student loans, or could not pay my rent (I understand I cannot afford a home so I must rent) even If I had unexpected medical bills.
The US constitution has bankruptcy written into it for exactly the reason you have outlined and taxpayers will already have to cover that, me willingly. For you and many others this unfortunately is what will have to be done (bankruptcy) and putting off the inevitable is just a very expensive band-aid.

Thomas Solyan & Thomas-I think you might want to become a little more informed on this subject. Not all people entered into an agreement knowing they would not be able to afford. Several actions by the banks have changed EVERYTHING. GREED has been the focal point of those involved. Now because people feeling that $144 billion in bonuses is not enough…among other things, people (and children) are being put out on the streets. Need I remind everyone that winter is approaching? These same people would most likely be able to pay their mortgages as agreed if they had JOBS. On top of the banks having a big hand in this not being possible, they now feel it necessary to commit fraud and perjury upon our courts. Not to mention the instances where people enter into these trial mods in good faith…only to end up worse than before. Just be thankful you are renting at this time. As for your student loan…be happy with the knowledge that it is pretty much a fixed number. I’ll not even go into fact of large % of homes being 10’s of $k underwater. If you would take the time to investigate a little bit further I’m sure you will see another side to this nightmare…and most of the time “deadbeat homeowners” is just a term the financial institutions PR people LOVE to get out there. Question? What do you call their requests for TARP? I expect we will again soon see them with their hands out for TARP2…after they are done with looting our homes,401(K) and pension funds.
This message was brought to you by a homeowner who (by the grace of GOD) is current and has payed all their taxes. Just trying to figure out how to establish my own MERS…and maybe my own personal ATM machine (QE1 & QE2).
Can I get an AMEN?

Thomas Solyan

Nov. 12, 2010, 1 p.m.

Roy,
First of all I did clearly state that the bankers are the ones who should be criminally responsible and the homeowners should be fiscally responsible. I never used the term “deadbeat” at all. Unfortunately for most of those who are under the threat of foreclosure, nothing short of the taxpayers taking over their payments will save them. Your clearly wrote that the banks would just be coming back for TAP2, TARP3 etc.. Is that what you think should be done, you and I pay for those who cant?

We tried to get help but got turned down.  Had all the requirements: Fanny May, under water, had paid 20% down, all good. 

Except, Chase saw that we had a link of credit (through them) and said, sure, we’ll do it, after you pay that off.

I don’t blame the current government, really.  Nor the previous. They both believed that the banks would either care about us or are too scared not to.  In reality, the government underestimated how aggressive banks are at aquiring profit. 

Knowing this now, what the government should have done (and apparently still can) is use that money to help people that didn’t cause this mess but are victim of it.  Those that did cause it (including bankers) should be on their own.

Thomas- I apologize if you feel I put words in your mouth…it was NOT my intention.
You must know that I am just a carpenter by trade and not a financial analyst. Although I do feel alot of common sense in this particular issue (housing issues) is not being administered.
In my own uneducated and humble opinion, we should have never bailed out the banks. The money spent would have been better served in regards to job issues. The banks have very clearly shown they have no true or meaningful desire to impliment the Obama’s HAMP program if it does not involve them making more money by foreclosing by whatever means necessary.
If you are curious as to exactly my stand on this issue…and my situation…you may refer to my previous posts in this media.
As I have said before…I have not had the attitude ” the banks were bailed out, what about me”. I have not sought out principle reduction…only extension of terms and interest reduction. For these requests (which should not cost you or the investor any more money), I have had my credit score negatively affected and false claims put into my credit reports. Along with denial of being reimbursed for escrow overages due to me. All just for asking to be considered. Do you feel this is proper? Along with seeing my retirement being depleted by their actions ( i.e. the putbacks they now face in light of their toxic mortgage backed securities, CDO’s and such).I was raised to help and share ( I still feel the same)...but I DO Not believe my parents meant to enable those who already have enough, to be made eligible for everything I have worked and sweated so hard for all my life. I would be glad to even pay more taxes if I could be sure it would help those less fortunate than myself…and not those already having more than needed. Thomas, please do not feel my comments are directed to you specifically. This world as I know it has been going to Hell in a handbasket for some time now. Sad thing is it can be avoided. Please PRAY!

Thomas Solyan

Nov. 12, 2010, 4:06 p.m.

The main point I would like to reiterate is that:
The bankers who are responsible for fraudulent loans and unfair repayment plans need to be prosecuted under criminal codes. One thing I am sure about criminal codes is that they provide for the victims in terms of monetary reimbursement, and, if that means that individual loan officers become responsible for the bad loans that they gave, then so be it.
As well, many of the people who signed for these loans that sounded too good to be true at the time of signing knew something was up, but thought they would get away with it, period. Not all of them obviously, as some had medical issues and what not which prevents them from making their payments. The banks then seize upon their jugulars by just raising the principal and interest to unattainable levels.
These bailouts will do nothing but put more money in the hands of the lobbyist, bankers, and politicians, as well as string the home non-owners along when they unfortunately need to walk away and save us all, and not just them, the money.

I like this thread.  Unlike the Nov election, everybody is telling what they feel and from the heart without taking loose facts out of context.  I think we all agree that we were taken advantage of and nothing is going to change.

Now I do have a couple of unfair advantages, information wise.  The first was that my wife was a banker and when we got our loan, she saw through their scams and we walked out of several banks.  The big on was what they called ARM.  This is meant purely to make significantly profits at our expense.  But the fact that they act like these are normal amazes me.  Plus, this comes from “co-op” banks too, the ones that are supposed to be customer owned.

The second is that I am Canadian living in the US.  We sold our property there to buy here.  But what I’ve learned is that the banks there simply cannot pull hijinx like this and other stuff.  What US banks did is simply illegal there.  This needs to change.  Desperately.  The proof is in the economies.

Banks are showing that they need a short leash. They are aggressively trying to recoup lost income since the new banking laws came into affect, like getting consumers onto business credit cards because the new laws don’t effect them.  This is what they do.

Thomas Solyan-I agree wholeheartedly with your main point. My personal opinion has always been that one should be required to bring something to the table when being considered for any loan i.e. downpayment. Those who signed on for certain loans would have faired just as well (if not better) to have rented…as they were not building any equity.
There are so many scenarios…what of those concerning seperation and divorce? Should children have to suffer…when modifications could help their families stay in place? Even if they were to rent until economy gets better. I really have no answers…jsut feel more could and should be done. Those who are taking advantage (bankers or homeowners) should be ashamed. All their immoral and illegal actions are doing is making it that much harder on people who are trying to do what is right…especially in these horrific times we face.

Nissim Sasson

Nov. 12, 2010, 8:29 p.m.

Bren,  I know you don’t blame the Government and only the banks but you should, remember It was the Gov iwho started deregulating (since Regan) the Banksters so they can do anything they want without oversight and they reason the politicians did it is because the banksters have all the politicians in their packets Dems and Republican (more republicans than dems) but both

Unhappy Texan

Nov. 12, 2010, 9:43 p.m.

Thomas - the sup-prime rate loans you are talking about went long ago into foreclosure.  There are of course many underwater homes today in Las Vegas and Florida, and those are somewhere in the middle.  Many of them were high earners and thought that those in higher places would continue to provide the good life for them in the land that gave them the possibilities.  However, Most of the postings I have seen under various Propublica.org articles this year are about people who lost their jobs, many of whom have owned their home for 12 years or thereabouts with traditional interest rates.  You are about 13+ months late in your criticism of the homeowners.  Therefore, you are definitely barking up the wrong tree in that respect.

OK folks, I have a question for all of you:  What does Hugo Chavez and Wells Fargo have in common?  I guess you know about both but not enough.  Chavez one moment hugs the President of Venezuela’s neighboring country, then (perhaps he does not take his medication) and tells his people his neighbor needs to be punished, and puts a complete stop to imports.  Then he goes to the next summit and hugs the man and says that everything is copasetic.  Then he accuses the same neighboring government of something or other and sends troops to the border.  Then he decides that there were some misunderstandings.  Then he sells arms to the narco-guerrillas next door… , get my drift?  Answer:  They are both manic depressive and a dictatorship.  My friend gets attacked and threatened by Wells for standing up to them on again off again and when pressured by agencies upon receiving complaints, they send wonderful letters from the President’s Office, each with a different name.  By now the President’s Office must be running out of space for desks.  They are probably now in balconies, the basement, the boiler room, the gardener’s shed…, well this last one is not good for the winter, though your tax dollars and mine have given them enough money to install heating systems there too.

Thomas This vide will educate you what is really going on . Don’t blame homeowners.

http://www.huffingtonpost.com/2010/1…_n_782929.html

The Irony of this if you watch this video is that Henry Paulson lied to get the money from the taxpayers .

They always knew that the banks have a better financial return if they foreclose on people.

So when Henry Paulson asked for the bail out stating “this will stabilize the mortgage crisis” he had one Agenda. Rip off the American taxpayers by providing unlimited funds for Wall Street Fat cats as bonuses. Look at the date on this video.

http://www.youtube.com/watch?v=vxyRF…eature=related

Sorry this is the right website. for the above post.

http://www.youtube.com/watch?v=vxyRFSYe7ws&feature=related

work in progress…. letter to U.S. Senate Committee on Banking, Housing, and Urban Affairs.  (THANKS Gabor for the heads up in the hearing !!!)
(Part 1 of 3)
(note: much of the formatting is lost when pasted here)

Still polishing the words, but I will send my letter late tonight or tomorrow. WOW, this is exhausting!  Suggestions gratefully accepted.
=====================================

November 13, 2010

U.S. Senate Committee on Banking, Housing, and Urban Affairs
534 Dirksen Senate Office Building
Washington, D.C. 20510

RE: November 16, 2010 Hearing on Problems in Mortgage Servicing From Modification to Foreclosure.

I am happy to hear that you will be conducting another hearing on the foreclosure crisis.

Clearly the issues of robo-signers and lost paperwork have the potential to invalidate most of the mortgages in America. It also becoming increasingly hard to ignore the fact that America’s financial institutions have committed fraud; fraud so large that it nearly caused the collapse of our economy; fraud that I suspect Washington now sees from a “Too Big To Jail” perspective. 

Nevertheless, I urge you not to focus only on issues of robo-signers and lost paperwork, because there is a more immediate and easily resolved problem. That is the problem of consistent and deliberate deceit by the banks in their dealing with America’s struggling homeowners.  My personal experience with CHASE, and the fact that it is consistent with the experience of millions of Americans, demonstrates an indisputable pattern of deliberate deceit.

Below is an account of my CHASE loan modification saga.  I urge you; no I BEG you, to ask Mr. Lowman to explain this saga, point by point.

My Personal Background:

I have worked, non-stop, my whole life.  I worked in my father’s retail store since I was 8 years old.  While attending college I managed two coffee shops and then worked as a counselor in an orphanage.  After graduating in 1976, I joined Macy’s as a Christmas management trainee, and stayed with Macy’s for 32 years, until they laid me off, in June 2009, just after my 55th birthday. 

I had never collected unemployment insurance, or any other government subsidy, other than a N.Y. State Regents Scholarship…. until June 2009.

At the time of my layoff I had 2 children in college. (One has since graduated). We own a very simple 2-family home on Long Island, and I drive a 1998 minivan that I purchased used and that now has 138,000 miles on the odometer.

My wife is an English teacher in the local parochial school with a salary of $38k.

In short we were a fairly typical, hard-working, middle-class, American family, not “deadbeats”.

Our Home and Our Mortgage:

Our mortgage is not a “liar’s loan.”  It is a typical predatory ARM, originated with WAMU’s Long Beach Division. (One that we were admittedly foolish to sign, not realizing that the mortgage broker was receiving financial incentives to steer us to a more costly loan.)

Our home is not underwater.  We have at least $160k equity at today’s housing values.

Despite my lack of employment, we paid our mortgage on time for months.  Then, just as we missed a single payment, we received advertisements from CHASE stating that they could help struggling homeowners with legitimate hardships such as loss of job. 

I saw this as the “silver lining” to our difficult financial situation, a way to take advantage of the historically low interest rates, and keep our home, so I checked out the government’s “Makinghomeaffordable.com” web site, entered all my numbers, and was told that we might well qualify for a modification, and should apply with our bank.


My Indredible CHASE saga:

Following is a point by point account of the abuse we suffered since we applied for a loan modification with CHASE bank.  I think it’s an unbelievable story of incompetency, dishonesty, and harassment.  Please compare the published CHASE guidelines to their actual actions:

The CHASE web site

(https://www.chase.com/chf/mortgage/hrm_loanmodification)

states specifically:

“Four key steps in the loan modification timeline”

1.  “Determine eligibility”
“Use our quick assessment tool to determine if you may be eligible for a loan
modification.”

====> I did, It said we were eligible and should apply, so we did.

2.  “Review & Analysis”

“After we receive your package, a home retention specialist will review all the information you’ve submitted to confirm your eligibility for a loan modification. This review process may take up to 30 days.”

====> They moved our home to foreclosure status FIRST, then responded… It took MORE than 30 days.

(continued in a subsequent post)

work in progress…. letter to U.S. Senate Committee on Banking, Housing, and Urban Affairs.

(part 2 of 3)

3.  “Trial Period Plan”
“If your loan modification request is approved, you’ll receive a letter from Chase explaining the terms of your loan, the amount of your new trial period mortgage payments and the next payment date. When you receive this letter, you’ll begin a three-month Trial Plan. Making your mortgage payments during the trial period is essential, because it shows us that the new loan terms will work within your budget.”

====> We did receive this letter, only the 3-month trial lasted FIVE months, and it was a CHASE rather than a regulated HAMP trial. They failed to warn us that our credit scores would be ruined while making trial payments, and that we’d be liable for late fees, and foreclosure-related legal costs.

4.  “Final Modification Agreement”
“If you successfully make your payments during your trial period, and the documentation you provided supports the home retention specialist’s initial review, we will approve your request and your loan modification will become permanent.”

====> We made FIVE trial payments on time. All the required documentation was submitted, and resubmitted, and resubmitted again, on a timely basis, with accurate figures. Not one thing changed from the documents we submitted for “initial review”. Nevertheless we were rejected for a permanent loan modification.


Throughout the Loan Modification process CHASE did one despicable things after another:

•  Saying 2-family homes are excluded. (1-4 family homes qualify).

•  Saying in writing, that 31% of our income was NOT less than our housing expense. It is by a huge margin (Approx. $5,700 monthly income and $3250 monthly housing expense), and they have since conceded this fact…but only verbally, not in writing

•  Sending a package marked “FORECLOSURE” in large letters to my former work address, at Macy’s. even though this was not an address used with CHASE, and they knew the very reason for my hardship was that I was laid off from Macy’s about TEN months earlier.

•  After I sent a written complaint about the foreclosure package sent to Macy’s, CHASE sent ANOTHER foreclosure package to Macy’s, marked “Personal and Confidential” in an UNSEALED envelope!

•  Telling me that we were probably rejected from HAMP and would probably be rejected from a permanent CHASE modification because we had TOO MUCH equity in our home.  When I suggested that this made us more reliable candidates for modification, and asked if they didn’t want to keep us in our home, they (Bonnie) explained that CHASE had no interest in keeping us in our home. She explained that they were a loss mitigation department, and that they could minimize their losses by foreclosing on us, since we had sufficient equity to cover the mortgage commitment.

•  Formally rejecting us for a permanent modification, in writing, because 31% of our income was NOT less than our housing expense. (Still not true. 31% of $5700 is $1756, clearly less than $3250.)

•  After I disputed the rejection, CHASE sent a new, formal rejection notice, stating the nebulous reason of “Negative NPV Result”, an essentially meaningless reason, leaving us no room for dispute.

•  Two days after the last formal rejection, sending us a letter stating that we would be dropped from the modification program because we failed to provide requested documents including a DEATH CERTIFICATE and proof of Social Security DEATH BENEFITS !!  (No one here has died, but I must admit CHASE has forced me to consider a self-induced death, as a possible means of escape from CHASE loan modification hell !)

•  When I called after the final rejection notice, asking what we could do to keep our home, and offering that I might tap my retirement accounts or borrow from family, CHASE suggested we apply for a Loan Modification! When I explained that we had just been rejected after a 5 month trail, they said that we were rejected by the “Imminent Default” department and should now re-apply, from scratch, with the “Loss Mitigation” department.  I explained that all the employees I had spoken with over the many months had claimed to be with the “Loss Mitigation” department, but CHASE simply insisted that we should re-apply. 

I learned 2 days later that CHASE had just frozen over 50,000 foreclosures.  Clearly their plan was to squeeze out a few more trial payments, while they cleaned up their paperwork mess, and could complete the foreclosure on our home.

(continued in a subsequent post)

work in progress…. letter to U.S. Senate Committee on Banking, Housing, and Urban Affairs.

(note: much of the formatting is lost when pasted here)

(part 3 of 3)

We do NOT want our home free and clear because of paperwork errors.  We are NOT deadbeats. Our loan was not a “liars loan.”  Our home is not under water.  We have over $160k equity. But those S.O.B.‘s at CHASE handled our loan modification request in a deliberately dishonest manner. Their behavior is despicable. In essence they kicked me while I was down and out, all the while claiming they were trying to help. So, if they can’t produce the paperwork, SCREW ‘EM !!

Mr. Lowman’s CHASE bank made a commitment that we would get a trial modification if it was justified by our numbers, and permanent modification if we made THREE trial payments on a timely basis, and if our submitted paperwork proved to be accurate. We complied with all those terms. CHASE should be MANDATED, by the government, to immediately make ours a permanent modification!  The falsely filed foreclosure should be reversed (not just halted), and all the related fees credited back to our account.

Every home owner who submitted an accurate loan modification request and made THREE trial payments on time, should immediately receive a permanent modification. They have met all the requirements. The very worst that could happen is that they will eventually foreclose at a later date. But millions of these hard working, honest Americans will keep their homes!

For those whose homes really can’t be saved they at least deserve humane and honest treatment, and a “soft landing”.  This is AMERICA!  These are our fellow AMERICANS!

Again, I BEG you to at least make Mr. Lowman (indeed a “LOW MAN”) publicly explain his banks behavior point by point, rather than allowing him and the other fraudulent bank officers to falsely testify that they are trying to help!

Clearly there are some homeowners who knowingly gamed the mortgage system to get loans they didn’t qualify for, and some whose homes just can’t be saved no matter how their loans are modified, but the facts, if our government cares to expose them, show that the financial institutions knowingly created the entire economic disaster while Washington turned a blind eye to this massive and pervasive FRAUD. 

NOW WE NEED YOUR HELP TO SURVIVE!

Sincerely,

Jxxx Sxxxxxxxxxxxx
(516) xxx-xxxx

You Can fax it too. 202 224 5137

After this long letter enjoy this video


http://www.youtube.com/watch?v=PTUY16CkS-k

Gabor-
I am sorry you have gotten yourself in over your head, but why should I and the other tax payers have to pay for you. The bank and you made the deal, and, if you have gotten the short end of the stick, then sue, or prosecute. My last paycheck had more than $500 taken out and I am tired of paying for FRAUD, WASTE, and ABUSE!
The site you sent me to has just reaffirmed my view that the whole process is tied to those three words above, for all involved. You can not spend what you do not have. I am 43 and have made the choice not to have children or buy property until I can afford them, which may be never. Why should my $86,000 (near 1/4paid) student loans be any different that your home loan? I made the deal, and I pay. If some unforeseen circumstances happen, then my family is responsible for those loans and will lose their property if they cannot pay. I made the deal, I work 48hrs a week and take more classes at night so as to be able to pay. Buck UP, I have my own bills not to have to worry about yours.

Thomas I think you don’t get it.
Nobody is asking you to pay my bills. Ignorance is a good place for you to hide behind.
If you knew how CDOs and derivative works than you could understand.

Maybe you should tell Goldman Sucks that you don’t want to pay their bonuses. Because your $ 500. that was taken out of your paychek just went to some Wall Street jerk to pay his or her bonuses, and not my bills.

Maybe you should not be on this website either. We don’t want to hear from people like you.
When you get educated about who this fraud was engineered by than you will realize you are clueless or maybe you are a banker.

When you say we, are you propublica? I wish I were a banker though as I would be getting big money off people who really don’t understand CDO’s and derivatives. My expensive education taught me enougt not to sign things I do not understand. Have you even taken the time to read the main points of my previous points? If you did not just resort to personal attacks like most do when their ignorance made them feel trapped you would understand what I wrote. By the way, how much do you pay weekly from your salary? M

I will make this my last post but I will stand on the fact that the money not spent, is best not spent. We should not waste another dime on this whole thing unless it goes towards prosecutions, which I would hope would involve high fines and restitution.

I thought earlier you stated this amount was taken out from your two week paychek. LOL

Thomas- You lost me friend when you stated, “I wish I were a banker though as I would be getting big money off people who really don’t understandCDO’s and derivitaves”. Surely you would agree that there are enough of these types of individuals at the present time!
As far as who pays what in taxes ( let’s turn this into a real pissing match…I had almost $650 per week deducted from my paycheck…with the privilege of not having a dry thread on me by 9 a.m. in the morning, stumbling around in lava rock and carrying a tool bag that weighed close to 45 lbs. ) what is the significance? I know men who sit in an office that pay as much in taxes as I make in a year.
I believe what people are trying to tell you is that YOUR money is not necessarily going to pay their mortgage. We have paid our taxes all of our lives. You should feel blessed that you have work that was not affected by these crooks. I would expect you would be upset that YOUR money went to bail these thieves out of the mess they made. OH, but I forgot…you aspire to do the same things as they have done. For that I am truly sorry!

I admit to being human and responding in kind when someone throws something like this
“you will realize you are clueless or maybe you are a banker. “
And maybe I am clueless, but I am certainly no banker, nor do I wish to be one. I am a wide open book and the first page reads money not wasted is money saved.

Roy Thank You for coming to defend my view.
Don’t forget to send your letter to the Senate Banking Committee. The hearing is on Tuesday. If you don’t have the fax # you can find it here.

How many more will have to die before our government realize something has to be done to help homeowners?

Watch this video

http://www.thebostonchannel.com/r/25769519/detail.html

Gabor-One very sad video…from the article you could surmise that his marriage was also ruined (just don’t know why he felt he had to take those poor dogs with him?) Please know that I am not necessarily defending your point of view, as much as I am trying to understand everyone’s opinion. Only then do I voice MY opinion…I may be right or wrong ( according to who is reading and if I have the facts correct). Two things I am sure of though…I speak from my heart and with the honest of my convictions. As such, Gabor YES I have my letter ready to send tomorrow along with a petition most in my neighborhood have signed. Only hope the right eyes view.
Thomas-I believe you to be a good man at heart…and it is good to know you don’t want to be a banker and take advantage of others. I too come from family that valued “money not wasted is money saved”. I saved what money I could my entire life…to finally be able to afford to buy my first home at the age of 48. I, like so many others, just bought at the wrong time. For being prudent now I am supposed to accept losing almost 80k I put into my home less than 4 yrs. ago? It is also almost 80k underwater…in this case almost anyone (including bankers) would have just walked away. This on top of losing almost a 3rd of my 401(k) and pension accounts back in 2008. ALL for the GREED and GAMBLING of these banks. As I told you before…feel fortunate you are renting. I know you will make good on your student loans…just pray that you continue to be able to have that opportunity (via a job). PLEASE understand that there are people commenting who are in a world of hurt right now…not all of the stories are alike. But, realize it or not, we are ALL in this together…some just affected more than others.
Unhappy Texan-I see that sometimes you write in somewhat of riddles at times…I for one get your meaning and agree wholeheartedly!

nissim sasson

Nov. 14, 2010, 1:51 p.m.

Thomas, maybe the only way you will get it is if we show it you like alittle kid with animation
here is another video for you to enjoy have fun

http://www.youtube.com/watch?v=RwetW1B3J8A&feature=player_embedded

nissim sasson

Nov. 14, 2010, 1:55 p.m.

Thomas, In order for you to get it, Maybe we have to show it to you like a little kid so you can understand it better here is a video anmation for you, Enjoy..

youtube.com/watch?v=RwetW1B3J8A&feature=player_embedded

I am sure you all know in CA. home prices are higher then many other parts of the country.

Here in S. California I know several people who bought homes for $750.000 and $800.000 on the top of the market with $300.000 and $400.000. down payment.  For a few it was their life savings
they used for down payment.

All of these homes now only worth $ 300.000. and less if you want to sell them.  As many of the jobs have been outsourced these people unable to afford their mortgage payments. What about them?

Do you think fraudalent appraisers who artificially blow up these prices are around to find? No. Also the banks inflated these homeprices because the interest was so low.  Also some of these people got ARM loans to find out their payments are rising. This mess is hurting many people all over in the USA.

But don’t forget one thing the mortgage buble was created by the Fed. All the bankers who made trillions of dollars selling these loans now laughing all the way to the bank. Goldman Sucks is behind many if not all of this mess. They actually bet aganist many of the people, that they will not be able to make their mortgage payment. And they collected billions while homes got foreclosed.
Which is against the law . This law was passed in 1933

For Pete sake, you people are not getting it, Chase Bank sent people out a damn brochure stating,
if you are having trouble or think you might have trouble
paying your mortgage call and WE WILL HELP YOU
They don’t!  This is going to be one of the biggest scams in American History, all you people think everyone had a house that is underwater, well that’s not true, and these banks were getting people to get into a home modification, I believe to take there home.
Are home is not underwater we have been paying a mortgage for over 15 years and never missed a
payment and we wanted to keep it that way, so we, never thought our bank, Chase Bank would ever have put us in the shoes we ended up in, we were NOT late, but, we seen the brochure in our mortgage statement and thought well maybe we should try,
what it was suppose to do was lower your interest to about 2% for five years so you could have a cheaper payment so as not to get into any financial trouble, our interest rate is 6 3/4 so it would have helped us, we did the six months forbearance. We were never were late never missed a payment, but that’s when the nightmare began,they never followed through
they had you do all the work, the calling the faxing the sending and more calling, and when you started getting notices that you are now six thousand dollars behind you start to freak out and call them and they say, “DON"T WORRY” they send them out to everyone, then it’s send in your paper work, you do, more times go by and it’s oh you missed something, fax that, you do, now you get a letter your 9 thousand dollars behind, then you get a letter your loan was deneide so you call again, oh we can get you into another program, more time and a new balance 13,00.00 due. They ask for more documents the same one’s you have faxed over and over again, this is the part people are NOT GETTING, during this time,  months and months, life goes on, kids, kids who have graduated college still not able to find a job other than a part-time minimum job so your helping them, kids are getting married you help them, all the while thinking your bank is going to do what it said in that */*** brochure, If we would have been told what a home modification loan was going to be,WE WOULD NEVER SIGNED THAT PAPER. and a real killer is we had sent in the mortgage payment but still had to come up with 1500.00 to get into the */*** forbearance program.  This was out an out FRAUD and a SCAM to the American tax payers. Chase Bank and all the others BOA. Wells Fargo, Etc. should be held accountable for there actions, and god willing maybe they will.
  As of now we have a 16000.00 balance, we do have and attorney, are loan was so to IBM lender processing service and we have sent the packet to them to see if they will modify our loan, if not we will most likely file chapter 13 and be done with the whole */*** mess. We are not horrible people not paying our bills just people who got into a horrible mess, THANK YOU CHASE BANK

              Wayne and Linda

Wayne and Linda,

Please fax your story to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, ASAP so they have ammunition this Tuesday, when addressing Mr. Lowman, who will appear on the behalf of CHASE bank, and undoubtedly tell the committee, once again, that he wants to help struggling homeowners.

Gabor has listed the fax number, above.

Thx!

...just faxed my laetter to the committee.  I hope it has some value, becuase it cost $40 to fax… $40 that could have gone to pay off the CHASE foreclosure fees:

      Jxxx Sxxx
99 Any Road North, xxxxxxxx, New York, 99999

November 13, 2010

U.S. Senate Committee on Banking, Housing, and Urban Affairs:

RE: Nov. 16 Hearing on Problems in Mortgage Servicing From Modification to Foreclosure.

While it is apparent that improper processing of mortgage documents may invalidate many mortgages, and foreclosures, I urge you not to narrow the focus of this hearing to robo-signers and lost paperwork.

There is a more immediate and easily resolved problem, the problem of deliberate deceit by the banks in their efforts to drive America’s struggling homeowners to foreclosure by abusing the loan modification program. 

Attached is an account of my CHASE loan modification saga.  It documents what CHASE promised, and what they actually did. As incredible as my story is, it isn’t unusual. It is indicative of how the banks have dealt with most of America’s struggling homeowners.  I urge you, no I BEG you, to ask Mr. Lowman to explain this saga, point by point, rather than allowing him and the other bank officers to falsely testify, as they did in June, that they are trying their best to help.  Please caution them that they may be “too big to fail”, but not “too big to jail”.

We do NOT want our home free and clear because of paperwork errors.  We are NOT deadbeats. Our loan was NOT a “liar’s loan.”  Our home is NOT under water.  We have over $160k equity. CHASE handled our loan modification request in a deliberately dishonest manner. Their behavior is despicable, in essence kicking us while we were down and out.

CHASE made a commitment that we would get a trial modification if it was justified by our numbers, and a permanent modification if we made THREE trial payments on a timely basis. We complied with all those terms. CHASE should be MANDATED to immediately make our modification permanent!  The falsely filed foreclosure should be reversed (not just halted), and all the related fees credited back to our account.

Every home owner who submitted an accurate loan modification request and made THREE trial payments on time should immediately receive a permanent modification. They have met all the requirements. The very worst that could happen is that some will eventually foreclose at a later date, but millions of hard working, honest Americans, will keep their homes!

For those whose homes really can’t be saved, they at least deserve humane and honest treatment, and a “soft landing”.  This is AMERICA!  These are our fellow AMERICANS!

The financial institutions engineered the current economic crisis. They received bailouts, paid themselves record bonuses, and are moving aggressively to displace as many homeowners as they can. The government failed to protect us despite all the evidence of fraud.
 
NOW WE NEED YOUR HELP TO SURVIVE!

Sincerely,

Jxx Sxxx
(516) xxx-9999

(CHASE Saga in subsequent posts)

Letter to Senate, part 2

(some formatting lost here)

My Personal Background:

I have worked my entire life.  I worked in my father’s retail store since I was 8 years old.  While attending college I managed two coffee shops and then worked as a counselor in an orphanage.  After graduating in 1976, I joined Macy’s as a Christmas management trainee, and stayed with Macy’s for 32 years, until they laid me off, in June 2009, just after my 55th birthday. 

I had never collected unemployment insurance, or any other government subsidy, other than a N.Y. State Regents Scholarship, until my layoff in June 2009.

At the time of my layoff I had 2 children in college. (One has since graduated). My wife and I own a very simple, 2-family, home on Long Island, and I drive a 1998 minivan that I purchased used and that now has 138,000 miles on the odometer.

My wife is an English teacher in the local parochial school with a salary of $38k.

In short we were a fairly typical, hard-working, middle-class, American family, not “deadbeats”.


Our Home and Our Mortgage:

Our mortgage is not a “liar’s loan.”  It is a typical predatory WAMU/Long Beach A.R.M. that we were admittedly foolish to sign, not realizing that the mortgage broker was receiving financial incentives to steer us to a more costly loan.

Our home is not underwater.  We have at least $160k equity at today’s housing values.

Despite my lack of employment, we paid our mortgage on time for months.  Then, just as we missed a single payment, we received advertisements from CHASE stating that they could help struggling homeowners with legitimate hardships such as loss of job. 

I saw this as the “silver lining” to our difficult financial situation, a way to take advantage of the historically low interest rates, and keep our home, so I checked out the government’s “Makinghomeaffordable.com” web site, entered all my numbers, and was told that we might well qualify for a modification, and should apply with our bank.


My Indredible CHASE saga:

Following is a point by point account of the abuse we suffered since we applied for a loan modification with CHASE bank.  I think it’s an unbelievable story of incompetency, dishonesty, and harassment.  Please compare the published CHASE guidelines to their actual actions:

The CHASE web site

(https://www.chase.com/chf/mortgage/hrm_loanmodification)

states specifically:

“Four key steps in the loan modification timeline”

1.  “Determine eligibility”
“Use our quick assessment tool to determine if you may be eligible for a loan
modification.”

====> I did, It said we were eligible and should apply, so we did.

2.  “Review & Analysis”

“After we receive your package, a home retention specialist will review all the information you’ve submitted to confirm your eligibility for a loan modification. This review process may take up to 30 days.”

====> CHASE initiated a foreclosure FIRST, then responded… It took MORE than 30 days.

3.  “Trial Period Plan”
“If your loan modification request is approved, you’ll receive a letter from Chase explaining the terms of your loan, the amount of your new trial period mortgage payments and the next payment date. When you receive this letter, you’ll begin a three-month Trial Plan. Making your mortgage payments during the trial period is essential, because it shows us that the new loan terms will work within your budget.”

====> We did receive this letter, only the 3-month trial lasted FIVE months, and it was a CHASE rather than a regulated HAMP trial. They failed to warn us that our credit scores would be ruined while making trial payments, and that we’d be liable for late fees, and foreclosure-related legal costs.

4.  “Final Modification Agreement”
“If you successfully make your payments during your trial period, and the documentation you provided supports the home retention specialist’s initial review, we will approve your request and your loan modification will become permanent.”

====> We made FIVE trial payments on time. All the required documentation was submitted, and resubmitted, and resubmitted again, on a timely basis, with accurate figures. Not one thing changed from the documents we submitted for “initial review”. Nevertheless we were rejected for a permanent loan modification.


Throughout the Loan Modification process CHASE did one despicable thing after another:

(Continued in Subsequent Post)

(continued from previous posts)

Some formatting lost here.


Throughout the Loan Modification process CHASE did one despicable things after another:

•  Falsely stating that 2-family homes are excluded. (1-4 family homes qualify for HAMP).

•  Rejecting us, in writing, for a HAMP modification stating that we failed to meet the requirement that 31% of our income must be less than our housing expense.  (31% of our $5,700 monthly income is $1,767, far less than our $3250 monthly housing expense. See attached NPV input values from CHASE) They have since conceded this fact…but refuse to put it in writing.

•  Sending a package marked “FORECLOSURE” in large letters to my former work address, at Macy’s, even though this was not an address used with CHASE, and they knew the very reason for my hardship was that I was laid off from Macy’s 10 months earlier.

•  Sending ANOTHER foreclosure package to Macy’s, marked “Personal and Confidential” in an UNSEALED envelope, after I sent a written complaint about the first package!

•  Telling me that we were probably rejected from HAMP and would probably be rejected from a permanent CHASE modification because we had TOO MUCH equity in our home.  When I suggested that this made us more reliable candidates for modification, and asked if they didn’t want to keep us in our home, they (Bonnie) explained that CHASE had no interest in keeping us in our home. She explained that they were a loss mitigation department, and that they could minimize their losses by foreclosing on us, since we had sufficient equity to cover the mortgage commitment.

•  Formally rejecting us for a permanent modification, in writing, because we failed to meet the requirement that 31% of our income must be less than our housing expense, even after having admitted that this was false.  (Again, 31% of $5,700 is $1,756, clearly less than $3250.)

•  Sending a modified rejection notice in response to my dispute of the first, erroneous rejection, stating the nebulous reason of “Negative NPV Result”, an essentially meaningless reason, leaving us no room for dispute.

•  Asking for my DEATH CERTIFICATE!  Two days after the last formal rejection, CHASE sent a letter stating that we might be dropped from the modification program because we failed to provide requested documents including a DEATH CERTIFICATE and proof of Social Security DEATH BENEFITS !!  (No one here has died!)

•  Asking us to re-apply, from scratch, for a loan modification, after they were forced to freeze over 50,000 foreclosures. When I called after the final rejection notice, asking what we could do to keep our home, and offering that I might tap my retirement accounts or borrow from family, CHASE suggested we apply for a Loan Modification! When I explained that we had just been rejected after a 5 month trail, they said that we were rejected by the “Imminent Default” department and should now re-apply, from scratch, with the “Loss Mitigation” department.  I explained that all the employees I had spoken with over the many months had claimed to be with the “Loss Mitigation” department, but CHASE simply insisted that we should re-apply. 

I learned 2 days later that CHASE had just frozen over 50,000 foreclosures.  Clearly their plan was to squeeze out a few more trial payments, while they cleaned up their paperwork mess, and could complete the foreclosure on our home.

(Supporting Documents Attached in Exhibits 1-6)

(END)

acmodspecialists

Nov. 15, 2010, 3:29 p.m.

I’m glad that they having this senate committee in a few days except, The names listed most frequently lobing in Washington in the logs are Goldman Sachs, with 25 meetings with regulators, and JPMorgan Chase, with 23. Jamie Dimon, chairman and chief executive of JPMorgan, was among those in attendance when a bank contingent met Oct. 8 with Federal Deposit Insurance Corp. Chairwoman Sheila Bair, records show.
Normally these meetings were secret,
The Center for Public Integrity earlier reported a dramatic rise in the number of companies that registered lobbyists seeking to influence these specific regulatory bodies. Of the companies that lobbied over the financial reform bill from January to September this year, 138 targeted the SEC, 110 targeted the CFTC, 82 targeted the Fed, and 56 targeted the FDIC. That’s up from—respectively—37, 11, 29, and 11 over the same time period the year before. up and up we go

JS- Do you mind if I ask why it cost you $40 to fax? Thanks!

This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

Banks and the government have fallen short in helping homeowners in danger of foreclosure.

The Story So Far

Systemic failures at the country’s banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, and government efforts to limit the damage have fallen short. ProPublica created an unrivaled database of homeowners who have faced foreclosure, opened a Facebook page to encourage homeowners to share their stories, wrote profiles of some of them, and incorporated their experiences into our reporting. We also provided a comprehensive rundown of the numbers behind the crisis.

More »

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