Journalism in the Public Interest

Treasury Done ‘Very Little’ to Fix Gov’t Foreclosure Prevention Program, Says Watchdog


Getty Images file photo.

Making the argument that the Treasury Department has done “very little” to improve a foreclosure prevention program that has failed to meet its goals, the government’s TARP watchdog testified at a hearing on Wednesday that the case for keeping the program alive has worn thin and is “all but exhausted” [PDF].

We’ve documented many of the major weaknesses in the government’s loan modification program—not least of which is its failure to hold banks accountable for withholding permanent loan modifications from struggling homeowners that the program was intended to help.

House Republicans are now considering a bill to end the troubled program. As the Washington Post reports, consumer advocacy groups have argued for fixing the program rather than ending it at a time when so many homeowners still need housing help.

That’s also what the program’s watchdogs have advocated—though they’re now voicing doubts that Treasury will make any meaningful fixes.

“Treasury, it seems, stands alone in defending the status quo,” testified Neil Barofsky, the special inspector general for the TARP program. Barofsky noted that last month, a Treasury official attended a Mortgage Bankers Association conference to discuss enhancements to the loan modification program and said there would be no “major new programs coming out.”

“We may tweak around the edges,” HousingWire reported the official as saying.

The Treasury Department has continued to defend the program, arguing that while the program has fallen short of its goals, it has still helped modify about 600,000 mortgages. Ending the program, Treasury has argued, would hurt the housing market.

“It would cause a huge amount of damage to a very fragile housing market and leave hundreds and hundreds of thousands, if not millions, of Americans without the chance to take advantage of a mortgage modification that would allow them to stay in a home they can afford,” Treasury Secretary Tim Geithner said yesterday.

Geithner may be right about one thing. As our data shows, by the end of last year, the program had given nearly 1.5 million households “a chance” of a mortgage modification through a trial modification. For most, that chance never turned developed into permanent help.

As much as I don’t like the HAMP program, removing it totally is only a “fix” for the plutocrats on Wall Street. I’ve about had it with this colossal attack on the American Middle Class.

Go ahead. Cancel it instead of fixing it. Want to get people to march in the streets? Do nothing and that is what will happen. Actually there will be no option because there will be multitudes with no place to live.

But before you do, remember to also cancel all healthcare for members of congress and while you are at it throw in the Supreme Court. Put all members of congress on an hourly wage, and remove all of their perks. Then require them to fly coach on all flights, and to have a witness with them at all times when talking to a lobbyist.

I could go on and on. I am completely and utterly disappointed in this country. What a sham we have made of democracy. What a sham.

I’m a bit confused.  Isn’t Treasury a part of the Executive Branch?  Does the President no longer head the Executive Branch?  Has Treasury suddenly become a stand alone entity that does as it wishes?

If Treasury is still part of the Executive Branch, then the conclusion has to be that the President either cannot control his branch of government, or, more likely, he just doesn’ care, and the program was just cynical manipulation of the middle class.  Let’s face it folks, Wall Street, Banking, and the wealthy own the Democrats just as they do the Republicans.

Indeed B C “what a sham” it is. I will be ready to march for the good of the people who are suffering waiting for help that will never arrive. I was one of these people asking for help last year and now I look back and I realize I never had a chance.
The asses that run Wall st and the bureacrats who run Washington are a bunch of con artists.
B C I cant be more eloquent then you:

“I could go on and on. I am completely and utterly disappointed in this country. What a sham we have made of democracy. What a sham”

The House Financial Services Committee pushed back debate for two bills that would terminate the Home Affordable Modification Program and the Neighborhood Stabilization Program to next week. They did vote today to cancel NSP and EHLP programs.


I have been a Republican my whole life - in the House attempt to get control of the deficit they are doing the wrong thing. If HAMP is canceled the homeowners of America will be at the mercy of the Bank/servicers. The Courts will be the last option and we are not even sure of those legal strategies yet.

I will post again in a few hours with the link to the blog of “This Egyptian Thing” with a full strategy and plan of attack. TET as we call it will be changed to Save Our Homes or S.O.H.

I am not kidding folks, we have to act now… We need a massive effort from everyone; from here, beingmiddleclass, foreclosure hamlet and any other place.

This vote today to cancel NSP and EHLP is only the start.  Even though this is only a Committee vote in the House on these two programs, and still must go to the floor than the Senate- we can not let HAMP be canceled. Yes it needs to be fixed which we are proposing but to end it will put everyone’s fate in the hands of the bank.

Lets not waste energy bashing the Republicans rather we need to gather as many people as possible. We need a concerted effort to let the Committee members know we will not put up with putting all modification authority completely in the hands of the Banks/servicers.

Will be back later.

Does anyone know WHY all of the trial mods are not

being turned into permanent mods?

I’ve been offered a trial mod, and I’m examining the

“fine print” to see how they can legally NOT give me

an acceptable PERMANENT mod if I pay all trial payments

in a timely manner…suffice to say I had to raise hell

just to get a trial mod offer…a hurricane of faxes, emails,

snail mails, etc.,shake their tree like a crazy person just

to get them to notice me!

To be continued…

P.S….as I said before in a previous comment on another related propublica article: BANKS OWN CONGRESS!
Our only salvation will be to fight
this crap with anything we can think of…believe it or not, the laws are on our side…we just have to find those laws and start litigation to make them wake up and get nervous enough to really do something for all these people that have been so damaged by the government/banks/wall street ponzi schemes…!

Karen-You bring up an excellent question. One that myself and my third party guy spoke of this a.m. I am just a few weeks away from one year of trying to obtain a mod with BoA. They finally answered me 2 weeks ago with a false denial…now in appeal stage. I could write a book concerning all the horror stories. Even have a retired FBI agent who will confirm some of the conversations, credit fraudulantly DESTROYED etc. (without even offer of trial). We have come to conclusion that the banks played this program like a fiddle. Reason many trials were drawn out so that when banks eventually told homeowners they didn’t qualify, they were then able to collect late fees, penalties, etc. plus difference in original payments and trial (arrears or go straight to foreclosure). Nifty way to also keep off of books all foreclosures at once (slow bleed) so they appear to be solvent. I was told yesterday by Treasury that the banks are not required to share info as to all of reason for denial. I honestly feel this was all planned from the beginning. As for myself it is just more fodder for the lawsuit. If you are so inclined, I hope you might help with the actions being arranged by Steve (here in these posts), as he is trying to get the underwriting out of the servicer’s hands and into a 3rd party to make the playing field level.

Walter Friedenberg

March 3, 2011, 8:42 p.m.

Thanks, Summers and Geithner.  Why did President Obama ever hire those two Wall Street favorites?

First remove all the people who are still working and making the same amount they were when they bought the house.  That would remove a large number of the applicants. 

Remember, Obama and the Democrats received much more money from Wall Street than the Republicans.  Maybe this is why they turn a blind eye to what is going on.

We have to make this happen.  Here is a strategy that I strongly believe can help.  Please, I do not mean to rude but time is of the essence - we need to act now. We need to get everyone you can to join this effort.  To sit back now and do nothing is to admit defeat.

For those who say lawsuits - that may work for people that have a few thousands to spend and risk being in the same place two years from now.

For those who say its a master plan and “all” the politicians are being paid off I do not completely agree. I will say that we have the power to make a difference but we have to try. I have put up the strategy - Please go to

As long as we do nothing those who own this country,  is the ricH the congress the all states of goverment who make up the rule as they go along,  and any other party that wants a cut of the action money money thats all that counts to them. and they so can ‘t be trusted . They are making all of us American Salves, the americans people that build this country, President Washington stood for freedom.  Our last six presidents didn’t do much except ruin the country finances. they sold all of us out to countries today UNITED STATE of AMERICA IS NOW the UNITED STATE OF THE CORPORATION OF AMERICA that why The Department Of The Treasury, Timothy Geithner the Supreme goes rigth along with them knowning what is being done the Amercian people is a volation of the UCC Codes in all states. Yes there should be petition or a march to Washington on tis matter on the stepes congress and the senate and supreme counts untill they put back the orginal consitution right back , the one we all had before 1936 when they the so called leader changed it ti fit there purpose

Well America, Looks like it is time to “WALK LIKE AN EGYPTION”!!!!!! Time to take the country back!!!

Steve:  My company has “blocked” sites with blogs, so I can’t get to your website.  Can you, perhaps, send me information to my e-mail address (.(JavaScript must be enabled to view this email address))?  I would like to join with you.  Although we DID get a permanent modifications (which took over a year and only saved us about $750/month), I still think that the HAMP program has been handled badly and needs to be fixed…not cancelled.  Let me know what I can do.  Thank you.

I’m doing my first modification with B of A did four with First Frankin asked Hope to see if they would help all I got was a no not enough income short by 500. so we hang on for five month doing the the freedom package by T im Turner then went to executor letter to reclaim the tile and mailed it to Govenor Perry,  General attorany office of the state of texas and all banks that are in the deed of trust.  we asked to show us the orginal note and all they keep sending is the deed of trust not the note nthat say owe 107000.00 on our home, still with no result. We have not pd a penny on our Morgage since 2009 we gone to the steps of the court house to make sure that the foreclosure was stop. four times We have done this now just got word that we were aproved By Make Homes Affordable the Obama so just waiting and waiting aprove because our income did go up by 700.00 so Im now at that 31%. we also join a class Action suit aaaaaaaaagainist First Frankin no word on this either Attorney’s and Judges work for the plainffs with a liltte money in there pockets. Noties have not reach us yet and will they never.

It was never meant to work as marketed by Obama.  It’s much the same as the so called healthcare “reform”.  Both programs were actually concieved to stall real reform.  Corporations are never going to go against their own profit strategy for the sake of society and some toothless sham of a program without clear rules of engagement set down by the Executive or Congress.  Obama is the king of, “Hey look what we are doing for you!” when in reality he is holding hands with Geitner and Wall Street.

Banks who received TARP funds have not “paid it forward”. Most took advantage of borrowing from Fed funds at historically low rates in addition to bailout funds used to boost their capital positions.  The homeowners were not so lucky, HAMP is voluntary and almost no second mortgages are included. It would have made sense to make refinance opportunities universal at the current 30-year rate (4.87%) regardless of CLTV and “force” banks to refinance any first or second mortages at that rate in most circumstances, but allow them to extend the term to as long as necessary (75 years) to make the payment meet 31% of a borrowers income as pulled directly from IRS.  The fact is people generally move within 12 years.  Under these terms at least the borrower would be given an option to stay and the banks would share their low rate gifts with borrowers who wouldn’t get undeserved principal reduction but would get a “fair shake” rate. Open that option to ALL mortgage borrowers in the country.

An accurate picture and good suggestions, but those who came up with TARP and HAMP are all college educated, reasonably intelligent people, I am sure.  Despite this, they came up with these toothless travesties instead of adopting common sense strategies that were bound to help main street America.  So why did this happen?  We are left with only one reasonable conclusion and that is that they intended it this way.  Which means that reason and right weigh nothing on the scales compared to greed and cash.

All mentioned here was considered in the beginning of the crisis - Sept 2008 to Jan 2009. We have to remember we are all looking in hindsight

One of the first proposals was to offer a streamline refinance program. The plan was to offer a refinance that would be done without a full doc loan. If you where current or imminent default it would have been a quick refi at rates below 4.75%.  The argument against it was the number of people that would take advantage would have been too great.  There was also a discussion of what rate would be low enough to truly impact the marketplace in terms of keeping imminent default from foreclosing. The other problem was who would pay for the program or bit the bullet, TARP or the investor.  Remember the banks where in big trouble at that time.

The 31% front end ratio was based on historic information from HUD. That is the number that worked for the past 50 years. where people should be able to pay their mortgage. The average default rate was always under 3% annually.

The reason HAMP was not made mandatory was more of an ideologically consideration. The question at the time was does the federal government have the right to mandate losses on the private sector? The decision was that it made financial sense for the investors to participate in a program so why mandate and get into possible legal challenges and the political debate by the right of nationalization of the private sector. Thus HAMP was created. The wild card that everyone but a few missed was the inability of the servicing industry to do the job.  All these loans are in Master Servicing Agreements which contractually leaves this work to the servicer hence the volunteer aspect of HAMP.

The other option at the time was to take the $700b TARP funds and purchase all the non performing paper at taxpayers expense and have the FED do the job. No one wanted to hand a massive effort like that over to the government. Instead Paulson decided to give the banks $350b and left the job up to them.

There was also the concern that something had to be done quickly to stop the downward cycle of real estate value.  The only way to do that was a basic supply and demand issue - to keep below market properties off the market, the only way to do that was to stop foreclosures, the only way to do that was a National Modification effort.  HAMP is a simple program - a loan product not much different than any other full doc product. 

We all know that many people have taken advantage of this and the servicers have screwed up beyond anyone’s imagination. However HAMP was not designed to fail but Treasury has allowed it to.  They gave the job to an industry that did not know how to originate, process and underwrite. We fought the battle for months and are still fighting it today.


March 4, 2011, 1:42 p.m.

Everyone should listen to Steve go to his page and participate the power of the people our only leverage

A bit off topic, but does anyone know if the “produce the original promissory note” tactic is really preventing some foreclosures?

I asked for mine, and they sent me a copy of one that had the words
‘copy” stamped on it…in other words, a copy of a copy…I informed them that I wanted a copy of the ORIGINAL…that they have to be in possession of the original—-not a copy—-to sell the house in a foreclosure…

Big surprise…they haven’t responded!  Hmmm….

I agree in principal which much of what you are saying, however I do not see a refinance as a cost to US taxpayers because banks would use are using today’s money rates. Nor is it ultimately a loss to the investor because if I replace an asset that pays you 10% with one that pays you 4% I have dropped your income but the principal remains static ( assuming you are not trying to make a short term trade on every interest rate move).  The tragedy is that when introduced the program allowed folks to believe that even if they were current but strapped with other debts or lacking a three month emergency fund, they would be helped. 
But servicers said loud and clear we have a special term we use to describe imminent default…CURRENT. They get no help until they default! Those who thought they were prudently seeking a way to lower their debts are now worse off.
But back to the interest reate spread discussion. What this involves is simple usury. If a bank borrows at one half percent and charges 22% on a credit card that’s theft in my opinion. In the same sense, if they made bad credit decisions which required government intervention and increased capital requirements and raised underwriting standards, it is not the struggling victims of high rate mortgages who should have to completely take it on the chin and not be able to get out from under a high rate.  I do not believe in forgiving principal in general (except for a small fraction of modifications) but rather let all refinance to an affordable payment and extend the term of the loan until it’s affordable. Second liens must also be included. To offer to modify a first lien when there was a simultaneous second lien at double digit interest is plain stupid.  This is not about buying more than you could afford because no principal is off the hook but rather an acknowledgement from the banks that we are getting saved with lower rate funds and you our customers should get a benefit from that as well.

While many people think that the banks are loosing money on foreclosed homes, in many cases the opposite is true.
In our case, after we calculated the amount of money that we paid over four years,- and what our home sold for at foreclosure- GMAC made an $85,000 profit over the original amount loaned.

All we ever wanted to do was refinance our loan, but were forced into HAMP when credit seized up. So if we had been allowed to refi, we never would have lost our home to foreclosure after GMAC moved us, without our knowledge or permission, to a GMAC Non HAMP loan that used all the same documents but had none of the HAMP protections, and a $1,000 month higher payment for the last 10 months of the loan, before they rejected our request for a permanent mod one week after they auctioned our house.

In the end, maybe it was a good thing, because after all fees and add ons to our premium, the mortgage loan would have been $569,000 for a loan that started out at $426,000 after an $84,000 down payment.
We put $35,000 into repairs and upgrades. And paid property taxes and insurance on the higher home value, as GMAC required.
The home sold at auction for $312,00 cash- and just resold for $390,000 after 4 months on the market.

I understand why everyone is focused on stopping any future foreclosures, but I urge people to look at our experience and consider what your home is now really worth and if it makes financial sense to keep putting money into the bank’s pocket.
We have sent our case and paperwork to everyone we can think of, and hope some day through a class action suit, we might recoup some of our money. But we don’t have a lot of faith in the courts, because as lawyer after lawyer has told us, judges our unwilling to overturn foreclosures or sales in California, and the banks have all the power.
There are no more American companies, just global profiteers, and our government is their biggest supporter.

You say, “They gave the job to an industry that did not know how to originate, process and underwrite.” 

I say they gave the job to an industry that was not motivated to help the people that needed help.  Instead the servicers have effectively run interference for the banks.

MikeC is right that the interest being charged by banks and credit card companies is usury. Because of our foreclosure, our credit has been ruined and the interest rate we have on our cards-and we recently looked to buy a car- is out of this world.

Never mind that we never had any other late payments or collections. Thanks Obama and the Treasury, and their gang of fools in DC.
Yes, I’m still bitter.

You have to be careful when you say banks. You have to break this issue into two separate groups; the Banks/lender which includes the GSE’s that hold the major share of mortgages, and the servicer. Even though the banks are the 4 largest servicers they do it for the investor.

As an example of the wrong industry; over 1 year ago we where in conversations with BofA to assist them in the process. Just in their third party application which is from non profits, lawyers and others they where receiving by fax 10k apps per day x a typical app with 40 pages that’s 400,000 pieces of paper a day x 7 days a week.

They did not have the technology or manpower to handle the volume of paper - no less put them all together in the right place. They still do not. Is this intentional - could be but that is a large number for any business no less an industry that was built to collect mortgage payments.

Was this done intentionally by Treasury? Politically it does not make sense; the Treasury which is part of the administration (Dems) lost the House due to the poor running of the economy.  Housing is a major component of any recovery - does anyone think it was by design for the dems to lose power or for Obama to lose in 2012 which will happen if this does not turn this foreclosure crisis around and the economy?  It is obviously more complicated than that however to say that everyone is involved is not accurate. Do we think the tea party who where major players in this past election are being financed by the banks, I do not know the answer but it does not appear so. If the banks where making so much money from Dems in power - and they have all the power why did the Republicans win?

Even though I am a conservative I fear what is going on right now - that’s why I started this effort.  If HAMP is canceled everything is left in the hands of the servicers - than I fear manipulation of the system to benefit the rich alone.

Regardless of what motives are driving this mess we need to fight to keep some sort of check on the process. Our proposal is small but if we can force Treasury through Congress to fine the servicers for not performing, we “MAY” have a chance. Through a basic tenant of capitalism - competition - we MAY force the servicers to perform.

@ Steve - actually, I think most commenters do “get” that banks and servicers are different. But, honestly, BOA will get the fees it is spinning on my loan mod app delay, they get paid off the top. Their banker hat is not a lot better or worse than their servicer hat.
Correct me if wrong.
Nice to see a conservative represent and deplore economic devastation of homeowners, to say nothing of denigration of same.
Good on ya. This is *not* a partisan issue and anyone remotely familiar with the situation and the resulting f.c. crisis would agree.
I long ago grew bored of the us vs. them meme ginned up by cable news shows hungry for ratings. The “us” is all of us who pay bills, pay taxes and expect to be treated decently by the people we elect. There is no them….

@Starry - you are partially correct. The majority of the mortgage are owned or at leased backed by the GSE’s which accounts for the $200B in losses for Fannie and Freddie.  Another large share are in the pools that are owners by all kind of investors, insurance co, city, pension funds, countries. These people are suing the servicers for screwing it up. The banks have a portion of the total but not the lion share thanks to the repeal of Glass-Stiegal in 1999.

There is some good news, 18 Senators sent a letter to Geithner and all other parties requesting three things with the last being a “third party review before a foreclosure can take place”.

We can do this folks if we get the numbers we need.

@Starry-You have always presented insightful views….your assessment of “us” is exactly on point. It is not about Dems,Pubs,Tea, conservative,left or right etc. This is OUR country and WE need to be heard. This is why Steve is trying to provide a way for US to be heard…by the people in charge and at the right time. NOW is that time (more than ever). If this comes out of committee the wrong way, it will be US that will pay. PLEASE everyone needs to go to the blog Steve has set up…with the names and times to call and e-mail these people. and click on follower or the last action March to get to recent post concerning the people to contact. We only have a few days!

steve on board all the way-i also agree w/ roy what the banks are doing is wrong.however,as you have said in the past,if hamp isnt implemented properly we’re doomed and the only recourse left is w/ the courts.and how long would that take .how many people does it take to be foreclosed on for our government to finally see. sounds like dylan.anyway,i think we may already be there.hamp may cease to exist ( which i hope w/ all my heart doesn’t come to pass) which leaves us w/ the courts.look at the nevada ag’s lawsuit against bofa.guy nailed it about 87%.which to me is impressive.will be phoning and e-mailing all weekend as per your noble endeavor.i encourage all to visit your site and blog and get involved.

one other thing steve, i am not real computer savvy and i think that may be why i wasn’t able to become a follower. i tried.perhaps it could be simplified for us

I will check with gaby.

Folks today’s news is big for our effort - we basically have 18 US Senators that agree with us for “third party review”.

steve can you give us the contact info re the 18 us senators? i will start tonight and all of the homeowners i have either helped or am in the procees of helping are on board as well.tnx

We will work on the Senators next. We need the current target as listed on the blog. We have to get the House to move in the same direction.

got it

Unhappy Texan

March 5, 2011, 3:25 a.m.

I am also a volunteer for Steve’s cause.  If you want to join his effort, please go to his updated blog as posted by several of the other volunteers.  Or, after the http colon double slash, you can also cut and paste the following to access either his general blog which is always kept up-to-date, or to join or read his twitter updates as follows:

If you want to become a volunteer, please let him know.  The only way to get enough power to influence a vote is with enough numbers.  e-mailing and telephone campaigns will be useful.and we will need all the help we can get.  It may be late for some, but we can help those who have not yet been denied permanent approval.  And just in case you do not know, the rejection for permanent approval is generated by an underwriter even if the person qualifies and had already been approved. You may not have seen it happen - I have.

This is how I would solve this mess.

Everyone who has been offered previously a trial plan and made the 3 trial payment in good faith should get their mortgage modified permanently for the same amount.

The Banksters entered into a contract with the homeowners.
When they sent out ” you don’t qualify ” it is BS. They should of evaluated it before entering into a contract.

If the homeowner can prove that he or she made three payment, this will be the payment for the remaining term of the loan. Loan are considered modified.

Case closed.


I agree with most of your commentary, but I think you are leaving out an important point.

You wrote:

“The reason HAMP was not made mandatory was more of an ideologically consideration. The question at the time was does the federal government have the right to mandate losses on the private sector? The decision was that it made financial sense for the investors to participate in a program so why mandate and get into possible legal challenges and the political debate by the right of nationalization of the private sector. Thus HAMP was created.”

This gives the impression that HAMP is a well intentioned program that simply has a few flaws, when, in fact, HAMP is a scam. 

HAMP may not mandate when a bank must give a modification but it does MANDATE when it cannot.  HAMP MANDATES that the mortgage investors loss from a modification must be less than the expected loss from a foreclosure….effectively disqualify homeowners with equity.

The banks will give TRIAL mods even though they have no intention of making those modifications permanent.  Trial mods. are a way to squeeze out a few more bucks, insuring foreclosure by tacking on penalties and legal fees, ruining the homeowners credit, while dual-pathing them to foreclosure.  The servicing bank makes far more money servicing delinquent mortgages, and processing foreclosures. Then they can tap into the home owners equity via foreclosure, to recover all the excessive fees, and legal costs, making a tidy profit.

And don’t believe for one foolish second that guys like Geithner didn’t know this from the start.  HAMP was a program to help investors, not homeowners.  Geithner doesn’t give a damn about homeowners. When the banks were forced to freeze their foreclosures Geithner depicted it as an act of good conscience by the banks, stating on the Charlie Rose show that the banks had chosen to freeze their foreclosures to make absolutely sure they didn’t foreclose on anyone who could afford to “SIT IN THEIR HOMES”  [not KEEP their homes].  does this sound like a guy who cares about homeowners?

I’ve been SITTING in my home since CHASE rejected our modification in September after we submitted accurate paperwork and made FIVE timely trial payments.  I just found out that while we were making those trial payments they went to court, had a conference in June, and subsequently got a default judgement in August. We never even knew about the court dates, and, again, we were making trial payments from April through August.  Two days after ending our trial, they added insult to injury by sending a letter threatening to drop us from our trial (which they had already done), if we failed to provide a DEATH CERTIFICATE, and proof of SS Death benefits! (No one here has died, and yes this written request was quite specific, not a form letter that simply included a generic list of documents including a death certificate.)

And, just for the record, I checked with my doctor, and he insured me that I am in fact, alive.

One last note. My foreclosure package includes the fraudulent assignment of my mortgage to a Deutsche Bank mortgage trust, dated Feb. 2010, signed by known robo-signer Barbara Hindeman, even though the trust’s strict guidelines require that all assignments be complete in 2006. 

...whoops, one more note.  Deutsche Bank filed suit this past September looking to put thousand of mortgages back to Chase due to false reps, and grossly substandard underwriting, with their proof coming directly from Senate testimony from WAMU (now Chase).  The trust containing my mortgage is included in the suit.

But I’m still SITTING in my home hoping for a permanent modification.

JS and others who have been there demonstrate time and again that HAMP was indeed a scam that was marketed as a good faith program but has turned out to be anything but.  Its a sham rescue with 100 helicopters showing up and eighty flying away empty as desperate people watch.

JS - I think your situation about the Death Certificate supports my position of this mess being caused by the servicer. What apparently happen in your case is that someone else hardship letter was attached to your file. Like you said it was not a form letter that you would think would be used if it was a ongoing strategy to drag out your file and thousands of other peoples.

Please do not get me wrong - the servicers are delaying the process to increase profits but these potential profits where discovered as the process evolved. You use Chase for an example; my Director of Operation use to run Chase sub-prime lost mitigation dept in San Diego - she has over 50 former employees that still work for chase waiting to move to aahmp member companies once we get a contract.  One reason is they have mandatory 10 hour days plus 8 hour Saturday. But what they hate the most is how poorly the process is running.

With regard to NPV - that did not come from Geithner.  In July 2008 when FDIC took over Indy Mac the FDIC started to put a major effort into modifications. Remember the Rep and Paulson where still calling the shots. Sept 2008 hit - the decision was made by Paulson for TARP.  Sheila Bair FDIC started this new modification program at Indy Mac, she was the only authority associated with the Government that had any type of modification plan that could be used on a National Level.  I think it was in late Oct or early Nov the FDIC put the plan together and called it “Mod-in-a-Box”.  Part of the plan was NPV. It is not surprising they included it because it is the FDIC job to keep the banking industry solvent. You also has to remember that this was mainly a sub-prime issue at the time and was not not expected to have a major impact on conventional mortgages. Unemployment did not hit yet.

Obama and the Dems won in Nov, Geithner really started working in Dec.  I am not defending Geithner but at the time no one wanted to go to work at Treasury.  Everyone knew the economy was a mess, many of Paulson management at Treasury did not want to stay. If I remember correctly Geithner only had 32 spots filled by Apr.

With the pressure mounting on Obama and the Dems to do something they took the FDIC plan and many components of the plan we submitted and MHA was born. There was only one problem - their was no one in charge of running the program plus the people they had working on it did not have that much experience.

I can go on for hours but my point is; according to your position Geithner who was not even in charge yet - put this plan together to collapse real estate values in the US and steal all these homes. If you remember Sept 2008 to Apr 2009 Treasury was trying to stabilize the world financial markets from collapse. You would be amazed by questions I was asked in later 2008 early 2009 by the people responsible to fix the problem. I had to explain to so many people what a modification even was. 

Has the landscape changed, yes, are people making a killing on this - yes. Did anyone know the servicers would screw this up (we did) or robo-signing or MERS or note following the deed - no.  These are all situation that have developed because of a poorly run process.

Geithner and Treasury have failed and continue to do so. This system is so screwed up.  Am I right with my take on it only time will tell.  If we get our way with the neutral third party review and things do not get better than I am wrong. What I do now is that in the early stages I was in Washington many, many days involved in this. I spoke with the people that where making the decisions on strategy and I lost some of the arguments on policy. Where there outside forces “in the beginning” effecting policy, I do not think so.

What needs to happen is we have to fix it - change what can be changed now.  If HAMP is canceled than we are in really big trouble.

Will - I would suggest people read the HAMP manual, once you do that I think you may have a different position on where the problems are.

One simple example.  sd1001 - the servicer has to acknowledge in writing with in 10 business days the file has been received.  The full underwrite has to be completed with in 30 days and a answer has to be given to the applicant in writing in that period.

Question - how many people have received that service? Does that mean HAMP design is bad or is it the servicer ignores the guideline. 

HAMP calls for a full underwrite prior to a trail mod which would be in that 30 day window.  At the end of the 90 days the only additional doc required for a permanent mod is a verification that your income remains the same.

I will ask the same question as above.

Are there problems in HAMP -yes but if they are fixed and the servicers are held financially liable to for meeting those guidelines than it can save many people homes and do it quickly. And if the application does not qualify everyone can move on.

Steve—-I’m going to be annoying for a second—-quite often in your postings you write the word “where”, when it should be the word “were”...
I only bring it up because it’s a little confusing…but thanks for all your insight…I appreciate it!

But boy, they were Johnny on the spot when it came to “fixing” Wall Street’s, FUBAR, weren’t they…?

well all that won’t be fixed anytime soon for us if we don’t get the answers that we need we are going to give up and go back to ca.were we are from. in all of this mest we thought we were set with ssa and penions and could live out our years in peace out here in texas my hubby home state, but my husband lost is beneifits in half we have been going forward since 2008,  we had a hard lost of my sons death, then the cut in income in 2009, 2010 was even harder try to make ends meet but we finished the year. we pick up the income and still short by 1 thousand to be able to live norman again. we all have bumps in the road but with help of the dear lord Jesus Christ this country will sucessfully get to where it was

IF..we had a Treasury Dept that wasn’t just a branch of Goldman & Sachs; if we had a president that wasn’t smiling more as he moves closer to the right and if corporate financials would learn to think and act for the long term, then HAMP would probably work and be designed to work.  But I can pretend I look like Brad Pitt until I have to look in a mirror.


March 5, 2011, 10:21 p.m.



we need bigger mirrors

Unhappy Texan

March 6, 2011, 3:25 p.m.

Karen, can you read this?

Can you raed this? Olny 55 plepoe out of 100 can. I cdnuolt blveiee that I cluod aulaclty uesdnatnrd what I was rdanieg.  The phaonmneal pweor of the hmuan mnid,  aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno’t mtaetr in what oerdr the ltteres in a word are,  the olny iproamtnt tihng is that the frsit and last ltteer
be in the rghit pclae. The rset can be a taotl mses and you can still raed it whotuit a pboerlm.
This is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the word as a wlohe. Azanmig huh?
Yaeh and we all awlyas tghuhot slpeling was ipmorantt!


March 6, 2011, 3:38 p.m.

More on this…


March 6, 2011, 3:40 p.m.

Republicans are aiming to repeal the Home Affordable Modification Program, the Obama administration’s main response to the foreclosure crisis. The program, by all accounts, has been disappointing, helping only about 600,000 homeowners of the 3 million to 4 million projected. But its failure, watchdog groups say, was caused by the mortgage servicers’ ineptitude - lost paperwork, bad accounting and the like - and lack of concern about whether the mortgages they service (but don’t own) go into default. Rather than crack down on the banks, the House Republicans would kill the one program that, at least in theory, gives borrowers some chance of avoiding foreclosure. If you take that away, you’ve got nothing,
That’s the last thing the struggling housing market needs. Because banks quickly resell mortgages, they don’t much care how the loans perform; their job is to extract the maximum in fees.
This is how we wound up with the robo-signing scandal, in which servicers erroneously forced homeowners into foreclosure. This, too, is why there has been an epidemic of misapplied payments, bogus fees and mismanagement of escrow accounts for tax and insurance. If a borrower’s homeowners insurance lapses, the servicer can “force-place” the borrower with a more expensive insurer, sometimes receiving kickbacks.

Acmod-Excellent article…I jsut read earlier this a.m. in I believe the Wall Street Journal. Written by finance reporter concerning him and his wife (she with an MBA) concerning how they were treated during a refi. Excellent article. If you could please post how to gain access. I think it would be nice if the whole article could be accessed. You are an excellent trooper Acmod…proud to be on the same team with you!

Short of marching on to Washington, there is only one option we have available to everyone; meaning those for whom it is too late, but together for all of whom we can prevent the loss of their home.  If Congress repeals HAMP, hundreds of thousands if not millions of additional homes will lost to corruption and anything else described in the above Admod posting.  Steve’s review of his old strategy Egyptian Thing has now been changed to a full force movement under the banner:

Save Our Homes or S.O.H.

... and we need all of your help and cooperation. I am also a volunteer for the cause:

To remove the underwriters from the process (you know,
the one who turned you down for permanent approval
after you passed the trial period with flying colors…)
But most importantly, to assign that duty to an independent
third party.  It is doable.

If you want to join his effort, please go to his updated blog as posted by several of the other volunteers under other articles.  Better yet, you can make a choice of accessing either his general blog which is always kept up-to-date; or to join or read his twitter updates (after writing the three letters that precede the colon and double backslash) and then cutting, pasting and adding from your preference from the following:

If you want to become a volunteer, please let him know.  The only way to get enough power to influence a vote in Washington is in the numbers.  E-mailing and telephone campaigns will be essential, and we will need all the help we can get.  It may be late for some, but we can help those who have not yet been denied permanent approval.  Remember, the rejection for permanent approval is generated by an underwriter even if the person qualifies and had already been approved. You may not have seen it happen - I have.  And if HAMP is repealed, where will the little children end when they turn into our youth?

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