A HAMP "Success" Story

By Big Tent Democrat, Section Economy
Posted on Fri Oct 22, 2010 at 08:31:46 AM EST
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Via John Cole, a success for the mortgage servicers and the banks apparently ends in foreclosure:

I sent [my loan modification papers] three months ago and was told it was complete. And for the past three months, right up to the last time I checked (last Thursday) they were still at the reviewer. For three months everything has been fine, and suddenly they’re not only not fine we’ve backed up a step.

[. . .] It’s quite apparent BoA doesn’t want to do a workout, and will reject even due to its own mistakes. I expect to lose the house – I’m rather resigned to it, actually. Angry, but resigned. But I will never trust any of the banks that are involved in this mortgage mess again. I cannot trust them to act in good faith.

(Emphasis supplied.) Meanwhile, back in Washington, the Obama Administration says ""Treasury did have a robust and does have a robust compliance system in place," Barr said of HAMP, which was the administration's main effort to help three to four million strapped borrowers stay in their homes. "When we have found problems we have ordered them to be corrected and they have been corrected." You see? This is a HAMP success story!

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A HAMP "Success" Story | 8 comments (8 topical)

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Let them eat cake n/t (5.00 / 1) (#3)
by TJBuff on Fri Oct 22, 2010 at 10:06:44 AM EST

Oh, (5.00 / 1) (#4)
by Ga6thDem on Fri Oct 22, 2010 at 10:53:34 AM EST

the banks know that Obama is toothless and wont' do anything to them. It's almost like what's the point of even having HAMP if nobody is going to enforce it? The outcome for this poor soul would have been the same without HAMP.

It does disturb me that this administration (5.00 / 2) (#5)
by Militarytracy on Fri Oct 22, 2010 at 10:53:47 AM EST

has now resorted to something I witnessed up close with the Bush administration, and that is outright lying. I realize that there will always be spin, but between this and them also saying that they have looked into the accusations of mortgage fraud and have found no instances or reasons to be concerned is nothing but blatant shameless lying.

I think the only people who view (5.00 / 3) (#6)
by Anne on Fri Oct 22, 2010 at 11:56:33 AM EST

HAMP as any kind of success are the banks and the Obama administration, because as long as the banksters are happy, they're happy, too.

And, I'm sorry, but has anyone checked to make sure that this Barr person didn't refer to the Treasury's "robust compliance system" as part of open-mic night at some local DC comedy club - because it's hard to even type those words without laughing out loud.

Yves Smith points us to HuffPo, where we once again see the Obama administration dealing with a messy issue with high potential to make them look bad, with their "look forward, not back" mantra:

U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that the Obama administration will attempt to protect homeowners and police the kind of paperwork fraud that led the nation's largest banks to temporarily halt foreclosures this month, but added that the administration had yet to find anything fundamentally flawed in how large banks securitized home loans or how they foreclosed on them.
"Where any homeowner has been defrauded or denied the basic protections or rights they have under law, we will take actions to make sure the banks make them whole, and their rights will be protected and defended," Donovan said at a Washington press briefing. "First and foremost, we are committed to accountability, so that everyone in the mortgage process -- banks, mortgage servicers and other institutions -- is following the law. If they have not followed the law, it's our responsibility to make sure they're held accountable."
He added, however, that the administration is focused on ensuring future compliance, rather than on looking back to make sure homeowners and investors weren't harmed during the reckless boom years. The administration is "committed to forcing institutions to change the way that they conduct business," Obama's top housing official said, "to make sure these problems don't happen again."

Emphasis mine.

Note, also, use of the word "committed," which is, in my opinion, just one more laugh-out-loud word/concept from an administration that doesn't have a clue what the word is supposed to mean.

Banks/Brokers/Servicers can't lose.... (none / 0) (#1)
by kdog on Fri Oct 22, 2010 at 09:19:13 AM EST

All the fees, any payments made, plus the house they can sit on as long as they like since they aren't hard up for cash to eat or buy diapers.

Nice racket...but we knew that. There is no trick too dirty...acknowledging receipt of docs and then reneging on the acknowledgement? If I pulled that sh*t at my job we'd lose accounts, and I'd be sh&tcanned...rightly so.

How many people do they have (none / 0) (#2)
by inclusiveheart on Fri Oct 22, 2010 at 09:27:30 AM EST

in the compliance department at Treasury? How could their compliance system be robust without sufficient personnel to enforce their system?

if i say it is so, (none / 0) (#7)
by cpinva on Fri Oct 22, 2010 at 12:13:34 PM EST

then it is so!

i believe there was a broadway musical (made into a movie) with a similar line. oh yes, "The King and I", deborah kerr & yul brynner.

geez, now i'm really having to reach!

HAMP (none / 0) (#8)
by KLCarten on Sat Oct 23, 2010 at 05:59:51 AM EST

When HAMP was first bandied about, I thought great people are gonna get some relief and maybe be able to work with the banks to keep their homes.

Well, I was shocked when I found out what the actual guide lines were. I laughed and though Oh, the banks are getting another bail out. This was only to keep the banks from showing that they were really bankrupt on the books. They would not reduce principal on home owners only reduce interest. If a person lost their job, they are not gonna be able to afford a house with interest only reductions. It was the only way to protect the banks from having huge amounts of homes foreclosed at one time. Instead slow the pace of foreclosure and let people that were not in trouble think the adminstration was doing something. So, there would be waves of foreclosures with a half-hearted attempt with working with homeowners. Looks like people are really seeing what HAMP really is, another bailout for Zombie Banks. Would be nice to have a party look out for its base, just every once in a while heck even on the major issues. Not surprised just par the course as usual.