Government Extends Mortgage Relief Efforts
President Obama has talked a lot about ending the foreclosure crisis and developing better strategies for helping homeowners in trouble. After admitting previous efforts met few expectations, the White House went back to the drawing board to revamp existing programs and help facilitate changes in a sinking housing market.
Old Programs Gets New Face
Created in 2009, the Home Affordable Modification Program and Home Affordable Refinance Program were intended to reach homeowners in need before foreclosure became imminent. Although few homeowners knew about the program, even fewer were actually able to benefit from the program. Why? Partially because lenders were still holding high qualification standards for applicants and also because many homeowners were too far in mortgage debt for a modification or refinance to be helpful.
In efforts to reach more homeowners at an earlier stage, the government has expanded some of the conditions of both programs. The HAMP will now be open to homeowners looking to modify mortgages on rental and second properties, not just primary residences. Further, qualification standards will be relaxed to help include those with less than perfect credit or account standings. Homeowners experiencing medical debt and unemployment problems will also be targeted in hopes of reaching a new demographic among struggling homeowners. The program itself has been extended until December 2013.
Cracking Down On Lending Practices
After months of government effort to alleviate the unlawful foreclosure and stubborn lending practices that have plagued the market for the last few years, more efforts are being focused on eliminating the potential for these problems in the future. The plan is to put an end to fraudulent foreclosures and strict modification standards. Earlier this week, President Obama announced plans for a new task force designed to investigate and prosecute lenders found guilty of bad mortgage practices. This announcement follows the recent conviction of several big lenders who are now ordered to pay millions in restitution to victims of unlawful foreclosure. By creating a special section of state attorneys and prosecutors, more focus can be placed those engaging in abusive lending practices and promoting of risky mortgages.
Part of the expansion efforts under existing programs will also encourage more lender participation in assisting homeowners find suitable mortgage relief. Incentives will be provided for lenders who take an active interest in helping homeowners find an alternative to foreclosure. Further efforts will be aimed at the continuing regulation and investigation into possible mortgage fraud companies and closing down scams that are preying on needy homeowners.
Old Programs Gets New Face
Created in 2009, the Home Affordable Modification Program and Home Affordable Refinance Program were intended to reach homeowners in need before foreclosure became imminent. Although few homeowners knew about the program, even fewer were actually able to benefit from the program. Why? Partially because lenders were still holding high qualification standards for applicants and also because many homeowners were too far in mortgage debt for a modification or refinance to be helpful.
In efforts to reach more homeowners at an earlier stage, the government has expanded some of the conditions of both programs. The HAMP will now be open to homeowners looking to modify mortgages on rental and second properties, not just primary residences. Further, qualification standards will be relaxed to help include those with less than perfect credit or account standings. Homeowners experiencing medical debt and unemployment problems will also be targeted in hopes of reaching a new demographic among struggling homeowners. The program itself has been extended until December 2013.
Cracking Down On Lending Practices
After months of government effort to alleviate the unlawful foreclosure and stubborn lending practices that have plagued the market for the last few years, more efforts are being focused on eliminating the potential for these problems in the future. The plan is to put an end to fraudulent foreclosures and strict modification standards. Earlier this week, President Obama announced plans for a new task force designed to investigate and prosecute lenders found guilty of bad mortgage practices. This announcement follows the recent conviction of several big lenders who are now ordered to pay millions in restitution to victims of unlawful foreclosure. By creating a special section of state attorneys and prosecutors, more focus can be placed those engaging in abusive lending practices and promoting of risky mortgages.
Part of the expansion efforts under existing programs will also encourage more lender participation in assisting homeowners find suitable mortgage relief. Incentives will be provided for lenders who take an active interest in helping homeowners find an alternative to foreclosure. Further efforts will be aimed at the continuing regulation and investigation into possible mortgage fraud companies and closing down scams that are preying on needy homeowners.
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