White House Foreclosure Plan a $50B Bust

Proposal would require HAMP to review all delinquent mortgage loans

(NEWSER) - The Obama administration is considering kicking up the fight against foreclosures by banning any that haven't been reviewed by its Home Affordable Modification program. The move would prevent lenders from initiating foreclosure unless HAMP had screened the loan and found it unsalvageable. it would also require them to halt existing foreclosure proceedings when homeowners enter a trial repayment plan, Bloomberg reports. More»

$50B plan proving ineffective as more mortgage holders lose their jobs

(NEWSER) - The Treasury's $50 billion loan-modification program is in danger of being swamped as the foreclosure crisis accelerates, the Congressional Oversight Panel said in a report yesterday. The Home Affordable Modification Program has met its target of 500,000 trial mortgage modifications started by November 1, but the watchdog warned that foreclosure starts are outnumbering modifications 2 to 1 as the crisis spreads from subprime to prime mortgages. More»

(NEWSER) - Barack Obama announced in Mesa, Ariz., today a three-pronged plan to revamp the mortgage market, the Wall Street Journal reports. The plan offers opportunities for 9 million homeowners to refinance or rework their mortgages. Five million borrowers facing foreclosure will have access to a $75 billion fund, and another 4 million with negative equity will be aided though as much as $200 billion in new commitments to Fannie Mae and Freddy Mac. A third element aims to reduce mortgage rates. More»

New 'mortgage to lease' program kicks off in test markets

(NEWSER) - Falling behind on your Bank of America mortgage? Well, what would you say if the bank offered to take your house, but let you rent it for a while? That's the idea behind a new "Mortgage to Lease" pilot program that BofA is rolling out in select markets in Arizona, Nevada, and New York. Participants will hand the title of their home over to the bank, which will forgive their outstanding debt and lease it to them for up to three years at or below market rates, the AP explains. More»

Many struggling homeowners not covered in deal

(NEWSER) - The $26 billion mortgage settlement announced yesterday will be a boon for some—but the terms of the deal leave many homeowners out in the cold. Recipients of loans owned by the Federal Housing Administration, for instance, won't directly benefit from the settlement; nor will those with mortgages held by private investors, the New York Times reports. Millions of Fannie Mae and Freddie Mac loans—about half of America's mortgages—aren't part of the plan, either. More»