Treasury to Squeeze Mortgage Lenders

Treasury report rates banks' performance

(NEWSER) - Bank of America began modifying just 4% of its loans eligible under the Making Home Affordable Act, according to a Treasury report on big banks' performance, while Wells Fargo started just 6%. JPMorgan Chase led the pack with 20%, Bloomberg reports, while Citigroup had 15%. “Some of the servicers could have ramped up better, faster, more consistently,” said a Treasury official. “We expect them to do more.” More»

Banks ignored warning signs, hired 'Burger King kids'

(NEWSER) - As the foreclosure crisis continues, the stories of clueless employees just get worse. Swamped with delinquent customers, banks hired inexperienced walk-ins one former executive called “Burger King kids,” who, for years, processed mortgages at an astonishing rate. Overwhelmed employees not only signed papers without reading them—they sometimes tossed paperwork into the trash. Some banks even outsourced foreclosure operations. That’s why, employees, executives, and regulators tell the New York Times , this crisis—shocking as it may be to the general public—was no surprise to insiders. More»

US on track for 1M foreclosures this year

(AP) - Lenders took back more homes in August than any month since the start of the US mortgage crisis. The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, RealtyTrac said today. In all, banks repossessed 95,364 properties last month, up 3% from July and an increase of 25% from August 2009. More»

Criteria keep many who need help from refinancing under the plan

(NEWSER) - A large swath of Americans will see no help under the Obama administration’s housing rescue plan, the New York Times reports. While designed to prevent 3 million to 4 million foreclosures through loan modifications, the plan doesn't cover those whose loans aren’t backed by Fannie Mae or Freddie Mac, or those who owe more than their home’s value on loans more than $729,750 through other lenders. More»

(NEWSER) - The White House today kicked off its $75 billion plan to curb mortgage foreclosures, the Wall Street Journal reports. The federal dollars will both push lenders to lower monthly payments and help homeowners keep paying. “Today, we are providing servicers with the details they need to begin helping eligible borrowers,” Treasury Secretary Timothy Geithner said. Here are the details: More»