A failing grade. Really? Not even a “C?” At least try and some homeowners will be helped.
Recently, Michael Calhoun, President of the Center for Responsible Lending, released the following statement:
The report card issued by the Treasury Department today shows that financial companies deserve a failing grade in their voluntary efforts to modify home loans to help restore the U.S. economy. The results reveal that only 15 of every 100 families who are eligible for a modification of their mortgage have been offered one. That’s 85 distressed families left with the prospect of losing their home for every 15 offered a helping hand.
Fifteen percent? Shameful
The report went on…
We applaud the Obama administration for providing data from individual loan-servicing companies to shed greater light on how tax dollars are being spent. This is a major step in holding lenders accountable by keeping the public informed. Unfortunately, the numbers show that too few people behind on their mortgages are being reached. While the number of families receiving help has increased during the past few months, the number of struggling homeowners continues to outweigh mortgage modifications by a wide margin. In June this year alone there were 254,000 foreclosure starts, which is more than the total number of modifications made to date under the current program.
It appears that the lenders who “cried Wolf” and asked to handle this situation on their own may need to be helped along by Uncle Sam. What do you think?
The Center for Responsible Lending is urging Congress and regulators to:
— Lift the legal barriers that now keep homeowners from seeking reasonable relief through bankruptcy court.
— Publish more detailed information on loan modification.
— Reform the broken lending market by creating the proposed Consumer Financial Protection Agency sot that we can avoid another financial crisis int the future.
Not bad. It’s a start.