SunHerald:
Fannie Mae (NYSE: FNM) announced today that, as part of its HomeStay(TM) initiative to support its mortgage servicers as they provide at-risk borrowers with refinancing and loan workout assistance, it is offering a new option — HomeSaver Advance(TM).
HomeSaver Advance is designed to help qualified borrowers bring delinquent mortgages current and keep their homes. With HomeSaver Advance, servicers can now offer an unsecured, personal loan that will enable a qualified borrower to cure the payment default on a mortgage loan that Fannie Mae owns or has securitized, with fewer up-front costs and generally in less time.
The largest U.S. home funding company is providing these advances through their loan servicers, who will receive a $600 fee to help remedy mortgages to borrowers who can otherwise keep up payments once they catch up and become current.
The offering is part of a broad array of incentives to mortgage servicers to mitigate the losses from home loan, more of which are heading into foreclosure as home prices fall.
These loans and incentives are “meant to help borrowers stay in their homes and help reduce losses in the industry, and help preserve home values nationwide,” Brent Peterson, vice president for servicing management at Fannie Mae, told Reuters here at the Mortgage Bankers Association national servicing conference.
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What’s with all the fancy names for options that these banks could have taken at any time? It’s nice that lenders are willing to work with homeowners now that so many of them are losing their homes and property values have fallen so far that it’s not worth it for the banks to take the properties back… but enough with the HomeStay, Project Lifeline, HOPE NOW, HomeSaver Advance, etc. Stop naming the programs and start offering them to homeowners, rather than having the collections department call them 40 times a day. That would go a lot further towards saving properties than slapping a new name on the understaffed loss mitigation department.
Moe, nice post.
I remember Superior from some years back. They did business in my area as Alliance Funding. I personally saw some evidence of the above allegations. They were known for their no income, no assets loans. The rates reflected the risk, so they were high.
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You’re talking about a lending institution that went bankrupt in 2002. Someone who took out any kind of motgage then has considerable increase in value today, maybe as much as 100%. This was the assumption (correct at the time) that banks and buyers were making at the time. I appears that Penny was a great servent of the bank and public interest. There should be no complaint now. That was a timely investment.
Angelo
If you call it being a great servant by swindling the American people and getting rich while you’re doing it. Then yes, she was a servant. Sevant to the devil. Hey, wait, are you really Angelo Mozilo?
http://abclocal.go.com/wjrt/story?section=news/local&id=5980917
Follow up to the Mortgage Stabbing.
After Superior Bank collapsed in July 2001, the Office of Inspector General’s Feb. 2002 report concluded that “based on our review of the failure of Superior Bank it apears that some of the decisions made by Superior management rise to the level of insider abuse.”
Yet after Barack Obama named Penny Pritzker to be his 2008 presidential campaign’s national finance chair on January 31, 2007, Obama said that he was “proud that” the former Superior Bank official “has agreed to partner with me in this important venture.”
Did I just read that Penny Pritzker got out of the sub-prime business 5-6 years ago?
Well, if that’s the case. this person was NOT a part of what has transpired over the past 5-6 years? The major profits,record earnings and large volumn of sub-prime loans occurred during the period Penny Pritzker was OUT of the sub-prime busness.
This article is another case of “fear mongering”!!! Who better to see and respond to the evils of the sub-prime crisis than someone who understands the birth of the problem?
Please … use your not so common sense …
Gerald,yes, she got out of the subprime business AFTER she was forced out by the FDIC sir. That is a BIG difference then voluntarily.
Your comment is what I read as another “blind American” refusing to see the writing on the wall……………………..
“Under that cover, the floundering enterprise paid its owners huge dividends and provided them favorable loans and other financial deals deemed illegal by federal investigators.
Wanting to avoid a lawsuit, the secretive Pritzkers quickly agreed to what the FDIC hailed in December as the biggest settlement they had ever negotiated. The Pritzkers would pay $100 million immediately, then $360 million over 15 years.”
Why dosn`t someone ask “Obama” about all of this while Obama stands in front of his supporters?
Why isn`t someone telling of Ron Paul`s rightness on the economy/FED..and other things?
I’m the person mentioned in the article “Breaking the Bank” published in In These Times, 11/08/02. As of this date I have not been repaid full the amount stolen from me by Penny Pritzker & Superior Bank. To add insult to injury approximately one year after stealing $42 million, the Pritzker family gave a $30 million dollar gift to the University of Chicago. My letters sent to Edgar D.Jannotta, Chairman of the Board of Trustees University of Chicago and other board members asking them to examine their conscience on receiving this money from the same family that stole $42 million dollars from Superior Bank depositors went unacknowledged. I wonder if Michelle Obama was associated with the University of Chicago Board of Directors at during this time? In addition, except for Stephanie Tubbs-Jones, letters sent to the 21 U.S House of Representatives Committee on Financial Services Subcommittee on Oversight & Investigation members regarding the Pritzker theft went unacknowledged. Included in this committee were Luis V. Gutierrez (IL) and Janice Schakowsky (IL). These people have no regard for everyday people, caring only about the billionaire class. Needless to say, I have no respect for Senator Obama who has aligned himself the likes of these people. Could Senator Obama actually be considering Ms. Pritzker for a position on his administration? If we are to use a person’s judgment as a voting criterion, as Senator Obama suggests over and over again, then the best thing would be a vote against a man with such poor judgment, i.e. Barack Obama. He was in Chicago at the time of the Superior Bank failure & has full knowledge of what went on and the cause of the collapse.
Fran. I totally agree with your comments. I was also one that was screwed by the wonderful Pritzkers. Penny is so giving and alway looking to help the less fortunate, Its easy to be so generous and giving to others, when you are using other people money. NOTHING GOOD will every come of there wrong doing.
Families, that were working and saving for a better life for there children and family that lost the American Dream Mr. Obama talks about, by his financial campaign manager Penny Pritker, what a joke.
Where the hell do you apply for these so called programs ??