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.
[...] Original post here [...]
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.
[...] leo wrote an interesting post today onHere’s a quick excerptThe President of the United States is to work for the common good of the people for which they represent and serve. Yes, represent and serve. They do not take the oval office to work for the \’e2\’80\’9cspecial interests\’e2\’80\’9d of corporate America and … [...]
[...] Read the rest of this great post here [...]
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.
I would love to have your permission to cross post this on my blog. Please visit my contact page and leave me a message if it’s okay with you.
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.
[...] about Penny Pritzker,\’c2\~ 2008 campaign finance chairman for Barack Obama 2 weeks ago titled, “Is Obama for the People or the Banks?” and in that post\’c2\~I\’c2\~quoted Earl Ofari Hutchinson\’c2\~from the Huffington [...]
[...] national finance chairwoman, Penny Pritzker, was chairwoman of the board of a Chicago-area bank in 1993 when it adopted a subprime business [...]
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 ??
[...] heiress (Hyatt) and president of the Pritzker Realty Group. Also notably former president of the failed Superior Bank in Chicago. Currently she is the national finance chairwoman of Barack Obama’s presidential [...]
March 15, 2010
Sherman L. Adside Jr.
1620 Berry hill Road
Cumming, Georgia 30041
Tel. 678-650-3294
Office of the Attorney General
40 Capital Square, SW
Atlanta, Georgia 30334
Tel. 404-656-3300
Re: Internal Investigation Into the Bank of America Home Loans And its Practices.
To Whom It May Concern:
I’m writing this letter asking for an investigation into the practices of the way that Bank of America Home Loans has been handling my consideration for a loan modification.
The attached complaints sent to Bank of America Home Loans, will show the ordeal I’ve been going through. After faxing seventy nine pages to Mr. Christopher Cobern of the CEO and Presidents Office, he express to me that his father was ill and that the information sent to him could not be addressed because no one else can access his e-mail address except himself and that there was nothing else I he could do under the circumstances for me. In light of the serious of the situation with me and the Co- borrower, and a pending modification hanging in the balance, I thought he would have given me a better answer than that in my efforts to get help in being considered for the Making Home Affordable Program. I like to point out that it cost me fifty dollars I didn’t have to fax the needed documents to him.
On February 20th, I faxed a second set of the same documents to a Ms. Tricia Ormes of the CEO and Presidents Office, since he refuse to assist me and gave me no recourse …the second set of faxed documents cost me another fifty dollars. At this point I wanted to know what was going to happen to the document’s I’ve already sent to him and what contingency plan is being put into place if any, so that this doesn’t happen to anyone else struggling to keep their home based upon what seems to me a lack of sensitivity. When contacting the top to let them know what the bottom is doing, the top shouldn’t dismiss it, in my opinion the same way that the bottom did with the same type of behavior that is being brought to their attention to correct or investigate.
On February 22nd, I contacted BAC due to a return call that was made on February 08th from Ms Casey at 704-386-5681-reference number 3221361 to me. I wasn’t able to speak with Ms Casey, but I was able to speak with Ms. Paula at 8:47 am and she told me that my case was assigned now to a John Tillis of the CEO and Presidents Office. His telephone number is 972-526-6975. He express to me that he was going to forward my case to a negotiator.
On February 26th, Mr. Cobern called me and told me that my family and I were not in jeopardy of foreclosure status. On March 1st, I received a letter from BAC dated February 25th expressing that my request has been received and that a response to my complaint will happen within twenty (20) business days. On March 9th, I was able to speak with Ms. Diana of Customer Relations Advocacy Department and she informed me that Ms. Kimberly Kremer was the Negotiator assigned to my case and that she is based in California.
Suddenly out of no where, I get a letter from Dallas, Texas stating that I have past due multiple payments and that I’m under research for these payments to determine what payment were received or not. Any payments not under research are subject to immediate payment as of March first. Why is this the case, when I’m being considered for a Loan Modification?
Payment amount due is $7,341.25; Partial payment balance is $824.99. Ms. Felcia from Customer Relationship Advocacy Department told me that Lianna Balayan of the Advocacy Department is the person monitoring my case. Her e-mail address is Liana.Balayan. @Bank ofamerica.com. On March 11th, I spoke with Ms Balayan at 800-405-0048X 6432 and she gave me Kimberly’s number 972-638-4126. It was express to me that the Co-Borrower’s request to be remove from the loan as requested early on, had to be done through the Qualify Assumption’s Department and that my consideration for the loan modification would scrap after all of this time going back and fourth with the drama with them. Why couldn’t someone after knowing what was indicated in my hardship/explanation letter, explain this early on instead of having me send all of the mentioned documentation to them and go through the long awaited process for consideration, only to be told that I would have to start all over again with the Qualify Assumption Department for processing which takes about three more months for possible approval. WHY?
To make my situation more complicated, Bank of America’s Assumption Department that performs a prequalification will not consider a delinquent loan for restructuring, so my only option is a modification to reduce the rate on the loan and hope that the arrears is put on the back end of the loan to prevent foreclosure and be approved for a permanent rate of 2% for five years or better. I like to point out that up until June 13, 2009, I’ve been paying on the loan all by myself with no help from the absent Co-borrower, which is still connected, to the loan with no payment since the contract was drawn up. My wife, my mother who is seventy-nine years and myself have been doing the best that we can without no help from the Co-Borrower on the payment on the loan. The additional hardship on me also is loosing my dad last year on March 27th and having to care give for my mother and my wife as best I can and trying to earn a living holding down my current job throughout all of this. In bringing these new developments to the Co-borrower, which I’ve mentioned resides elsewhere, refuses to assist me at all in this precarious situation however, she wants me to have her remove from the loan… “How can I do this enlight of what I’ve already expressed” I don’t know what to do with this situation without loosing my home?
I’m being told that I have five to seven business days to get the Co-borrower to comply or I will loose everything! The following I’m requesting from your Agency is to help me resolve this matter as soon as posible:
(1) Can an investigation be done by your agency regarding the practices of Bank of America Home Loans to insure that my case is being handled properly and that this doesn’t happen to no one else? Many people are suffering already without Bank of America stone walling homeowner’s this way…it’s not right for them to this to people.
(2) Is there any way that my family and I can get the consideration for the modification to go through without the efforts of the Co-borrower not contributing to the loan, and no plan to do so? All my family and I want is a chance to be considered for the loan modification so we can stay in our home.
Please respond to me as soon as possible since this is a time sensitive matter. My telephone number is above as well as my address. Thanking you in advance for all of your help in this matter.
Sincerely;
Sherman L. Adside Jr.