Fannie, Freddie, Countrywide, Bank of America, Chase and now Citi have all jumped on the proverbial billion dollar loan modification train. It makes me wonder if this has to do with Barack Obama becoming President and his “proposed” solutions for the mortgage and housing crisis…
Earlier today I wrote a post title, ‘Lender Loan Modification Lip Service: Don’t Believe the Hype!’ in which I criticized these lender loan modification press releases has just flat out propaganda and it appears that Senator Schumer from the great state of New York agrees with my sentiments.
It’s as if these lenders all called each other over the weekend and said, “Oh shit guys, looks like Obama’s our new president and he wants to give federal bankruptcy courts the power to modify these loans. So, we better do something and we better do it fast!” (Their brilliant ideas are press releases announcing billion dollar loan modification plans, which seems to get the media going in the direction they want. But Schumer and I seem to see through the loan workout smoke and home saving mirrors!)
Senator Schumer:
“These voluntary plans sound nice, but they don’t do the job. No amount of incentives for investors can change the fact that a program like this will only really work if Fannie and Freddie hold the whole loan, which is true in too few cases. When the loan is chopped up into a million pieces and any investor can block a modification from happening, a program like this will only scratch the surface of the mortgage crisis. The only viable solution, and it is one we will take up under President-elect Obama, is to modify the bankruptcy code,” Schumer said in a statement.
I wrote about Obama’s housing plans last month before the elections, “ Foreclosure Fighter Obama Says, “Allow Bankruptcy Court Judges to Modify Mortgage Payments”
Maybe my theory is right and lenders are running scared before Obama takes up residency in the oval office. It looks like Schumer has called these guys out at their own lip service game and has “officially” warned these guys that there is a new sheriff in town.
{ 5 comments… read them below or add one }
What interests me most is that almost half the loans are conventional loans and do not fall under freddie or fannie also on the 100% finacing the second has to also approve the loan and they also do not have to follow set rules. So this is all smoke and mirrors and the people are eating it up just as the sub primes that were given out that started all this.
It is interesting to me that almost half the loans do not qualify for fannie or freddie because they are conventional. Also when the bank did subprime they did it as 80-20 split and the seconds do not follow any rules and block all modifications so the most of the bailout is smoke and mirrors and nothing will help the people as promised! but they will give billions to the banks to make them government owned.
I am in the process of the mod mortgage and I have been getting the run around. I was told not to make a payment on my mortgage because it would disqualify me and I am now 2 payments behind. What puzzles me the most is that I went to Chase bank and they told me to call the main branch and so I did in april it is now May almost June and I still am no where with this. Not for the lack of calling persistantly. I have been told one thing by this person and one thing by another none of whom speak with the other department or know what the others department have said or what they even do. So now I am getting the ” well I don’t know or that is funny that they would tell you that I feel as if they are trying to mess me around to the point that they take my home. When we have worked very hard and have three little girls to take care of. We lost alittle money in our job situation and we just needed a little help Now I am still being charged late fees and I am 2 payments deliguent. Because someone from Chase told me not to pay and I listen to instructions. I could loose my home because of all the LIP SERVICE I wish I could contact Jamie Dimon, Chairman and CEO
JPMorgan Chase & Co. and tell him that I think that it stinks when you call and try to get help and they say there is some but you continually get the run around. I can pay my mortgage I just needed alittle help to also live from month to month. Please make sure that if you are wanting to mod your mortgage that if it sounds to good it is. I am in such a dire straight right now. We are in our 30’s with good jobs and our mortgage company has just ruined our credit and who do you tell about it? Thank you for listening..
Good luck with getting a mortgage mod through with Chase Bank.
I have been waiting 4 1/2 months & getting the smoke & mirrors, too.
There isn’t a Banking Emergency, stripping us of all our Civil rights.
Chase expects to net $29 Billion Dollars off of, new accounting rules, from the “bad” mortgages they got from Wa Mu.
Why aren’t we getting our loan mods?
Chase would rather pay someone to call you 3 times a day, then give you the 1.9% interest rate they offered you, & then told you to do your taxes.
Once your taxes were done, you were: “Too Late.”
I am getting ready to hire a lawyer.
(We are giving them back an investment property that we cannot rent out because of all of the homes that are being sold in California for a mortgage payment of half of what our rental is, & losing about $100,000 in our downpayment on this property.)
I am not going to let JP Morgan Chase steal my Primary home.
Sincerely
Bonnie Ember
Kudos, Moe – you called it. Almost a year later, and this is exactly what is happening. Banks are dragging their feet, stalling and doing whatever possible not to approve and implement loan modifications for struggling homeowners. Investors are also balking at loan modifications and refusing to sign off. The banks were given billions of taxpayers dollars to modify home loans and improve our economy. Looks like we just got ripped off big time – AGAIN.