I must say~For God-Fearing men~It is difficult to understand how some men can blithely revel in great wealth in the face of this calamity among their brother Americans~

A discouraging picture of America presents itself to us~~

TARP Audit: Housing Recipients Re-Defaulting in Alarming  Numbers

             Wednesday, 24 Jul 2013 01:27 PM

            By Sandy Fitzgerald

Nearly one-third of the homeowners who got help through the  government’s main foreclosure prevention program are defaulting again on their  mortgages, according to a government watchdog’s report.

The Home  Affordable Modification Program (HAMP) has worked on 1.2 million mortgage  modifications since it started four years ago. Of those, more than 306,000  borrowers have defaulted again on their loans, and another 88,000 are at risk as  well, reports CNN.

The Special  Inspector for the Troubled Asset Relief Program (SIGTARP), which conducted the  review, said homeowners are also more likely to default again on the modified  loans the longer they stay in the program, with 46 percent of those involved in  the program since 2009 defaulting on their loans again.

The re-defaults  have cost taxpayers some $815 million, according to SIGTARP. So far, the  Treasury Department has allocated $19.1 billion to HAMP, and $4.4 billion has  been spent. The program was recently extended for another two years, until the  end of 2015.
 The Obama administration’s Treasury Department created  HAMP to help borrowers avoid foreclosure by making their house payments more  affordable through a combination of reduced mortgage principals and interest  rates and extended loan terms.
But borrowers are dropping out of the  program as they default again on their loans, and SIGTARP Director Christy  Romero said Treasury needs to research why so many people drop out of a program  that kept their homes safe from foreclosure.
People who default are  following “clear patterns,” the SIGTARP report found. For example, homeowners  most likely to default again are the ones who got the smallest reductions in  their mortgages, who were still “underwater” on their mortgages, or who had  subprime credit scores and high debt when their mortgages were modified.
A Treasury official said Tuesday that the department is researching HAMP  program modifications and ways to improve the new default rates, noting that  most of the defaults were coming from modifications that were approved for  high-risk homeowners, and completed during the foreclosure crisis.
“It  must be remembered that mortgage modification programs include an inherent risk  of homeowner default, given the difficult situations homeowners face when they  seek assistance (like job loss),” said Treasury Department spokesman Mark McArdle. ” One of the  policy challenges of designing a program like HAMP, particularly given the  severity of the recent housing crisis, is giving as many struggling homeowners  as possible the chance to keep their home while recognizing that not all will  succeed.”
SIGTARP suggested that the Treasury Department start working  with mortgage companies to create a system that reaches out to at-risk  homeowners before they default. Treasury Department Assistant Secretary Timothy  Massad, in a letter to Romero, said the department is taking several  steps to curb the re-default rate, and HAMP still remains the best option for  people in danger of losing their homes.
Not encouraging~~as the child says~~don’t just look away~~


~~Κύριε ἐλέησον~~

Rejoice and Glad!!




John Daniel Begg


Washington, District of Columbia

United States

Thursday, 25 Juillet, Anno Domini Nostri Iesu Christi, 2013~


John Daniel Begg


Washington DC



john daniel begg public affairs and speechwriting

4853 Sedgwick Street
North West
Washington, DC 20016-2323533
Voice Telephone: 1-(202) 966-8029
Telefacsimile: 1-(202) 966-4125
Mobile Telephone: 1-(202) 557-1064
Tweets:  @jtdbegg

Fiscal policy news today from Washington is not encouraging my dears~~not encouraging~~

I must say~~For God-Fearing men~~It is difficult to understand how some men can blithely revel in great wealth in the face of this calamity among their brother Americans~

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