Bank of America (BAC) to largely failed in regard to help homeowners difficulties and prevent mortgage foreclosures. Simply seek a thousand excuses for not approving the prestatrios for loan modification Home Affordable, Obama's plan for mortgages.
Bank of America is one of the largest financial institutions in the country and the largest mortgage issuer, but also the least willing to give mortgage help and make the mortgage loan modification.
Pro
consumer advocates have filed a class action lawsuit against the company in the Massachusetts district court for alleged violation of its agreement to modify mortgages for people under the federal Affordable Home Modification Program. Bank of America faces a similar lawsuit in Washington. Massachusetts residents have also filed complaints against JP Morgan Chase (JPM), Bank OneWest and Wells Fargo (WFC), accusing these companies violating the guidelines of HAMP (modification Obama).
According to the latest federal data, fewer than 21,000 borrowers in Bank of America of an eligible group of nearly 1.1 million have had their mortgages modified under the HAMP permanently.
We understand that the Bank of America is not the only one who does not want to help people, in general, all the big banks are doing the same. For example OneWest (also known as IndyMac), so the Bank of America is not the only culprit here. In a new report by the Special Inspector General Neil Barofsky, said that the HAMP modification program is not being effective in the sense that lenders do not want to give it and also said the program has fallen far below expectations. He also accused the U.S. Treasury information to inflate the number of homeowners who have received assistance, focusing on the number of homeowners who have been tested, instead of focusing on praise have permanent loan modifications. The report says:
"In the absence of a thorough review of the HAMP and its objectives, the program helps homeowners in risk has simply extended the foreclosure crisis over several years, at taxpayer expense as significant and even at the expense of borrowers who are struggling to change, but are still doing higher payments on the mortgage for months before succumbing to foreclosure anyway. "
HAMP is fraught with problems, according to Barofsky. These include changing the documentation requirements for borrowers, confucuin Documents lender, confusion about how lenders calculate a mortgage participants qualify for mortage modification, proper verification of income owners, and poor training of lenders with respect to changes in Affordable Home (HAMP).
A this I would add one more important factor: The banks and loan servicers have financial incentives to carry out mortgage foreclosures of homes instead of modifying mortgages, they also prefer to refinance mortgages and payment plans in the short term rather than make them permanentes.No loan modification should be given aid for mortgages.
What is the solution? HAMP review (Obama's plan for mortgages), for example, make clear to the banks as people qualify for the program. But the best option would be for the Obama administration and Congress to review the legislation and empower bankruptcy courts to decide on mortgage modifications.
That hurt the profits of the banks. But companies like Bank of America, Chase, Indy Mac and Wells Fargo are strong enough to endure the pain. Meanwhile, the mortgage foreclosure epidemic continues to rage, and this not only hurts individual homeowners but also to the economy in general. It's time for another type of medication.
The biggest problem here is that lenders make their own, people who are working in customer service is inept, and they in conscience do nothing to teach them about the Affordable Home program. I think that more than half the mortage changes that banks refuse, it is only because they know borrowers qualify.
At the moment there is no other choice but to continue fighting with banks to get mortgage modifications Affordable Home, the best way to win the battle is learning how the program works, guidelines and so have a valid argument to "fight" with sets. If you know how the program, are aware of the rules and guidelines and they do not know and deny the changes as being inept, you can continue fighting, calling and calling until you get a person in the departments of the customer service listen. I tell you from personal experience as to me that happened when I applied for my own modicacion of loan. Until got to get the 2 percent to Obama modification. Here you can read about my case:
Bank of America is one of the largest financial institutions in the country and the largest mortgage issuer, but also the least willing to give mortgage help and make the mortgage loan modification.
Pro
consumer advocates have filed a class action lawsuit against the company in the Massachusetts district court for alleged violation of its agreement to modify mortgages for people under the federal Affordable Home Modification Program. Bank of America faces a similar lawsuit in Washington. Massachusetts residents have also filed complaints against JP Morgan Chase (JPM), Bank OneWest and Wells Fargo (WFC), accusing these companies violating the guidelines of HAMP (modification Obama).
According to the latest federal data, fewer than 21,000 borrowers in Bank of America of an eligible group of nearly 1.1 million have had their mortgages modified under the HAMP permanently.
We understand that the Bank of America is not the only one who does not want to help people, in general, all the big banks are doing the same. For example OneWest (also known as IndyMac), so the Bank of America is not the only culprit here. In a new report by the Special Inspector General Neil Barofsky, said that the HAMP modification program is not being effective in the sense that lenders do not want to give it and also said the program has fallen far below expectations. He also accused the U.S. Treasury information to inflate the number of homeowners who have received assistance, focusing on the number of homeowners who have been tested, instead of focusing on praise have permanent loan modifications. The report says:
"In the absence of a thorough review of the HAMP and its objectives, the program helps homeowners in risk has simply extended the foreclosure crisis over several years, at taxpayer expense as significant and even at the expense of borrowers who are struggling to change, but are still doing higher payments on the mortgage for months before succumbing to foreclosure anyway. "
HAMP is fraught with problems, according to Barofsky. These include changing the documentation requirements for borrowers, confucuin Documents lender, confusion about how lenders calculate a mortgage participants qualify for mortage modification, proper verification of income owners, and poor training of lenders with respect to changes in Affordable Home (HAMP).
A this I would add one more important factor: The banks and loan servicers have financial incentives to carry out mortgage foreclosures of homes instead of modifying mortgages, they also prefer to refinance mortgages and payment plans in the short term rather than make them permanentes.No loan modification should be given aid for mortgages.
What is the solution? HAMP review (Obama's plan for mortgages), for example, make clear to the banks as people qualify for the program. But the best option would be for the Obama administration and Congress to review the legislation and empower bankruptcy courts to decide on mortgage modifications.
That hurt the profits of the banks. But companies like Bank of America, Chase, Indy Mac and Wells Fargo are strong enough to endure the pain. Meanwhile, the mortgage foreclosure epidemic continues to rage, and this not only hurts individual homeowners but also to the economy in general. It's time for another type of medication.
The biggest problem here is that lenders make their own, people who are working in customer service is inept, and they in conscience do nothing to teach them about the Affordable Home program. I think that more than half the mortage changes that banks refuse, it is only because they know borrowers qualify.
At the moment there is no other choice but to continue fighting with banks to get mortgage modifications Affordable Home, the best way to win the battle is learning how the program works, guidelines and so have a valid argument to "fight" with sets. If you know how the program, are aware of the rules and guidelines and they do not know and deny the changes as being inept, you can continue fighting, calling and calling until you get a person in the departments of the customer service listen. I tell you from personal experience as to me that happened when I applied for my own modicacion of loan. Until got to get the 2 percent to Obama modification. Here you can read about my case:
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