Fannie Mae and Freddie Mac no better at overseeing HAMP

In May it was highly publicized that the number of mortgage modifications under the HAMP was abysmal. What followed was a flurry of publicity and pressure on the federal Treasury Dept. to fix the problem. Last month it was revealed that the federal government had assured a whopping 13% of estimated eligible modifications. The free assistance programs admit a 10% success rate. The REST Report has run 4000 customers with zero failures. The following article excerpt assures that those results will not change in the foreseeable future. The next six paragraphs come from ProPublica, a well-known follower of the mortgage modification mess.

“Since its March launch, the government’s $50 billion program to prevent foreclosures has been marked by confusion, delays and doubts. A little-noticed conclusion in a government report released on Wednesday reveals that the program’s auditor is no different: Freddie Mac—yes, that Freddie Mac—has been given responsibility for auditing the program. And it turns out, Freddie is stuck at square one.

As ProPublica and others have reported, homeowners have frequently been rejected for loan mods even though they appear to qualify. The Treasury Department tapped Freddie to police just that kind of thing.

But Freddie’s job so far hasn’t inspired confidence, according to a section of a report released by the special inspector general for the TARP. The report says (on p. 102) that in late August, Treasury took a look at Freddie’s first reviews of loan servicers and found them seriously lacking. Among the “several specific areas of concern” identified: “unqualified staff to perform audits” and “inconsistent and incomplete audit workpapers.”

Consumer advocates say they, too, have been puzzled about the lack of action.

Both Freddie Mac and Fannie Mae have been tapped for roles in running the big mortgage modification program. Among other things, Treasury assigned Freddie to perform unannounced audits of servicers and to review denied loan modification applications. Fannie serves as the program’s record keeper. Despite the companies’ troubles, there’s a logic to selecting them for such roles, since their business already requires extensive knowledge of the mortgage market and contact with servicers.

Of course, as we’ve reported, wrongfully denied homeowners have sometimes had no recourse but to go to the media, which has effectively served as a kind of auditor in Freddie’s stead.”

(I take issue with the above statement. The media is not versed about the entire HAMP program, and certainly not versed about the mortgage modification options outside of HAMP to claim ‘auditorship’ over anything. Spotlighting an occassional plighted homeowner does not qualify as as auditorship, no matter how many newspapers it sells. Toungue-clucking will get the distressed homeowner nowhere. HUD counselors are essentially ineffective)

It is pointed out that even if Fannie and Freddie were efficient at discovering flaws in lender’s modification negotiations, they wouldn’t have the clout to enforce either TARP or HAMP.

I sell the REST Report because it works. Spectacularly so.

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now

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tags: avoid foreclosure, foreclosure alternatives, HAMP, Home Affordable Foreclosure Assistance, loan modification arizona, loan modification colorado, loan modification nevada, loan modification new mexico, prevent foreclosure, stop foreclosure, mortgage lender fraud, mortgage servicer fraud, rest report, fannie mae mortgage modification, freddie mac mortgage modification,

Originally posted 2009-10-23 20:57:08. Republished by Blog Post Promoter

Tagged as: avoid foreclosure, fannie mae mortgage modification, foreclosure alternatives, freddie mac mortgage modification, HAMP, Home Affordable Foreclosure Assistance, loan modification arizona, loan modification colorado, loan modification nevada, loan modification new mexico, mortgage lender fraud, mortgage servicer fraud, prevent foreclosure, rest report, stop foreclosure