Wednesday, March 10, 2010

Making Home Affordable Program Updates

  • April 27, 2010, hearings before the Senate Permanent Subcommittee on Investigations, "Wall Street and the Financial Crisis: The Role of Investment Bank"

  • April 23, 2010, hearings before the Senate Permanent Subcommittee on Investigations, "Wall Street and the Financial Crisis: The Role of Credit Reporting Agencies"

  • April 14, 2010, House Financial Services Committee hearings on the "Recently Announced Revisions to the Home Affordable Modification Program (HAMP)"

  • April 13, 2010, House Financial Services Committee hearings on "Second Liens and Other Barriers to Principal Reductions as an Effective Foreclosure Mitigation Program"


  • On March 25, 2010, Neil Barofsky, Special Inspector General of Sigtarp, the "Office of the Special Inspector General for the Troubled Asset Relief Program" released his 60 page report on "Factors Affecting Implementation of the Home Affordable Modification Program." The report states that "the number of permanent modifications entered into during HAMP's first year has been below expections."

  • March 25, 2010 testimony before the Committee on Oversight and Government Reform, "Foreclosure Prevention: Is the Home Affordable Modification Program Preserving Homeownership?"

  • On March 8, 2010, the Home Affordable Modification Program ("HAMP") issued 38 pages of updated "frequently asked questions."

  • It also released its "Servicer Performance Report" through February, 2010.

  • The Federal Reserve Board issued a public statement dated December 3, 2009 that advises that a "adverse action" notice under Regulation B of the Equal Credit Opportunity Act is required for a mortgage declination of a mortgage loan modification under the U.S. Treasury's Making Home Affordable Modification Program ("HAMP") if the mortgage is not in default or delinquent. The letter notes that even if an adverse action notice is not required under Regulation B as to borrowers who are in default or delinquent, that it "understand[s] that Treasury has directed HAMP services to provide written notice to a borrower that has been evaluated form HAMP but is not offered a trial period plan or modification, or is at risk of losing eligibility for HAMP because the borrower has failed to provide the required financial documentation" HAMP Supplemental Directive 09-08 at 1 Nov. 3, 2009)

Other Interesting Recent Updates

Alan Greenspan, "The Crisis", Brookings Institute, March 9, 2010.

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