Tuesday, December 8, 2009

Treasury Summons Mortgage Lenders to Meet on Loan Modifications

The American Bankruptcy Institute is reporting as follows:

"The Treasury Department summoned Bank of America Corp., Citigroup Inc. and other mortgage servicers to Washington, D.C., yesterday to accelerate U.S. foreclosure prevention efforts ahead of a year-end deadline for some loan modifications, Bloomberg News reported yesterday. The banks, which also include Wells Fargo & Co., JPMorgan Chase & Co. and Morgan Stanley, face a Dec. 31 deadline to make permanent the trial refinancings and concessions they extended this year to about 375,000 homeowners at risk of default. Banks have blamed the shortcomings on borrowers failing to turn in all their paperwork and confusion about eligibility standards. Banks are rushing to meet a new Treasury deadline, announced Nov. 30, to permanently convert more than half of the 650,994 loans that were in trial modification plans at the end of October into permanent reductions by year’s end. The Obama administration’s $75 billion program to encourage banks to lower monthly mortgage payments and alter loan terms for those in need had permanently modified 1,711 loans through September, according to a congressional oversight panel. Of the 375,000 loans scheduled for conversion to permanent modifications, those that aren’t switched over by Dec. 31 may not be eligible for HAMP again in the future, the Treasury said."

Warmest Regards,

Bob Schaller

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