Making Home Affordable or Just Pushing More Paper?
I was going to take some time to write a nice thoughtful post about Bernanke's second term but I decided that the money-printing prick has had way too much facetime on JDA lately and frankly I'd be happy not seeing his neck beard at all for another 4 years.
Under fire for the low number of people receiving long-term mortgage help, the Treasury Department on Thursday announced new guidelines that will require applicants to provide all paperwork before getting a trial modification.
The new policy will make it harder for troubled homeowners to start the process, but it should make it easier for them to qualify for permanent assistance under President's Obama foreclosure prevention plan.
The administration's $75 billion housing effort has been plagued by paperwork problems since it launched last April.
Borrowers complain that their loan servicers constantly ask for additional documents and lose their forms. Servicers, meanwhile, say that borrowers are not handing in all that's needed.
The new rules, which start June 1, will effectively shift the paperwork burden to the start of the process.
"They aim to make it easier and quicker to provide permanent modifications," said Treasury Assistant Secretary Herb Allison. "These changes also will enable servicers to process more efficiently and handle more volume effectively so we can help more people more rapidly."
Distressed borrowers will have to fill out a three-page request form that asks them to explain their hardship and list their income and expenses. They will also have to sign an IRS 4506-T form that allows servicers to pull their tax returns. Both forms are available on the Making Home Affordable program's Web site.
Yay, more bureaucratic paperwork under the guise of "help"! That's awesome!