Obama's Foreclosure Plan a Success (Half of One, at Least)
There isn't much to say about this, least of all "I'm shocked" or "OMG you have to be joking me!" - more like "yeah, and?"
About 90,000 distressed borrowers have lost their mortgage aid under the government's foreclosure prevention plan, and many more are at risk of losing the help, according to Treasury Department data released Friday.
Many of those borrowers did not turn in required documents to prove they qualified for the program, which typically lowers mortgage payments by more than $500 a month. Some applicants earned too much under the government's formula, while others made too little and were unlikely to be able to keep up even with the lower payments.
Under the program, which was launched a year ago, borrowers could receive a loan modification after a phone conversation with their lender and then have three months to prove they qualified for the program and to make the initial payments. Then they would be moved into a permanent loan modification.
But the Obama administration was forced to loosen those guidelines as lenders struggled to collect all the required documents, including pay stubs and tax returns. Although more than 1 million borrowers have had their payments lowered under the federal program, about 500,000 have passed the required three-month threshold without receiving a permanent loan modification.
Wait a minute, that's 90,000 borrowers who got aid and lost it because they didn't meet Treasury's requirements and then another 500,000 who "pass the required three-month threshold without receiving a permanent loan modification" whatever the hell that means.
Realizing they could not recruit known skeptics like Financial Armageddon's Michael Panzner and Naked Capitalism's Yves Smith to their side (sketchy Treasury meeting anyone?), perhaps the Treasury decided to stick with Plan B in inviting raging liberal bloggers to their last blogger pow-wow. JDA isn't bitter that she hasn't been invited or anything, I don't know if Tim Geithner has been groomed to handle the likes of me. Hell, he can't even handle a bunch of Chinese students.
Anyway, the PR push seems odd but forgivable; the Treasury has one hell of a pitch to shove and somehow have to tailor it to convince just about everyone they have a clue what they are doing. They have to convince China to jump back in the T-bill game, convince America they aren't screwing our great-great-grandchildren into being on the hook for an impossible bill, convince the smarmy bloggers to keep their traps shut... it's a rough gig, I get it.
But uhhh... who is buying it?
This is a pathetic show by our friends at the Treasury but most of these people shouldn't have been in houses anyway so I guess that's what has to happen. I've said it before and I'll say it again: enough already with the help, Treasury. We're so much better off without it.