$1B foreclosure aid program ends with $568 million unspent

[harvey007]

Source: USA Today

The federal government will disburse just $432 million from a $1 billion program to help unemployed homeowners avoid foreclosure, a government official said Thursday.

The rest of the money will return to the U.S. Treasury because the Emergency Homeowners' Loan Program has ended, and not enough people were approved in time to receive aid.

Read more: http://www.usatoday.com/money/economy/housing/story/2011-10-06/foreclosure-aid-program/50680758/1

[yellerpup]

1. Designed to fail, delayed to fail

Who held the reins of this enterprise? I wonder how much was spent to 'administer' this program? Scandalous.

[Puglover]

2. I'm sure people just didn't qualify.

:sarcasm:

Shameful and ungoddamnedbelievable.

[No Elephants]

6. I know someone who needed this desperately.

Home way under water. Very high interest on the mortgage. Two mortgages, too.

He lost his job when his employer died and could not get another. {He's over fifty.)

He was struggling and borrowing from family members to pay the mortgage. Missed only one payment and has since made it up, plus late costs and additional interest.

His wife threatened to take their kid and leave him unless he was able to keep the house, though I am not sure how that would have bettered the situation for any of them. He lost about thirty pounds and was never plump to begin with.

Then he found two part time jobs that, together, were paying him more than his one former job. It's a lot of commuting and he started taking amphetamine to keep up.

His wife, who didn't think she should have to work, did get a full time job, too. So, both his income alone and their combined income is higher than when they bought the house.

However, when they finally thought they would be able to get a re-finance at lower interest recently, it turned out that her boss refused to verify her employment; and they couldn't qualify for a refi without verification of her salary.

And now, the designed to fail program has ended.

[chill_wind]

3. Multi-failures

Congress Scrutinizes Federal Housing Programs
Krista Franks
10/06/201
Several federal housing programs came under attack during a hearing Thursday morning titled “The Obama Administration’s Response to the Housing Crisis.”

Members of Congress challenged witnesses with questions about the effectiveness of several programs, including the Emergency Homeowners Loan Program (EHLP), the Neighborhood Stabilization Program (NSP), the Home Affordable Modification Program (HAMP), and the FHA Short Refi program.

Congress members pointed out that EHLP helped 12,000 homeowners after an original goal to help 30,000. HAMP has achieved loan modifications for about 800,000 homeowners, despite a goal to help about 4 million borrowers. FHA’s Short Refi program set an original goal to help 1.5 million homeowners and reached about 300.

(snip)

Neil M. Barofsky reiterated Biggert’s implication later in the hearing stating, “It’s not just for me to say they’re failing. These numbers are unambiguous; they’re failing.

http://www.dsnews.com/articles/congress-scrutinizes-federal-housing-programs-2011-10-06


See also FHFA regulatory failure and silence on fraud, abuse by servicers
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2072809

:nuke:

HAMP Results Continue to Slip
http://www.dsnews.com/articles/hamp-results-continue-to-slip-2011-10-05

Geithner response:

Financial Oversight Council Calls for National Servicing Standards
By Krista Franks | 10/07/2011

Speaking on behalf of the Financial Oversight Council Thursday, Treasury Secretary Timothy Geithner made recommendations before the Senate Committee on Banking, Housing, and Urban Affairs. The Council recommends reforming the housing finance system, specifically establishing national standards for mortgage servicers, which the committee believes will "realign incentives and help reestablish confidence in the integrity of the housing market."

more
http://www.dsnews.com/articles/financial-oversight-council-calls-for-national-servicing-standards-2011-10-07


ETA-- a little more about the notion of "revised incentives" for the servicers as just mentioned above:

Fed Governor Calls for Revised Incentives for Servicers
10/04/2011 By: Krista Franks Printer Friendly View

http://www.dsnews.com/articles/fed-governor-calls-for-revised-incentives-servicers-2011-10-04

[valerief]

4. The senators will divvy it up amongst themselves. nt

[russspeakeasy]

5. or, they will build a catfish farm in Arizona.

[chill_wind]

7. ProPublica's comprehensive look at all the programs

in depressing detail.

Our Guide to Obama’s Floundering Foreclosure Programs

by Lois Beckett
ProPublica, Oct. 7, 2011, 1:19 p.m.

http://www.propublica.org/article/our-guide-to-obamas-floundering-foreclosure-programs