June 11, 2009

About 150,000 Homeowners Got Mortgages Modified Under Obama Plan, HUD Chief Claims

BLOOMBERG NEWS SERVICE

About 150,000 homeowners at risk of default have been able to modify their mortgages to more affordable terms under the U.S. Making Home Affordable program, Housing and Urban Development Secretary Shaun Donovan said.

The tally of loan modifications, from the first few weeks after the program was implemented in March, will expand “substantially” now that the initiative is fully under way, Donovan told a Senate appropriations subcommittee today.

The Making Home Affordable program requires banks that received federal aid from the U.S. Treasury’s Troubled Asset Relief Program as well as mortgage-finance companies Fannie Mae Freddie Mac to lower the monthly payments for borrowers at “imminent risk” of default. Banks can lengthen repayment terms and lower interest rates to as low as 2 percent, among other methods.

Donovan said the Hope for Homeowners refinance program through the Federal Housing Administration, which was designed to help 400,000 borrowers, has refinanced just 50 loans. Although changes Congress made to the program earlier this year will help increase volume, Donovan said it will not reach the 400,000 targeted for aid.

July 10, 2009 U.S. Asks Banks to Expand Foreclosure Prevention

July 1, 2009 Fannie, Freddie Expand Eligibility on Refinance

June 11, 2009 150,000 Homeowners get Mortgage Modifications

June 10, 2009 10 Large Banks Allowed to Exit U.S. Aid Program

May 24, 2009 Asset Purchases May Boost Economy

May 20, 2009 Reforms For American Homeowners and Consumers