Wednesday, April 14, 2010

TOTAL FAILURE: Bankers: Obama loan modification plan will require another bailout.

Facing rising discontent over a flood of coming foreclosures, the Obama administration wants to push harder to get lenders to modify underwater mortgages. ABC News reported yesterday that Barack Obama’s policies up to now haven’t solved the problem, according to a new report from the Congressional Oversight Panel. Less than 20% of the applicants for principal adjustment have received approval:

President Obama’s plan to help the 11 million Americans whose homes are underwater isn’t working, according to a new report that will be released tomorrow on Capitol Hill by the Congressional Oversight Panel. The plan called for banks to adjust mortgages for homeowners paying more for their homes than they’re worth, but most aren’t receiving the help they requested. Legislators are already demanding that the big banks to do more, but today, four of the nation’s largest banks pushed back. …

Of the more than 1.1 million homeowners who signed up for mortgage help through the president’s adjustment plan, only 170,000 have had their mortgages permanently adjusted. Experts say that’s a dismal performance. READ MORE...

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