Events in the mortgage financing world and the foreclosure program supported by President Barack Obama have been in the House’s spotlight for quite a while. The Financial Services committee planned a meeting that will tackle the efficiency of the Home Affordable Modification Program and its contribution in the current status of foreclosure rates in the United States.
The program was designed to aid in reducing mortgage payments by homeowners through lower interest rates and extended payment duration. It was also intended for those who have problems financially that lead to foreclosure of their properties.
Unfortunately, in a listing that was done by Realty Trac Inc., it was shown that foreclosure rate is still high with about 2.9 million filed the previous year and another 3 million being anticipated this 2011. Consequently, the federal inspector general who oversees the said program issued a report last January indicating that only about 700 to 800 thousand permanent changes or modifications are expected to be completed.
The House planned to create legislation that will put an end to expenses that support this program. The Treasury Department has indeed recognized the program’s incapability to prevent a target of 3 to 4 million foreclosures. The committee also looks forward to terminating other programs that aid in the purchasing, selling or renting of foreclosed properties by the federal or local government units.
They are also looking into stopping programs that help unemployed people who are not meeting their payments for their housing loans and those who have dues that are pricier than the properties of the lender. All these new proposals are indeed expected to affect mortgage financing.
Tags: Pictures, featured, foreclosure, housing loans, foreclosure rate
