HAMP Mortgage Mods: U.S. Provided Weak Oversight of Banks, Report Says

The fact that the Obama’s Administration’s chief foreclosure-prevention effort has failed to meet its goal since 2009 is not a new revelation, but that extent to which the government  failed to properly oversee the biggest banks is still coming to light.
The result of the poor oversight of HAMP (Home Affordable Modification Program): Out of 2.2 million mortgage-reduction trails started, only 834,635 are recorded as permanent through September 2012.
Overall, mortgage servicers, which include the biggest U.S. banks, reviewed 2.7 million modification applications and denied two-thirds of them, according to a new report by the investigative news site, ProPublica.
Documents obtained by ProPublica shows that the government did not complete a major audit of the two largest banks in HAMP, Bank of America and Wells Fargo, until over a year after the program launched.
During that time, mortgage servicers denied two-thirds of mortgage modification applications. Meanwhile, homeowners regularly complained they had been mistreated by servicers in the program.
Read ProPublica’s report.

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