Major Banks No Longer Allowed To Participate In HAMP.
The Home Affordable Modification Program also known as HAMP, is a federal program that was designed to help homeowners modify their existing mortgage debt to a more affordable amount. The idea was that lenders were supposed to work with homeowners to lower their monthly mortgage payments. The program has been rather unsuccessful and it seems the Treasury Department is holding several of the biggest banks responsible.
On June 9th, the Treasury Department announced that three of the nation's largest mortgage servicers, Bank of America, J.P. Morgan Chase, and Wells Fargo will no longer receive payments for participating in HAMP until their performance improves. The companies have failed to complete even the most basic requirements of the program, such as contacting the borrowers. It's no surprise that homeowners have had such trouble modifying their loans when the banks won't even speak to them. Not to mention the banks are receiving payments from the government, homeowners' tax dollars, to participate in these programs.
Whether the Treasury Department's actions will be enough to induce the banks to improve their participation remains to be seen. It would be nice if the government would actually make the banks pay the money they have received back based on their lackluster performance with the program.
If you have questions regarding a loan modification or foreclosure defense, call a Florida Foreclosure Defense Attorney.
Greg Gilbert
Keith Maynard
