In an effort to encourage greater homeowner participation in modification programs, Bank of America has launched a new approach to modify severely underwater loans. The bank announced Wednesday that it will first look at principal forgiveness -- ahead of an interest rate reduction -- when modifying certain subprime and adjustable-rate mortgages (ARMs). BofA expects to slice off an estimated $3 billion from loan balances through this initiative.
The Home Affordable Modification Program (HAMP) will fall far short of the administration's promise to prevent foreclosure for 3 to 4 million homeowners, according to one federal watchdog. Neil Barofsky, special inspector general for the Troubled Asset Relief Program, says HAMP's disappointing results have raised questions about the program's effectiveness. He's determined that Treasury has set targets that aren't "meaningful" and that HAMP is "particularly vulnerable to re-defaults."
After a break-neck plunge, commercial real estate prices in the United States are beginning to inch up, slowly. Moody's Investors Service reported this week that values of commercial properties increased for the third month in a row in January, rising 1.0 percent from the company's December reading. Prices have now come back 6.3 percent from their October 2009 low, at which point prices were down 43.7 percent from their peak measured in October 2007.
California Attorney General Edmund G. Brown Jr. forced two foreclosure rescue firms to close their doors this week and secured a court judgment that prohibits the three principal individuals involved from ever again working in the real estate industry. Brown also recovered more than $1 million in restitution for victims he says were left with "false hope" after paying upfront fees for loan modification services that were never delivered.
| | |
DSNews.com
Comments
Post a Comment