Posted by & filed under Stockton Real Estate.

By Mandelman


Here we go… coming around again…

TransUnion recently reported that after their loans were modified, only 40 percent of homeowners remained current on their mortgage payments 18 months later. The study made headlines by reporting that after 18 months, 59.1 percent of modified loans had re-defaulted, meaning they went 60 or more days past due, and within 12 months, 42 percent had gone 60 or more days past due.

Adding to the headlines, a report by the Office of the Special Inspector General for TARP, more commonly known as “SIGTARP,” showed almost equally dismal performance for HAMP loan modifications.

In its April 24, 2013 Report to Congress, SIGTARP stated, among other things, “Of the 1.2 million HAMP participants, 306,000 have re-defaulted on their mortgages,” and went on to say that an additional “88,000 homeowners have missed payments and are at risk of re-default.”

The report puts the cost to taxpayers for the re-defaults to-date at an intended-to-be-infuriating, $815 million.

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All of that above was from my article written this past July 30, 2013… titled: The National Debate Over Loan Modification Re-Defaults is Stupid.

So, it’s November of 2013… and here we go again with the re-default debate. It’s Groundhog Day! Just give me a moment… I need to lower my IQ by 80 points to continue writing about this.

Okay, I’m good to go…. but let’s hurry because I’m always afraid I’ll get stuck this way.

This time out, the news from a quarterly report to Congress compiled by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), is that of the roughly 1.25 million homeowners whose loans were permanently modified since 2009, when the government introduced HAMP, 27 percent have re-defaulted on their modified loans.

Apparently, the SIGTARP report said that he had expressed concern to Treasury over the increasing number of homeowners defaulting on permanent mortgage modifications as far back as last April.

Or, in other words SIGTARP said to Treasury… “I told you so, betch.”

The report went on to say that roughly 29% or 184,000 homeowners who have received permanent HAMP modifications through the Troubled Asset Relief Program as opposed to through a government-sponsored enterprise (GSE) have re-defaulted… and that the cost to taxpayers for incentives paid out to investors and servicers for these modifications was $972 million.



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