While the bill is not perfect, it creates, for the first time, an independent agency dedicated to ensuring that consumers’ interests are protected. Homeowners struggling because of job loss, illness, or other hardship will be eligible for help with their mortgage. Mortgages will subject to important new anti-predatory lending protections. And regulators and the public will be newly empowered with data that will allow them to make sure financial institutions are fulfilling their commitments to their communities.
Nationally, total HAMP activity also fell by 13% from April to May. Permanent modifications rose by 15% while trial modifications fell by 27%.
The newly released data also show:
“Beyond Foreclosures: The Impact of the Financial Crisis on the Wealth Gap and Economic Opportunity” will explore how the economic and foreclosure crisis has changed the landscape of access to financial services, and in particular, how it has affected credit scores and bankruptcy rates in communities of color.
“Beyond Foreclosures: The Impact of the Financial Crisis on the Wealth Gap and Economic Opportunity”
Keeping families in their homes during and after the foreclosure process mitigates the negative impact of vacant properties on communities, reduces lenders’ costs in securing and maintaining properties, and provides stability for families as they figure out the next stage of their lives. A number of promising public, private, and nonprofit models are being tried throughout the country to stabilize communities by keeping families in their homes.
The HAMP program starts out participants in three-to five-month trial modifications, and if they submit all the necessary paperwork and make payments on time, they are supposed to be entered into a permanent modification. Treasury started reporting on permanent modifications by servicer in the November report card, and last month, they released numbers on permanent modifications by state and metropolitan area.
The report, which is entitled “Government Interventions Have a Limited Impact on Chicago Area Foreclosure Activity” and is based on analyses of foreclosure filing and auction activity in 2009, found a shift in new foreclosure filings from regions with previously high rates, such as the City of Chicago and South Cook County, to the suburban counties.