Growth in the number of permanent modification continues to slow, while August saw the fifth straight month of double-digit decreases in active trial modifications. Chicago region permanent loan modifications rose by 6.6 percent from July to August, compared to 14.8 percent growth from May to June and 9 percent growth from June to July (see charts A and B). Regional trial modifications fell by 21 percent from July to August, which is less severe than the 29.8 percent decrease from June to July.
HMDA is a crucial tool in the fight against discriminatory and predatory lending.
The Home Mortgage and Disclosure Act (HMDA) requires mortgage lenders to provide detailed reports of their lending activities to regulators and the public. HMDA data have long served as a powerful mechanism that identifies unfair lending practices, such as discriminating against minority families, women, and low-income borrowers. HMDA is 35 years old, however, and Congress recognized it was time for a tune-up.
Regulators are holding a series of public hearings, including one in Chicago on September 16, on possible revisions to HMDA. HMDA data collection must be more comprehensive in order for regulators and the public to prove abusive discriminatory lending practices and hold lenders accountable.
Why update HMDA? Why now?
Condominium foreclosures comprise an increasingly large share of new filing activity in suburban Cook County. New filings on condominiums grew most dramatically in North and Northwest Cook County, growing by 77 and 76 percent, respectively, from the first half of 2009 to the first half of 2010. New filings on condominiums in the City of Chicago grew by 38 percent over the same time period, although the City had the largest number of filings on condominium units in the first half of 2010.
At the Regional Home Ownership Preservation Initiative (RHOPI) 2010 Annual Plenary on July 15, more than 80 representatives from the public, private, and nonprofit sectors came together to hear leading practitioners explain how they are meeting those challenges—and worked together to come up with proposals to address persistent problems.
Click here to see the agenda.
The letter pointed to the growing number of vacant and foreclosed properties that have been shown to destabilize communities by lowering property values, straining municipal resources, and increasing violent crime. Investment in projects designed to mitigate the effects of the foreclosure crisis is a primary credit need in many hard hit communities, and the consideration of NSP-related investments, loans, and services under CRA will help evaluate how financial institutions are meeting this need.
The Government Accountability Office’s report “Further Actions Needed to Fully and Equitably Implement Foreclosure Mitigation Programs” studies the performances of 10 HAMP servicers who account for 71 percent of HAMP funds in regards to their performance on consistent and equitable treatment of borrowers, as well as the US Department of Treasury’s “actions to address the challenges of trial modification conversions, negative equity, redefaults, and program stability.” In its investigation, the GAO found seve
One of the most common foreclosure prevention activities is a loan modification. In a loan modification, a bank or mortgage servicer permanently changes the terms of the original loan in order to make the monthly payments more affordable for the borrower. This lower monthly payment can be achieved through reducing the loan principal, lowering interest rates, or extending the maturity date, among other strategies.