I missed this yesterday from Bank of America:
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government’s Home Affordable Modification Program (HAMP). The formal action follows a verbal commitment to the program made by Bank of America’s [...]
Archive for Bailout Buzz
BofA agrees to Obama’s second-mortgage aid program
U.S. tightens standards on FHA program
The Federal Housing Administration today announced a few tweaks to its home loan insurance program, charging borrowers a little more and requiring a bigger down payment for folks with very low credit scores.
The FHA program, which generally allows for down payments as low as 3.5%, has accounted for roughly 20% to 25% of purchase loans [...]
Economists react to Obama’s bank tax plan
President Barack Obama today called for a special fee on the 50 biggest financial firms. A bank economist and an independent economist react:
Scott Anderson, senior economist, Wells Fargo
Anderson said much of the losses Obama mentions actually went to nonbanks like failed insurance giant AIG and General Motors.
“To just tax the 50 largest banks is probably [...]
Obama wants tax on 50 big banks. Agree?
President Barack Obama today proposed a special fee on 50 financial firms with assets greater than $50 billion each, saying banks should pay for their own bailout and calling executive bonuses “obscene.”
While companies have paid back most of the money they got from a $700 billion program to rescue banks and homeowners, Obama said tax [...]
Obama mulls bailout tax on banks
President Obama is likely to propose a fee on financial companies to help close the budget deficit and recoup some taxpayer funds used to bolster the financial system, reports the New York Times (with a nod to Politico.com).
However, the administration wants to avoid a transaction tax that would be passed on to consumers.
The Times story [...]
Aid for second mortgages on hold, report says
Economics blog Calculated Risk hears the Obama administration’s plan to help homeowners with their second mortgages has stalled. We already know the plan for first mortgages is only keeping a fraction of delinquent borrowers in their homes.
The blog says housing economist Tom Lawler emailed the Web site for HAMP, as the umbrella program is known, [...]
Buffett eyes Ditech.com parent, report says
Warren Buffett is in talks to buy Residential Capital — which controls Costa Mesa-based Ditech.com — from GMAC, the New York Post reported just before the holidays.
National Mortgage News ran a more recent story on ResCap, saying the Buffett deal is a likely scenario for the troubled company, which is the fifth largest loan servicer [...]
Are property short sales getting easier?
I’ve been writing on this blog that housing short sales may become more popular this year as loan modification programs fail to help as many struggling homeowners as once hoped.
In a short sale, a homeowner sells for less than outstanding mortgage debt on a property.
In a recent story I wrote for the Register’s Sunday Business [...]
Blank check for Fannie and Freddie
The Wall Street Journal reports the U.S. Treasury said it will “provide capital as needed” to mortgage buyers Fannie Mae and Freddie Mac over the next three years. The blank check courtesy of taxpayers is a bid to reassure buyers of the debt of the government-controlled companies.
But note: Treasury will stop buying mortgage-backed securities issued [...]
U.S. gives struggling homeowners more time
This should come as no surprise, from Bloomberg:
Mortgage servicers must give U.S. homeowners more time before kicking them out of the government’s loan-modification program, reflecting further struggles in the execution of the plan.
Servicers can’t cancel an active Home Affordable trial modification scheduled to expire before Jan. 31 for any reason other than property eligibility requirements, [...]
