Post by jgaffney on Dec 10, 2008 12:53:35 GMT -5
According to Reuters, those home loan bail-outs that were rushed into place are not working:
Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
"The results, I confess, were somewhat surprising, and not in a good way," said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.
"Put simply, it shows that over half of mortgage modifications seemed not to be working after six months," he said.
Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.
However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.
Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.
"We don't know the answers yet, but these are the types of questions that we have begun asking our servicers in detail," Dugan said.
Could it be that they never should have gotten the loan in the first place?? Ya think??
In the liberal's rush to open home ownership to everyone, we have learned the sad truth that some people do not have the financial discipline to uphold their end of the bargain. Once again, those of us who are responsible citizens are left holding the bag.
Kinda reminds you of the results of the "War on Poverty," doesn't it?
Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
"The results, I confess, were somewhat surprising, and not in a good way," said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.
"Put simply, it shows that over half of mortgage modifications seemed not to be working after six months," he said.
Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.
However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.
Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.
"We don't know the answers yet, but these are the types of questions that we have begun asking our servicers in detail," Dugan said.
Could it be that they never should have gotten the loan in the first place?? Ya think??
In the liberal's rush to open home ownership to everyone, we have learned the sad truth that some people do not have the financial discipline to uphold their end of the bargain. Once again, those of us who are responsible citizens are left holding the bag.
Kinda reminds you of the results of the "War on Poverty," doesn't it?