Monday, February 22, 2010

WSJ: Treasury Considering Appeal Process for HAMP

by Bill McBride on 2/22/2010 05:07:00 PM

From James Hagerty at the WSJ: U.S. Weighs Changes to Mortgage-Relief Program

The U.S. Treasury is considering new ... proposals ... to give borrowers 30 days to respond after being denied a modification of their loan terms under the ... HAMP. During that period, which would allow borrowers to appeal against the decision, the servicer couldn't put the home up for sale at a foreclosure auction.
...
A Treasury spokeswoman said the proposals are among "many ideas under consideration in the administration's ongoing housing stabilization efforts." She added: "This proposal has not been approved and there are no immediate planned announcements on the issue."

Servicers also would be required to provide a "written certification" that a borrower isn't eligible for HAMP before a foreclosure sale can be held.
...
These measures would likely further slow down the foreclosure process.
Probably the main impact of HAMP has been to keep the supply of distressed properties down by delaying the inevitable. In most cases, this would just be another delay ...