Saturday, November 28, 2009

Consensus on Permanent Mods: "Program has proved inadequate"

by Calculated Risk on 11/28/2009 03:42:00 PM

It sounds like the permanent mod numbers will be grim ...

From Peter Goodman at the NY Times: U.S. to Pressure Mortgage Firms for Loan Relief

The Obama administration on Monday plans to announce a campaign to pressure mortgage companies to reduce payments for many more troubled homeowners, as evidence mounts that a $75 billion taxpayer-financed effort aimed at stemming foreclosures is foundering.

“The banks are not doing a good enough job,” Michael S. Barr, Treasury’s assistant secretary for financial institutions, said in an interview Friday.
I’ve been very frustrated by the pace of the program,” said Senator Jeff Merkley, an Oregon Democrat who sits on the Senate Banking Committee. “Very few people have emerged from the trial period.”
Capitol Hill aides in regular contact with senior Treasury officials say a consensus has emerged inside the department that the program has proved inadequate, necessitating a new approach. ...

"[A]t senior levels, where people are looking at this and thinking ‘Good God,’ there’s a sense that we need to think about doing something more.” said a Senate Democratic aide, who spoke on the condition he not be named for fear of angering the administration.
emphasis added
There is much more in the article. We will see the numbers in a couple of weeks.