FHA-HAMP Helped 171 Homeowners Nationwide in April

There are roughly 6 million FHA borrowers, and one million delinquent FHA loans, and FHA-HAMP is also available to borrowers that are not delinquent, but whose default is considered “imminent”.

The HUD Neighborhood Watch Website shows 171 FHA-HAMP modifications for the month of April 2010.  This number includes Trial Modifications and fully approved FHA-HAMP modifications and the “Help Topic” on the site, which was just updated by FHA this month, says that information included in the Servicer loss mitigation report on delinquent loans (those with status Codes 39 & 41) are included in the total number of FHA-HAMP actions shown on the report.

Just so everyone understands, Code 39 indicates a borrower has been approved for a FHA-HAMP trial modification plan.  Code 41 indicates a borrower has been approved for a FHA-HAMP modification and partial claim, after successful completion of the Trial Modification payment plan.

171 nationwide in April.  So, very well done there. Crackerjack work, I would have to say.

I checked the Treasury’s HAMP Report and it shows that the number of borrowers that received free housing counseling in April was 53,001.  And, how many since the beginning of HAMP?  Well… Treasury reports 545,318.  Roughly four million homes lost to foreclosure last year… which is pretty much since the beginning of HAMP, and only half a million got the free counseling?  A little more than 10%?  What the… did they have to win a drawing?

What in the world would we do without these programs?  Frankly, I’m surprised the foreclosure crisis hasn’t ended already.

Krista Railey, who is a mortgage industry expert, homeowner advocate, and fellow blogger… who is a friend of mine, by the way… although we have had our disagreements, as you may be aware… gave me the following statement in response to the report:

“No matter how you slice it, the FHA loss mitigation statistics are a disgrace.  You cannot get me to believe that out of over one million delinquent borrowers and over six million total loans that only 171 FHA borrowers wanted the FHA-HAMP program.”

FHA reported that the number of serious delinquencies decreased in April, however, drilling down into the FHA statistics for April reveals that the overall number of default and delinquencies actually increased, and that the increase in delinquencies was offset by a large number of new loans added in April (what a surprise that is… the end of the home buyer tax credit).  The increase in new loans offset the increase in the number of 30 and 60-day delinquencies as well as the number of foreclosures.

Krista Railey again, said the following:

“HUD’s loss mitigation statistics paint a picture of either ineptitude or dishonesty. What really gets under my skin is that taxpayers bailed out the banks and eventually taxpayers will have to bailout FHA.”

Krista and I have known each other for about a year now.  We first me when I worked with her to help create a detailed piece on a bill known as H.R. 600, which was threatening to bring back “seller-funded down payment assistance,” which sounds nice, but is really… as I learned from Krista back then… really a scam, and a harmful one at that.

Krista is an absolute stickler for everything compliance, and readers may know that she and I have argued over the situation at Green Credit, a company that was shut down by the California State Bar a few months back.  Krista views Green Credit as having been out of compliance for a whole litany of reasons that she has explained in her comments on Mandelman Matters on several occasions.  My response has been that the company modified a lot of loans and kept 2600 homeowners from being thrown out of their homes.

That being said, Krista knows just about everything about the intricate details of the mortgage industry… certainly a lot more than I do… and although I don’t know this for sure, I would guess she probably puts together 100,000 piece jigsaw puzzles just to relax.  I, on the other hand, don’t.

Krista also says, of the latest data:

“Even more curious is that codes 39 and 41 are not showing as delinquency status codes that are included in the total number of serious delinquencies.   FHA just updated the Help Topic this month, and has not satisfactorily answered my question as to why codes 39 and 41 are not showing as included in serious delinquencies.”

See what I mean?  When Krista drills down… she really drills down.  Go get ‘em, Krista!  You are more than welcome on Mandelman Matters anytime, even when its to kick my butt in one way or another.

Ergo bibamus!


  1. acumen says

    June 1st brings due my fourth trial modification payment. I believe the HAMP guidelines allow me to withhold further payment, and still remain fully qualified for a permanent modification. I should also say that I filed suit against BofA last May for numerous and egegious TILA violations, and discrimination against the disabled.

    What do you think? Prudent to push the envelope and stop paying, with full proof of three months on-time payments, and the stated fact from the bank that there were no pending requests for additional documents from us.

    I feel I have fulfilled my part of the 'contract,' now it is time to push them to comply with their obligation.

  2. Do_the_math says

    Martin, I am so glad that you realize that debating a subject passionately does not mean there is animosity there. I think you are an alright guy, and if I didn't, I would not have invested so much time into debating the GCS subject with you. I've never called you dumb- although I have said you are dumb like a fox on occasion. It says a lot about you that despite our heated debates, I can always email you or pick up the phone to discuss a variety of issues. I also have to say that I am pleased with your involvement in a certain report, and still wish to continue to learn about it because I believe it is ground breaking.

    The reality is that I am a fan of your column, and hold your column in high regard the same as I do with Moe at Loansafe/Loanworkout.org and Erin Baldwin. What a lot of people fail to understand is that different people react to the mortgage implosion differently, and have their own philosophies and mindsets. It is okay to disagree, and it is important to understand that nobody agrees or disagrees on everything. The Regulators seem to have a handle on GCS, and had I not been so verbal and proactive, I don't know if the results would have been same.

    But I do think that we can both agree that the HAMP Holy Grail is full of holes, and that we are no where close to the end of the mortgage crisis. As the crisis has unfolded, it seems your perspective and your column have evolved. The reality is that FHA and the mortgage industry abuses continue. This is bad news for current buyers and borrowers who think that the worst of the real estate deflation is over. It is not over, and if anything, has only began.

    The FHA statistics are disturbing because there is no way the data can be accurate. If it were, FHA Commissioner Stevens would be sitting in the corner wearing a dunce cap. The taxpayers and industry stake holders have a right to know what is happening with FHA- especially now that FHA is the primary source of mortgage lending.

    I keep hearing about the recovery, and when we have truly recovered, there will not be obfuscation of data and everyone won't know a friend or associate who is tap dancing on foreclosure nor will crime be the largest growth industry.

  3. beachgo says


    The US Treasury has no idea what really is going on behind closed doors with regards to The Making Home Affordable Program. Yes it sounds like great help for those struggling to save their America Dream.

    Look at the numbers. Not the homeowners with trial offers made by banks/mortgage companies, because that’s a joke. We are talking permanent modifications to these homeowners. WHO HAS BENEFITTED FROM THIS PROGRAM???

    Washington, this is how the story goes. Whether the cause of a delinquent mortgage was due to lost jobs, illness, death or divorce in a family, or maybe victims of predatory lenders looking to fatten their wallets, knowing these homeowners could never make the payments. The fact of the matter is it HAPPENED.

    Now they contact their lenders for help. Packages are sent to be completed along with required documentation to be returned by a certain deadline. Trust me when I say this, the documentation IS being sent not only on time but with every last piece of paper they could possibly want to review.

    Now the phone calls begin. What would you say is the average hold time to speak with a person in the Home Retention Dept.?(Washington just question any homeowner.) So after you have been on hold long enough to have cleaned the bathrooms in your home, you are being informed all your requested documentation has not been sent in. How could this possibly be you say to yourself? I know I checked and double checked and had someone else check it for me. Seems funny, but I am under a great deal of stress. So I sit down and resubmit the MISSING OR UNSIGNED DOCUMENTS THEY CLAIM WERE NOT RECEIVED. Phone calls need to be made again. Well do I stay home from work, if I am one of the lucky ones in this country to be employed, so I can be on hold AGAIN? Look on the bright side the bathrooms need cleaning once more. Months go by; my stress level has escalated beyond belief, praying they will consider my request under this program. GUESS WHAT??? Not the letter I was hoping for. Dear Customer—your mortgage has now been transferred. We now are your new lender. (Oh my God did I read something about the Feds shutting them down or that that the lender is bankrupt?) Please contact us regarding your mortgage. We may be able to assist you under THE NEW MAKING HOME AFFORDABLE PROGRAM. Now I am informed a whole new package needs to be completed. So where is all my personal information that was sent to my prior servicer? (Tax returns, copy of my driver’s license, bank statements, pay stubs, copy of a utility bill (That’s so they can see I still reside at the premises. Where was I going?) Seems to me with all this information floating around lost, it probably has landed in the hands of those that would have a grand time with IDENTITY THEFT. Any one else worried about this?

    So I am back to square one, paperwork, long hold times, and new packets to be signed and returned by a deadline. No problem, my family loves our home and if we are one of the fortunate ones that this program will help then it is worth it.

    But hold on one minute. Same old story, missing paperwork, unsigned documents? Do they forget I spent months playing this game with my prior servicer?

    Let’s go back to the phone calls. Why on Monday can I call and speak with someone in Home Retention and be given one story, and yet on Thursday a whole new story or different information regarding the progress being made on my modification? Seems to me in this day and age updates within their systems should be effortless. No one is on the same page.

    Trial payments are a story in itself. You better have planned for the incompetence within these financial institutions. Not one of them is capable of crediting your account. Hopefully you have saved every bit of information regarding your payment. (i.e. certified receipt of acceptance at their office date and time and who signed for it.) Anything you as the homeowner can do to prove those payments were sent. One full month of calls every other day to correct THEIR error. Good God save us all. If a financial institution has such poor record keeping this nation doesn’t stand a chance. Yet they continue to put the BLAME on homeowners.

    So where do we as homeowners stand with our elected officials, and the Treasury Dept. in regards to this PROGRAM to help keep our country from complete ruins? Certainly don’t expect the mortgage companies or banks to work with the struggling homeowners. Lenders truly are the only ones on the receiving end of this program.

    Homeowners stand up for you. Refuse to allow these lenders to keep blaming YOU for the reason this program has failed. They have no intention to do anything more than keeping their hands out for the Government Money. Contact every elected official in your area, and tell Washington WE HAVE HAD IT.

    No I am not an angry homeowner. I am just someone trying to work on their behalf (at no cost to them).

    One more question? Where do you expect to house all these homeless people? As for all the banks and mortgage companies, and I have dealt with MANY, you are a disgrace benefitting on the monies allocated to help struggling families across this country. You employ IDIOTS. But then again that WORKS TO YOUR BENEFIT.

    With all due respect MR. President you were looking for some suggestions for improving this program and the crises that is widespread in this country?

    The answer is pretty simple BEHIND CLOSED DOORS of these financial institutions you will find the answers to the problem. They are fooling everyone including WASHINGTON.



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