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!

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