CCH Financial Reform News Center

PSA Campaign to Raise Awareness of Making Home Affordable Program

This story appeared in Bank Digest.

The Advertising Council, in partnership with the Treasury Department and the Department of Housing and Urban Development (HUD), announced the launch of a national public service advertising (PSA) campaign designed to encourage homeowners who are struggling with their monthly mortgage payments to learn about the Making Home Affordable Program. “Even though the economy is getting stronger, many Americans are still facing the fear and uncertainty of losing their home to foreclosure,” said Treasury Secretary Tim Geithner. “The Administration's loan modification programs have given more than a million responsible homeowners a chance to stay in their homes, and we want to do all we can to help make sure that struggling homeowners know about these free resources for help.”

July Housing Scorecard Released

This story appeared in Bank Digest.

The U.S. Department of Housing and Urban Development (HUD) and the Treasury Department have released the second edition of the Housing Scorecard showing that, thanks in part to interest rates continuing at all-time lows, home affordability in the U.S. remains near the most attractive levels in 10 years. In addition, for the first time, the report now tracks the impact of HUD’s Neighborhood Stabilization Program, which has spurred local investment and is beginning to make affordably-priced homes available to consumers. The Housing Scorecard is the Obama administration’s comprehensive report on the nation’s housing market. “The Administration’s programs to stabilize the housing market have helped many across the country weather this crisis,” said Treasury Assistant Secretary Herb Allison. “Our initiatives continue to offer responsible homeowners the chance to avoid the often painful process of foreclosure.”

March Loan Modification Report Released

This story appeared in Bank Digest.

The Treasury and Housing and Urban Development Departments have announced the release of the March data for the Administration's Home Affordable Modification Program (HAMP). As of the end of the month, more than 1.4 million homeowners received offers for trial modifications, and more than 1.1 million borrowers were receiving a median savings of $500 each month. Permanent modifications have been granted to more than 230,000 homeowners, and an additional 108,000 permanent modifications have been approved by servicers and are pending only borrower acceptance. Homeowners' lower monthly mortgage payments under HAMP represent a cumulative savings of more than $3 billion.

Monthly Servicer Performance Report Issued

This story appeared in Bank Digest.

The Treasury Department and the Department of Housing and Urban Development have released their February data for the administration's Home Affordable Modification Program (HAMP). As of the end of February, more than one million borrowers were receiving a median savings of $500 each month—a 36 percent median monthly payment decrease. Permanent modifications have been granted to 170,000 homeowners, and an additional 91,800 permanent modifications have been approved by servicers and are pending only borrower acceptance.

SAFE Act Public Comment Period Extended

This story appeared in Bank Digest.

HUD has issued a notice advising that it is extending to March 5, 2010, the deadline for comments on its proposed rule addressing the agency's responsibilities under the Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act). The proposal was published on Dec. 15, 2009. The public comment deadline was originally scheduled to close on Feb. 16, 2010.

Examiners to Test for RESPA Compliance

This story appeared in Bank Digest.

Banks supervised by the Federal Deposit Insurance Corp. have been notified that beginning Jan. 1, 2010, agency examiners will begin examining for compliance with the amended provisions of Regulation X, which implements the Real Estate Settlement Procedures Act. The Department of Housing and Urban Development amended Regulation X regarding the Good Faith Estimate (GFE) and HUD-1 Uniform Settlement Statement (HUD-1). The HUD amendments created a new version of the GFE, which is subject to tolerances for accuracy; and expanded the HUD-1, which promotes comparison of loan terms and settlement charges between the HUD-1 and the GFE. The FDIC also issued supplemental information regarding the final RESPA rule.

HUD Proposes Responsibilities under the SAFE Act

This story appeared in Bank Digest.

The Department of Housing and Urban Development has issued a proposed rulemaking that would establish the agency’s responsibilities under the Secure and Fair Enforcement Mortgage Licensing Act of 2008, or SAFE Act. The proposed rulemaking would address the criteria that HUD will use to determine whether a state has put in place a system for licensing and registering loan originators, as required by the SAFE Act.

Administration Kicks off Mortgage Modification Conversion Drive

This story appeared in Bank Digest.

The Treasury Department and Department of Housing and Urban Development (HUD) kicked off a nationwide campaign to help borrowers who are currently in the trial phase of their modified mortgages under the Obama Administration's Home Affordable Modification Program (HAMP) convert to permanent modifications. The modification program, which has helped over 650,000 borrowers, is part of the Administration's broader commitment to stabilize housing markets and to provide relief to struggling homeowners and is a primary focus of financial stability efforts moving forward. Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year.

“We are encouraged by the pace at which trial modifications are now being made to provide immediate savings to struggling homeowners,” said the new Chief of Treasury's Homeownership Preservation Office (HPO), Phyllis Caldwell. “We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones.”

Information Sought on FHA's Financial Health

This story appeared in Bank Digest.

Oversight and Government Reform Committee Ranking Member Darrell Issa, R-Calif., and Financial Services Committee Ranking Member Spencer Bachus, R-Ala., sent a letter to Housing Secretary Shaun Donovan requesting information on the financial health of the Federal Housing Administration in light of an announcement by the FHA regarding its annual independent actuarial study that is expected to show the capital reserve ratio dropping below the congressionally-mandated threshold of two percent. Among the items Issa and Bachus request are: data supporting claims that the FHA will not need to ask Congress for any funding; records and communications between HUD or FHA employees related to the decline in FHA's reserve fund; and complete explanation of the Administration's plan to prevent the need for any taxpayer bailout of FHA.

Administration Urges Congress to Approve Housing Measures

This story appeared in Bank Digest.

Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan have called on Congress to approve three measures to improve housing and the housing market for Americans: extension of the First Time Homebuyers Tax Credit for a limited period; extension of higher loan limits for home mortgages; and secure funding for the Housing Trust Fund. The administration supports a limited extension of the First Time Homebuyers Tax Credit, which currently is set to expire on Dec. 1, 2009; a one-year extension of the current loan limits for the Federal Housing Administration, Fannie Mae, and Freddie Mac; and $1 billion in funding for the Housing Trust Fund. House Financial Services Committee Chairman Barney Frank, D-Mass., has supported the White House call to action, calling the Trust Fund socially and economically necessary and saying that higher GSE loan limits are needed to address market differences.