NEW YORK (CNNMoney.com) — The Obama administration lost a bid to add a powerful weapon in its fight against foreclosure Thursday, after the Senate voted down a proposal to allow bankruptcy judges to modify mortgages.
The defeat left many housing advocates questioning the effectiveness of the president’s loan modification plan. The so-called cramdown provision, which would have allowed judges to reduce mortgage principal, would have put pressure on servicers to modify loans before borrowers file for bankruptcy.
By Julie Patel
South Florida Sun Sentinel
8:53 PM EDT, April 28, 2009
The Florida Senate passed a broad property insurance bill Tuesday that is expected to boost most statewide home and condominium insurance rates and reduce Floridians’ risk of paying damages if a major hurricane hits.
There are several major differences in the legislation passed by the Senate and earlier by the House, including by how much to increase state-backed Citizens Property Insurance rates. They have to hammer out a compromise before Gov. Charlie Crist considers signing it into law.
WASHINGTON (Reuters) — The U.S. Treasury Department will Tuesday tap a $50 billion housing rescue fund to pay off mortgage investors and reduce monthly payments for millions of borrowers, said a senior administration official.
Mortgage servicers that own a small stake in costly loans will receive a cash payment to either erase the debt or agree to accept a reduced return on their investment.
NEW YORK (CNNMoney.com) — The Obama administration said Tuesday it is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program.
Announced with great fanfare in mid-February, the president’s $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about being left in the cold because their home values have dropped or they’ve lost their jobs.
The number of Broward Countyforeclosures in March rose from a year ago, while Palm Beach County saw a slight decrease during the same period.
Broward had 4,599 homeowners in some stage of foreclosure last month, up 17 percent from last March, according to RealtyTrac of Irvine, Calif. Broward had Florida’s ninth-highest foreclosure rate among counties statewide. Palm Beach County had 1,509 owners in the foreclosure process last month, down 8 percent from a year ago.
WASHINGTON (AP) — The number of American households threatened with losing their homes grew 24 percent in the first three months of this year and is poised to rise further as major lenders restart foreclosures after a temporary break, according to data released Thursday.
NEW YORK (CNNMoney.com) — The Obama administration’s loan modification program is finally underway.
The Treasury Department announced Wednesday the first six participants to sign up for President Obama’s plan. They include three of the nation’s largest banks: JPMorgan Chase (JPM, Fortune 500), which will get up to $3.6 billion in subsidy and incentive payments; Wells Fargo (WFC, Fortune 500), $2.9 billion; and Citigroup (C, Fortune 500), $2 billion. The others are GMAC Mortgage, $633 million; Saxon Mortgage Services, $407 million; and Select Portfolio Servicing, $376 million.
NEW YORK (CNNMoney.com) — The eagerly anticipated foreclosure prevention program unveiled Wednesday by President Obama targets 9 million borrowers for help – are you one of them?
The $75 billion effort, dubbed the Homeowner Affordability and Stability Plan, boils down to two basic solutions:
First, the government is aiming to help more homeowners refinance to take advantage of new low interest rates.
Protecting yourself from illicit foreclosure-rescue firms:
Beware of companies calling themselves “mortgage consultants,” or “foreclosure services” promising to save your credit or pay closing costs.
Don’t ignore mail from your lender; stay in touch even after a foreclosure notice has been filed. If you have a problem, try to negotiate a new loan arrangement with your lender before considering outside experts.
Never transfer your property deed or title to a rescue firm.
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| U.S. Rep. Barney Frank plans to unveil a plan to tighten regulation of the mortgage market. |
CAMBRIDGE, Mass (Reuters) — The chairman of a powerful U.S. Congressional committee plans to unveil legislation intended to provide longer-term stability to the U.S. mortgage market by preventing lenders from securitizing the full value of their loans.
