This is a re-post from Karl Denninger’s site, which appears to be having technical difficulties. Hope Karl doesn’t mind.
You have to give these banksters credit – they’ll lie and lie and lie some more….
More than 650,994 loan revisions had been started through the Obama administration’s Home Affordable Modification Program as of last month, from about 487,081 as of September, according to the Treasury. None of the trial modifications through October had been converted to permanent repayment plans, the Treasury data showed. That failure is getting the administration’s attention.
None? Out of 651,000 “trial” modifications none have turned into a permanent repayment plan?
That’s all the borrower’s fault, right? There’s no collusion here, yes? No intent to screw the taxpayer, having taken their money? Nothing wrong here at all… it just calls for the administration’s “attention.”
“We are taking additional steps to enhance servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications,” Treasury spokeswoman Meg Reilly said in an e-mail yesterday. The Obama administration plans to announce additional steps tomorrow, including new private-public partnerships and resources for borrowers.
What’s worse, Bank of America has only 14% of their “eligible” loans in a trial modification. Citibank has 40% under trial, and JP Morgan/Chase 32%.
All in all, only 20% of those “eligible” have been offered, accepted, and are in a trial but zero percent – zero – have actually turned into a permanent loan modification that the homeowner can count on.
The administration program requires banks that received federal aid from the Treasury’s Troubled Asset Relief Program, or TARP, as well as mortgage-finance companies Fannie Mae and Freddie Mac to lower monthly payments for borrowers at “imminent risk” of default.
That’s some “requirement” eh? Zero percent completion from June to October? That’s five months, and the “trial” period is supposedly 90 days, so this means that either (1) nobody did anything for the first two months, or (2) not one borrower successfully completed a trial between June and now.
If the Obama Administration and Treasury was serious about this “help” they would be seeking indictments.
Oh wait – they can’t – there was no “or else” put into the law enabling HAMP, was there? Just looked again – nope – no criminal or civil sanction in there for banks who are allegedly “required” to do these things.
I repeat: A law without a punishment for failure to comply is no law at all – it is nothing other than a scam and a fraud perpetrated by the government to make you “feel good” while in fact doing exactly NOTHING.
Wake me up when our government stops allowing the banks and regulators to both write laws without punishment clauses in them and violate black-letter laws with wild abandon without one person or firm in the bankster community ever going to prison, having their bonus clawed back, or having their corporate charter revoked.
Our so-called “President For Change”, President Obama, in fact has changed nothing, is permitting and encouraging the banksters to rob America blind, and forgot to tell you that the “change” you’re going to get (or keep) is the couple of worn pennies wrapped up in lint at the bottom of your pocket.