Obama Administration Won't Release Mortgage Modification Figures

No news is good news, right?

Well, that may work in raising teenagers but when it comes to public policy in general and housing policy specifically the American public deserves to know what is going on. Why? American taxpayers are picking up the tab, that’s why.

Regrettably, our wizards in Washington are often reluctant to provide the transparency the American public deserves.

I witnessed this dynamic again yesterday in reviewing a story on the mortgage modification program. The Wall Street Journal puts a positive spin on developments in the mortgage modification process by writing, Mortgage Program Gathers Steam After Slow Start:

The Obama administration said Tuesday that its mortgage-modification program has enrolled one in five eligible homeowners, a sign the effort is gathering momentum after a slow start. But so far few of those trial modifications are turning into permanent fixes.

The Making Home Affordable program has begun trial modifications for more than 650,000 borrowers since it was launched in February, according to data released Tuesday by the Treasury Department. That amounts to 20% of those eligible for the program. More than 217,000 trial modifications, or roughly one-third, were under way in just two states: California and Florida.

The program provides financial incentives to mortgage companies and investors to reduce loan payments to affordable levels. The Treasury Department said the program was on track to meet its goal of offering help to between 3 million and 4 million borrowers over the next several years. Those who are 60 days or more delinquent on their mortgages or at risk of imminent default are eligible.

Whether the program will ultimately be judged a success will depend upon how many trial modifications become permanent. To receive a permanent fix, borrowers must be current on their payments in the trial program after three months and submit a hardship affidavit and other documents.

The administration won’t release figures on completed modifications until December…

Won’t release figures on completed modifications until December? Why not? What’s up with that?

Where can one turn to find this information? You’ve come to the right place. I addressed this very point on October 29th in writing “Mortgage Modifications: Statistically Insignificant.” In that commentary, I highlighted the following:

• 1,080 borrowers had successfully completed the trial period and received HAMP modifications.

Yep. A whopping 1,080 borrowers have successfully completed the trial period and received modifications. A full .5% of those modifications that had started. Yes, a full 1,080 homeowners.

What was the source of that information? A Review of the TARP produced in October by the General Accounting Office. Check page 93 in the report. It’s right there. A full 1,080 mortgages.

Won’t release information? Come on. You don’t think The Wall Street Journal has access to that information?

When our political leaders are not held to account, American interests are not served.

The American public deserves so much better.

Comments

[58robbo:]

"The Making A Home Affordable" program?! Does anyone buy into this nonsense? it's more like "the spending trillions to make sure homes remain unaffordable" program!

Nov 12 09:01 AM

[po folks:]

Both you and Robbo are so right. Let the Bubbles reflate by whatever means at whatever the cost. We'll all feel richer (for a short while).

Nov 12 10:25 AM

[ssven218:]

what modification, I am on my third, yes my third trial modification with citi bank. Here is the kicker, I was told by citi that I meet all the qualifications, all my paper work is in order(after sending it 5 times, mind you i kept records of who and where i sent the paperwork), my house is under water, and I have never missed a payment and made all the payments as agreed. Paid my last payment on my third modification this november 1st. still waiting to see what happens. so like I said, what figures.

Nov 12 01:22 PM

[4Annie:]

So much for "change" & promise of transparency. Appears that politicians are all the same.

Nov 12 03:28 PM