Study Says 800K Homeowners Should’ve Avoided Foreclosure But Big Banks Messed It All Up
By Mary Beth Quirk on
Getting a mortgage modification has been hard enough for homeowners, what with disorganized big banks not having enough well-trained people on staff to deal with the necessary ins and outs of the process. But a new study says that things should've been easier under the Home Affordable Modification Program and resulted in 800,000 fewer foreclosures than we ended up with.
ProPublica delves into the study by the Federal Reserve Bank of Chicago, the government's Office of the Comptroller of the Currency (OCC), Ohio State University, Columbia Business School, and the University of Chicago. The results come down that hefty number of 800,000 homeowners who ended up in foreclosure but shouldn't have under the government's foreclosure prevention program.
The results showed that some banks were better than modifying loans than others because they had the extra ammo of larger staffs and better trained employees who knew the best way to guide homeowners to avoid foreclosure.
The study found that if all the mortgage servicers that weren't as good at modifying loans had performed as well as their peers, there would've been 800,000 more modifications under HAMP.
read more at consumerist.com
ProPublica delves into the study by the Federal Reserve Bank of Chicago, the government's Office of the Comptroller of the Currency (OCC), Ohio State University, Columbia Business School, and the University of Chicago. The results come down that hefty number of 800,000 homeowners who ended up in foreclosure but shouldn't have under the government's foreclosure prevention program.
The results showed that some banks were better than modifying loans than others because they had the extra ammo of larger staffs and better trained employees who knew the best way to guide homeowners to avoid foreclosure.
The study found that if all the mortgage servicers that weren't as good at modifying loans had performed as well as their peers, there would've been 800,000 more modifications under HAMP.
read more at consumerist.com
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