Posted on 08/16/2010 6:42:55 AM PDT by fightinJAG
[snip]
The problem starts with a skewed financial incentive at the heart of HAMP. The government paid Fannie bonuses for trial modifications that lasted three months, but apparently provided no incentive to move those homeowners into permanent modifications. Under pressure to show that they could turn a profit after the massive bailouts of 2008 and continuing bailouts in 2009, Fannie Mae execs focused like a laser on earning the bonus payments:
(Excerpt) Read more at hotair.com ...
will this story see the light of day?
Fannie got paid to do trial modifications, but not permanent ones. So guess what? It greatly trumped up the number of trial mods it pursued (see the stats in Ed's piece). Fannie also put millions of homeowners in trial mods even though they had no hope of getting approved for permanent modification.
Not bad enough? When, after collecting its Obama stash incentive for putting the homeowner into a trial mod, Fannie got around to informing the homeowner he was not approved for a permanent mod, Fannie also informs the homeowner he has to pay back all the mortgage payments he was "forgiven" under the trial mod and do so quickly. This is what is putting these folks into foreclosure.
I hope so!
The article you linked to is worth reading.
People who WERE making their house payments were sucked into Obama’s program, and as a consequence have lost their house.
Precisely because of Obama’s program, NOT irresponsible money management.
Incredible.
bump
I see it and it is still daylight here in the Central time zone.
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