Congressional Oversight Panel. April Oversight Report: Evaluating Progress on TARP Foreclosure Mitigation Programs

摘要

When the Panel last examined the foreclosure crisis in October of 2009, the picture was grim. About one in eight mortgages was already in foreclosure or default, and an additional 250,000 foreclosures were beginning every month. The Panels report raised serious concerns about Treasurys efforts to address the problem, noting that six months after the programs had been announced and two years into the foreclosure crisis, the Home Affordable Modification Program (HAMP) had permanently modified the mortgages of only 1,711 homeowners, that it had failed to address foreclosures caused by such factors as unemployment and negative equity, and that it appeared unlikely to help any significant fraction of the homeowners facing foreclosure. Since then, Treasury has taken steps to address these concerns and to stem the tide of foreclosures. HAMP began requiring loan servicers to explain to homeowners why their applications for loan modifications had been declined, and Treasury launched a drive to convert temporary modifications into long-term, five-year modifications. In keeping with Panel recommendations, Treasury also announced new programs to support unemployed borrowers and to help underwater homeowners those who owe more on their mortgages than their homes are worth regain equity through principal write-downs.