U.S. Rep. Elijah Cummings recently issued a letter to more than a dozen lenders throughout the metropolitan area currently engaged in mortgage modification procedures, especially those participating in the Home Affordable Modification Program (HAMP.) The letter asks lenders to account for their mortgage modification practices.
HAMP, a program created to stem the tide of foreclosures, was also designed to ensure that government, mortgage industry and individual borrowers share financial responsibility.
“I am concerned that HAMP servicers lack the infrastructure or the willingness to mitigate foreclosures in a consistent, transparent, or responsible manner, and in compliance with HAMP guidelines,” said Cummings in the letter. “For instance, the 528,000 borrowers who have had their trial loan modifications fail far exceed the 389,000 borrowers who have entered permanent loan modifications.
“As noted by the TARP Congressional Oversight Panel,” the letter continues, “the stories from housing counselors and borrowers that include, ‘servicers losing their paperwork, lacking adequate staff, failing to tell borrowers why they are being denied, and in some cases, failing to follow the program’s rules…, come with enough frequency to raise questions about whether servicers are fully committed to HAMP’s success.”
The letter requests an immediate response to 9 specific concerns the congressman’s staff is frequently asked to address.