From Bloomberg:

Fannie and Freddie Outline New Respite for Troubled Borrowers

Distressed mortgage borrowers will get a new lifeline from Fannie Mae and Freddie Mac after a critical foreclosure-prevention program expires this month.

The mortgage-finance giants on Wednesday outlined a plan to replace the Home Affordable Modification Program, one of the first responses to the financial crisis by President Barack Obama’s administration.

The new program aims to cut troubled borrowers’ mortgage payments by 20 percent, through a combination of tools such as interest-rate reductions, extensions of loan terms and mortgage principal forbearance. The program, called “Flex Modification,” begins in October 2017.

Fannie Mae and Freddie Mac, which are regulated by the Federal Housing Finance Agency, don’t make loans. They buy them from lenders, wrap them into securities and make guarantees to investors in case of default. Their role in guaranteeing the repayment of mortgages gives them ultimate authority in setting the terms for modifications of borrowers’ loans.

The program closes another chapter on HAMP, which launched in 2009 and struggled in its early days to meet the ambitious goals of the Obama administration to help as many as 4 million borrowers avoid foreclosure.

Fannie and Freddie’s new program, which is similar to a September proposal from the Mortgage Bankers Association, will let borrowers get a streamlined modification with no required documentation after being 90 days late on payments. When the MBA made its proposal, lenders said such a move would ensure borrowers get help quickly, which they say is key to avoiding foreclosure.

Fannie and Freddie said a high percentage of borrowers who are at least 60 days late would be eligible.

This entry was posted in Foreclosures, Mortgages, National Real Estate. Bookmark the permalink.

90 Responses to HAMP v2

  1. grim says:

    From the Star Ledger:

    Nearly 6K foreclosures last month keep N.J. at top of the national list

    New Jersey continues to lead the country in foreclosures, even though the national average continues to show a dramatic decrease.

    The state’s foreclosure rate for the month of November sat at 0.16, compared to the national rate of 0.06, according to data released by RealtyTrac. The state saw a drop of 7 percent in overall foreclosure activity from last November, while the national average dropped 17 percent from a year ago.

    The Garden State recorded a total of 5,920 foreclosures for the month — or one in every 598 homes last month.

    Salem County had the highest rate of foreclosures for the month, at a rate of 0.35 or one in 287 homes.

    Atlantic City and Trenton recorded the largest foreclosure rates with populations of 200,000 or more, with 0.27 and 0.19 respectively, the data revealed.

  2. I think NJ is probably almost up to getting the late 2006 foreclosures completed.

  3. D-FENS says:

    Hah! Can’t believe this is now national news! Dolts. Now every state knows about it and will consider similar legislation. The death of print media….


  4. grim says:

    We’re late to the party, this is already happened across the US.

    Arizona, North Carolina, Pennsylvania, etc etc.

    This has been copycat legislation since about 2010, it’s not new. Democrat Brian Stack sponsored this exact same bill 6 years ago, and it had wide democratic support, including Steve Sweeney and Sheila Oliver.

  5. D-FENS says:

    I swear I read in one of the editorials chastising the bill that “no other state” has done this.

  6. D-FENS says:


    Yep…found it…..Quote:

    “So how much would it save, in the end? Probably nothing. The last time the boys in the back room tried to pull this stunt, in 2011, the Legislature’s own research arm said it might not save a dime – and could even increase local costs. That may explain why no other state has done this.”

  7. grim says:

    I think Alaska has done it as well.

  8. D-FENS says:

    Shocked that the Star Ledger Editorial Board would make such a mistake…

  9. Lost says:

    The other day I touched on this. This is exactly what we are going through right now. Another transition taking place due to technology.

    “Historians disagree about whether life improved for the working class in the first phase of the Industrial Revolution, from 1790 to 1850. E.P. Thompson argued in The Making of the English Working Class that life clearly did not improve for the majority of British people: “ The experience of immiseration came upon them in a hundred different forms; for the field labourer, the loss of his common rights and the vestiges of village democracy; for the artisan, the loss of his craftsman’s status; for the weaver, the loss of livelihood and of independence; for the child the loss of work and play in the home; for many groups of workers whose real earning improved, the loss of security, leisure and the deterioration of the urban environment” (Thompson 445).

    Historians do not even agree if real wages increased for workers during this time period. E.P. Thompson argues that they did not. However, most agree that real wages adjusted for inflation stayed basically steady from 1790 to 1840. Thompson argues that this fails to account for the vast numbers of unemployed. But, after 1840 or 1850, as England entered the second phase of the Industrial Revolution, it appears that real wages began to increase. For example, one study showed that real wages, adjusted for inflation, increased 50% between 1830 and 1875 (Feinstein).”

  10. Duh. All you do is repeat yourself.

    The other day I touched on this.

  11. Fast Eddie says:

    Oblammy claims that there will be consequences to the Russian hacks, despite the fact that Romney said this 4 years ago and was mocked. Oh, I get it, Hillary lost so now it’s urgent. What’s Oblammy gonna do, draw a red line and get pounded up the @ss by Putin some more? LOL!

  12. Essex says:

    9:42 Pretty sure he means sanctions Gary. Those serve to devastate the Russian economy when they can least afford it.

  13. 3b says:

    Erdogan of turkey had turned into an authoritarian dictator and Obama says nothing. And turkey is a member of n a t o too! But yes with all the problems in the world and the Middle East in flames let’s pick Russia to be the bogey man. He took Crimea back? Who cares? It was Russian anyhow.

  14. Essex says:

    Russia has long been the whipping boy of the US.

  15. Essex says:

    P.S. Caveat I’m part Russian.

  16. Ben says:

    I love the fact that the only acceptable xenophobia is against that of the Russians

  17. 3b says:

    Ben agreed. I would be much more concerned about Hillary getting us into a war with Russia than trump getting us into a war with anyone. I also like the fact he took the call from the president Of Taiwan,

  18. Fast Eddie says:

    I love the fact that the only acceptable xenophobia is against that of the Russians.

    That’s because they made snowflakes melt as they cradled their puppies.

  19. Fast Eddie says:

    Pretty sure he means sanctions Gary.

    Yes, that’ll learn ’em! I’m not advocating a war but Oblama’s words have been akin to the adults talking in a Peanuts cartoon for almost eight years now. You know, “Blah… Blah… Blah, Blah, Blah!:

  20. D-FENS says:

    @iowahawkblog David Burge Retweeted Jon Passantino
    In related news, Anthony Weiner announces he will be working with Ashley Madison to stop online adultery

    @passantino Jon Passantino Retweeted AP CorpComm
    The AP announces it will be working with Facebook to identify and debunk fake news

  21. D-FENS says:

    The worst thing about Russian economic sanctions is I can no longer get new Russian made AK-47’s.

    Well….legally anyway.

  22. Juice Box says:

    Yeah and Trump is causing problems with China.

    BREAKING: China’s navy has seized an unmanned, underwater U.S. Navy vehicle in international waters of South China Sea.

  23. Anon E. Moose, saying 'Come back, JJ' says:

    One of the most expensive things about forming a NY LLC is the cost of meeting the publication requirements.

  24. grim says:

    I think our NJ required notices from the ABC were like $250 if I remember correctly, because we needed to print for consecutive 2 weeks.

  25. grim says:

    I laughed at Trump’s recent hack tweet.

    The one that skewered Hillary and the DNC for “illegally” slipping her debate questions.

    Not that I read them frequently, and most I see elicit an eye roll, but this one was really a zinger.


  26. 3b says:

    Juice yes he is. Maybe we can level the playing field now. China has been walking all over us for years. Obamas lecture strategy not working.

  27. grim says:

    The Taiwan call was not a faux pas.

  28. grim says:

    No action from the white house on China’s actions militarizing the South China Sea? Renegging on promises to not put armament on the neutral islands?

  29. Lost says:

    Two good comments based on this article.

    “The IMF has said that economies with low regulation, low tax rates and less corruption have lower shadow economies (ex. criminal activities like drugs). Using that standard NJ would have massive potential for an unmeasured and unreported underground economic activity that does not show up in any income comparisons.

    And as usual for these articles, no mention if govt. transfer payments are included in the income numbers. For the bottom quartile that is significant and becoming more significant among SS recipients.

    One last thing – not favoring the working class. People at the top on the income distribution are working class, most of them work in the financial sector, professionals or small business owners. There really aren’t very many in the top 20% that have ‘family offices’ and spend 5 1/2 months of the year around Monaco on their yachts”

    “To be in the top 10% of household income in NJ all it takes is two professional people (senior Management, Lawyers, Doctors, Administrators, etc, or senior Government employees) who have been married for a long time, had 0-2 children, lived off one income for most of their time, investing the other income, and now are at the top of their earning career, have little or no debt, and are receiving substantial investment returns due to the savings they made when they were younger. Poof; suddenly, after 25 years of responsible living and hard work, they have become the Evil Rich and should be taxed more heavily.”


  30. Raymond Reddington says:

    Watched Oliver Stone’s video on Stalin and Russia on Netflix. Gives you a whole different perspective on World War 2 and the cold war. The part about Wallace Vs Truman was especially interesting…

  31. Raymond Reddington says:

    All it takes is a divorce, an illness, a job loss and you are out of the top ten in an instant..

  32. Lost says:

    I’m living proof. That second comment describes my family. We lose an income, and we drop from inside the 10% to god knows where.

    I don’t consider myself wealthy….now I know what people meant by class warfare created by data. Income should never be used, instead total wealth should be used in an attempt to implement a progressive tax system. I’m considered wealthy by the income data, but that’s the problem, I’m still working. How can you be considered wealthy if you are still working to survive?

    What’s the answer? No idea. Any law you come up with or tax policy you come up with will just be corrupted by human nature. The crooks always get out of paying their share.

    Raymond Reddington says:
    December 16, 2016 at 12:17 pm
    All it takes is a divorce, an illness, a job loss and you are out of the top ten in an instant..

  33. Raymond Reddington says:

    You’re Fired!!

    Trump to drone captain.

  34. Tywin says:

    The “mainstream” media doubles down on this nonsensical Russian “hackets” charade, as Why Hillary Lost Excuse #47.

    Did Russia make Hillary back TPP and destroying more jobs and factories via “free trade”? Did Russia make Hillary an open borders advocate? Did Russia make Hillary seek to put more Americans out of work by increasing H-1B visas from India? Did Russia make Hillary refuse to answer the 3:00am phone call while our embassy burned and Americans were under attack for 13 hours, never to receive assistance?

    Trump opposed all these things, and that is why he won.

  35. Kellyanne Conway:

    “Vladimir Putin didn’t tell Secretary Clinton to ignore Michigan and Wisconsin.”


  36. Is it possible that among the many things that Democrats don’t get, one of them is that most Americans like Russians much more than progressives?

  37. “17 security agencies” is used in Democrat talking points way more than “common sense gun laws” now, but the common thread is that nobody knows what either means. Is it possible that mall cop and office security companies in California and New York are some of these security agencies?

  38. Lost says:

    Trump would be making a brilliant move if he managed to make Russia into our partner. No one would dare mess with a russian/american coalition.

  39. 3b says:

    Lost the other day you were calling people losers with no skills now you sympathize? Which is it?

  40. Lost says:

    It’s tough, I feel bad for the losers with no skills, but at the same time, they boil my blood when they waste their free education. What’s the answer? Who knows.

    3b says:
    December 16, 2016 at 2:28 pm
    Lost the other day you were calling people losers with no skills now you sympathize? Which is it?

  41. Fast Eddie says:


    Kellyanne Conway has come out with a few really good zingers.

  42. Following the election of Donald Trump, Michelle Obama said many Americans now know what it’s like not to have hope.



  43. Anon E. Moose, saying 'Come back, JJ' says:

    ExPat [14:17];

    Also, not the least bit ironic for leftists to now vilify Russia and Putin, considering they would have gladly welcomed with open arms the importation of Russian state-controlled soci@lism and have us all singing L’Internationanale… if only it hadn’t cost them their grip on power.

    Do svidánija, comrades…

  44. Anon E. Moose, saying 'Come back, JJ' says:

    3b [14:28];

    It depends on who he’s trolling today. Or whether he’s taken his meds.

  45. Essex says:

    It’s a non-issue after the exposure of Podesta’s penchant for show tunes and Debbie Wasserman Schiltz in a thong.

  46. This all sounds to me like less to do with Russians, more to do with Russian dressing.

  47. Juice Box says:

    re: “17 security agencies” is used in Democrat talking points

    Yup the Coast Guard and the Dept of Energy agree Putin personally told everyone on Facebook and Twitter to vote for Trump.

    James R. Clapper resigned last month. There is a kerfuffle over the next Director of National Intelligence, they all now need to prove their worth if they want to keep a job.

  48. Juice Box says:

    Obama’s comment today during his last press conference of the year before he flys off to Hawaii for vacation.

    “I don’t think she (Hillary) was treated fairly during the election… I think the coverage of her and the issues was troubling.”

    Err fair? Yeah sure as if the MSM coverage of Trump was equally bad.

  49. Juice – I almost posted that too. In my mind I sounded like Chicken Lady, “Wha-Wha-Whaaat?”

    “I don’t think she (Hillary) was treated fairly during the election… I think the coverage of her and the issues was troubling.”

  50. chicagofinance says:

    You are in a state of constantly being angry with yourself? That is not good for your well being. Please get over it.

    Lost says:
    December 16, 2016 at 2:36 pm
    It’s tough, I feel bad for the losers with no skills, but at the same time, they boil my blood when they waste their free education. What’s the answer? Who knows.

    3b says:
    December 16, 2016 at 2:28 pm
    Lost the other day you were calling people losers with no skills now you sympathize? Which is it?

  51. Obama floundering at his own press conference. No teleprompter = no faking it.

  52. Obama: “Over a third of Republican voters approve of Putin”. The stat he leaves out is that over half of Democrat voters think that Putin is either gravy and cheese curd over fries or a lady of the evening.

  53. chicagofinance says:

    Эссекс очень гей

    Essex says:
    December 16, 2016 at 10:40 am
    P.S. Caveat I’m part Russian.

  54. 3b says:

    Lost. Lots of people with skills honed over years lose their jobs and then no one wants them. So what get new skills? Tell that to the 40 something year old who looses their job.

  55. Juice Box says:

    3b – get new skills

    Uber – down by me most of the Uber drivers are former something or another from a big company.

  56. Blumpkin, Pumpkin, don’t you cry
    You’ll be big schmuck bye and bye

  57. Fast Eddie says:

    I presume Oblama is still trying to create a legacy. He’s probably realizing that his line of sh1t has a half-life comparable to lithium.

  58. Lost says:

    Sweet! Looks like I’m still alive!

    “Item 8.01 Other Events

    On December 8, 2016, the Company met with the senior buyer for Bristol Farms grocery stores. Our meeting was very successful, and we can announce that Bristol Farms will become our 1 st retail grocery store customer. Bristol Farms is an independent grocery store chain in California focused on marketing to an affluent customer base. The Company has provided Bristol Farms everything required to complete the vendor certification process over the next 30 days. The buyer is preparing purchase orders for delivery of Nate’s Homemade Pancake and Waffle Batter to begin after February 1, 2017. The Company is currently setting up a schedule for in-store demonstrations at Bristol Farms stores in order to introduce customers to the great taste, convenience and simplicity of our product. The Company is confident that our relationship with Bristol Farms will open doors with other grocery chains and contribute significantly to the Companies growth during 2017.”

  59. Funnelcloud says:

    Obama has made more threats to foreign nations and retaliatory comments in the last 4 weeks than he did in the previous 8 years. 30 days before he goes out the door he wants to establish himself as a stronge president . I wish he’d just go play golf , it may be another 5 million dollar vaca on the tax payers tab before he leaves office but it would probably be worth the money

  60. 3b says:

    Juice I have seen that up in Bergen too! Some who had big jobs at the big companies too. It’s funny with all the talk of raising social security age. Companies don’t want people in 40s /50s who is going to want them in 60 s!!

  61. Lost says:

    I know it’s not the answer you want to hear, but they either learn a new skill or consider themselves screwed. They are no different than the artisans at the start of the industrial revolution. Their livelihood was destroyed by the revolution. Either change with the times or die. I do feel really bad, and hope I don’t suffer the same fate. Going to try and keep my skills up the best I can. Life is brutal sometimes.

    3b says:
    December 16, 2016 at 3:47 pm
    Lost. Lots of people with skills honed over years lose their jobs and then no one wants them. So what get new skills? Tell that to the 40 something year old who looses their job.

  62. Blumpkin, Douchetard says what?

  63. Obama just said we need to agree on “a common set of facts.” Are facts negotiable?

  64. Essex says:

    Extraordinarily gay — yes.

  65. Fast Eddie says:

    Hmmm… definitely exhibiting a lack of self-worth; accompanied by anger and resentment.

  66. Juice Box says:

    3b – Last recession my FIL was let go after a very long career. We found a decent attorney and he was able to get a settlement out of it. It is the best you can do these days.

  67. Ben says:

    I know it’s not the answer you want to hear, but they either learn a new skill or consider themselves screwed. They are no different than the artisans at the start of the industrial revolution. Their livelihood was destroyed by the revolution.

    Prior to the industrial revolution, every American was working a low level job and struggling as they always had on a farm. Once we increased the production through the technology gains, they managed to create new industries.

    You don’t have that option now. Automation isn’t killing us. Offshoring kills us. I can start my own successful business in the US. If it involves any type of manufacturing or assembly, I will be forced to go offshore for operations. If I don’t, someone else will duplicate the business and do what I didn’t to lower costs and then put me out of business. That’s why its a joke for people who criticize individual businesses who engage in offshoring are misguided. It’s either that or get put out of business. Of course, these are also the same people who are blind to realize that tariffs on nations with low standards of living eliminates this entire issue immediately.

    The “issue” of automation has only recently been brought forth to deflect attention away from the fact that any jobs that still require human capital are still being sent or have been sent out of this country. We should aim to keep what we have….not send it elsewhere.

    By keeping the current trade agreements with nations who actively engage in protectionism via currency devaluation, we are screwing ourselves. We have a trade deficit that is hurting us and now those foreigners are coming in a swooping up the prime real estate driving up the cost of living for everyone.

  68. 3b says:

    Lost what answer do you presume that I wanted? Fact is you make it sound so simple and easy except it is not. And based on your response to me I presume you consider that belief applicable to yourself as well. Financial analysts can be replaced its not a unique skill set. So shouldn’t you as a man in his 30s with lots of work years left be acquiring new skills?

  69. 3b says:

    68 juice he was fortunate to be able to get a settlement.

  70. Essex says:

    4:10…such an under achiever that guy.

  71. Lost says:

    Ben, great post. Brought some light to the issue for me. Never looked at protectionism in that context.

    Do you think trump will stand by his word?

  72. Essex says:

    Ross Perot — a very intelligent guy — a big business success was extolling the risk of the flight of American jobs. The reason we could be a force in WWII was more due to our manufacturing capabilities than anything else. If we somehow eliminate that we will pay the cost dearly. Which is what we are seeing right now. Across almost every region of the country. Furniture makers in the Carolinas, fabric industries, creation of freaking Levis….all gone. I can justify driving a BMW because they make a hell of car and they actually have plants in SC that send out tons of ‘American Assembled’ SUVs. Not Ideal though as the profits all go to the krauts.

  73. Back around 1979 my Dad lost his job. I was the first of 5 kids in college, having skipped a grade, my 2 year younger sister was approaching college with 3 more kids lining up. My Dad was an industrial engineer, but he was a quasi-sales engineer as well back then. To my Dad’s credit, big accounts said they would cancel their business (wafer chip equipment manufacturer) if my Dad was no longer there. They called him back and gave his job back. He had never been unemployed before since age 16. My Mom, unemployed since being married in 1959 was so PISSED that my Dad was so disrespected that she undertook her own career. First as a temp, then a full time employee at AT&T and by the time I graduated college with a $26K salary in the mid-80’s, my Mom was making $50K at AT&T with not even a college degree. She was just so driven that she told my Dad that he could quit his job a few years later, but he didn’t, of course. She was just so pissed off that the weight of the world fell on him when he had been a great provider for his entire life that she wanted to make sure that he never felt that weight again. We should all be so lucky to have that kind of partner in life. My parents have been retired for some 20 years now and are still having a great life together at age 80.

    3b – Last recession my FIL was let go after a very long career. We found a decent attorney and he was able to get a settlement out of it. It is the best you can do these days.

  74. Raymond Reddington says:

    I agree with Ben.
    Also liked Perot.
    Really odd how he dropped out.
    He had the popular vote at the time I believe.

  75. Fabius Maximus says:

    Takes a while to get to the meat.

    Are we great yet Gary?,or is that going under the bus as well.

    The great Swindle is in!

  76. Fabius Maximus says:

    Took my kids to Rogue One last night (Best Dad Ever!). I really enjoyed it.

    I think the Trump Team released their review today!

  77. 3b says:

    Ex pat wonderful story. I am sure you are proud of them as you should be.

  78. 3b says:

    Fab can he take office before we decide whether he makes America great or not? And again I ask if b you are upset and so critical of this country why don’t you go back to whatever country you originally hail from?

  79. jcer says:

    NJ Expat that is why we and my wife both work, so neither of us needs the job. I find your employer is less likely to abuse you when they know you easily have an alternative(first having good marketable skills and second not needing the income). Also being able to save more will allow for an earlier retirement.

  80. Essex says:

    6:03 – These are crazy times. Watched my old man reinvent himself three times. Once over 5o.

  81. Comrade Nom Deplorable, just waiting on the Zombie Apocalypse. says:

    Double down on the division, Rory. Worked real well in November.

    The media and Dems promise an unrelenting attack on Trump. I think he will own them if they go that route. At a minimum, they volunteer to the the scapegoat for any Trump policy failures.

  82. Comrade Nom Deplorable, just waiting on the Zombie Apocalypse. says:

    The Dems were preparing a full frontal assault on Clarence Thomas. But that seems to have evaporated because the last thing they want to do is give Trump another SCOTUS pick. Personally, I wish they would start it up again and get him out. His opinions on ERISA make so much sense that they threaten my livelihood.

  83. Essex says:

    Trump will, just being Trump do something really bizzare and probably illegal.

  84. 3b, jcer – I remember my parents coming to me and telling me during that time that I might have to take loans to continue at college. Looking back, I was the ’70’s version of today’s snowflakes. I was so offended at the prospect of having to pay for my own party lifestyle. At the end of my long baccalaureate career, I certainly hustled and earned, but I graduated debt-free as did my four siblings. Interestingly, my mother never went to college but was adamant about all 5 of her children having a degree, which worked out. My Mom’s only sibling, a brother 6 years older, was in the Marines in the ’50’s, got out and earned a bachelor’s degree at University of Cincinnati with the GI Bill, and a master’s degree after that. He became a gym teacher (what else?). He also had 5 kids. None of them earned a college degree and neither has any of their kids.

  85. Lost says:

    Are they trump supporters? Oh how far have we come, that the poor and disfranchised believe a republican can help them.

    “He also had 5 kids. None of them earned a college degree and neither has any of their kids.”

  86. Nope. Just stupid, generic, Pollocks. Lu

    Are they trump supporters?

  87. Pollock is the common name used for either of the two species of North Atlantic marine fish in the genus Pollachius.

  88. Lost says:

    In all seriousness, it definitely seems like Trump changed the direction of the political teams. Made the democrats look like the party of the rich and out of touch, while turning the Republican Party into the party for the common man in touch with their needs. Living through major change.

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