document downloads Courtesy of American Securitization Forum:
3. FHA refinancing changes fact sheet
4. Administration’s housing policy overview
5. Set of consumer frequently asked questions (FAQs)
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White House to announce housing aid: sources – Corbett B. Daly – The White House plans to announce on Friday that it will require lenders to lower the mortgage payments of some unemployed workers and encourage lenders to eliminate some principal debt of homeowners who owe more than their home is worth, sources familiar with the plan said on Thursday – Reuters
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U.S. Said to Widen Homeowner Aid, Subsidize Mortgage Reductions – By Rebecca Christie and Kate Andersen Brower – The Obama administration plans to announce programs to help homeowners avoid foreclosure, including subsidies for borrowers who owe more than their home is worth. The plan, to be unveiled tomorrow, would expand Treasury Department and Federal Housing Administration programs and use funds from the $700 billion Troubled Asset Relief Program, according to two administration officials. – Bloomberg BusinessWeek
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Treasury Prepares Principal Reduction Initiative under HAMP – by DIANA GOLOBAY – HousingWire
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read both of these – Larry Doyle at Sense on Cents Blog is not happy about principal forgiveness – 2 interesting posts:
1. Socialized Housing Manifesto 2. Barack Really is Going to Pay Her Mortgage
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Principal forgiveness program may offer relief for underwater homeowners – Kenneth R. Harney – has summary of B of A program and administration’s program – Washington Post
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Should Taxpayers Subsidize Underwater Homeowners? – KeithHennessey.com
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Here’s Why Obama’s New Mortgage Forgiveness Push Still Isn’t Going To Work – Megan McArdle – Borrowers in the hardest hit areas won’t get any help – has 6 points – Clusterstock at Business Insider
BANK OF AMERICA SECTION
has details – BofA Principal Forgiveness Plan Bad for Junior Bondholders: BarCap – by DIANA GOLOBAY – …The earned principal forgiveness program announced today by Bank of America bears adverse implications for the payout of certain non-agency mortgage-backed securities (MBS), according to commentary by Barclays Capital. In particular, the program presents a “clear negative” for junior mezzanine and subordinate debt holders, as well as moral hazard risk as borrowers intentionally default to receive principal forgiveness. … – HousingWire
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Bank of America to Reduce Mortgage Balances – By DAVID STREITFELD and LOUISE STORY – … Bank of America officials said the maximum reduction would be 30 percent of the value of the loan. They said the program would work this way: A borrower might owe, say, $250,000 on a house whose value has fallen to $200,000. Fifty thousand dollars of that balance would be moved into a special interest-free account. As long as the owner continued to make payments on the $200,000, $10,000 in the special account would be forgiven each year until either the balance was zero or the housing market had recovered and the borrower once again had positive equity. … – NY Times
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Bank of America’s New Foreclosure Program is a Start; Now Do More – By Alain Sherter – … Initially, however, the program will cover only two kinds of loans — pay-option and hybrid ARMs. … or now, B of A expects to be able to offer principal reductions to only 45,000 customers nationwide. … – Bnet.com
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has letter – Loan Modifications Are Evil – A reader explains why – Thomas Brown – After news emerged yesterday that Bank of America will modify delinquent borrowers’ loans via forgiveness of principal, a reader forwarded me this open letter to CEO Bryan Moynihan. I agree with every word. –TKB - Bankstocks.com