David Dayen | HUD Continues Defense of Allowing HAMP Modifications as Part of the Foreclosure Fraud Settlement

…………………..Shaun Donovan……………………………………. Napoleon Dynamite


HUD Continues Defense of Allowing HAMP Modifications as Part of the Foreclosure Fraud Settlement

The pushback from the Administration on one particular story arising from the foreclosure fraud settlement has been pretty intense. You cannot say that Shahien Nasiripour doesn’t have the attention of HUD.

Today, they devoted an entire blog post (unsigned, from “HUD Public Affairs”) to refuting Nasiripour’s story in the Financial Times (which they don’t link, so I will) about how bank servicers can count HAMP modifications toward the “credits” in the foreclosure fraud settlement. But really they only refute the title of Nasiripour’s story:

The article, entitled “US taxpayers to subsidise $40 bn housing settlement,” argues that there is a taxpayer subsidy because modifications performed under the Treasury’s Home Affordable Modification Program (HAMP) are eligible for credit under the settlement.

In reality there is no such subsidy. Servicers cannot use HAMP incentives to meet their obligations under the settlement, plain and simple.

This does not refute Nasiripour’s story, which includes this very point from Administration officials:

Federal officials involved in negotiating the settlement defended the arrangement, pointing out that the amount reimbursed to the banks could not be directly used towards fulfilling settlement obligations.

Andrea Risotto, Treasury department spokeswoman, said this system “leverages a way to help more people”.

Check out the rest here…



6 Responses to “David Dayen | HUD Continues Defense of Allowing HAMP Modifications as Part of the Foreclosure Fraud Settlement”
  1. It was never about helping the Homeowners! If it has taken forever to foreclose/shortsell someone has been talked into making a payment interest only of coarse that way it won’t show up! and the Modifications??? we about taking care of the investors, Take a look!! were any of them 30 fixed or whatever? No! they just went back up and once again no one was interested in helping, just in taking the home away!!! So Homeowners might say to the programs!! Thanks for nothing!! once again credit ruined, being thrown out of house!!!! Hello!!! is anyone listening!!!! No of coarse not!!!! Lets move on, please your house is worth 1/3 of what you have paid for it?? all of my neighbors have already moved on and repurchased!!! Doing the right thing makes one stupid!

  2. Fury says:

    HAMP is a fraud.
    what was it— just ONE homeowner who saved their home under HAMP?
    ask any real estate broker. they will tell you that they have NEVER seen HAMP work, ever!

  3. Stan Rage says:

    “HUD Public Affairs” i.e. Banksters. This should piss everyone off (yet again) to see the Government act in Wall Streets interest (as if that comes as a surprise) over the interests of many millions.

    • leapfrog says:

      LOL – That was hilarious!

      I was trying to figure out who Donovan reminded me of…and I couldn’t figure it out until I saw your post. But Napoleon Dynamite is entertaining, unlike the wretched, sniveling, suck-up-to-the-banksters, brown-nosing, toadie Dovonan.

      • leapfrog says:

        Donovan also reminds me of the two-timing husband in “She Devil.” His hair is slightly different, but he’s just as oily as Donovan.

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