July 28th, 2009
04:26 PM ET
5 years ago

U.S. to mortgage firms: Pick up the pace

NEW YORK (CNNMoney.com) – Loan servicers will "significantly" increase the pace of mortgage modifications under the Obama foreclosure prevention program, the Treasury Department said Tuesday.

The Obama administration wants to see 500,000 trial modifications in place by Nov. 1. Currently, 200,000 are underway.

Officials called executives from 25 servicers participating in the program to Washington Tuesday to discuss improving the 5-month-old plan's implementation.

Both the Obama administration and the industry are feeling mounting pressure from borrowers who say their servicers are not responding to their calls and applications, losing their paperwork or not making decisions.

"[T]oo many homeowners are at risk of foreclosure right now," Treasury Secretary Tim Geithner said in a statement Tuesday. "Today's meeting was an opportunity to identify ways to accelerate the program and bring relief faster."

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Filed under: CNNMoney.com • Obama administration
soundoff (26 Responses)
  1. Dutch/Bad Newz, VA

    Get on top of them Timmy. I like how this Administration grades plans they implement. That's been missing from government for a while now.

    July 28, 2009 04:57 pm at 4:57 pm |
  2. Trade Freedom for Security, Lose Both

    Why is Obama giving the mortgage industry a quota for loan modifications? Aren't quality decisions more important than quantity? Not if you're Obama – all he wants is activity, activity, activity – doesn't care about results. He just wants activity so he can stand in front of TOTUS and read to the Sheeple about how great he is. 4 and the Door.

    July 28, 2009 04:58 pm at 4:58 pm |
  3. June

    If the US wants the pace to pick up. Start putting the crooks in jail.

    July 28, 2009 05:00 pm at 5:00 pm |
  4. Paul from Phoenix

    This plan is complete and utter crap. In the western states, people's houses have declined by upwards of 35%. However, if you owe more then 105% based on today's values, you do not qualify. I am in that category. My house has lost about 30% of its value, and there is nothing I can do.

    Wait, there is something I can do. Mortgage lenders have been telling me to stop making payments. Screw up my credit in order to refinance. Does that seem fair?

    Obama and the Congress really dropped the ball on this.

    July 28, 2009 05:04 pm at 5:04 pm |
  5. tom

    Why are we worried about banks. I just checked the headlines . The NRA is alive and well in North Carolina . They just picked up 8 terrorists with a cache of weapons. I guess they just needed to protect themselves from big government.

    July 28, 2009 05:09 pm at 5:09 pm |
  6. Zero.

    OK CNN. We`ll try this one. Trade in your old, and buy new on your Credit Card. Then when what you have bought is Junk. Blame Barack Obama, and tell him to pay off your Credit account..

    July 28, 2009 05:10 pm at 5:10 pm |
  7. single mom

    Ooo, I'm having flashbacks to when I worked for a bank in the late 90s and the officers were under pressure to approve loans whether people were qualified or not.
    If you're not qualified for a loan or mortgage, then you don't get one. Period! Doesn't matter what race, gender or anything else you are. Banking/mortgages are business. Yeah, make sure there's no discrimination – then again, that's bad business.
    It comes down to this – if you're qualified, you get a green light. If not, tough.

    July 28, 2009 05:11 pm at 5:11 pm |
  8. bill

    If you think that the mortgage companies and the banks took the TARP money to help the average American citizen and homeowner, you need to take a second look.

    The TARP money bailed them out with the money that they owed and they passed NO GOOD WILL NOR ANY CREDIT on to the American consumer.

    They helped themselves and no one else.

    July 28, 2009 05:11 pm at 5:11 pm |
  9. Eric in VA

    Oh, you mean the government is having problems implementing a plan? Jeez, never saw that one coming. Let the deadbeats default on their houses so the market can finally bottom out and stop delaying the inevitable.

    July 28, 2009 05:15 pm at 5:15 pm |
  10. George

    Good, twist some more arms. But in no way does the Obama administration want to run banks, auto companies, insurance companies or the medical profession.

    July 28, 2009 05:15 pm at 5:15 pm |
  11. Zero.

    You use a worm to catch a fish. Then you gamble and use that fish to catch a bigger Fish. Then come the Shark, and you lose it all.

    But this time is is not "^The Great White" It's changed color..

    July 28, 2009 05:18 pm at 5:18 pm |
  12. Gary

    Genius. Well by all means get the government involved in the process since they are such a streamlined organization.

    July 28, 2009 05:19 pm at 5:19 pm |
  13. gt

    drag your feet and delay ....that the obama way...

    July 28, 2009 05:24 pm at 5:24 pm |
  14. phoenix86

    Yep, just like in the 1990's and early 2000's when Barney Frank and Chis Dodd pressured Fannie and Freddie to crank out those loans to unqualified borrowers.

    Can't wait for them to start cranking out advice to doctors as well. That way we can see people lose both their homes and their health at the same time.

    Thanks Obama and dems, we're on our way to the United Banana Republic.

    July 28, 2009 05:24 pm at 5:24 pm |
  15. Fan of Common Sense

    This is EXACTLY the same philosophy that got us into this mess in the first place! The federal government told the lenders to give mortgages to people whether they can afford to repay them or not. Now the fed is making the problem even worse by keeping these iliterate spend-thrifts in their 'undeserved' homes–at the expense of the rest of us.

    If these people cannot afford to stay in their homes under the terms THEY SIGNED FOR, then I say TOUGH! They should move to less expensive housing. This is the only way the market is going to correct itself. An uninhibited free market is much much smarter than a government has any chance of ever being. When are we ever going to learn this?

    July 28, 2009 05:24 pm at 5:24 pm |
  16. yuri

    We think it still is a hyperbole if we say mortgage rates are at the rock bottom level, 'cos they are not.

    July 28, 2009 05:25 pm at 5:25 pm |
  17. Zero.

    When, and when is not' A Gnu a Wilderbeast. When it has two "Birth Certificate's"....

    July 28, 2009 05:27 pm at 5:27 pm |
  18. Pete

    Voting for bill HR.3044 would help. A moratorium on the HVCC would help unstop the cork.

    July 28, 2009 05:34 pm at 5:34 pm |
  19. Hans Brecker RI

    Mortgage Lenders to U.S..........Stop regulating us to death with unnecessary paperwork and lending-adverse regulatiuons and we will be able to pick it up.........better yet........put in place people that actually KNOW what mortgage lending is all about and then everyone will be happy.............

    July 28, 2009 05:40 pm at 5:40 pm |
  20. joe smith

    a couple of things Mr. Geithner could provide the American people, and maybe his boss, the President..THE FREDDIE MAC report, you know the one due out the end of May,2009..he is probably trying to create an answer to the obvious bonus question that will follow this report, if we ever see it. And the other item; the expenditures created by the additional 22,000 troops to Afganastan. question on one item only, who has the contract for diesel fuel/jet fuel for this conflict..no wonder the price at the pump remains staggering..

    July 28, 2009 05:41 pm at 5:41 pm |
  21. Rick in OP

    The last time the government got involved with telling mortgage lenders how many loans to make and to whom, we ended up in the financial mess that we are in today. Making a loan to an individual who cannot afford to pay it back is insane.
    This is the logic that is coming from the government who wants to make health care “better”?
    NO THANKS!

    July 28, 2009 05:41 pm at 5:41 pm |
  22. Melissa

    It is about time someone lit a fire under those lazy people. Good for Obama. Apparently the corporate sector can't get anything done without the feds giving them a deadline. If thats what it takes, then thats what it takes, but at least it gets done.

    July 28, 2009 05:52 pm at 5:52 pm |
  23. S M R

    Thank You Mr. President for working so hard at steering our Country in the right direction. If anyone in this Great land of ours deserves an attaboy, it's you and your hardworking Administration. GOD BLESS YOU SIR

    July 28, 2009 05:52 pm at 5:52 pm |
  24. bozo the obama

    no need to worry, Dodd and Barney will push this forward unless they finally get put in jail.

    July 28, 2009 05:53 pm at 5:53 pm |
  25. Boycotts Work

    Lets sell some houses and get things moving .Lets also put photos of bluedogs on milk cartons with the caption "these people hate uninsured children",along with all the republicans.

    July 28, 2009 05:54 pm at 5:54 pm |
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