August 31st, 2009
06:49 PM ET
5 years ago

Mortgage program hasn't helped enough, some say

The Making Home Affordable Program aims to help homeowners avoid losing their homes to foreclosures.
The Making Home Affordable Program aims to help homeowners avoid losing their homes to foreclosures.

(CNN) - When President Obama unveiled the Making Home Affordable Program in March, he said it would help "responsible folks who have been making their payments" reduce their monthly mortgage bills and avoid losing their homes to foreclosure.

But six months into the program, only 6 percent of the 4 million eligible homeowners have gotten help. A lot more say they've been frustrated with the runaround they've been getting from lenders.

Are the new program's growing pains responsible for the slow start, as bankers say, or is pain to their bottom lines really preventing the program from working, as critics say?

Full story


Filed under: Obama administration
soundoff (76 Responses)
  1. Danny

    You can't blame the program.

    Its the lenders' fault for giving people the runaround and making it difficult to restructure their mortgages.

    You honestly think banks care about their customers?

    August 31, 2009 06:51 pm at 6:51 pm |
  2. Brian, New York

    Nothing has Obama has implemented has helped anyone. And we thought W was bad!

    August 31, 2009 06:57 pm at 6:57 pm |
  3. bsmith171

    because no one understands it and most people who need it are NOT qualified.

    August 31, 2009 06:59 pm at 6:59 pm |
  4. Four and The Door

    Can anyone who is following this story or the story of GM and Chrysler being saved from bankruptcy or any of the other long list of follies with government intervention in private business actually say a Public Option health care plan has any chance at all of working????? We don't need another horror story. We have enough already.

    August 31, 2009 07:01 pm at 7:01 pm |
  5. Carlos

    And this is a suprise to anybody but the lemmings? Another smoke and mirrors play by uhbummer. They won't pay for clunkers either.

    August 31, 2009 07:04 pm at 7:04 pm |
  6. gary

    No more gimmicks to get people to buy houses....let things go for a while and slowly the housing market will come back.. We cannot afford a cash for clunkers housing bill and we don't need people to get over their heads again with bad mortgages...

    We need to stop trying to find the "easy" way out. Work hard, save and the economy will slowly come back without huge deficit spending.

    August 31, 2009 07:17 pm at 7:17 pm |
  7. Jules, CT

    The program is working for me. I received help. I also received a loan and am on my way to recovery. Thanks President Obama.

    August 31, 2009 07:22 pm at 7:22 pm |
  8. manhandler

    The rich financial people, banks, etc., got their money right away, but the people Obama said he was helping got zip. Who would've guessed? Billions of taxpayer dollars went to the richest and nothin to the poor homeowner. Thanks for the stimulous Obama. Thanks for the stimulous, Dems. Thanks for nothin'.
    Now, where are the Obamabotic hatrers on this story? They jumped on que on the Palin Hong Kong trip story. Lined up and kicked out their insults, one after the other. Must have run out of Kool Aid on this story.

    August 31, 2009 07:24 pm at 7:24 pm |
  9. randy

    Whattttttttttt are Obama program that has failed! NOOOOOOOOO Wayyyyyyyyyy Just report the first time something the left wing nut job does that works.

    August 31, 2009 07:31 pm at 7:31 pm |
  10. DJ in the Silicon Forest

    Define "responsible", Mr. President. The majority of people think they are responsible, yet we had a mortgage meltdown of unprecedented proportions, albeit with many varying factors. There were lots of people that bought homes they couldn't afford and were "hoping" the housing boom would take them into the stratosphere and that the resulting higher home value would "earn" their down payment. That and interest only mortgages. Sheesh!
    Yes, there's plenty of blame to go around...especially the banks/lenders that tossed the pesky "old school" rules of 10+ percent down and financing under fuzzy NINJA requirements (No Income No Job or Assets).

    HOWEVER, if you can't do simple math or understand the basics of a mortgage agreement, either get a lawyer or don't sign! Many people were just "hoping". For those who lost their jobs and had more of the traditional mortgages, yes, I do feel for them. Do we owe it to people to bail them out every time the going gets tough? No, I don't believe so. It's time we live within our means once again as our parents and grandparents did and they didn't receive any bailouts/handouts! Their hard work and can-do attitude is what built this country and made it great. Do you people realize that it was only in 1980 (yes, for some of you that is beyond your lifetime!) we had a savings rate of 12.2%? Now it is something like, oh, I dunno....2%. That speaks VOLUMES!!

    August 31, 2009 07:38 pm at 7:38 pm |
  11. I don't remember beating the sht out of Rihanna

    Where is the accountability for Banks to hold up there promises? Why have none of the major perpetrators of mortgage fraud over the last half-decade been brought to justice? Why is it that Banks resisted modifying loans, to the extent that they caused waves of defaults, thus sharply undercutting the home values, neglecting their fiduciary responsiblilty to both shareholders and the clients they serve? It took government intervention to force their hands into doing what a resonable person would expect that they should have done themselves.

    August 31, 2009 07:38 pm at 7:38 pm |
  12. mjm

    "Until it's made a mandatory program, I think we will not see a significant drop in foreclosures," Thompson said.

    Mandatory huh? Do it or else, huh? Sounds like America to me!

    Didn't forcing banks to lend to people who couldn't pay back their loans cause the world economy to almost fail?

    I know people like to blame Bush and the "past eight years..." Bla Bla Bla... Bush had nothing to do with Freddie and Fannie. Franks and Dodd on the other hand wanted to "roll the dice"...How'd that turn out?

    Now this. The Dems are stuck on stupid

    August 31, 2009 07:39 pm at 7:39 pm |
  13. victim of republican greed

    The lenders need the money for bonuses and takeovers of other banks. We are all taking a beating from the banks on our credit cards, and it was our taxpayer money that kept them afloat.

    August 31, 2009 07:41 pm at 7:41 pm |
  14. S M R

    At least this Administration is attempting to do something about OUR HUGE problems the former Administration " TURNED A BLIND EYE TOO ". Regulation and oversight are SCARY words for the GOP to handle.

    August 31, 2009 07:46 pm at 7:46 pm |
  15. S M R

    Send in the CZAR to get the ball rolling.

    August 31, 2009 07:51 pm at 7:51 pm |
  16. Voter

    What a silly program. First, Obama and Co. put it out there, and THEN they make the rules. That gobbles up a good 90 days (3 of the 6 months of the program's existence). Meanwhile, properties continue to foreclose at mind boggling rates.

    No oversight. Looking only at the loans the bank hands them – please. Of course there are no surprises. If government auditors did that, they wouldn't have a clue about what was actually going on. Oh, wait! That's exactly what auditors provided by our esteemed regulators DID do! No wonder no one has a handle on this. The same players at work again, this time with the blessing of both Obama and Geithner.

    Obama is a fool. He thinks he can issue orders: "stop foreclosures"; "produce a health care plan"; "come up with an environmental plan to cut energy consumption." Whatever.

    And everyone will just fall in line because the Emperor has spoken. Well, guess what, people. The Emperor has no clothes. You have to have some negotiating skills. You have to clear the room of lobbyists. That's just a start. A babe in the woods. Obama obviously can't figure out how to cross the street without Kennedy – the real brains of the outfit.

    Don't hold your breath until foreclosures are really addressed or we have a health care plan or a strategy for dealing with emissions. There's always the next election on the horizon, though...

    August 31, 2009 07:57 pm at 7:57 pm |
  17. Maria - Proud Democrat

    With 1 in 4 Americans foreclosing on their homes.......how are these people ever going to qualify to buy a new house with the current credit standards?

    We need these people to join the housing market if we are ever to get back to a normal economy.

    This is the one issue no one is talking about and we should be planning ahead so that it doesn't bite us later.

    August 31, 2009 08:04 pm at 8:04 pm |
  18. malclave

    Obviously, people just don't know how to get access to the money President Obama is providing.

    Step 1: join an approved organizations, such as ACORN, the UAW, or the SEIU.

    Step 2: ?

    Step 3: Profit!

    August 31, 2009 08:07 pm at 8:07 pm |
  19. valwayne

    Another notable failure from Obama's corrupt stimulous program. The Government can't get any of these small programs right. What are they going to do with something as massive as Obamacare?

    August 31, 2009 08:09 pm at 8:09 pm |
  20. Truth-Bomb Thrower

    Let these IRRESPONSIBLE, WRECKLESS SPENDTHRIFTS get thrown out in the street! There's no reason why we should have to pay for their incompetence and twisted sense of entitlement.

    August 31, 2009 08:21 pm at 8:21 pm |
  21. S Callahan New York

    This is interesting...a program designed to fail..litteraly....
    consider those needing this help have already had their credit damaged....considering them a much higher risk..holding a home valued (or is that devalued) than a loan they would be qualified for....and then....lets not forget the banks itself...despite the rosey projection...there has been numerous bank failings this year and the prediction (?) there will be many many more in this year to come.

    August 31, 2009 08:22 pm at 8:22 pm |
  22. truthsayer

    Some say......any excuse to bash President Obama I see

    August 31, 2009 08:25 pm at 8:25 pm |
  23. John, Brooklyn, NY

    Sadly, the right-wing extremists will now cry that its the "Socialist in the White House" who is failing to provide the nation with adequate lending.

    Hmm....ya think that the Republican-packed banks with their exorbitent bonueses and salaries might have something to do with the stingy policies of the banks?

    The first stage of fascism is always to blame the victim.

    August 31, 2009 08:27 pm at 8:27 pm |
  24. Allison

    Banks are the ones to blame. They took the bailout money, but are refusing to help the people who actually help get them where they are today. Sad. But hey, Republicans are happy with the outcomes, they love to see failures!!!

    August 31, 2009 08:30 pm at 8:30 pm |
  25. nurse

    Bush 4.7 % unemployment- DOW 13000+ and millions of jobs added .

    Obama 10% and climbing 9500 and falling losing jobs at 500,000 a month ......................I'll take Bush

    August 31, 2009 08:31 pm at 8:31 pm |
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