August 31st, 2009
06:49 PM ET
9 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. Denna

    President Obama needs to put his foot down and order these lenders to cooperate and help people. These slugs have been getting over on people for a long time. My old mortgage company was so bad, that when they got sued, we all got a small refund because of irregular rules in the contract. They're out of business now, I think.

    My new mortgage company is trying to entice me to borrow more – "let us know if we can help" they say. No thanks. I will continue to pay my mortgage on time, but you will not get one single cent more out of me. I'm a "good" customer so they want my business. Goodness forbid if I fall behind. Then what? No more Mr. Nice Guys for sure.

    August 31, 2009 09:45 pm at 9:45 pm |
  2. dun

    It is another "better idea" by the messiah

    August 31, 2009 09:47 pm at 9:47 pm |
  3. Bridgette

    They need to start regulating these banks and make sure they are doing what they are suppose to do. The president can't monitor everything. And if the Republicans would stop holding his nominees up he can get the people in place to do what they are suppose to be doing.

    August 31, 2009 09:48 pm at 9:48 pm |
  4. randall

    Bankers are unhappy about new programs and laws that limit there abilities to make a sizable profit. They are simply greedy and are trying to find loopholes in the programs/laws.

    This is not only true for the mortgage program, but also student loans, and other programs designed to give the public a break. Republican lawmakers seem to be on board with these lending institutions as well as the insurance industry.

    We the people...need a break... and I feel these institutions need to be held accountable for delaying tactics and down right arrogance toward the government and the public.

    August 31, 2009 09:51 pm at 9:51 pm |
  5. The Lady

    President Obama has not been in Office for 9 months and everyone is attacking him worst than they did Bush's 8 years.Give him time to do his job,after all he did have a big mess to clean up and that does take a little longer.

    August 31, 2009 09:52 pm at 9:52 pm |
  6. Stu

    Program limited to loans underwritten by Fannie Mae and Freddie Mac. It does nothing for homeowners financed through other sources who have been harmed by the mortgage crisis. It also fails to account for property values that dropped by 40-50% or more. Even with the 125% LTV, many simply cannot refinance due to negative equity. Considering the POTUS's hand in all this, he should be doing more: Buycks-Roberson v. Citibank Fed. Sav. Bank

    August 31, 2009 09:54 pm at 9:54 pm |
  7. Cheryl from MN

    ""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.""
    This is absolutely true. We have gotten the runaround from our lender for approximately 7 months. They pass us around from department to department, as if no one knows exactly what to do. Mailing us forms to fill out that we complete and mail back, not hearing from them for weeks, we call to find out our status, and no one knows anything. Now we are being foreclosed on and this was something we tried to avoid the whole time. They either don't know what they are doing or ......... what we have come to the that maybe they want us to lose our home. Why else have they done nothing in all this time?

    August 31, 2009 09:59 pm at 9:59 pm |
  8. a

    that plan didnt help anyone lol out of all those people only two percent got help.... that plan was a joke

    August 31, 2009 10:09 pm at 10:09 pm |
  9. Keith in Austin

    I didn't vote for this OBAMANATION!

    August 31, 2009 10:11 pm at 10:11 pm |
  10. pain to their bottom lines

    I don't trust bankers

    August 31, 2009 10:11 pm at 10:11 pm |
  11. tom

    no jobs=no house

    August 31, 2009 10:24 pm at 10:24 pm |
  12. steve

    Making home affordable is giving borrowers the runaround the same as these banks. Chase Bank is awful they lie...lie! They really are not helping and I don't believe they have helped very many people try to save their homes. This is another failed program and Obama is doing very little work to save people from losing their homes. The Cramdown should have passed, this would have cause banks to really step-up and get these loan modified so people could stay in their homes. If Obama have all the votes to pass a health care bill why was'nt it being applied with the Cramdown? Hum makes me wonder what is really going on with Obama and these banks?

    August 31, 2009 10:24 pm at 10:24 pm |
  13. Allison

    At least President Obama and Democrats are trying to do something....Republicans just want to make sure nothing benefits the ASmerican public. The GOP only thinks of the "Party first". Admiration for Obama!

    August 31, 2009 10:29 pm at 10:29 pm |
  14. Tina

    No matter what Mr. Obama does, no network or columnist is reporting news objectively.
    I say, take another vacation Mr. Obama, they don't write positive stuff anyway...

    August 31, 2009 10:33 pm at 10:33 pm |
  15. jsngclogan

    Be praying for me im am trying to raise the money to go to Uganda, Africa on a mission trip. If you or anyone u know would like to support me please send them my way. I have a paypal link. thanks.

    August 31, 2009 10:45 pm at 10:45 pm |
  16. jrzshor

    "responsible folks who have been making their payments" reduce their monthly mortgage bills"

    someone forgot to tell me that that was me.

    who do i call???

    August 31, 2009 10:53 pm at 10:53 pm |
  17. Gene

    The programs out there are working fine. The problem is that most of those 4 million that want to sign up for the programs are those that should've never qualified for a mortgage in the first place.

    I know several people who have had their homes saved and mortgages reduced dramatically... but those are people who actually would qualify normally for a home loan.. not those who needed sub-prime loans because they would never qualify normally.

    Right now the last thing we need is to give people home loans who have no business qualifying for one in the first place.. thats how we got in this mess in the first place.

    August 31, 2009 10:56 pm at 10:56 pm |
  18. Ron

    May God have mercy on each one of us and the 9 trillion dollar debt.

    August 31, 2009 11:19 pm at 11:19 pm |
  19. The Constitutionalist

    Can someone please show me where in the Constitution the Legislative or Executive branches are granted the authority to "help responsible folks who have been making their payments" reduce their monthly mortgage bills?

    August 31, 2009 11:26 pm at 11:26 pm |
  20. Patty Cook

    The program is not working! I have tried repeatedly in vain to refinance/modify my interest only adjustable rate mortgage. It seems that unless I have fallen behind on my payments, I'm out of luck. I even got a call from another mortagage company that wanted to charge me a fee to "talk" to my mortgage company to work out a deal!
    That was a new one to me!

    August 31, 2009 11:27 pm at 11:27 pm |
  21. Farrell in Houston

    You will get results if you don't give up and listen to others who are facing mortgage problems because everyones situation is different. You will get results just keep plugging away even though you don't get the answers you need right away, keep pressing on. You will get assistance.

    August 31, 2009 11:28 pm at 11:28 pm |
  22. gg

    why does everyone think 7months is going to fix a mess that been brewing since trickle done started with reagan

    August 31, 2009 11:30 pm at 11:30 pm |
  23. MatthewDetroit

    The idiots Braney Frank and Chris Dodd created this entire crisis and the entire break down of the US economic train...
    They are to blame.
    They do not take any responsibility.

    Now these same idiots want to spend trillions more on health care.
    They all want a socialist state. spend spend spend us into the ground. Until we are all broke.

    Idiot OBAMA fools you people every day.
    Today he announced instead of a 2.4 percent raise for federal employees he was only recommending a 2.0 percent rais. Big Joke.
    The feds are out of money. CUT JOBS. CUT PAYROLL. NO RAISES.
    There are TOO many federal employees.

    Time to take our goverment back. This clown is not an american and he sympathizez with communists and socialists.
    He is not part of a free America.
    He is terrible.

    August 31, 2009 11:32 pm at 11:32 pm |
  24. jr

    The money should have gone to the homeowner's mortgage holder directly, and not to the banks.

    The banks won't help responsible folks unless they miss 2 or 3 payments and then you will get a phone call from a live person. Forget about mando health care and address these mortgages...they haven't gone away!

    August 31, 2009 11:48 pm at 11:48 pm |
  25. xargaw

    There has been zero cooperation from the lenders. You have bankers that are putting off as long as possible writing these loans down while they are filling their pockets with new jacked-up fees and taxpayer funds. While I believe many people over-extended themselves, many were duped. The President, the Treasury and Congress need to lower the boom on lenders or withdraw all help and let them fail. It must be a two way street and the lenders have not anything to work out loans with borrowers that could save homes. (Which, by the way, would boost lenders bottom lines far more than an avalanche of new foreclosures.) This is short sighted idiocy on the part of the bankers.

    August 31, 2009 11:52 pm at 11:52 pm |
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