Updates On Mortgage Modifications from Calculated Risk


Calculated risk put out a few update posts on the government’s effort to see mortgages modified.

FHA Reducing allowable seller concession

HAMP Slowing Down

More on HAMP

And a good piece from CNBC – here’s a quote:

Imagine that: Folks who didn’t have to show any proof of anything to get a trial modification, weren’t able to sustain that modification. The big guys have now changed that, requiring full documentation. So big surprise the report now shows a drop in the number of new modifications, because if you have to get all that documentation up front, then it’s likely going to take longer…

“A 64.3% DTI is so far out of scope with the pre-bubble years safe and sound 36% total DTI — and even typical bubble-years full-doc DTI’s of 50% — it is absolutely irresponsible,” says mortgage analyst Mark Hanson. “Servicers are pushing the envelope with respect to getting people to qualify,” he adds.

CNBC – Mortgages Doomed by Back End Debt