Well there is some promising news headed down the pipeline.
The Obama administration’s Making Home Affordable loan modification program has recently amped the program in, what I believe, the right direction.
To date, the program has 230,000 “trial modifications” underway. The better news is that the Administration is taking additional steps to improve performance.
According to a recent report released just today by the Dept of the Treasury, on July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process. Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28.
The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications.
As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a “second look” process to audit MHA modification applications that have been declined on an ongoing basis.
What does all of this mean to you? That if you failed at a modification the first time (especially if you paid someone to do it – that’s a “no-no”), try it again, the second time just might be the charm (for free)!