Loan Program Changes may be home to help subprime lenders subprime lenders that have fueled the U.S. housing crisis may be the benefits of the Obama Administration Home Loan Program Changes, according to a report by the Center for Public Integrity (CPI).
The $ 75 billion program, called Making Affordable Home, provides subsidies to lenders taxpayer successfully lower monthly payments for borrowers in difficulty. However, the study shows, 21 of the top 25 participating lenders have been involved in subprime loans, which led to the collapse of the housing in the first place.
CPI executive director Bill Buzenberg said that much of the money is simply returning to the same companies who have started the problem. According to the report, three of the largest lenders - Countrywide, Wells Fargo and JPMorgan Chase - are eligible for billions of dollars in aid under the program.
The government has recently urged donors to start changing their home loan assistance programs that the plan for affordable housing set to make a slow start. Since last month, less than 10% of eligible borrowers have been supported by the program, according to estimates by the Treasury Department.
The CPI report went on to show that mortgage lenders and maintenance have been slow to follow the government's efforts to stem foreclosures, despite "intense pressure" from the White House and Congress. Therefore, according to the report, the government has used incentive payments to encourage them to participate.
major donors have criticized the report, saying it undermines their efforts to help homeowners. Scott Talbott of the Financial Services Roundtable, a group of U.S. largest lenders, said it was too simple roots of the housing crisis and ignored the complexities of the real estate market.
Talbott said that lenders are doing what they can to help struggling homeowners through the program Making Affordable Home, and other foreclosure prevention initiatives.
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Posted on February 22, 2010.
