“Helping Homeowners”: Behind the Bullshit

From the February 23, 2009 issue of Business Week:

1. Number of refinancings facilitated by Hope for Homeowners, the “program” created by Congress last July to “help” 1 million late payers: 25 (not a typo: twenty-five only)

2. Findings of a study of 21,219 recent mortgage modifications:

Percent leading to lower monthly payments = 35
Percent leading to unchanged monthly payments = 18
Percent leading to higher monthly payments = 47

BW: “The reason for this strange result: Lenders and loan servicers are tacking on missed payments, taxes, and big fees.”

“Strange” indeed…

Meanwhile, the Obama Administration proposes to re-loosen lending rules!