The problem is clearly the servicers that refuse to do modifications, violate the HAMP etc directives they agreed to abide by in their TARP participation agreements and as many lawsuits alledge committed civil fraud by “losing” paperwork repeatedly sent in even by Congressional offices and AG offices.

They make huge profits by foreclosing and about 70% of all fees and foreclosure sale losses are paid by the taxpayer via the GSE’s and most of the rest by the non GSE backed mortgage pool investors.

Treasury have virtually no power to enforce since only an agreement not a law.

Courts mostly say homeonwners have no standing to sue however some have been able to defeat motions to dismiss by alleging consumer fraud.

The Arizona vs BofA has very detailed examples of consumer fraud documented by the Arizona AG as well as in many other state AG and zillions more private lawsuits.

Obama has no power to do anything. HAMP etc is not a law – it is a participation agreement they banks signed to get TARP funding- mostly now paid back with huge profit to taxapayer.

The Republicans want to get rid of HAMP etc to speed up foreclosures kicking out families with the abiltiy to pay if followed the good HAMP program.

The whole problem is banks make huge fees by foreclosing and on about 70% of firsts the taxapayer takes the loss – banks make millions.

Treasury/Obama has no power to make HAMP a law or force banks to follow their agreements. Any attempt will be blocked by the R’s in the Senate.

Such ignorance. The banks make bilions in fees by foreclosing that is why they are being sued by Attorney Generals (like AZ) for consumer fraud.

They are only the servicers and only make big money by foreclosing, owning, managing and reselling. In about 70% of cases the taxpayer takes the huge foreclosure sale loss.

HAMP and all the other addons are great. The Net Present Value test proves it is in the best interest for whoever owns the mortgage to modify vs foreclose.

But the banks lie, delay, pretend because the bank that services the mortgage doesn’t own it in almost all cases. Modification help the taxpayer or the investor if in a pool with no GSE behind. Modifications hurt the servicer who loses fees and makes billions by foreclosing not modifying.

We now have fed up ex bank employees in modification depts speaking out and exposing the truth behind the bankers scams to shift the foreclosure losses to taxpayers while they make $billions on the foreclosures.

The problem is not getting principal reductions. As alleged in many lawsuits including from the Attorney General’s of AZ and NV they are committing consumer fraud by doing all they can to foreclose (with high servicer fees) vs doing HAMP mods even without principal reductions.

For about 70% of 1st the taxpayer takes the huge foreclosure losses via the GSE’s while the banks keep making all their servicing fees and no loss on foreclosures.

As detailed in the AG lawsuits and many other the bank lose required paperwork even sent in by AG and Congressional offices and then claim the homeowner isn’t sending in documents. This is total fraud by the banks as well as many lies about reasons for denials, false income info so will fail the Net Present Value test etc.

At least 4 Congressional hearings in 2009-2010 made this clear and now the detailed consumer fraud lawsuits including by State AG’s.

The HAMP modification program is no way voluntary. It is required under the participation agreements banks signed when they got TARP funds.

It is the banks that refuse to follow the many Treasury. Hamp_Admin Fannie and Freddie directives that under HAMP prove via the NPV test that it is better for the investor (usually taxpayer) to modify a mortgage for those with a documented hardship than foreclose.

But the bank servicers make millions by foreclosing with all the fees they get so they are doing all they can to ignore the HAMP directives and foreclose.

Many states including AZ have lawsuits against the many banks for consumer fraud by lying, intentionally losing paperwork, sent in many times, etc. In AZ vs Bank of America the AZ Attorney General details the almost unbelivable fraud of BofA which is typical of all the banks.

HAMP has failed to address the foreclosure issue because the banks refuse to follow their agreements and there is no practical way to enforce them.

For most 1st mortgages it is the taxpayer that takes the 100′s of billions in losses on foreclosure sales that would have been much cheaper to modify under HAMP not to mention the driving down of everyone’s values by the foreclosure sales.

GSO’s (Fannie/Freddie/Ginnie) take the foreclosure losses (taxpayer) while the banks make huge fees from foreclosing instead of modifying.

I should be noted that the Indiana case is ONLY related to the banks summary judgment. All it says is there are facts in dispute which a trial will decide.

It is not any big win only against a Summary Judgment but is still of great interest on the main issues.

Almost all the banks have repaid their TARP “bailout” at a huge profit to the Treasury so at least lets keep facts straight.

Most banks are back to record profits and hold tons of cash (often invested in safe U.S. Treasury debt) but are for the most part not making small business loans or mortgage modifications.

They have little exposure to losses at least on 1sts, and they make billions of profits by fees when they foreclose vs do modifications.

Many denied for HAMP modifications are because the banks intentionally lose paperwork that keeps getting resubmitted and “lost” time after time, make up lies about the status and basically refuse to follow the HAMP directives. Again because they have a huge incentive to foreclosure or do inhouse mods at far more favorable terms to the investor and worse for the borrower.

The FHA case is interesting since skads of cases have been tossed by the Courts because the borrower has no standing to sue under the HAMP agreements they are not a party to.