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Thursday, January 14, 2010

Homeowners Say Banks Not Following Rules for Loan Modifications

*this just takes the cake man. This is like saying: well AIG, since we know that you MAY have profits in the near future (if Uncle Sam bails you out), making your CDS exposure only temporary, we (uncle sam) will not give you a bailout to pay off your creditors (like GS) and you and your friends can go bankrupt and all those employees of yours will not only not get their bonus' but will be in the unemployment line with the rest of us. What a bunch of jerkoffs!


From Paul Kiel at ProPublica: Homeowners Say Banks Not Following Rules for Loan Modifications
A few excerpts:
Reynolds was a prime candidate for a loan adjustment and was among the earliest homeowners to receive a trial modification.

His mortgage brokerage business had followed the market downward, and as a result, he’d fallen three months behind on his interest-only mortgage. ...

Soon after the loan program was announced last February, Reynolds applied. He received an application in late April and was accepted, making his first payment of about $2,400 (down from $3,300) in May. He made six more payments. ... [In late November, he received an answer: He was denied a permanent loan modification.

The reason? A Chase employee explained to Reynolds that they’d determined his financial difficulties weren’t permanent. In his application, he’d written that he believed that the government’s rescue efforts would “save the U.S. housing market” and that his business “will once again be profitable.” The Chase employee told him that statement indicated his hardship was only temporary.
Chase spokeswoman Christine Holevas told ProPublica that Reynolds had been denied "because the skill and ability is still there to earn the income." Since he’d "stated in his letter that business would be picking up," it was "not considered a permanent hardship," Holevas said.
emphasis added

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