Tag Archives: Principal Reduction

Ditech Financial and HLP announced an agreement to implement a borrower outreach effort to identify and assist the less then 1 percent of borrowers who are eligible for the FHFA’s Principal Reduction Modification program.

While rising home values have pushed down the share of underwater mortgages, the sheer number of upside-down borrowers remains massive—nearing four million—according to an update from Black Knight Financial Services. Those four million underwater homeowners combined for about $157 billion in negative equity in October.

In a letter addressed to the president as well as the Senate majority and minority leaders, a group of attorneys general representing nine states refer to Edward DeMarco, acting head of the Federal Housing Finance Agency, as a "direct impediment to our economic recovery" and called for his replacement. The attorneys' general complaint stems from DeMarco's refusal to allow the GSEs to engage in principal reductions for struggling and underwater homeowners.

The servicers involved in last year's settlement have provided assistance in the amount of $45.83 billion to 550,000 homeowners, according to the Office of Mortgage Settlement Oversight.

The principal reduction debate resurfaced after 45 members of the House of Representatives--led by Rep. Elijah E. Cummings (D-Maryland) and John F. Tierney (D-Massachusetts)--sent a letter to President Obama, urging him to replace Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco with a permanent director.

Edward DeMarco's days directing the Federal Housing Finance Agency (FHFA) may be numbered, according to a report from The Wall Street Journal. "People familiar with the discussions" told The Wall Street Journal the White House is preparing to nominate a new director. According to those sources, administration officials are still in the process of gathering names for potential nominees. DeMarco has no shortage of nemeses both in and out of Washington, though he's not without supporters.

As of September 30, the five servicers named in the national mortgage settlement reported they have provided $26.11 billion in actual consumer relief.

Bank of America announced it's on track to fulfill consumer relief requirements as part of the national mortgage settlement.