Friday, October 16, 2009

Stimulus reality

floodgate >> A good portion of the MBA's annual convention held here this week was devoted to loan-modification issues. And with good reason.

As of Aug. 31, there were 3.3 million homeowners 60 days or more late on mortgage payments, said Faith Schwartz, who runs the Hope Now Alliance, a mortgage-industry trade group working on foreclosure prevention. A hotline for troubled homeowners run by the alliance fields 5,000 calls a day, she said, although that is only half of the number being handled earlier this year.

"There's a lot more competition out there," Schwartz said. "Fannie Mae and Freddie Mac have their own hotlines, and government and nonprofits. There is a lot hitting borrowers right now."

But the flood of calls is only half the story. The stigma of being unable to pay a mortgage remains strong in America, and many borrowers resist attempts at aid. Mortgage servicers say that in nearly 50% of all cases where they reach out to delinquent borrowers and offer assistance, their phone calls or mailings get no response.
http://www.marketwatch.com/story//keeping-up-with-an-avalanche-of-troubled-mortgages-2009-10-15


>>>>>>>>> the money stopped at the big bank trading profits, e.g. Goldman, JPM

"We have seen the G20 coming out with cross border capital injections of $5 trillion this year… But a lot of this money hasn't really come down to Main Street," he said.

http://www.cnbc.com/id/33341496

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