I think this is the fourth year of special programs to 'fix' the housing issue.... the latest being leaked this morning per HousingWire.
- The Federal Housing Administration and the Treasury Department will require mortgage servicers to extend the forbearance period for unemployed homeowners to one full year. The Treasury will require servicers participating in the Home Affordable Modification Program's unemployment initiative to extend the minimum forbearance period from three months to of 12. (please note these are minimums)
- The Obama administration also said Thursday it would remove upfront hurdles to the FHA Special Forbearance Program, which previously provided a four-month forbearance, to make it easier for unemployed borrowers to qualify. Borrowers participating in the HAMP Unemployment Program, or UP, will be able to obtain a forbearance if they are seriously delinquent.
- The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers, said Department of Housing and Urban Development Secretary Shaun Donovan. Today, 60% of the unemployed have been out of work for more than three months and 45% have been out of work for more than six. Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home.
The majority of these programs are simply extending and pretending, kick the can policies which seem to be the answer to every major global financial problem.
On that note, the ECB announced this morning that Portugal could dump whatever grade of debt onto the bank - just as it had done with Greece. Ireland cannot be far behind. They have finally learned from the US Fed - if no one else will buy the crap, take it inside the central bank.