Posts Tagged ‘NCRC’

Black Homeowners 50% Less Likely To Receive A Permanent HAMP Modification, Survey Reveals

foreclosure1 In what is already an under-performing program, a recent NCRC survey discovered yet another disturbing flaw in the Obama Administration’s loan modification program: black homeowners were 50% less likely than white homeowners to receive a permanent loan modification.

Reasons why this might be happening (aside from discriminatory practices) could be unemployment. The black unemployment rate has jumped to 15.8 percent while the national average is 9.7%.

In recent months, the Administration has come to realize that defaults due to unemployment or underemployment are rising and is at last moving on programs to assist the unemployed stay in their homes. This aid will take the form of forbearance plans that would either reduce the unemployed borrower’s mortgage payments to no more than 31% of their income, or wipe out the payments entirely for a period of no less than three months.  Some borrowers could receive six months of relief under this program.

While it is clear that black borrowers aren’t getting a fair shake, according to the survey, it is also apparent that not everyone who qualifies for a modification is getting one, regardless of race. There is currently plenty of carrot for lenders and servicers, but no stick to go with it, to force the banks to “do the right thing.”

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