Feds Say No Need To Prove Hardship To Modify Mortgages
That couldn't have any unintended consequences, could it?
After some efforts didn't exactly curb foreclosures, the feds are trying again.
They're about to launch a simplified loan modification program to lower payments in hopes of keeping homeowners in default from ending up fully in foreclosure.
How simplified? Eligible borrowers won't have to document financial hardship.
The Federal Housing Finance Administration program, called the Streamlined Modification Initiative, kicks in July 1.
Critics, such as the American Enterprise Institute's Edward Pinto, see potential for trouble.