More on HAMP "Improvements" + HAMP Principal Write-downs

[mEDITate-OR:

not see precisely WHY there have been and will not be modifications or principal write downs...

The Big Banks OWN the 2nd mortgages and the last thing they are going to do is write them off.

Bcuz, letting go of THAT high(er) interest loan cuts into their profits...

but, letting go of the mortgage does NOT let go of the debt..., the security for the debt, yes...; but not the debt itself.

We are not talking "chump change" here...

we are talking about almost a US$ Trillion, when you add in the interest and penalties.

There is NO possible way that they are going to write that off, and require them to raise more capital reserves.

Increasing the "pay off" from 3% to 6% is NOT going to accomplish anything.

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Just a few banks hold most of the second liens, according to data from Inside Mortgage Finance.

Of the more than $840 billion in home-equity lines and piggyback loans outstanding

Bank of America has about $147 billion of them

while Wells Fargo and J.P. Morgan Chase have $124 billion and $118 billion of the market

Citigroup has about $53 billion of these loans on its books.

They have all signed up for the administration program announced last year, but none has taken action yet.

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Morning HAMP

by CalculatedRisk on 3/27/2010 08:45:00 AM

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More on HAMP "Improvements"

by CalculatedRisk on 3/26/2010 02:49:00 PM

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HAMP Principal Write-downs

by CalculatedRisk on 3/26/2010 11:41:00 AM

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