An alarming number of borrowers are being rejected from a federal mortgage-assistance program that sets out to help make monthly mortgage payments more affordable so owners can remain in their homes, a federal watchdog report shows.
Seventy-two percent of struggling borrowers who apply to the Troubled Asset Relief Program are rejected from mortgage servicers.
“There is a massive lost opportunity for an emergency program designed to help home owners through the crisis if only 20 percent to 30 percent of families seeking help from HAMP actually get into HAMP,” says Christy Romero, special inspector general.
The report says the U.S. Treasury Department’s requirements for mortgage servicers fail to provide a “clear picture of why home owners were denied.”
Source: “72% of Struggling Borrowers Rejected From Federal Mortgage-assistance Program,” MarketWatch (July 29, 2015)