This is absolutely ridiculous. Once again the Treasury Secretary uses the press for a huge we're doing something really campaign and then says they will use shame to embarrass those lenders not really helping homeowners.
In August, we got the same claim. See The Politics of Shame for more details on how obviously, from bail outs to bonuses to loan shark credit card tactics, financial institutions have no shame.
The only ones who are being shamed are the Obama administration, in particular Tim Geithner.
Last month, an oversight panel created by Congress reported that fewer than 2,000 of the 500,000 loan modifications then in progress had become permanent under Making Home Affordable. When the Treasury releases new numbers next month, it is expected to report a disappointingly small number of permanent loan modifications, with estimates in the tens of thousands out of the more than 650,000 borrowers now in the program
Over a year ago it was well known the Hope Program was Hopeless. Now that some statistics have come out, it seems a whole group of politicians are busy using it as press fodder.
Ask if any of these Political beasts voted for the TARP bail out? Did they introduce any legislation to really reform mortgage modifications? Oops, I guess not.
We only have one small claim by the Treasury that might do something:
The Treasury Department also will wait until reductions are permanent before paying cash incentives that it promised to mortgage companies that lower loan payments.
Right. Of course this comes at the end of 2009. I believe the current projections of forecloses this year alone are 3.2 million.