It’s usually corporation giants that inflate their numbers to show better returns. More recently, the banks seem to be inflating their numbers or some call it “creative accounting”. Just a few days ago, HOPE NOW reported that nearly 1 million permanent loan modifications have been completed this year. For those unaware, HOPE NOW, represents the private-sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.
That’s great that they send a mass PR release out to show America that they continue to do a bang-up job in keeping people in their homes and avoiding foreclosure. They issued rah-rah quotes like this one from HOPE NOW Senior Advisor Faith Schwartz “[The] data continue to show the mortgage industry’s commitment to keeping as many homeowners as possible in their homes,” All of this info and date appear great. Except for one thing. The numbers don’t exactly represent the truth.
According to several counselors at some non-profit and HUD approved agencies, the number should be about 750,000. The industry appears to be inflating these loan mod numbers in order to make themselves look good while people continue to lose their homes. The horror! The horror!
From what we have heard at several HOPE NOW events that came through the San Francisco and Oakland a couple months ago (like a traveling circus), the whole national HOPE NOW campaign should be regarded as nothing more than a big PR event. One U.S. Treasury agent shook his head at one of the Oakland events, saying “This is the last time I’m coming to one of these events”. Counselors from HUD approved agencies said that these events are all smoke and mirrors. Great, so as people continue to lose their houses we have a traveling sideshow making claims about how great they are and what a bang-up job they continue to do. All we need now is a ringleader in a big circus coat.