The Obama administration’s $75 billion mortgage bailout program to help some 9 million struggling homeowners is off to a slow start. So far 55,000 people have had their loans modified according to this CNN Money report.
There certainly had to be a ramp up period for loan servicers to get their systems and people in place to be able to accommodate the crushing requests from homeowners. But at this pace, it will take the full second term of the Obama administration to get the 9 million complete – if that.
It’s really an unbelievable time in the mortgage business right now. The people I talk with are extremely busy working with people to refinance and with new purchases.  The people running the backend systems must be running full tilt because not only do that have all the new loan requests and refi’s, but they have to deal with all the people falling behind on their payments, foreclosure filings and now the massive under taking to try to modify some 9 million loans…many of which, by the way, will not likely be able to be modified.
It’s a bull market in the mortgage service business.
No deposit no mortgage it must be a rule or new crunch will come!