Posted on Monday, August 17, 2009
Here are the reasons cited on CNN Money that the plans is not working:
Fax machines. Most loan servicers require that applications be faxed. "It's archaic. Given all the problems we've had with lost faxes, it seems unreasonable to use a fax system,” says Michael van Zalingen, director of homeownership services for Neighborhood Housing Services of Chicago.
Too many forms. Each servicer has its own form, as does Freddie Mac and Fannie Mae.
Outdated info. By the time the multiple forms get through the fax machine, the information is outdated and applicants have to start all over.
Green personnel. Servicers are hiring and training staff by the thousands and most of them haven’t been on the job long enough to understand the process.
Too complicated to comprehend. Some eligible borrowers are receiving loan modification offers without even applying, but the paperwork is such gobbledygook that they mistake it for trash and throw the offers away.