Categorized | Commercial

Thursday’s Event Shows the Penalty Applied

Thursday’s Event Shows the Penalty Applied
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As everyone knows that the housing market is going down for so many years therefore when the largest banks of America tried to administer a mortgage program which was sponsored by the government and modified the loan for those who seem distressed property owner, the government immediately penalized them for their performance. This news was taken by an update from the Treasury Department on Thursday.

The government had decided to pay incentive to these three banks so that they can fully assess the mortgage servicers. These banks are “Bank of America, JPMorgan Chase and Wells Fargo”. The payment system had been designed to resolve the issues. It was the part of the modification program announced by the government and the above three bank were given $24 million in incentives.

The Treasury Department has already been known to withheld the payment of some mortgage lenders a few years back but the event of Thursday is showing the names of some biggest banks who were playing an important role in this whole program. This program is known as “HAMP” or “Home Affordable Modification Program” and almost all banks signed the contract to participate in the seminar arranged by the government.

As the government of Obama was being criticized among different circles but the Thursday’s result reduces the fears up to a certain limit. According to the law, there must be some certain rules defined for the mortgage servicers and should not be provided with such a big amount to facilitate people. Instead, the government should take the steps itself to resolve mortgage related issues.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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