re: 70% of homeowners in forbearance didn’t need the help

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Not for Fannie and Freddie. And most lenders will look for other methods to cover the 3 deferred months rather than requiring it all at once

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So, most of this is old news. Why is it so serious today? Glad you asked. You see, while homeowners will have the ability to skate — more on that in a moment — no one else does. Firms like New Residential, Caliber, Quicken Loans — you name it — must still make the monthly payments to the end mortgage holder or fund. And most of these firms have neither the ability to pay nor are capitalized at such a level as to shop their debt. And it gets far worse as these firms are now outright lying and threatening homeowners in order to pull their own fat out of the fryer. Here is how David Dayan, at the American Prospect put it in an article entitled, Unsanitized: Mortgage Servicers Trying To Steal Homes, Again,

So when I started hearing from borrowers that they were being told that they could apply for three months forbearance (a deferment of their loan payment), but would have to pay all three months back at the end of the period, my ears pricked up. Others have heard this as well, like this Wall Street Journal reporter and Lisa Epstein, one of the subjects of my book Chain of Title, who writes for a subscription-based website called The Capitol Forum. Both found AmeriHome Mortgage, a private equity-backed firm, telling customers about a lump-sum payment immediately due at the end of three months, and this isn’t limited to them. (I’ve heard from Wells Fargo customers as well.

Even the telephone script which Freddie Mac has published spells this out. Homeowners are allowed 6 months with an additional six months, if necessary. Second, there is no legal mandate for an immediate payment upon the lifting of the moratorium as Industry pundits like Dave Stevens would like to infer. Stevens, a seven year MBA President and former FHA Commissioner is at loggerheads with the current FHA Commissioner Mark Calabria. Foreclosurepedia covered this, in depth, in April. Calabria recognizes that the casino which Stevens has overseen, for decades, is crashing down. The reality is that Stevens and his pack of ranging mongrels proved Chicken Little right. Stevens is demanding to stick his and the collective MSR nose at the public funds trough because of his impotence and inability to get their shite straight. It is a Come to Jesus moment for them; the reality is that there is No Room At The Inn and the Manger is preoccupied with a legitimate need. And it gets better because the reality is that nobody on the MSR side of things wants loan modification or assistance to the homeowner. Why? It has been well known, for over eleven years, that servicers make FAR MORE MONEY on a foreclosure!

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