Can Fannie and Freddie Handle The Homeowner Affordability and Stability Plan?
As the Obama administration's The Homeowner Affordability and Stability Plan begins to ramp up, high level employees at both Fannie Mae and (FNMA) and Freddie Mac (FHLMC) are leaving in droves with no replacements waiting in the wings. A recent article in The New York Times said suitable candidates are staying away due to heavy scrutiny, the sinking ship status of the agencies, and the burden of answering to 300 million taxpayers.
Fannie Mae is seeking to fill spots for a general counsel, chief risk officer, and, chief technology officer while Freddie Mac needs to fill all of their top C-level positions. While sitting on top of $6 trillion in mortgages, the agency is running without a chief executive officer, a chief financial officer, and a chief operating officer.
Staffers are jumping ship as well leaving those that remain with a workload that grows heavier by the day. James Lockhart, director of the Federal Housing Finance Agency, the group overseeing both Fannie Mae and Freddie Mac, is concerned about his staff: "Everybody is stretched very thin. We're very worried, not only about the vacancies now, but also about future holes." The timing for this concern and the events leading to it could not be worse as the agencies prepare for the roll out of The Homeowner Affordability and Stability Plan. With approximately 27 million mortgages in their portfolios, it's unlikely that the agencies will be setting a high bar in terms of customer service.
Also facing hiring issues is Tim Geithner, currently working with a skeleton crew at the Treasury. The lack of talent has forced delays in the implementation of several key initiatives. One of his key people is Neel Kashkari, who was appointed by former President Bush to lead the Treasury's financial rescue team. Mr. Kashkari has already indicated that he wants out as soon as a suitable replacement can be brought in. Evidence in the true shallowness of the talent pool is that President Obama's pick for the position is none other than Herbert Allison Jr., currently the Chief Executive Officer of Fannie Mae.
What this all means for the homeowners trying to either refinance or modify their existing FNMA or FHLMC mortgages is unclear but not promising. Complaints of extended hold times, lack of information, and general incompetence are already circulating and things really haven't even started yet. Homeowners contemplating a do-it-yourself for a loan modification should prepare to commit more (hold) time and to suffer more frustration as the program's process gears up to full speed. Considering all this, hiring an attorney to run the loan modification instead is starting to look better and better.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
Fannie Mae is seeking to fill spots for a general counsel, chief risk officer, and, chief technology officer while Freddie Mac needs to fill all of their top C-level positions. While sitting on top of $6 trillion in mortgages, the agency is running without a chief executive officer, a chief financial officer, and a chief operating officer.
Staffers are jumping ship as well leaving those that remain with a workload that grows heavier by the day. James Lockhart, director of the Federal Housing Finance Agency, the group overseeing both Fannie Mae and Freddie Mac, is concerned about his staff: "Everybody is stretched very thin. We're very worried, not only about the vacancies now, but also about future holes." The timing for this concern and the events leading to it could not be worse as the agencies prepare for the roll out of The Homeowner Affordability and Stability Plan. With approximately 27 million mortgages in their portfolios, it's unlikely that the agencies will be setting a high bar in terms of customer service.
Also facing hiring issues is Tim Geithner, currently working with a skeleton crew at the Treasury. The lack of talent has forced delays in the implementation of several key initiatives. One of his key people is Neel Kashkari, who was appointed by former President Bush to lead the Treasury's financial rescue team. Mr. Kashkari has already indicated that he wants out as soon as a suitable replacement can be brought in. Evidence in the true shallowness of the talent pool is that President Obama's pick for the position is none other than Herbert Allison Jr., currently the Chief Executive Officer of Fannie Mae.
What this all means for the homeowners trying to either refinance or modify their existing FNMA or FHLMC mortgages is unclear but not promising. Complaints of extended hold times, lack of information, and general incompetence are already circulating and things really haven't even started yet. Homeowners contemplating a do-it-yourself for a loan modification should prepare to commit more (hold) time and to suffer more frustration as the program's process gears up to full speed. Considering all this, hiring an attorney to run the loan modification instead is starting to look better and better.
Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.
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