How Effective Is FHA’s Distressed Asset Stabilization Program?

first_img Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: Calyx Announces New Integration Next: Home Price Slowdown: Cause for Concern? The Week Ahead: Nearing the Forbearance Exit 2 days ago How Effective Is FHA’s Distressed Asset Stabilization Program? A new study by the Urban Institute analyzed the Government Accountability Office’s (GAO’s) recent evaluation of the Federal Housing Administration’s (FHA’s) Distressed Asset Stabilization Program (DASP). The study found that while the GAO evaluation has made recommendations to improve the quality control of this program, its conclusions on the DASP’s overall effectiveness were “less helpful.”The Urban Institute said the GAO had concluded that “in aggregate sold defaulted loans were more likely to experience foreclosure than comparable unsold defaulted loans.” It had noted the probability of foreclosure 24 months after the loan servicing was transferred to the investor was 43% for sold loans through the program, versus 36% for unsold loans.”Though this figure appears bleak, and is indeed the subject of criticism in the report, it indicates the program’s success, not its weakness,” Laurie Goodman, VP, Housing Finance Policy, Urban Institute; Edward Golding, and Jim Parrott, both Nonresident Fellows at Urban Institute wrote in a blog.The writers said that the figures that GAO reached compared the outcomes of delinquent borrowers who FHA could no longer help because of which they were put into DASP, with borrowers FHA could still help avoid foreclosure. “Put differently, it shows the program changed the probability of foreclosure in that first group from close to 100% to 43%, only 7% higher than the group of borrowers FHA was still in a position to help on its own,” they said.Some of the ways in which investors who bought loans through the DASP helped delinquent borrowers avoid foreclosure included:Extending the loan term to 40 years or cutting the interest rate to below a market rate of interestForgiving the principal on the loansForbearing more than 30% of the loan value, or offering more generous terms for deeds in lieu of foreclosure or short sales”None of these options is available to FHA given their statutory authority,” the researchers pointed out while making a case for the importance of DASP. “Again,  borrowers who participate in DASP are basically out of options with FHA.”However, they added that more needs to be done to “ensure borrowers whose loans were sold through this program got the best shot possible and any foreclosures had minimal impact on the community.” While the FHA had made changes along these lines to the program in 2016, the researchers wrote that only one auction had taken place after these changes were implemented. Because of this, their full impact has not been studied.The study, therefore, made some recommendations that could help FHA improve its program. They included using better information systems and monitoring capability and more personnel and funding to manage the program. However, the most important aspect of FHA improving the program would be by releasing much more loan-level data, including data on DASP, “so that independent analysts can help them evaluate their programs. Indeed, periodic public reporting of outcomes would be valuable.”Click here to read the full blog. Related Articles Share Save Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / How Effective Is FHA’s Distressed Asset Stabilization Program? Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Foreclosure, News Servicers Navigate the Post-Pandemic World 2 days agocenter_img Borrowers Delinquency Distressed Assets FHA Foreclosures GAO Investors mortgage Urban Institute 2019-08-19 Radhika Ojha Tagged with: Borrowers Delinquency Distressed Assets FHA Foreclosures GAO Investors mortgage Urban Institute Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Radhika Ojha August 19, 2019 1,766 Views  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Subscribelast_img read more

Eminent Citizens Write To Centre For Additional Budget allocation & Proactive implementation of NREGA

first_imgNews UpdatesEminent Citizens Write To Centre For Additional Budget allocation & Proactive implementation of NREGA Radhika Roy2 May 2020 5:08 AMShare This – xSeveral eminent persons have written to Narendra Singh Tomar, Union Minister of Rural Development and Panchayati Raj, for urgent and immediate steps to enable NREGA in order to combat the economic crisis being perpetuated in the country in wake of the COVID-19 pandemic. Signed by individuals such as Harsh Mander, Yogendra Yadav, Aruna Roy, Nikhil Dey, Jean Dreze and others, the…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginSeveral eminent persons have written to Narendra Singh Tomar, Union Minister of Rural Development and Panchayati Raj, for urgent and immediate steps to enable NREGA in order to combat the economic crisis being perpetuated in the country in wake of the COVID-19 pandemic. Signed by individuals such as Harsh Mander, Yogendra Yadav, Aruna Roy, Nikhil Dey, Jean Dreze and others, the letter evokes the issues surrounding mass unemployment stemming from the economic crisis due to the national lockdown and requests the Government to enable National Rural Employment Guarantee Act in a bid to fulfil the tremendous demand of the poor whose livelihoods are in question. “Due to an unprecedented unemployment crisis which is likely to last for several months, there is a tremendous demand for NREGA work across the country. The Government should respond to this demand urgently as the lives and livelihoods of millions are in question. Given the legal obligation and the infrastructure already in place, using NREGA creatively will go a long way to help the poor in this time of need”. The letter, by emphasizing the emergency of the situation at hand, further provides the following temporary recommendations which can be employed by the Ministry for implementing NREGA for the next three months: “1. Additional Budget allocation & Proactive implementation of NREGA and giving work to all. The Government should immediately allocate additional resources and make provision for a total of at least Rs.1 lakh crore for at least the next three months. This will allow uninterrupted implementation till the time by which an accurate estimation of the upcoming demands can be mapped. Contradictory orders issued by the Government of India to start NREGA works, in the light of maintaining strict physical distancing has led to confusion amongst the front line functionaries. Consequently, implementation of NREGA has suffered. Implementing agencies must proactively open works in every village and give work to all those who turn up at the worksites. Demand should not be made a prerequisite for opening works. Demand registration can also be done at the worksite itself. This can be done using a paper-based system with a handwritten dated receipt. The details can be entered on the computer in the evening to ensure that there is no delay in registering work demand. As you would appreciate, the demand of work is a right for the worker. Funds may be released in advance to the Gram Panchayat to run works and Sarpanchs be given power to authorize opening of works. Simplify Procedures and Remove Difficulties All procedures for NREGA should be substantially simplified. Entitlements for NREGA should be made applicable for an individual and not for a household, and every individual must be provided work without any restriction. Anybody willing to work must be given work for the full year and not have 100 days in a year limitation. A large number of rural residents don’t have a job card and getting new job cards might be time consuming. As such, any person wanting to do NREGA work must be allowed to work irrespective of whether they have a job card. Job card registration can be done at the worksite. Sanctioning of works and wage/material payments need to be simplified. Gram Panchayats should be able to sanction schemes on minimum documentation and payments should be routed via Gram Panchayats in order to ensure quick disbursals. All biometric based payment systems must be avoided. Urban Employment Guarantee Act While many returning migrants are from rural areas, there are significant returning migrants from small towns. Many such people have lost their livelihoods and are shaken. This can be fruitfully addressed to some extent by emulating the potential and the structures of NREGA towards an urban employment guarantee programme. Such a programme can be powerful in ecological restoration and moving towards a greener future in light of climate crisis too. Pay Full Minimum Wages The Government must ensure that NREGA workers receive the full minimum NREGA notified wage rate for the State within 7 days of completion of work instead of 15 days. The Schedule of Rates could be suitably modified to reduce work output required for earning the minimum wage rate by 50%, or piece-rate payment of wages should be suspended and wage payments on the basis of time rate be initiated. Self-certification of the extent of work completed must be made adequate to process wage payments, which can then be later re-verified. Provide dry rations in addition to full minimum wages for the next three months. Cash Payment of Wages Timely payment of wages is of critical importance at present. Overcrowding in rural banks is a common problem. To ensure good practices of physical distancing in such times, NREGA wage payments should be made in cash by the Gram Panchayat. To ensure that transparency and accountability is maintained, cash payments should be made for every ward publicly on a predetermined day. The example set by the State of Odisha for releasing pension payments publicly at the Gram Panchayat can be followed. Women and Elderly in NREGA All those above the age of 50 years who are not being permitted to come to work, should be paid their full minimum wage per day, for the duration of the period that they are not being permitted to work. Along the same lines, all ailing and disabled workers who are not permitted to work due to the existing medical advisory should be paid full wages till they are allowed to resume work. The Central Government should also ensure payment of 90 days of wages to all pregnant women workers in the 2nd and 3rd trimester as well as to the lactating women with infants aged less than 6 months. Helpline for Demand and Job Card Registration Helpline numbers must be constituted where workers can call and register their demand for work and apply for any job card related procedures. The helpline number should be able to register demand electronically on the MIS as soon as the demand is registered. This is essential because demand for work applications are not being accepted on the ground. Each block must have a separate helpline number to cater to all the panchayats in that block. This is to ensure that there are no language issues on the phone and to avoid helplines getting over-burdened. There need to be multiple people in each block running these helplines. Red Zone Classification Preventing NREGA Works Declaring a district as a red zone and not permitting NREGA works across the entire district is causing many hardships. Careful consideration needs to be paid to identify only affected blocks with precision, so that NREGA works can be initiated in blocks within a red zone district which does not have positive cases of Covid 19 Balance Between Individual and Community Works There is a need for implementing agencies to enable works on individual lands to facilitate completion of work while aligning with physical distancing norms. However, there is a need to balance works on individual lands with community works so as to ensure that workers with no individual landholdings are not crowded out of the programme Work on individual landholdings should be encouraged as it helps to generate work without compromising on physical distancing prerequisites. Landless workers should be given a priority for works undertaken on common and revenue lands.” Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img read more

Joined up HR initiative to boost recruitment drive

first_img Comments are closed. Joined up HR initiative to boost recruitment driveOn 29 Apr 2003 in Personnel Today Related posts:No related photos. Public sector employers in the London Borough of Tower Hamlets have formedan innovative partnership to help beat the HR challenges faced by governmentemployers. Public sector organisations including the council, police, Jobcentre plus,NHS, housing association and education authority have all been involved indiscussions to develop common HR solutions. Cara Davani, head of HR at Tower Hamlets council said the scheme initiallybegan as a one-off seminar, but has grown into a regular partnership. “We are trying to identify the common themes that arise for all thesebodies in Tower Hamlets and then identify a single strategy to deal withthem,” she said. The group, which includes HR and senior management staff from the variousagencies, are looking at strategies to help motivate staff, improve recruitmentand retention, and at ways to attract more young people into local government. “We’ve identified some common problems around recruitment andremuneration across the public sector in the borough. We’ve done the analysisand know where the gaps are, so now we’re collectively promoting the boroughand making ourselves attractive as employers,” said Davani. One common problem the group has identified is the cost of living in thearea and the team hopes a co-ordinated approach will bring some answers. The group also wants to use the forum to highlight the attractive side ofworking in the public sector in Tower Hamlets. The scheme aims to encourage members of the local ethnic community to feelthey can go for a wider range of jobs in the public sector. By Ross Wigham Previous Article Next Articlelast_img read more