Borrowers, who once experienced dealing with sarcasm from lenders, now receive respect while being offered deals that will help them, and help lenders.

Creating these jobs has not been cheap, yet the alternate given the large volume of delinquent mortgages, lenders face locating new buyers in a troubled economy. A judicious act, if lenders wish to alleviate sitting on a heap of foreclosures costing up to $50,000 per.

In a recent Treasury Department report, roughly 650,000 homeowners, one in five eligible mortgage-holders, have begun trial modifications under a new federal program that offers small incentives to all parties involved. The Home Affordable Modification Program (HAMP) that began on a trial basis has prompted lending institutions to continue its practice due to a dramatic decrease in financial losses incurred.

The U.S. Treasury HAMP offers institutions incentive to successfully process loan modifications, preventing them from premature foreclosure. The $75 billion program now has a large number of mortgage servicers participating by agreeing to the term plans, while receiving incentive funding for completing loan modifications.

How the plan works:
HAMP Waterfall

1. Capitalize accrued interest and other eligible expenses to determine the modified loan amount.

2. Reduce the interest rate to reach the 31% target housing debt-to-income ratio in increments of 0.125% subject to an interest rate floor of 2%.

3. If the 31% target-housing ratio has not been reached, extend the term of the loan up to a maximum of 40 years.

4. If the 31% target-housing ratio has not been reached, then reduce the principal through an agreement between the borrower and the servicer. This agreement (forbearance agreement) would require that the amount of principal reduction be set as a balloon payment at the end of the loan term or when the loan is otherwise paid off.

For more information on how to qualify, see Mortgage Guarantee Insurance Cooperation.

Wells Fargo, which services one in six U.S. mortgages, has nearly doubled its foreclosure-prevention staff adding this year 6,850 new workers.

Citigroup boosted its loss mitigation staff by 54%, creating 1,400 new positions. In Arizona, a haven for sub prime disaster, Citigroup opened a new servicing center employing 800 mortgage negotiators.

JPMorgan and Wells Fargo reported they are still hiring mortgage negotiators and do not see any declines in those positions for years to come.

While Treasury Secretary Timothy Geithner, today is asked by House Republicans to turn in his resignation, the hiring trend to keep citizens in their homes has not slowed.

From January 1 through November 1, this year, Bank of America witnessed a thirty-eight percent increase in new mortgage officer hires, Citigroup, a fifty-four percent increase, JPMorgan, an eighty-three percent increase, and Wells Fargo, a ninety-six percent increase.

People are staying in their homes; jobs are on the rise in this sector, and banks are stabilizing their balance sheets.

It appears premature to pick off yet another White House appointment. Ten months may remove a shovel of dirt from the landslide of deregulation that has plagued the economy after eight years of schemes and trickery by a Republican Party bent on personal gains.

Democratic House members are panicking as well. Constituents unfortunately are reaping the rewards of complete irresponsible Republican lawmakers who once again are placing blame for the mess on anyone except themselves. Ethnocentric bias has created enough problems; continuing this legislative segregation should serve as proof positive that most Republican lawmakers have no desire to solve problems of the people, and Democratic lawmakers are forging ahead without bipartisan support because they are offered no substantial alternative.