We’re Paying WHOM to Fix Subprime Mortgages?

Why, subprime lenders, of course.


The Treasury Department has allocated $75 billion to entice lenders to let beleaguered borrowers stay in their homes. And the companies getting most of that money—well, they’re the same companies that got the borrowers into this mess. At least 21 of the top 25 recipients in the Home Affordable Modification Program were major subprime lenders, according to the Center for Public Integrity. Meanwhile, not even 1 in 5 homeowners eligible for the program has gotten help.

LENDER (PARENT COMPANY)

SUBPRIME LOANS
(MINIMUM, 2005-2007)

HAMP FUNDS
AVAILABLE

Countrywide Financial
(Bank of America)

$97.2 billion

$4.5 billion

National City (PNC)

$68 billion

$610 million

Option One Mortgage (formerly H&R Block,
now American Home Mortgage Servicing)

$64.7 billion

$1.2 billion*

Wells Fargo

$51.8 billion

$2.5 billion

BNC Mortgage/Aurora Loan Services
(Lehman Brothers)

$47.6 billion

$448 million

Chase Home Finance/EMC Mortgage
(JPMorgan Chase)

$30 billion

$3.4 billion

IndyMac (OneWest)

$26.4 billion

$814 million*

Citigroup

$26.3 billion

$2.1 billion

EquiFirst/HomeEq (Barclays)

$24.4 billion

$553 million

Wachovia (Wells Fargo)

$17.6 billion

$1.4 billion

GMAC (Cerberus Capital)

$17.2 billion

$3.6 billion

* Funds available to parent companySources: Center for Public Integrity; Treasury Department

This chart is part of Mother Jones’ coverage of the financial crisis, one year later.

MORE HARD-HITTING JOURNALISM

In 2014, before Donald Trump announced his run for president, we knew we had to do something different to address the fundamental challenge facing journalism: how hard-hitting reporting that can hold the powerful accountable can survive as the bottom falls out of the news business.

Being a nonprofit, we started planning The Moment for Mother Jones, a special campaign to raise $25 million for key investments to make Mother Jones the strongest watchdog it can be. Five years later, readers have stepped up and contributed an astonishing $23 million in gifts and future pledges. This is an incredible statement from the Mother Jones community in the face of huge threats—both economic and political—against the free press.

Read more about The Moment and see what we've been able to accomplish thanks to readers' incredible generosity so far, and please join them today. Your gift will be matched dollar for dollar, up to $500,000 total, during this critical moment for journalism.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.