We’re Paying WHOM to Fix Subprime Mortgages?

Why, subprime lenders, of course.

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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.

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Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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