The underperformance focus of the government’s primary mortgage-relief program has centered on how many payment reduction trials have been made permanent. But the larger question is why only one-in-four of those eligible are getting any help at all.
The latest report from the U.S. Treasury on Making Home Affordable, also known as HAMP, shows that 24 percent of those eligible, borrowers 60 days or longer delinquent on their mortgages, begun trial or permanent modifications with lower monthly payments. That’s 759,058 out of 3.299 million borrowers.
The November report breaks down the percentages of those eligible who are in programs by individual lender.
Of the top four lenders participating, each with more than 100,000 mortgage modification trails underway, Bank of America had the fewest percentage of customers, with 15 percent out of 1.018 million. Citigroup, Chase and Wells Fargo reported 43 percent, 31 percent and 30 percent, respectively.
Bank of America, the country’s largest mortgage lender, told the Washington Post that the Treasury’s figure for its eligible borrowers is inflated by foreclosure moratoriums it initiated late last year and a portfolio of loans acquired as part of its purchase of Countrywide Financial.
Bank of America also said that only about one-third of the slightly more than 1 million delinquent borrowers cited by Treasury’s report will likely quality for mortgage reduction assistance. Many of the remainder of the distressed borrowers have abandoned their homes or rented it to tenants, making them ineligible, BofA said.
Mortgage industry experts testifying this month before the House Financial Services Committee outlined many shortcomings of the HAMP programs.
Julia Gordon, senior policy counsel for the Center for Responsible Lending,cited actions that U.S. officials can take to expand eligibility among distressed borrowers.
Among the recommendations:
- Provide an independent appeals process easily accessible by homeowners.
- Prohibit servicers from requiring homeowners to waive legal rights when receiving a modification.
- Permit homeowners who experience additional adverse life events to be eligible for additional HAMP modifications.
- Clarify that homeowners in bankruptcy are eligible for the HAMP program.
Gordon said that HAMP guidelines prohibit mortgage servicers from requiring homeowners to sign waivers of legal rights.
“Unfortunately, despite consequent changes in official policy at many servicers, these waivers continue to arise,” Gordon said.
Treasury reports that 78 servicers have signed on to participate under HAMP. These participants service loans owned or guaranteed by Fannie Mae or Freddie Mac, loans held in portfolio, or loans serviced on behalf of other investors.
Loan Modification via Loan Modification Firm VS Total Mortgage Reset With Homeowner Protection Group
Loan Modification With Loan Modification Firm
•Lenders have mastered the Pretend and Extend game prolonging the outcome for months and months for seemingly no reason
•Any loan modification will almost always be done according to the lenders best interest
•Principal reductions are extremely rare with loan modifications
•Lender will require homeowner to defend and disclose every aspect of their financial life
•Even with a successful modification a majority of homeowners will still be upside down (owe more than properties value)
•The proof of financial hardship is an absolute necessity with any loan modification
•In most cases a loan modification will lower your mortgage payment for the agreed upon fee and nothing more
•If the lender’s workout offer does not truly help the homeowner, the loan modification is all but dead
•Throughout the process to obtain a loan modification the homeowner is at the lender’s mercy
•Modifications typically take 6-8 months or more
•Arrearages may or may not be eliminated (in most cases they are moved to the back of the loan)
Total Mortgage Reset With Homeowner Protection Group
•By law, lenders must respond and work on a resolution within 60-90 days
•The threat of litigation will result in much more favorable outcomes for the homeowner
•HPG guarantees a minimum 10% principal reduction on accepted cases or 100% of fees will be returned
•Lenders are required to defend their business practices; giving the homeowner the upper hand
•HPG negotiates principal balance in such a way so that the overwhelming majority of clients who are currently upside down will have a new loan balance that is equal to or below appraised value
•Financial hardship does not necessarily need to exist
•HPG will negotiate rate, term, and principal balance of the homeowner’s mortgage and in addition (through business partnerships) will address and repair homeowner’s credit, negotiate unsecured debt, help increase the homeowners chances of finding work through career training (if needed), (this is called The Full Circle Package) and much more (including the possibility of claim damage awards paid to the homeowner!) for one flat fee
•If a stale mate is reached HPG’s investors will make a cash offer to the lender to buy out the note, or a qualified member of the attorney network will take the lender to court to prosecute found violations at no additional cost to the homeowner beyond filing fees
•When violations are found, the homeowner is in the position of power
•A majority of HPG’s cases will be resolved in as little as 60-90 days
•Arrearages are completely eliminated in addition to a guaranteed minimum 10% principal reduction
If you would like more info
Please contact Mary D
Email moc.evilnull@gphdyram
1-570-992-6630