National Mortgage Settlement Underwater Refi for BofA in California

[CalOkie]

Refi interest rates for underwater and current borrowers is between 4.5 and 6 percent. Does not appear to be current low market rate as quoted in the National Mortgage Settlement.

[Bernmollevie]

thanks for posting -- those rates are definitely disappointing to hear. I've also been trying to keep up to date on the news of this as we would love to refi.

[brimorga]

thanks for posting -- those rates are definitely disappointing to hear. I've also been trying to keep up to date on the news of this as we would love to refi.

Has anyone heard any news of someone actually getting one of these refi's from BofA?

[azmo12]

I recently got 2 HARP 2 refis done on 2 investment properties. 4.5% . It took 37 days start to finish. B of A was the original servicer and the loan officer said they would only do these for loans already being serviced by B of A. Mind you I have 2 short sales and one foreclosure on my record. So I am happy .

[CalOkie]

Does anybody know what the following terminology might mean in context of a lender:

"owner/investor is not determined non-participating"

Specifically the rep is hoping that my "owner/investor is not determined non-participating". Why would that be good? What does it mean?

[Cat Damiano]

They would be hoping it states this because that would mean that the investor does in fact participate.

[CASailing]

I contacted B of A in February shortly after the announcement of the settlement. I noted that the loans that were covered under the settlement had to be owned by either B of A or a "participating investor." At that time, I was told by the rep that my loan was owned by BONY-Mellon and that they were going to participate. Nothing was being done at the time, however, because the settlement had not been approved by the courts.

In April, after the settlement was approved, I received a form letter from B of A thanking me for contacting them and that my loan was being considered for relief under the settlement. It also said, in effect, "don't call us, we'll call you when we're ready."

This May, the B of A website dealing with the settlement was updated. The refi program is being called "Interest Rate Relief" and will be available "later this year."

Perhaps they are doing the modifcations/principal reductions first, and then they will get to the refis. I plan on calling in July to get an update.

[ccsint]

I contacted B of A in February shortly after the announcement of the settlement. I noted that the loans that were covered under the settlement had to be owned by either B of A or a "participating investor." At that time, I was told by the rep that my loan was owned by BONY-Mellon and that they were going to participate. Nothing was being done at the time, however, because the settlement had not been approved by the courts.

In April, after the settlement was approved, I received a form letter from B of A thanking me for contacting them and that my loan was being considered for relief under the settlement. It also said, in effect, "don't call us, we'll call you when we're ready."

This May, the B of A website dealing with the settlement was updated. The refi program is being called "Interest Rate Relief" and will be available "later this year."

Perhaps they are doing the modifcations/principal reductions first, and then they will get to the refis. I plan on calling in July to get an update.

Did you see the part about the refi percentages only supposed to be going down to 5% or 5.5%?

If that's true, then it may be worthless to most people. Kind of sickening.

[brimorga]

Did you see the part about the refi percentages only supposed to be going down to 5% or 5.5%?

If that's true, then it may be worthless to most people. Kind of sickening.

Agreed the rates are not great. For me, it would be better than nothing.
However, seeing as how nobody is getting anything anyway, that is my biggest frustration.

[serverdude]

I'm a little confused on the first post. You say this is fact, but don't mention the basis of those facts.

From the settlement document: "The new interest rate will be capped at 100 basis points over the PMMS rate or 5.25%, whichever is greater, during the initial rate reduction period."

Therefore, the rate must be (today's PMMS = 3.62+100) ... 4.62% or 5.25%, whichever is greater. ... so... 5.25% is what you can expect. Of course, there is a minimum REDUCTION they must meet too for anyone at or near 5.25%, they must get dropped at least .25 or $100/mo. Nowhere does the settlement quote "current low market rate". They COULD do better than required to get better credit towards their commitment though.

So I'm just wondering if there is actual evidence of people getting letters from BofA with proposed rates? In other words... NEW information here, or just info from the settlement doc. Read Exhibit D-9 about the refinance portion of the settlement.

[Cat Damiano]

I'm a little confused on the first post. You say this is fact, but don't mention the basis of those facts.

From the settlement document: "The new interest rate will be capped at 100 basis points over the PMMS rate or 5.25%, whichever is greater, during the initial rate reduction period."

Therefore, the rate must be (today's PMMS = 3.62+100) ... 4.62% or 5.25%, whichever is greater. ... so... 5.25% is what you can expect. Of course, there is a minimum REDUCTION they must meet too for anyone at or near 5.25%, they must get dropped at least .25 or $100/mo. Nowhere does the settlement quote "current low market rate". They COULD do better than required to get better credit towards their commitment though.

So I'm just wondering if there is actual evidence of people getting letters from BofA with proposed rates? In other words... NEW information here, or just info from the settlement doc. Read Exhibit D-9 about the refinance portion of the settlement.

Hi serverdude,


Why do you ask, did you receive a letter?

[serverdude]

No. Waiting for a FedEx truck to show up like everyone else in the DOJ refi hopeful pool. I talked to a rep about a month ago and was told the same... I qualify, they aren't ready, expect next 30-60 days.

I'm just asking if the original poster had new information about anyone actually receiving a letter with specifics yet.

[Cat Damiano]

No. Waiting for a FedEx truck to show up like everyone else in the DOJ refi hopeful pool. I talked to a rep about a month ago and was told the same... I qualify, they aren't ready, expect next 30-60 days.

I'm just asking if the original poster had new information about anyone actually receiving a letter with specifics yet.

They would be getting the state specific information as well as how the programs will be implemented in the consent judgements. You can find and download the consent judgement specific to your investor on the following page, right hand side, under settlement documents;

Federal Government & Attorneys General reach landmark settlement with major banks | NationalMortgageSettlement

[CASailing]

I'm a little confused on the first post. You say this is fact, but don't mention the basis of those facts.

From the settlement document: "The new interest rate will be capped at 100 basis points over the PMMS rate or 5.25%, whichever is greater, during the initial rate reduction period."

Therefore, the rate must be (today's PMMS = 3.62+100) ... 4.62% or 5.25%, whichever is greater. ... so... 5.25% is what you can expect. Of course, there is a minimum REDUCTION they must meet too for anyone at or near 5.25%, they must get dropped at least .25 or $100/mo. Nowhere does the settlement quote "current low market rate". They COULD do better than required to get better credit towards their commitment though.

So I'm just wondering if there is actual evidence of people getting letters from BofA with proposed rates? In other words... NEW information here, or just info from the settlement doc. Read Exhibit D-9 about the refinance portion of the settlement.

To me, the settlement reads that 100+PMS or 5.25 is a cap, meaning that is the most the new rate can be. Or perhaps I'm being to much of an optimist, having hope that since B of A gets credit for the refis, they will lower us even more....

I too am waiting for the FedEx truck. I saw on another thread that a member was told the refis were starting mid-August and running through the end of the year. That is the same thing a friend of mine was told. So maybe we're finally getting good info. I'll make sure I post if/when I get something.

[serverdude]

I agree with your read. That is the cap... and that is what I expect they will propose. Unless they have a real financial reason to give us something better. I have spreadsheet upon spreadsheet of different scenarios including what credit value B of A gets based on each. Just don't know yet what they ARE doing / are going to do. I'd be thrilled with a 4-4.5 rate, even if only for 5 years, doubt they actually WILL go that low, but am prepared to be pleasantly surprised. So yeah, I thought someone had real data from the bank on what they ARE doing... but I'm doubting that is the case.

[lickwid]

Any information or updates in regards to Refi's for underwater homeowners in CA? I talked to a gentleman in BofA's office of the President and CEO and was told that this part of the settlement was being handled by the Attorney General's office. I thought each bank was responsible to handle this?

[ccsint]

Any information or updates in regards to Refi's for underwater homeowners in CA? I talked to a gentleman in BofA's office of the President and CEO and was told that this part of the settlement was being handled by the Attorney General's office. I thought each bank was responsible to handle this?

Last I read, they have not done any refinancing under the settlement. It will come from the bank (if it ever does).

[bdobs]

I just signed my closing papers on Friday with BofA.
Was not a refi, but part of the interest rate reduction program mandated my the DOJ settlement.
Basically my loan went from 6 % 7/1 ARM loan to a 4.25% fixed rate for the remainder of my loan.(23 more years)

Was really easy...received a Fed Ex pkg in early November, called the number and had a brief phone conversation and answered a few questions.
A few days later another Fed Ex pkg arrived and I had to fill out a form and send copies of my last two pay stubs and 2011 tax return.

Received a call last Wed to set up a time to close. Made appointment for last Friday and a Notary lady came by with the paper work. I signed and finished

Apparently this program is only for those with a credit score above 660???? and have not missed or been late with a payment

[lickwid]

Can you list the phone # that you called? I have a foggy recollection of possibly receiving a FedEx package awhile back. We just had a child so my memory isn't completely clear. I may have missed my window then. We definitely have a credit score above 660, both my wife and I have credit scores around 780. Never missed a payment. Owned by Bank of NY Mellon though, so not sure if this matters.

[bdobs]

Can you list the phone # that you called? I have a foggy recollection of possibly receiving a FedEx package awhile back. We just had a child so my memory isn't completely clear. I may have missed my window then. We definitely have a credit score above 660, both my wife and I have credit scores around 780. Never missed a payment. Owned by Bank of NY Mellon though, so not sure if this matters.

At work now, paper work at home. Will revert with info this evening. Pacific time

[Cat Damiano]

Can you list the phone # that you called? I have a foggy recollection of possibly receiving a FedEx package awhile back. We just had a child so my memory isn't completely clear. I may have missed my window then. We definitely have a credit score above 660, both my wife and I have credit scores around 780. Never missed a payment. Owned by Bank of NY Mellon though, so not sure if this matters.

Just check back when they are able to post that information for you as you are posting things that are against the TOS of the forum. For members protection and privacy we do not have PM enabled.

[lickwid]

Just check back when they are able to post that information for you as you are posting things that are against the TOS of the forum. For members protection and privacy we do not have PM enabled.

Sorry about that. I'll wait for a reply from bdobs.

Another question that I could not find an answer for is, does BofA or the DOJ have a list of qualified borrowers that are eligible for this program, and have already been contacted?

What happens if this FedEx package gets lost and/or stolen, as was mentioned in other threads. It is the holiday season, and missing packages from the front door or the porch are not an uncommon occurrence this time of year.

[bdobs]

Sorry about that. I'll wait for a reply from bdobs.

Another question that I could not find an answer for is, does BofA or the DOJ have a list of qualified borrowers that are eligible for this program, and have already been contacted?

What happens if this FedEx package gets lost and/or stolen, as was mentioned in other threads. It is the holiday season, and missing packages from the front door or the porch are not an uncommon occurrence this time of year.

Not sure about any lists, but they did tell me that if they do not hear back from the initial Fed Ex letter, they will call any and all phone numbers they have for you.

[lickwid]

Not sure about any lists, but they did tell me that if they do not hear back from the initial Fed Ex letter, they will call any and all phone numbers they have for you.

bdobs, or anyone else with more info, can you confirm if it's actually BofA or the DOJ that sends out these notices and works with you in reducing your rate. Common sense would say that BofA would be the one implementing this, but I have been told differently.

I contacted the Office of the President and CEO to talk to someone higher up. Was referred to William Bowers in that department and he told me that he knows for a fact that all claims or cases for the program stemming from the National Mortgage Settlement comes directly from the DOJ/Attorney General's office. He was pretty adamant and made me feel like I had no idea what I was talking about. But then again, he could be speaking the truth and I could be misunderstanding everything I've read.

[bdobs]

My Experience...
-Initial Fed Ex envelope contained official looking letter on BofA letter head saying a may be qualified for a loan mod, and to call this number.

-Call number on letter-Not BofA, but a third party organization(will try to find info tonight)...basically a call center type person. She askes a few questions and says the process has started.

-Second Fed-Ex Envelope arrives and containes another fancy BofA letter with directions to follow(ie.Fill out enclosed form and provide all documents per enclosed needed document check list), the name and number of my "single point of contact" and a pre-paid return Fed-Ex envelope.
Letter also states must be returned by X-date(around 10 days from when I received) and a final decision would be make within 30 days

-I fill out the authorization to pull tax records form and make copies of requested documents(last two pay stubs and 2011 tax return) and throw in Fed -Ex envelope and drop off at Fed-Ex Kinkos.

-Wait, wait, wait....a couple of weeks go by and I hear nothing

-First week in December I call my single point of contact-Not BofA but the same 3rd party call center type person. She says I sent everything they need and my application is in the final stages of review in underwriting(BofA I assume). She says I should hear back by Dec 15th witch is 30 days from when they received my documents.

-Last Wed I get a message on my home phone(even though I have told them two times to only call on my cell) from a lady from closing(that was all...just closing) and to call back. I have no idea who or what its about, but I am hoping its BofA regarding the Loan mod. I call back and get a lady(sounded like a call center type person..not BofA). She says she is calling to schedule a time for me to sign my closing documents. TO my surprise it was regarding the loan mod. I ask her if I was approved, she says "Well if they are scheduling you to close I guess you were".
So we schedule for Friday @1100AM at my house for a Notary to come over and have me sign.
-Notary lady calls to confirm Thursday evening.
-Sweet old lady comes to my house at 11 on the button, pulls out a small package, I review and sign, then sign her Notary book and leave my thumb print. She was not BofA but just a contracted Notary BofA hired.

So basically I never one talked to anyone actually from BofA. It seems they have contracted with companies to take care of all the leg work. They just want to documents and requested Financials delivered to them neat and clean.

But, at the end of the day, this is all through BofA and as far as I saw it, not DOJ in any way
Kinda wierd

[lickwid]

Bdobs, thanks for the info. Hopefully you can find the phone number to contact. Not sure if you ever mentioned, but is loan owned and serviced by BofA?

[GlenM]

Bdobs - Congratulations. I too had an easy time getting the refi mod. It's interesting that you mentioned a credit score requirement and the documents you had to provide. I didn't submit any documents. Similar to your refi my new rate is also 4.25. I wonder if the rate is based on the rate when the settlement was signed?