Fannie Mae - Payment Reduction Plan™

[ChaseVictim]

Your Thoughts on This....

Announcement 09-30 October 20, 2009

Amends these Guides: Servicing
Retirement of the HomeSaver Forbearance™ and Conversion to the Payment Reduction Plan™

Revised Fannie Mae Workout Hierarchy
A servicer should first evaluate a borrower to determine if they are eligible for HAMP, and if not, the servicer should then determine whether the borrower is eligible for an alternative
Announcement 09-30 Page 6
foreclosure prevention option based on whether the borrower is experiencing a temporary or permanent financial hardship.
Temporary Hardship
For a borrower who is expected to overcome a temporary financial hardship and be able to make future scheduled payments in addition to an amount to cure any outstanding arrearage over time, the following foreclosure prevention alternatives should be considered in the following preferred order. Notwithstanding the options below, in the event a borrower requires a particular workout that the servicer deems to be in both Fannie Mae’s and the borrower's best interest, the servicer is strongly encouraged to submit the workout case to Fannie Mae for review and approval. Forbearance – A temporary reduction or suspension of payments which must be immediately followed by an arrangement to cure the delinquency.
Repayment Plan – An arrangement in which a borrower agrees to pay down past due amounts while still making regularly scheduled payments.
HomeSaver Advance – A monetary advance to cure a delinquent loan resulting in a separate unsecured loan for the arrearage amount.
Permanent Hardship
For a borrower who has experienced a permanent or long-term/enduring financial hardship, foreclosure prevention alternatives should be considered in the following preferred order: PRP – For a borrower who is not eligible for, or who does not meet the terms of the HAMP but has the willingness and ability to make reduced monthly payments of at least 70 percent of the borrower’s contractual monthly P&I payment and for whom a more permanent foreclosure prevention solution cannot be readily determined, a servicer should consider the borrower for a PRP.

If a borrower is not capable of making the level of payments required under the PRP, then the servicer should consider the borrower for a more permanent foreclosure prevention alternative.
Other Forbearance – A temporary reduction or suspension of payments (subject to the limits of the governing MBS trust document under which that mortgage loan was pooled), which will culminate in a more permanent foreclosure prevention alternative.

Once a borrower has a PRP or other forbearance, the following options, along with any new programs that may become available, should be considered in the following preferred order. Modification – For mortgage loans that are ineligible for or have failed the HAMP Trial Period Plan or the HAMP modification, and by changing any of the permanent terms of the mortgage loan (including changes to the interest rate, interest and expense capitalization, or
Announcement 09-30 Page 7 Announcement 09-30 Page 8

changes to the loan term) the borrower would cure the present delinquency, avoid disposition of the property, or prevent future delinquencies.

Pre-Foreclosure Sale – For delinquent mortgage loans, the acceptance of a sales contract prior to a foreclosure sale resulting in a payoff of less than the total amount owed on the mortgage loan and release of the mortgage lien.

Deed-in-Lieu of Foreclosure – For delinquent mortgage loans, the voluntary transfer of title from a borrower to the servicer to satisfy the mortgage loan and avoid foreclosure (also called a "voluntary conveyance").
A servicer must immediately resume or commence foreclosure proceedings as soon as it determines that the above foreclosure prevention solutions are not feasible.

[c150000]

chasevictim

i have seen this myself BUT i must say that i wonder if the homesaver advance guidelines have changed because long before this hamp came along i asked about that
and chase told me my LOAN did not qualify,, iask why they would not tell me !!
wonder how i can find out ...if that has changed i called fannie they said they didnt know (go fiqure)

and other options say above see if borower is ELIGIBLE again now set rules
i supose that its up to them of course , with the no rules game
of course the only thing that would make you not eligible, is the fact you dont make enough money and of course is what the reason people are in this mess
is it just me! i just dont get it i realy dont,,,,like i said before it wasnt easy making my normal payments at all .... but i sure wasnt living this hell !!!!!!!!!!!

[c150000]

also you have to read between the lines here

its says in the FIRST sentance....A servicer should first evaluate a borrower to determine if they are eligible for HAMP, and if not, the servicer should then determine whether the borrower is eligible for an alternative
key work is evaluate,, whats this mean? evaluate the borrow to determine if eligible
would that mean go through the process? and be denied or find them ineligible before they go into it?
are you eligible after being denied after being in the hamp?
or only if you were not eligible to enter the progam in the first place?

this is maddness whats it mean? its a FREAKEN RIDDLE !!!!

[litehouse01]

very unclear.........but it would be great if it could be used if we are denied by HAMP

[snapple candy]

Sounds like a load of crap to me. Its everything they have been doing but just in writing now. Vague as possible.

[ChaseVictim]

The HAMP Guidelines are vaguely written and the banks are aware so they are denying people left and right. I've yet to see a denial letter since I was denied on October 23. Also, I haven't received a call offerring any alternatives. Although I did see a missed call on my cell this evening from Chase on a Sunday trying to collect a payment.