My HAMP mod does not follow HAMP Guidelines, what are my options?

[NotGoingToGiveUp]

Hello all,

I have a mortgage through Chase that was approved for a HAMP modification about 16 months ago. My interest rate was reduced to 3.125 % and the loan term was extended to 40 years. At the time I signed the agreement, I didn't know that a "Handbook for Servicers of Non-GSE Mortgages" document existed and that the mod I was agreeing to didn't follow it's guidelines.

Fast forward 16 months.... I just reviewed the version of the "Handbook for Servicers of Non-GSE Mortgages" that was in effect back when my loan was being considered for a HAMP modification and here's what it says:

“The interest rate must be fully reduced to 2.0 percent prior to any term extension.”

https://www.hmpadmin.com//portal/programs/docs/hamp_servicer/mhahandbook_40.pdf page 94

My question is, what can I do now? I've submitted a formal dispute letter to Chase. They said they are reviewing it, but since I signed the agreement already, there's probably nothing they can do for me.

The HAMP guidelines seem to be very specific about the reduction of interest before extending the length of the loan. I'm considering hiring an attorney to help with this matter. Do the banks "have to" follow the HAMP guidelines? If they don't (which it appears that didn't in my situation), what options do customers like me have?

Any advice, info is greatly appreciated.

[Evan Bedard]

“The interest rate must be fully reduced to 2.0 percent prior to any term extension.”

https://www.hmpadmin.com//portal/programs/docs/hamp_servicer/mhahandbook_40.pdf page 94

My question is, what can I do now? I've submitted a formal dispute letter to Chase. They said they are reviewing it, but since I signed the agreement already, there's probably nothing they can do for me.

The HAMP guidelines seem to be very specific about the reduction of interest before extending the length of the loan. I'm considering hiring an attorney to help with this matter. Do the banks "have to" follow the HAMP guidelines? If they don't (which it appears that didn't in my situation), what options do customers like me have?

I'm sorry to hear this and many HAMP modifications do not necessary follow the guidelines to a T.. Unfortunately, lenders are not forced to abide by the rules and regulations of the program as they are really just a set of guidelines for them to follow and there are virtually no actual laws that pertain to loan mods. It may be possible to dispute such a factor if you just received the agreement, but being over a year into the modification they may not be able to do so. I would contact the executive's office and explain to them what has happened before spending quite a bit of $$ to hire an attorney.

Jamie Dimon Chairman & Ceo
Phone: 212-270-1111
Fax : 212-270-1121
E-Mail Address: jamie.dimon@jpmchase.com

Executive Team:
executive.office@chase.com

Penney Davis, Executive Resolution Team
904-462-2287
alsebre.davis@chase.com

[NotGoingToGiveUp]

Thanks for the reply Evan. I'm planning on contacting the executive team.

You gotta love it when they say "there's nothing we can do". I've learned to totally ignore so many Chase phrases "it's not possible", "never heard of that", "can't be done", ect... over the past 3 years working on this modification.

Wishing good luck to all of the other people going through similar situations.

[Evan Bedard]

Yes these reps are famous for saying the same useless lines over and over again.. Hopefully the executive team can help you get this resolved but if not at least you were able to score a fixed 3.125% rate.

[NotGoingToGiveUp]

Actually, the loan is only fixed at 3.125 for the first 5 years, then it goes above 4% for the remaining 35 years. I really don't want a 40 year mortgage either... if they'd reduced the rate I hope a 30 year mortgage is possible.

I sent an email to the executives you told me about. Someone from the executive resolution group tried to call me tonight. Hopefully I'll get some traction tomorrow morning.

[Evan Bedard]

What I would do is calculate your payment at 4% and a 30-yr term to see if that amount will be feasible because almost every HAMP modification (after the first five years) will end up being 4-4.5% for the life of the loan. The reason they extend the term is to help reduce the payment even further, so keeping it at a 30-yr term may be a couple hundred or more a month later depending on your loan amount.