Home Affordable Modification on 40 yr mortgage and navigating Chase

[Moe Bedard]

Because of the incentive payments that are given for the first five years of staying current while in the modification program to the borrower, servicer, and investor on the loan......the servicers may be monitoring this..............and it would also mean that you would no longer meet the criteria that was necessary to be approved for the modification in the first place.........but it is too new to tell how it will be looked into.

So far the guidelines state:

Servicers will be required to maintain records of key data points for verification/compliance reviews. These documents may include, but are not limited to, borrower eligibility and qualification, underwriting criteria, and incentive payments. These documents also include a hardship affidavit, which every borrower is required to execute.

Borrowers will be required to provide declarations under penalty of perjury attesting to the truth of the information that they have provided to the servicer to allow the servicer to determine the borrower’s eligibility for entry into the Home Affordable Modification Program.

Detailed guidance on data requirements will be released separately.

Measures to prevent and detect fraud, such as documentation and audit requirements, will be described in the servicer guidelines and the program guidelines in the financial agency agreements with Fannie Mae and Freddie Mac. Additional fraud protection measures will be announced by Treasury.

Participating servicers and lenders/investors are not required to modify the loan if there is reasonable evidence indicating the borrower submitted false or misleading information or otherwise engaged in fraud in connection with the modification. Servicers should employ reasonable policies and/or procedures to identify fraud in the modification process.

Servicers will be required to collect and transmit borrower and property data in order to ensure compliance with the program as well as to measure its effectiveness. Data elements may include data needed to perform underwriting analysis, loan modification and waterfall analysis, and modification terms. In addition, borrower profiles and property level information may be included. Detailed guidance on data requirements will be released separately.

[fauve]

^^^ I wonder what they'd do if we rented it a year after the mod then. It won't quite feel like our house if we don't have the right to rent it and return to it (my husband is with the Dept of Defense and we are relocating next summer to Bahrain for 2 years)...it's not fraud, it's life.

[Moe Bedard]

that is why I had posted that it is too new to tell............the guidelines do not really cover a scenario such as that...........which would be a necessity for you.

[fauve]

Thanks for the info, ***. If my analyst ever calls me back, I'll have to mention this. I bet she tells us to do a short sale - which I really don't want to do because of the credit hit...what a big mess this whole thing is! AAAAHHHHH!!

[Moe Bedard]

I don't think they will tell you to do a short sale.............if you are going to just rent in Bahrain then it may be a non issue.

[fauve]

Actually, we'll be living on the base. So, maybe it's as long as you don't get another mortgage? That works for me I'll report back when I get an answer. Thanks again.

[azdmsmith]

I called the executive number again, they were nice but it has been several days since my call and they have not called back as promised. Have been able to leave a couple messages with my analyst but her voice mail is usually full and she never returns calls when I am able to leave messages. I spent about an hour between transfers and being placed on hold today (customer service to loss mitigation to area that handles Fannie Mae to the outsourced retention department). It took a while but I got a very helpful person in the Fannie Mae area (877-419-6490) who took the time to listen and research. What he told me was that although I talked to an analyst on 4/1 who gave me a May 1, 2009 forbearance payment amount and said I would have paperwork in two weeks, I basically started over when the retention department sent me a FedEx and they supersede everything that has been done with my analyst. Then he suggested I talk to the retention department (1-800-435-3412) who said I should get paperwork in 2-3 weeks from when I originally gave them my financial info over the phone. I guess I’ll keep waiting and calling.

[azdmsmith]

I did get some help sorting things out from the executive team. First, my analyst is useless. For the first time ever the executive team got her to at least call me back. However, she left me a messages saying she had options to discuss with me and to call 800-446-8939. The fact that she now says she has options to discuss with me conflicts with the info I got last week that the retention dept would be handling my file. There is no way to get through to my analyst at the number she gave me. We played phone tag (I used her direct number) and she left me another message saying to call 800-446-8939 and “anyone” could discuss the options she had for me so I tried again. It takes 3 transfers and 45 minutes to get to a live person at that number (I think she thought I’d give up). Once I got the live person, she read the notes my analyst put on my file and said she would email my analyst to call me, but she had no further information about the “options” my analyst wanted to discuss with me.
I called the executive team again and the person that was helping me said he had talked with my analyst and there was no record of her setting my May 1 payment amount and committing to send me paperwork by April 15. I think I convinced him that her denial was an outright lie and he said they record some but not all phone calls so he would get in touch with her manager and see if they could go back to the phone call in which she made these commitments to me. Next thing I know I get a call from her. She no longer was denying our conversation but said she had “no time to work my file” because she was on the phone 8 hours a day. Rather than explaining any “options” she had for me, now she is telling me that since a third party is handling the HAP program for Chase, she could no longer work my file even if she wanted to. The courtesy of at least a phone call telling me that the commitment for paperwork and a change to my payment for four months beginning May 1 was not going to happen would have been nice. She had been swamped, out of the office for a week, blah, blah, blah. She could not transfer me to retentions (the third party that is handling the HAP program) fast enough.

That transfer resulted in a very cheery person that said she just needed to conduct a brief interview with me to get some financial info if I had time. I said I had already done that with retentions twice (on top of twice with Chase) but would do it again if necessary. She asked me when I did the interview with retentions and I told her April 9 was the first time. Then she paused and said that she did have that info in my file and I would then hear from them two weeks after that interview. When I pointed out that it already was more than 2 weeks she paused again and said they are actually taking 2-3 weeks.

Anyway, if the stories I am getting are correct, the group that is handling the HAP mods for Chase is the retention team, not analysts directly at Chase. I don’t know if that is specific to my situation since I am Fannie Mae, or if I will get a new story next week, but the bottom line is everything I had done since March 5 and everything I discussed with my analyst is down the tubes. Her name is Brittany, she is in Ohio, her voice mail is almost always full, she never returns phone calls, has a lot of excuses, changes her story a lot, and talks like an unprofessional teenager. At least the retention department answers their phones so maybe I am better off with them???

[snapple candy]

azd,
talk about trials and tribulations. Sounds like my story except I have to deal with WAMU and Chase Executive offices. I got a good chuckle out of how you were on hold and how they hoped you'd give up. You have to be tenacious as hell to get anything accomplished with these people. My WAMU person lied too and I had not thought about the calls being recorded. Thanks for the heads up on that! I did hear from a few sources that these guys cant get anything done since they are on the phone all the time. I am fannie mae also but doesnt seem to have streamlined this round of modification evaluation. As you said, it changes from week to week.

[snapple candy]

THis is new, I had not heard that Chase was not going to do the Obama Plan. I would call back and talk to someone else and see what they say. Like any agency, you can get a new opinion with every call. I suspect that not to be right since Chase website set up directly to handle the plan. Sounds like the negotiator isnt on top of things and didnt send it out. They put all kinds of things in the files that didnt happen. Recording the conversation is good idea. Also exec office good idea to call. Good luck

[azdmsmith]

I am getting so frustrated. The short version of my story is I applied for mod on 3/5 using form on Chase website. Got the "call back in 2 weeks” story for awhile before I was able to reach an analyst. Talked to “Brittany” 4/1, gave her my financial info again and she gave me forbearance payment amount as of 5/1 and said I was "preapproved" for Obama plan and would have packet in 2 weeks. Never got packet, she doesn't return calls and her voice mail is usually full.


Received a FedEx from the home retention team on 4/8 with a solicitation letter. Called them 4/9 and gave them my financial info again and was told I would get paperwork from them in 2 weeks (again). No paperwork.


Called Exec office. They at least got people to call me back. My analyst says she now can’t do anything with my file, everything she committed to is down the tubes, they changed their process and I’m starting over with home retention team (who is outsourced by Chase). After retentions promised paperwork in 2 weeks on 4/9 they then said I would have packet in 3 weeks, then “any day now”, then 30 days. It’s now going on 5 weeks with them, 10 weeks total. Still getting nowhere.


It’s so disappointing to have gotten as far as “preapproved” and given a May 1 payment amount, yet no follow up paperwork. I paid full regular payment for May. Exec office called me last week to follow up. The gentleman I am working with is very nice, but even he doesn’t know who to contact at the home retention team to escalate my file since they are outsourced.


Waiting, waiting, waiting...:(

[azdmsmith]

It’s encouraging that some people received their fedex packages this week. Still nothing for me. In my Monday call to retentions they said they would escalate my file to a supervisor since it had been more than 30 days, but he wasn’t sure what they would be able to do since they have a lot of them that old. I’m curious whether those that received packets this week were current or behind on their payments and if anyone who is current has actually received trial period paperwork. I stopped my auto pay for my June 1 payment and will let it go 31 day to see if that helps. Very scary thing to do.

[smit5454]

I an current. They said the same to me, they would push it to an analyst due to the delay. That was last wed/th, any my packet arrived Monday morning. Sounds like you are close!

[azdmsmith]

That is encourgaing, thank you very much. I called again today and they said they would put in a request to resend the hardship affidavit and other paperwork since I had not received it. Was the hardship affidvit or any other paperwork with your packet or was it just the trial period agreement? I already submitted a borrowers assistance form and all documentation more than 2 months ago?

[gordilox86]

After writing several letters directly to Freddie Mac, and placing calls to the office of James Dimon (CEO Chase) demanding the HMP Trial Period Plan, my file was escalated to one of two Analysts at Chase trained to override the Chase Calculator by using the "Borrower Qualification Worksheet."

I am current with proof of hardship. According to the Chase Escalation HomeOwner Assistance Analyst, I will receive my FedEx package Friday with a genuine "HMP Trial Period Plan." I'll post on Friday after receiving my package to let you all know what is inside.

[azdmsmith]

Thank you for your response. My experience has been that they promise the elusive FedEx package again and again, but it never comes. It sounds like you've got some people riled up so I'll keep my fingers crossed for you and look forward to hearing your update.

[azdmsmith]

Last week I wrote letters to the CEO of Chase, FannieMae General Counsel, the exec resolution group, and the US Treasury department.

In response I received a voice mail from the person I’ve been dealing with on the executive resolution group who hadn’t called me since 5/8. He indicated he is STILL trying to figure out the status of my file and how to escalate it since it is with the Home Retention Team (which I’ve learned is really Fiserv, the company Chase outsourced the Home Affordable Mods to).

Today I spent an hour on the phone and got several different stories. First it was that an analyst was assigned and is working on my file (the same analyst that offered me a payment plan on April 1 but never sent paperwork). When I explained that in April the analyst told me she “could not touch” my file since it had gone to Fiserv, the response was that there was a note in my file that the analyst was to resume “normal work’ on my file in late April. So then my question was how did the analyst know to resume work on my file because every time I call the Home Retention Team (Fiserv) their standard line is that they are working on my file, so if no one told them not to work on my file, did anyone really tell the analyst to work on my file?

I was assured that she knew about it and was working on my file. After pushing and asking further questions, the person I was dealing with sent an instant message to the analyst. It’s no surprise that the analyst was NOT working on my file. Supposedly it’s now been sent to a THIRD area that is handling mods for current loans and I should hear something in 30 days. Hmmmm, now where have I heard THAT before????

After telling her I could not make my June payment she told me to call back once I am 31 days late and they will provide me a workout and trial period payments over the phone and start the trial period right away. I did point out that they were in violation of the guidelines by not processing anything until I am 31 days late. I was told my options are to wait for the “new” area that handles mods on mortgages that are current, or call back when I’m 31 days late. Meanwhile the exec resolution group can’t figure out what is going on?

While I was on the phone for that hour I also filed a Better Business Bureau complaint on line regarding Chase’s customer service related to my modification request and reported my experience to the consumer complaint/assistance area of our local news station.

[Calli09]

Wow, I can sympathize all the way. Azd, have you read my postings lately? If I were you, I would "WAIT" until Chase has some of this "guinea pig" mentality out of the way and they are actually able to handle things themselves instead of "outsourcing" an answer team that has no @#$^ answers. I am pissed too! Spent today, calling first the regular cust svc line, got a really rude collection guy that got smart with me about the late fees they paid, stating that I am on a pre trial mod and that until they have made it a mod the payments get paid however they want. He was very ****y and rude, even though I maintained my cool the entire call. I for one am sorry I began this, because its not a trial mod, the entire thing is Chase's trial, as they do not know what to do with this stuff. When I mentioned the Obama Making Home Affordable plans about the late fees this jerk just acted like he knew nothing of it. I asked him if he "sees" in his computer that I am on the trial mod payments, and he said yes. Well he needs to go back to class about the rest of it, not just knowing I am on the trial is not good enough. To date AZD, my credit is now crap, my late fees have been completely paid by my trial payments, AND, they have so far included my PMI in the trial payment. I am screwed, and you will be too, so NO, do not be late, just to get them to help you, you will wind up just like me. I truly need the help, have borrowed from Peter to pay Paul along the way, was laid off for 14 weeks in 2008 and part of 09. Just wanted a bit of help, and now the fees are just adding up, while Chase decides how to handle the situation. Perhaps try NACA, I may be doing that here shortly. My hat is off to you, doing what you are doing!

[azdmsmith]

As someone in this forum pointed out, the home affordable modification program is funded in part with TARP funds. Therefore the office of the special inspector general for TARP accepts complaints of fraud, waste, abuse, mismanagement or misrepresentations affiliated with TARP. I’m pretty sure I have experienced all of the above. I submitted a similar complaint on line with SIGTARP as well as sending the following letter to the congressional oversight panel. I am so tired and frustrated with Chase. Rather than spending my time with them I guess I’ll just keep looking for new places to complain to.ffice:office" />

Congressional Oversight Panel
732 North Capitol St. NW
Rooms C-320 and C-617
Mailstop: COP,
Washington, D.C. 20401

June 4, 2009

To Whom it May Concern:

I have a FannieMae mortgage that is serviced by Chase Home Finance. I fully meet all the requirements for the Home Affordable Modification Program and have gone to great lengths to obtain a modification prior to defaulting on my mortgage. As a single mother who experienced a mandatory reduction in work hours I believe I am an ideal candidate for assistance and that the HAMP would help me to keep my home. I recognize that like other servicers, Chase has been completely overwhelmed with applications for Home Affordable Modifications. However, Chase continues to act in bad faith and in violation of FannieMae Servicing Guide Announcement 09-05R issued April 21, 2009. After more than 3 months since the time my application was filed, being overwhelmed and having staff that is not properly trained is no longer an acceptable excuse for the failure to comply with the Home Affordable Modification guidelines.

I will attempt to be brief, but have more detailed documentation of my experience as summarized below:

1. I originally applied for a Home Affordable Modification on March 5, 2009 by completing the Chase Borrower’s Assistance Form and faxing it with all the required documentation to Chase. Originally I was told that it would take two weeks to process my application. On April 1, 2009, Chase analyst B*** M** told me I was pre-approved for a Home Affordable Modification and my Trial Period Payments beginning May 1, 2009 would be $**** per month. I was told I would receive paperwork within two weeks. The follow up paperwork was never sent.

2. The U.S. Department of Treasury Making Home Affordable program description states that loan modifications are more likely to succeed if they are made before a borrower misses a payment, and the program provides incentives to make modifications while a borrower is still current. I have documentation of several calls in which Chase representatives informed me that they could help me immediately once my mortgage becomes 31 days late. Chase‘s disregard of the intent of the program to modify mortgages that are current represents a violation of the FannieMae Servicing Guide Announcement 09-05R issued April 21, 2009.

3. Interest rates after the first 5 years of a modified mortgage are based upon market rates at the time the modification is finalized. As Chase continues to delay and set up roadblocks to modifications it impacts final interest rates for consumers and this ability to manipulate final interest rates through the use of never-ending delays represents an abuse of the system.

4. After not sending the modification paperwork that was committed to me on April 1, Chase outsourced Home Affordable Modification processing to Fiserv and I was told I need to begin the process all over again. I provided my financial information to the Home Retention Department (Fiserv) on April 9, 2009 and again was told I would hear from them within two weeks. I have continued to follow up with Fiserv (800-435-3412) and can provide detailed documentation of my phones calls. After 2 weeks, I was told it would be three weeks before they would process my file, then 30 days. After 30 days I was told my file would be escalated and then was told it would not be longer than 6 weeks. After 6 weeks I was told there was no way to escalate my file, I should not have been told it would be escalated, and I would simply have to wait. My requests to speak to someone at a higher level were denied and it is very clear that no one at Fiserv knows what is really happening with my file. Chase has grossly mismanaged the Home Affordable Modification Program in part by outsourcing to Fiserv who is staffed with inexperienced and untrained employees who are unfamiliar with the Home Affordable Modification Guidelines and FannieMae Servicing Guide Announcement 09-05R.

5. The following misrepresentations have taken place:

A. The Home Retention Team (Fiserv) has continually misrepresented the time it would take to process my file and that they would escalate my case due to their delays.
B. On May 29, I received a voice mail from R*** S*** at the Chase executive resolution group (888-310-7995 ext 7***). During my last conversation with him on May 8, 2009 he indicated that since Chase had outsourced the processing of my file, he did not know who to contact to escalate my file but would continue to work on it. He did not return subsequent phone calls until his voice mail of May 29 in which he indicated he was still (3 weeks later) working on escalating my file.
C. On June 3, I was told that my file was now being handled by the original analyst, B*** M*** rather than Fiserv and I was assured it was being processed.
D. Subsequently, (also on June 3) I was told B*** M*** was NOT handling my file, nor was Fiserv, but that files for current borrowers, including mine, were being handled by a “new” area and I would hear from them within 30 days. Upon further questioning I was not given any information about what the new area is called and who to contact.

I have documentation and am able to provide further details of my situation upon request. Chase Home Finance continues to act in bad faith and demonstrates blatant disregard for the U.S. Department of Treasury requirements related to Home Affordable Modifications. I have previously notified Chase as well as FannieMae executives and the U.S. Department of Treasury of the fraud, waste, abuse, mismanagement, and misrepresentations. All have failed to respond.

The Home Affordable Modification Program is truly a lifeline to those of us experiencing financial hardships due to economic conditions. I have always made my mortgage payments on time and have been very responsible in taking on debt only as necessary for my home and vehicle. I thought this program would bring me the relief I need to remain a responsible homeowner in spite of the reduction in income I have experienced due to work furloughs. Instead, I have spent countless frustrating hours and made endless phone calls as a result of Chase’s mismanagement of the program. This cannot be what the U.S. Government intended as help.

[snapple candy]

azd,
your letter sounds great! Good luck with these people. I have never heard about this oversight committee but heard rumblings from my Senators office that it was in the works a few weeks ago. Can you tell us more about the committee and its purpose?

I got a phone call from one of my analysts this past week making an inquiry. My Home Affordable documents have discrepancies in the dates. The contract states first payment due on June 1 (I received on May 27) and the cover letter states to commit by June 21. Retention analyst wont correct to July 1st start date, told me I had until June 30th and threatened to pull the plug on it entirely and a take it or leave it attitude. I told the other analyst I want a letter in writing that states I have until June 30 to make first payment, that a verbal is not acceptable (based on my experience to date). She asked for my fax number a few days ago and I have not seen it yet. I will draft a letter and fax to make sure I have documentation of the phone call.
My attorney's first pass on it noted the discrepancy also.
As it turns out, my attorney knows the attorney for Chase for my state whom has already received a letter about my matter (Chase reniged on verbal agreement to terms previously). This is an avenue you may want to consider. Find out which attorneys represent Chase in your state and find an attorney to draft a demand letter on your behalf. If anyone has already received NOD papers or Notice of Sale, the trustee's office listed on the paperwork would know what attorney's in your state represent Chase/Wamu in the matter also. Gordi has had the best success to date for getting past the hurdles of being current and getting hoem affordable package. I would follow his lead and contact same people as him.
I received my Mod papers within days of Chase attorney receiving letter from my attorney. I do not know for sure if that is what pushed this over the edge since i have been working at this for 1 year now. I sent in my Home Affordable package in on April 15th. I also discovered a local HUD counselor in my area and their are not many of those around either. These guys are going to meetings all over the country on this stuff. He was also very helpful and that non-profit has foreclosure workshops. Unfortunately though I dont think they wont help until you are in foreclosure but worth a shot. These HUD counselors have direct contacts at all of the lenders.

[azdmsmith]

Thank you and good luck to you.

I found the link to the COP www.cop.senate.gov on the from the SIGTARP website. This is from the website:

In response to the escalating crisis, on October 3, 2008, Congress provided the U.S. Treasury with the authority to spend $700 billion to stabilize the U.S. economy. Congress created the Office of Financial Stabilization (OFS) within Treasury to implement a Troubled Asset Relief Program (TARP). At the same time, Congress created a Congressional Oversight Panel (COP) to “review the current state of financial markets and the regulatory system.”
COP is empowered to hold hearings, review official data, and write reports on actions taken by Treasury and financial institutions and their effect on the economy.

Through regular reports, COP must:

• Oversee Treasury’s actions
• Assess the impact of spending to stabilize the economy
• Evaluate market transparency,
• Ensure effective foreclosure mitigation efforts
• And guarantee that Treasury’s actions are in the best interest of the American people.

[azdmsmith]

In the last week or so I've written similar letters/complaints to the Better Business Bureau, FannieMae, SIGTARP, the US Dept of Treasury, the Congressional Oversight Panel, Fiserv, Chase Executive Resolution Group, and the CEO of Chase. I will not make the mistake of getting my hopes up as I've done in the past, but today I got a call from the exec resolution person I have been dealing with. He said his manager and other people "high up" were working to get somethng done on my file and I should hear something today or tomorrow. He also said they closed my file with Fiserv (the home retention team) since it didn't appear they had done anything. Duh! That's what I have been saying for 2 months. Again not getting my hopes up since not one single timeline has been met in the last 3 months, but I did not make my June payment and it would be really nice if I could get something done before that impacts my credit report. Heck, I would be thrilled if they could get something done, period.

[antel]

HI,

As I have told you guys, I already made my 3rd payment for the trial period. I made sure that I call CHASE for the MTCN# and to make sure they know that I completed the trial period. Today, Chase called me and asking me why I have not made my June payment yet and I was late for my May payment. Apparently, they credited my June payment for May. This is so upsetting since from the time I made my last payment, I alsways follow up with them to make sure that everything is okay...now I they're telling me that they have not even started with my loan mod because they have not recieved my June payment yet. I'm really so frustrated and stressed right now....I don't even know what happens next. I just hope that everything will still turn out okay....just keeping my fingers crossed........

[snapple candy]

antel,
I dont know whether to think they are just plain incompetent or whether all designed to delay to achieve higher interest rate cap on the final mod. Makes you wonder?
Alternately, Chase is paying back TARP funds this week and I am wondering how that will affect everyones modifications. I am just starting 3 mth trial...I think I'll send it certified mail..just top make sure. Is Chase telling you they will fix this misapplication of funds?

[Marie T]

Snapple,
I talked to my counselor at CHASE today and asked him about CHASE paying back TARP funds as I saw that in the news yesterday. He said he did not think it would effect loan mods as it is still more beneficial for them to do a mod rather than a foreclosure in almost all cases.