Home Affordable Modification on 40 yr mortgage and navigating Chase

[DenieLisa]

Originally Posted by davephx

The FDIC test is not being used for HAMP but since the HAMP test is so secret no one knows the details to evaluate.

But could it be that far off? What would be the point in having two calculating systems for the same data entry have such a great delta? I passed the FDIC with a $30k benefit from modification.

[davephx]

Yes that is why so many are upset about the lack of transparency in the NPV test.

I believe the servicers are now on the 3rd update to the NPV. Folks have to be retested on latest version at the end of the trial as I recall. With Treasury wanting to push more modifications and falling behind on the goal to help so many (already funded) I would hope the later versions would make passing more likely. But no one knows.

[DenieLisa]

Originally Posted by davephx

Yes that is why so many are upset about the lack of transparency in the NPV test.

I believe the servicers are now on the 3rd update to the NPV. Folks have to be retested on latest version at the end of the trial as I recall. With Treasury wanting to push more modifications and falling behind on the goal to help so many (already funded) I would hope the later versions would make passing more likely. But no one knows.

But the odd thing is, when I enter my income, amount owed on the home and what the home would go for in foreclosure or short sale, of which SPS stated to be 379,000.00, into the FDIC calc., I get the same payment within a few dollars of what they quoted me as my payments. So this calc can't be too far off the mark, no?

The new ver. was to be used starting on the 1st of this month, My letter was dated on the 6th. On the 5th they called me to tell me everything was great and on track for the modification.

[sunboy]

Does anyone have a URL or WED address of the nwer NPV Test?

[davephx]

Yes if the payments come out close you would think.....

The NPV is "secret" not on any website the closest thing is what FDIC uses but is not what HAMP uses and as DenieLisa's experience shows, sadly can not be relied upon even if gives close to the same "affordable" payment.

I had hoped the HAMP NPV would yield more likelihood of mod since Treasury is trying to push mods.

[gordilox86]

DenieLisa,

The Servicer ran a preliminary NPV test prior to entering you into the Trial Period Plan. The NPV test is dependant on your Homes Value and your Income. If one or both of these variables changed since you first applied for HAMP then this may be the reason for denial.

HOME VALUE:

Prior to entering you into a Trial Period Plan the Homeowner Assistance Analyst ran a preliminary NPV calculation. During this calculation the Servicer looked up the estimated value of your home on an internet site (similar to Zillow.com or MoveUp.com).

Prior to permanent modification, however, the Servicer must re-run the NPV test with a more accurate Home Value. During this final calculation the Servicer must use a Broker Price Opinion which requires a Realtor to physically visit the outside of your home and take a number of pictures and assess value.

If there was a significant difference between the preliminary Home Value (internet) and the BPO (in-person) Home Value this could have failed you.

INCOME:

Keep in mind, Income is a big factor to the NPV test as Income establishes the Target Payment and the Target Payment establishes how much interest and principle the bank will lose. Prior to accepting you into the Trial Period Plan the Homeowner Assistance Analyst asked you to document your income. If your income went down during the Trial Period this would fail you.

CONCLUSION:

Don't give up. I would first call or write a letter to Chase demanding to know what exactly failed you Income or Home Value or both. Ask Chase what Home Value was originally used and what Home Value came in on the BPO. If the Home Value did not change significantly between the prelim and final NPV test then ask about your Income. If you can document more income (ie... roomate, second job, etc...), you will be entered into another Trial Period Plan and you can start fresh knowing how calculations work and to keep them steady during the Trial Period.

Hope this helps.

[davephx]

IF income goes down under HAMP more than.. I forget 20% they have to redo the NPV and be sure you still qualify but doesn't in itself fail you.

I seems you can't go much below the 31% test subtract taxes and insurance and will the balance amortize a 2% 40 yr loan without principal reduction (which is optional and rare).

[joleslaurent]

Can someone help me with the NPV calculations? These are my numbers:

Loan amount: 660,000.00
Interest rate: 5.99%
Monthly payment 4,132.00 (does not include taxes and insurance)
Gross Income: 6,600.00

Let me know what other info I need

Thanks.