BOA and refinancing

[e56046]

It is my understanding that BOA has created its own rules pertaining to borrowers who have PMI that they are refusing to allow them to utilize the administration’s mortgage refinance program. What kind of logic is that? Any information regarding this would be greatly appreciated.

P.S. Does that also include LPMI or Lender Paid Mortgage Insurance

[e56046]

This is off of the Fannie site So what is their problem? Thanks
"

Mortgage Insurer Approval

Fannie Mae has obtained blanket delegations of authority from most mortgage insurers so that
servicers can more efficiently process HAMP modifications without having to obtain mortgage
insurer approval on individual mortgage loans. A list of the mortgage insurers from which
Fannie Mae has received a delegated authority agreement can be found on

eFannieMae.com. If
applicable, servicers must continue to obtain mortgage insurer approval on a case-by-case basis
from any mortgage insurer for which we have not yet received a delegated authority agreement.
Servicers should consult their mortgage insurance providers for specific processes related to
the reporting of modified terms, payment of premiums, payment of claims, and other operational

matters in connection with mortgage loans modified under the HAMP."

Has anyone dealt with BOA and PMI?
Thanksfficeffice" />>>

[e56046]

Does BOA allow a borrower to refinance under HAMP with PMI?

[e56046]

Does anyone have any info on thr refinancing program????

[morainac]

Try makinghomeaffordable.gov

[LHarveyMadman]

Originally Posted by e56046

Does BOA allow a borrower to refinance under HAMP with PMI?

You're mixing programs here. There is the Home Affordable Refinance Plan (HARP) and the Home Affordable Modification Plan (HAMP).

The PMI restrictions apply to the modification plan, if I recall correctly. Remember, in a modification the lenders and investors have to agree to a lower rate of return on their investment. If the is PMI in place, then the lender and investor will determine whether it is better for them to do the modification or let the borrower go into default and collect their payout from the mortgage insurer.

For the refinance plan, there should be no restriction, in the same way that someone with PMI can do a conventional refinance whenever they please. In a refinance, the original lender and investor get their money back, and can re-lend that same money to someone else at prevailing market rates if they please.

So, are you looking for a modification or a refinance?

[e56046]

Madman:
Thank-you for your response! I don’t believe I can post a link to this message board but CW/ BOA has the following posted on their site. In addition, Moe has posted the same info here on ‘Loansafe’. Both clearly state the PMI issue pertains to the refinance program:
“If you are current on your mortgage, you may have access to the benefits of the Home Affordable Refinance portion of the program. On April 7th we began taking applications for the Home Affordable Refinance program through our network of Mortgage Loan Officers in our retail call centers and mortgage branches. In this first wave, we will serve our largest segment of eligible customers – those who do not have mortgage insurance on their current loan. Additional borrower segments will be included as systems are ready.”
To address your question, I’m looking to secure a fixed rate, whether it is though a modification or refinance makes no difference. Do you have information as to whether or not BOA has implemented “additional borrower segments” who have PMI yet?
In addition, it is my understanding that the system, or BOA now takes in account and includes any 401K investments as accessible liquidity which may disqualify a candidate… (before any 401K investment was not included) any info on this is greatly appreciated.
Thanks
Not afraid to walk away

[LHarveyMadman]

So, it looks like B of A/CW is doing a little bit of loan triage, but it's not entirely based on which borrowers are in the worst shape. They're focusing on borrowers who could do the most financial damage to the bank.

If the borrowers with PMI default, the mortgage insurer will pay up. The loans with no mortgage insurance have no safety net for B of A/CW - if they default, they stand to lose thousands. So people like you are given lower priority. It's a business decision.

I have no idea if PMI borrowers are being modified or refinanced yet. I know that there are provisions in the modification guidelines that give lenders an "out" if there is PMI - that is, they lenders are allowed to determine which would be more beneficial to them (the bank) - modifying the loan or collecting on PMI after default.

Check this out - I thought that for the refinance option, you can go to any participating lender, not just B of A. That would get around the PMI thing.

[e56046]

While I agree that the process "says" a borrower can use any Servicer, does anyone have information as to what frim is actually willing to utilize the HARP program. All info is greatly appreciated!