PLEASE ONLY POST - Articles, Official Letters, Testimony, Rules and Regs. Moe - perhaps a Sticky is in order ?

[THANKS2U]

Thanks to ama125 and others here on Loansafe, we have been directed to web sites where we can view specific Loan Modification articles, letters, Hearing Testimony, Video and Written testimony, Updates to HAMP, etc...

These communications come from writers for the New York Times and other Publications, as well as, Press releases from, HUD, the Dept of Treasury, Fannie Mae, Freddie Mac, The Senate Banking Committe, the White House and many more helpful public and private sectors or for Loan Modification information.

I hope that this thread will ONLY BE USED FOR and designated as an area to POST those articles and informative websites, so that all the information and links can be found here, on this thread alone, without searching the 80,000 plus threads on loansafe.org....

Respectfully THANKS2U See below for 1 such article link

I will contribute by stealing the web link posted by ama125 : )
Using links that you did not find yourself, is a form of flattery . . LOL

Thank you wholeheartedly ama125

http://www.nytimes.com/2009/07/30/bu...0services.html

[THANKS2U]

ooops sorry - I do not know anything about computers I just typed in the link

Now I will "drag" ? the link into place here goes - Hope it works now shoot NOPE ! OK 1 more time hit enter 2 times, then highlight address, NOW drag.... hmm Ok Think I did it ?

http://www.nytimes.com/2009/07/30/bu...0services.html

[THANKS2U]

And an article by CNN - Tami Luhby -" Obama turns up heat on Mortgage Servicers"

Obama turns up heat on mortgage servicers - Jul. 16, 2009

[ama125]

Here are a few starters:

1. Moe's other site (he blogs on recent events, offers tips, and posts recent news articles. He is also the founder for LoanSafe.org and manages these forums): Loan Modification - Find government help to stop foreclosure

2. Official gov site for the Making Home Affordable Program (MHA): Making Home Affordable - Home

3. Another gov site with links to the MHA: FinancialStability.gov | U.S. Department of the Treasury

4. eFannie Mae site (they are the administrator for the MHA, their guidelines to servicers mirror those on the website for servicers): https://www.efanniemae.com/home/index.jsp

5. Website for servicers (if you want more insight on how and what they are doing on their end): https://www.hmpadmin.com/portal/index.html

6. FDIC loan modification page (this is their loan mod program for IndyMac borrowers, on it is a description of their program as well as an NPV model. The NPV test is designed for their program and not the MHA, but it can be tinkered with to give others an idea of what this test is and how it calculates the cost of foreclosure vs cost of loan modification. Just don't take it to heart and use it for illustrative purposes only): FDIC: FDIC Loan Modification Program Guide – "Mod in a Box"

[ama125]

1. Freddie Mac site pertaining to MHA (note that they are to audit compliance for the MHA and are, as of this date, 7/31/2009, developing a second-look program for loans that have been rejected under the HAMP): Home Affordable Modification Program - Freddie Mac

2. Treasury details regarding second lien program: http://www.treasury.gov/press/releas...nfactsheet.pdf

Please note the following statement from Fannie Mae (as of 7/31/2009):
Changes to the Making Home Affordable Program

The Treasury Department recently announced updates to its Making Home Affordable Program to include a second lien program and the use of short sales and deeds-in-lieu of foreclosure. Fannie Mae is currently working on policy and operational details with the Treasury and other stakeholders and will issue Fannie Mae Servicing Guide Announcements in the near future.

[ama125]

HUD site with details on the Hope for Homeowners Program (has been improved and is to work in tandem with MHA trial modification): HOPE for Homeowners - HUD

[THANKS2U]

Originally Posted by ama125

HUD site with details on the Hope for Homeowners Program (has been improved and is to work in tandem with MHA trial modification): HOPE for Homeowners - HUD

ama.... Is that short for AMAZING : )

Thank you for all your amazing contributions !

I found a MORTGAGE PAYMENT CALCULATOR FROM MSN

Compare Mortgage Loans - MSN Money

I always need to scroll to the top of the page to start with calculations, otherwise the page looks BLANK at first, unless I scroll to top, then the site comes into view...

It has 3 areas to do 3 different calculation at 1 time - Great time saver

I also just type in 0 $ for Down Payment, Taxes and Insurance, because all I am really wanting is the P & I total - P rincipal and I nterest total.

Best calculator I have found - It is simple, fast and to the point.

Compare Mortgage Loans - MSN Money

[ama125]

Just wanted to post this as well, I emailed servicing solutions (got this email address from the Fannie Mae servicing guidelines, it is intended for servicers to email questions about HAMP):

"Sent: Wednesday, July 29, 2009 3:46 PM

To: Servicing Solutions
Subject: (BFC/HMP)Question regarding NPV test

If a borrower requests to see the detailed calculations of his/her NPV test, can that be disclosed to him/her?"

I JUST got a reply (as you can see, I did not identify myself as a homeowner posing this question). Here is the response:
"no, the NPV outputs should not be disclosed to the borrower.

Thanks,"

WTF?! If I apply for a credit card and get denied, I am entitled to a reason for the denial as well as a free copy of my credit report to dispute any errors. Why should that not be the case for loan modifications? @^*%$

[THANKS2U]

Another from ama125

LOAN MODIFICATION MOST FREQUENTLY ASKED QUESTIONS

From Fannie Mae site & Updated July 28, 2009 - Great stuff !

I especially like Q # 37 page 9 stating that the NPV test, basically does not apply to FANNIE MAE owned loans.


https://www.efanniemae.com/sf/guides...f/hampfaqs.pdf

[THANKS2U]

[quote=ama125;107883]Just wanted to post this as well, I emailed servicing solutions (got this email address from the Fannie Mae servicing guidelines, it is intended for servicers to email questions about HAMP):

"Sent: Wednesday, July 29, 2009 3:46 PM

To: Servicing Solutions
Subject: (BFC/HMP)Question regarding NPV test

If a borrower requests to see the detailed calculations of his/her NPV test, can that be disclosed to him/her?"

I JUST got a reply (as you can see, I did not identify myself as a homeowner posing this question). Here is the response:

"no, the NPV outputs should not be disclosed to the borrower.

Thanks,"

WTF?! If I apply for a credit card and get denied, I am entitled to a reason for the denial as well as a free copy of my credit report to dispute any errors. Why should that not be the case for loan modifications? @^*%$

ama125

I wonder who answered your question ? I bet if you asked the same question at a different time on Monday, you might get a different answer ? But who knows --What a bunch of BS

They stated SHOULD not - But what about they can not LEGALLY disclose the NPV test results ?

I just put down the link you gave me about frequently asked questions...


https://www.efanniemae.com/sf/guides...f/hampfaqs.pdf



I would at least contact Freddie Mac, the Treasury and Senator Dodd, etc and ask them to put into the questions and answers of the Fannie Mae PDF I just put up again that, Quote: " It is Mandatory that a full copy of the NPV test results, in its entirety, must be legally disclosed and is e mailed or faxed or postal mailed, within 10 business days, to the borrower, when said borrower requests the NPV test results."

Hope that works - If not, they should be made to legally put in the fannie Mae questions and answers that they will not divulge the NPV and then maybe thousands will get pissed off and some public officials and polititians will make it legally right, as in borrowers are legally entitled to the NPV results, no matter what !!!

It is crazy how these Regulatory Faction Parties just get away with murder, with the defense of just CUZ ! That is why we do it this way or that way, just CUZ! .... Now No More Questions, everyone just disperse and disappear into the foreclosure sunset.. or else off with their heads..

I sure hope they rope all these abusive mercenary money grabbers into the time out corral soon, so we can get out of their imprisoning loan corrals, which they entrapped us into!

Good luck my friend

Thanks2U

[ama125]

Thanks2U - I just sent them the following email:

"Just to clarify, by using the word "should not" in your response below, does this mean it is at the servicer's discretion to divulge the NPV outputs if requested by the borrower or did you mean to say that the servicer is not permitted to do so? Could you also please direct me to where in writing this is stated as I do not see this in Announcement 09-05R, (the guidelines to servicers)?"

I'll let you know if they reply and what they might say.

[ama125]

Thanks2U - I got a reply to my second email and now it has a confidentiality statement on the bottom of it that the contents of the email and its attachments are not to be shared or used without Fannie Mae approval (no such statement in my first response I received). But, to summarize, it further iterates not to disclose the results. I'll be calling my HUD counselor on this one for sure! I'd post it, by my full name is in my email address so I don't want to do anything to create problems for myself.

[THANKS2U]

[quote=ama125;108059]Thanks2U - I got a reply to my second email and now it has a confidentiality statement on the bottom of it that the contents of the email and its attachments are not to be shared or used without Fannie Mae approval (no such statement in my first response I received). But, to summarize, it further iterates not to disclose the results. I'll be calling my HUD counselor on this one for sure! I'd post it, by my full name is in my email address so I don't want to do anything to create problems for myself.

Yes, I agree - I am thinking of just 1 word on this NPV issue....



TRANSPARENCY

I think the NPV test should be given to the borrowers on request

An, I just bet those abusive JERKS at Fannie Mae know it should be revealing the NPV but will not do so until it is in writing from the administration..

Until then, all these Servicer and Investor Mortgage abusers are going to keep on abusing and abusing us, until they are forced, in writing, to STOP and even then we must still stand up for our legal rights and push the issues...

Hopefully the NPV test will be in writing that when any borrowers request the NPV test, the NPV must be shown in its entirety, within 10 business days, etc

Good Luck and let us know what HUD states.....

[ama125]

For those with FHA loans, the Home Affordable Modification has been amended to include FHA loans effective 8/15/09:
HUD News Release 09-137

For details:
http://www.hud.gov/offices/adm/hudcl...es/09-23ml.doc
http://www.hud.gov/offices/adm/hudcl...-23mlatach.doc

[ama125]

Credit Reporting guidelines and the HAMP:
http://cdia.files.cms-plus.com/Metro...ramMay2009.pdf

[ama125]

Servicer/lender incentives for homes in hardest hit areas (does NOT apply to Freddie Mac and Fannie Mae loans): https://www.hmpadmin.com/portal/docs/sd0904.pdf

[THANKS2U]

Originally Posted by ama125

Servicer/lender incentives for homes in hardest hit areas (does NOT apply to Freddie Mac and Fannie Mae loans): https://www.hmpadmin.com/portal/docs/sd0904.pdf

ama125

WOW - The lack of fiduciary and ethical responsibility is Sad and the transparecy of truth is a cruel sword upon us coerced, defrauded and swindled borrowers.

Here is an article on HARP - The refinancing part of the Obama plan, written by Holden Lewis, of bankrate.com, on July 16, 09 I think ?

Explains some of the FINE PRINT of the Harp program.

Want to refinance? Know the details of the Obama plan page 1

Want to refinance? Know the details of the Obama plan page 2

Respectfully,

THANKS2U

[ama125]

Oh that pesky NPV test!
New info from the hmpadmin site: https://www.hmpadmin.com/portal/docs...estresults.pdf (*sigh* to have a servicer login)
Someone on our side (testimony from National Consumer Law Center 7/16): http://banking.senate.gov/public/ind...1-886cfb902829

[THANKS2U]

Originally Posted by ama125

Oh that pesky NPV test!
New info from the hmpadmin site: https://www.hmpadmin.com/portal/docs...estresults.pdf (*sigh* to have a servicer login)
Someone on our side (testimony from National Consumer Law Center 7/16): http://banking.senate.gov/public/ind...1-886cfb902829

CRAZY ! Am I now to understand that the NPV rules have been changed for Fannie and Freddie / "GSE" loans, in that Q # 37 page 9 which stated a NEGATIVE - NPV test result will not apply to GSE loans / loans owned by Fannie Mae and that the servicer must give a modification loan to Fannie Mae owned loans and probably the same guidelines for Freddie Mac ?? Regardless of a Negative NPV result.....

https://www.efanniemae.com/sf/guides...f/hampfaqs.pdf

OK - Hold up and let me re- think this confusing portion of the modification guideline -

I Read it again, both your thread link for the slick swindling servicer NPV shown as "Retrieving and interpreting the NPV test results" and the Fannie Mae site Q # 37 page 9 -as shown in the efanniemae link above ...

I Do NOT understand the NPV modification guideline language stating, quote, "UNLESS PRINCIPAL FOREBEARANCE IS NEEDED TO ACHIEVE THE TARGET PAYMENT AND THE RESULTING MARK-TO-MARKET LTV RATIO FALLS BELOW 100 %.... IF THIS OCCURS, THE BORROWERS IS N O T ELIGIBLE FOR A MODIFICATION UNDER THIS PROGRAM AND SHOULD BE CONSIDERED FOR OTHER LOSS MITIGATION OPTIONS"

Yah right ! The borrower may be considered for about 5 seconds and then tossed into the bank servicer gas chambers and exterminated..

I have NO IDEA what they mean regarding principal and mark to market etc etc

ama125 - - Can you please explain what will make a borrower NOT ELIBLE under HAMP, according to the quoted statement above.

I have no idea what Mark-to-market LTV etc etc means

Thank you.

Appreciatively,

THANKS2U

[ama125]

Originally Posted by THANKS2U

ama125 - - Can you please explain what will make a borrower NOT ELIBLE under HAMP, according to the quoted statement above.

I have no idea what Mark-to-market LTV etc etc means

Thank you.

Appreciatively,

THANKS2U

I am trying to understand this as well and how it is calculated. I just emailed my friend who is a loan officer. I will also ask my HUD counselor to give it to me in layman terms. Just when I think I've got the puzzle figured out, I find another piece!

[THANKS2U]

Originally Posted by ama125

I am trying to understand this as well and how it is calculated. I just emailed my friend who is a loan officer. I will also ask my HUD counselor to give it to me in layman terms. Just when I think I've got the puzzle figured out, I find another piece!

THANK YOU !

It is crazy isn't it - The HAMP program says they will modify, but then says NO they will not, because of some swindling loophole.

It is like saying you have been released from prison and just when they are escorting you out the gate, they say, hold up, you can't get out of this prison at all, because your socks don't match..

And then the entire prison staff lets out a huge sinister, diabolical laugh.

Lots of evil and darkness with these banks and servicers and Program guideline creators -

Look forward to what your freind and HUD counselor can decipher..

Really pisses me off that we should need to decipher the program like some kind of "National Treasure" film code --

The HAMP progrm should not be a puzzle to solve, it should be in plain english and easily explained and understood by all.

But I assume that is part of the plan, to stall and stall until either the borrowers give up or the deadline for these programs run out.

Thanks again ama125

Thanks2u

[ama125]

I think I understand mark-to-market loan-to value ratio...
mark-to-market I believe means fair market value (what is your home worth today?)
loan-to-value is a ratio of the unpaid principal balance (UPB) of your loan divided by your home's current value times 100.

Let's use an example.

You owe 225K on your mortgage loan.

Your home's mark-to-market value (fair market value/what your home is worth today) is only 200K.

Your current (unmodified loan) LTV is 225K/200K*100 = 112.5% (loan amount/home value * 100)

If your NPV test is negative AND you require principal forbearance to achieve the 31% target, the unpaid principal balance (excluding the deferred principal balloon amount) must create a current mark-to-market LTV (current LTV based upon the new valuation) greater than or equal to 100 percent.

In my fictitious example, let's assume they have to forbear 50K, which now brings your UPB down to 175K. Your new mark-to-market LTV would be as follows: 175K/200K * 100 = 87.5%. Since this is lower than 100%, your loan would not be modified if your NPV was negative.

If they forbear 10K, your UPB is now 215K and the mark-to-market LTV would be 215K/200K * 100 = 107.5%. This is greater than 100% so if your NPV is negative then your loan would be modified.

If they forbear 25K, your UPB is 200K (exactly what your home is also worth now). Your mark-to-market LTV would equal exactly 100% and if your NPV is negative, your loan would be modified.

I think this is what that statement means. Anyone else have a take on this? Am I correct in understanding this?

[Skipper]

Originally Posted by ama125

I think I understand mark-to-market loan-to value ratio...
mark-to-market I believe means fair market value (what is your home worth today?)
loan-to-value is a ratio of the unpaid principal balance (UPB) of your loan divided by your home's current value times 100.

Let's use an example.

You owe 225K on your mortgage loan.

Your home's mark-to-market value (fair market value/what your home is worth today) is only 200K.

Your current (unmodified loan) LTV is 225K/200K*100 = 112.5% (loan amount/home value * 100)

If your NPV test is negative AND you require principal forbearance to achieve the 31% target, the unpaid principal balance (excluding the deferred principal balloon amount) must create a current mark-to-market LTV (current LTV based upon the new valuation) greater than or equal to 100 percent.

In my fictitious example, let's assume they have to forbear 50K, which now brings your UPB down to 175K. Your new mark-to-market LTV would be as follows: 175K/200K * 100 = 87.5%. Since this is lower than 100%, your loan would not be modified if your NPV was negative.

If they forbear 10K, your UPB is now 215K and the mark-to-market LTV would be 215K/200K * 100 = 107.5%. This is greater than 100% so if your NPV is negative then your loan would be modified.

If they forbear 25K, your UPB is 200K (exactly what your home is also worth now). Your mark-to-market LTV would equal exactly 100% and if your NPV is negative, your loan would be modified.

I think this is what that statement means. Anyone else have a take on this? Am I correct in understanding this?

So... If your NPV is positive, does any of it matter?

Thanks for all the research and ino!

Skipper

[hope67]

ama125,

Can you please give us an example of how the NPV is caluclated to determine whether it's negative or positive? Thanks

[THANKS2U]

[quote=ama125;108635]I think I understand mark-to-market loan-to value ratio...
mark-to-market I believe means fair market value (what is your home worth today?)
loan-to-value is a ratio of the unpaid principal balance (UPB) of your loan divided by your home's current value times 100.

Let's use an example.

You owe 225K on your mortgage loan.

Your home's mark-to-market value (fair market value/what your home is worth today) is only 200K.

Your current (unmodified loan) LTV is 225K/200K*100 = 112.5% (loan amount/home value * 100)

If your NPV test is negative AND you require principal forbearance to achieve the 31% target, the unpaid principal balance (excluding the deferred principal balloon amount) must create a current mark-to-market LTV (current LTV based upon the new valuation) greater than or equal to 100 percent.

In my fictitious example, let's assume they have to forbear 50K, which now brings your UPB down to 175K. Your new mark-to-market LTV would be as follows: 175K/200K * 100 = 87.5%. Since this is lower than 100%, your loan would not be modified if your NPV was negative.

If they forbear 10K, your UPB is now 215K and the mark-to-market LTV would be 215K/200K * 100 = 107.5%. This is greater than 100% so if your NPV is negative then your loan would be modified.

If they forbear 25K, your UPB is 200K (exactly what your home is also worth now). Your mark-to-market LTV would equal exactly 100% and if your NPV is negative, your loan would be modified.

I think this is what that statement means. Anyone else have a take on this? Am I correct in understanding this?

ama125


Your Intelligent possibility is beyond my game... !

Let us know whether your real estate friend and HUD counselor concur with your very well put togther findings and example -

I wonder how many borrowers it may or may NOT help, for those who have a negative NPV and are with Fannie or Freddie...

So, let's say my total principal due is at 200,000, but my home is only worth a current market selling price of 140,000 -

Then, assuming for me to receive an affordable / VIABLE loan payment, the servicer would need to lower my interest to the 2 % floor and reduce my principal by 60,000, to equal a NEW MODIFIED principal balance of 140,000

Ok, now assuming they reduce 60,000 from my current principal due of 200,000... that would equal 140,000 due principal. With a non interest balloon payment due, of the 60,000, at end of loan or when I sell... ?

Since 140,000 is the current market value selling price I would take that 140,000 divide it by the NEW MODIFIED reduced principal balance of 140,000 and come up with the 140 / 140 = 100 %

So then I would qualify for the HAMP, since I am not over 100 %

Under any circumsatnces, I could be wrong, this seems at my first glance to be yet another LOUSY TRICK for the servicers to pull and is yet another way to SCAM and SWINDLE more borrowers

How you may ask ? Well, the current market value / the current market selling value etc or whatever they want to call the value of our homes, will be MANIPULATED TO SERVE THE SERVICER

For example : I phoned Bank of America about 2 weeks ago and they told that I immediately qualified for their HARP / The REFINANCING program

They told me my home was worth 210,000 which was a total Blatant LIE

Most of the homes around me are selling from 108,000 to 140,000 MAX and the 140,000 is only for homes that have many upgrades and are in pristine condition ..

Bank of America lied to me, just so they could try and manipulate me into a REFI, with bad terms and more fees for themselves.

So I can only assume they will try and mess with everyone who has a Negative NPV and manipulate the borrowers with their own Bank of America OPINION of what a home is currently worth, in order to favor themselves and not allow the HAMP to take place, if they do not want any borrowers to get the Modifications -

SO BORROWERS BEWARE, when applying for HAMP - Make sure you have plenty of TRUE market Value selling price evidence for your home, so the Servicers and Investors will not be able to deny / disallow a modification, based on their own swindling opinions of what your home may or may not be currently worth..

Yet another loophole for the banks and yet another part of the puzzle to fully understand and make sure our piece of the puzzle fits and completes the modification puzzle and NOT their own swindling piece, which will deny a modification in their favor

There is so much to figure out and SADLY, all of us borrowers need to be one BIG step ahead of these bank, servicer, investor swindlers, or else we are one BIG step behind and they win and we will lose !!!!

Never Give up !

Thanks again ama125

Respectfully,

Thanks2u