Modification as per Countrywide lawsuit

[cclem]

Has anyone applied for a modification specifically as a result of the lawsuit against Countrywide?

Many states have joined the suit, in New Mexico,

"Attorney General King's office has joined a settlement with mortgage lender Countrywide Financial Corp. in which the company has agreed to provide loan modifications to nearly 397,000 borrowers nationwide. Countrywide estimates permanent relief to U.S. borrowers could equal about $8 billion.

Through this settlement Countrywide will implement a systematic, streamlined modification program for eligible homeowners facing foreclosure–which is a break-through for mortgage relief. This nationwide settlement resolves allegations that Countrywide used unfair and deceptive tactics in its loan-origination and servicing activities – and that borrowers often were put in structurally unfair and unaffordable loans. Countrywide is the largest provider of subprime mortgages in the U.S."

I have a loan that I think to be one targeted in this lawsuit. I am wondering if this gives me greater ammo to receive a more significant modification or helps me in any other way.

[pdsfoley]

That was the AG Bill...or National Homeowner retention Program (NHRP) it seems it quietly went away.......it was settled in Oct by BAC...was supposed to be implemented starting Dec 2008.....don't know where it went

[wattsm]

I was wondering about that as well. We were submitted through NACA, but the #1 item in our hardship letter was that we were victims of the predatory lending practices of our local ountrywide mortgage office. When we first applied for the loan, we were very clear about what we could afford. At the end, we ended up doing a no-doc loan that was easily $500 more than we could pay. Many people on this forum have had circumstances change (loss of income or ARMs adjusting to higher payments). Ours was just a bad loan from the beginning, so we're hoping they take that into account.

[alikeith]

I recieved a mod under this settlement. It was an interest only loan for 10 years that they gave me, then it goes up to 8% fixed. Right now my loan payment is 38% of my gross. So i know am trying for MHA program, as it is better. The target for that is 31%

[Moe Bedard]

It seems like there hasn't been much help under the AG settlement at all. I have seen and blogged about most all of these, but have not heard anyone really getting help except off the forum through attorneys and then you alikeith...

[pdsfoley]

Funny....when you read the stipulations of the settlement....it was supposed help 440,000 homesowners with bad loans...AND it included principle reductions...like I said...it just sorta disappeared...Wonder what would happen to me if I settled a lawsuit then never had to do what it said....I'm sure I'd be in some sort of trouble...These big guys get around everything...

[Evan Bedard]

True pdsfoley I totally agree this program was supposed to help many homeowners with modifications as well as principle reductions...

It seemed that many qualified but no one really got approved..

[so-cal-gal]

Originally Posted by Moe Bedard

It seems like there hasn't been much help under the AG settlement at all. I have seen and blogged about most all of these, but have not heard anyone really getting help except off the forum through attorneys and then you alikeith...

I contacted CW in December of 08 when I was experiencing trouble making my payments due to hardships I had suffered.

I was offered what apprears to be the CA AG mod. There was very little qualifying documentation required. They offered a lower-rate, step-rate, interest only for 10 years modification with the arrearages added to the back-end of the note.

I took them up on the second version of the mod that had the payments start in May 09. All was in order per BofA personnel. Between the time that I submitted the package and when they had gotten my package into processing, I was 'Welcomed' to BofA. Then in April I received a Countrywide letter-head notice that my note was being transferred to Litton.

Naturally concerned for my mod, I contacted BofA. All is well, not problem, "if the mod does not finnish processing before the transfer on May 1 (the SAME day the first mod payment was to be made per the package), the paperwork will catch up and Litton will honor it", and several other assurances as I kept calling to check up on the mod. I was even told that BofA had started processing my mod on March 22 and it had gone to a 'completed' status on April 9, 09. The form letter indicating the note was transferring was generated in time to reach me before April 15 to provide the necessary notice period.

The back of that said form letter indicates that the transfer is not to affect the mortgage instruments. Also, the AG agreement indicates that nothing is to occur during the mod process, if one is offered,to impede the processing of a mod. (That is my layperson's understanding of what I read in the settlement agreement.) Hmmm.

BofA personnel never completed processing the mod. Never contacted me AT ALL. The only contact was me calling THEM after that transfer form.

Litton is refusing to honor the mod when they are informed of the mod being in progress when the transfer occurred (although the FIRST person I talked to at Litton claimed all was well - they would honor the agreement).

Now, instead of honoring it, they miraculously have determined that I can afford the full payment. I wish. I have now hired an attorney to 'persuade' both of these companies that they need to HONOR the agreement.

Oh, and Litton personnel now say they had no indication that the mod was in progress. BofA personnel told me to have Litton give them a call. Litton apparently prefers to ignore that.

Interestingly, just 41 days after Litton got the note, they sent an erroneous NOD. Now, the REASON the NOD is erroneus? Well, the DATE they cite for the mortgage NOTE is in FEBRUARY 2009. The exact day? Oh, the very day that the Mortgage MODIFICATION package was generated by CountryWide. It is right there on the Mod. But it is NOT the date on the ORIGINAL note (which is from 2005, different month, different day). Now Litton DOES get the ORIGINAL note's contract details right, aside for the note date that is.

So, Litton, you SAY you have no indication that BofA was processing that mod, EHHH? Either Litton has a VERY clairevoyant employee who made a clerical error OR they just provided evidence that they KNEW of the modification. The first that I actually tried to send a copy of the mod package to Litton was immediately AFTER they sent the NOD. Up to that point, I STILL was led to believe that Litton was going to be working things out with BofA per that first Litton employee's assurances. Fortunately, I told Litton they needed to 'Fix the problem' during the 60 period after the transfer. Their response was apparently the determination that I made too much (which was NOT a proper response to my DEMAND per my attorney)

Contact with BofA now ellicits a comment that they did NOT complete processing of the MOD. No reason just that they don't have the note anymore. Hmm. Remember those TWO reasons that the transfer was not to interfere with the mod being implemented. Hmmm. Not enough to get these DOPES to complete the offered and accepted mod. I brought in the attorney to fight it out after I could not get anywhere with either company.

All I have suffered is inept BofA employees and hard-headed Litton tactics, possibly even with a trace of FRAUD tossed in to help explain the exact time-line. Litton has even told me NOT to send any of the smaller mortgage payments, as they will be sent back (now are you going to ERASE THAT TAPE, Litton?).

SNARL. MAD? YOU 'BETCHA'!

[alikeith]

Yeah i dont see how what they gave me was really that great. I just hope i get approved under MHA

[so-cal-gal]

Originally Posted by alikeith

Yeah i dont see how what they gave me was really that great. I just hope i get approved under MHA

I fully agree that I've seen much better mod offers here. Hopefully my loan will get crammed back to BofA. The CA AG agreement specified that if there was a better mod package on offer later that we were supposed to be eligible to get another mod done. Since in my case, that is really something that should occur with BofA, looks like more reasons to get BofA to step up and take my note back and get it modified. Then look at whether there is a benefit to me under MHA.

I can not hold my breath with any chance of just going directly for an MHA mod with Litton due to their problems with evaluating income. (Some of the rejected Litton aps have shown that their processors entered the income TWICE. That may be why they were generating SOOO many rejection form letters. The other aspect, with the loan at litton, it may actually be held by a private investor who has NO interest in allowing a mod.)

At least it appears there are TWO reasons that BofA needs to step in and put the mod in place. The AG agreement says they are not to impede the process. The transfer form says the transfer is not to do anything to the mortgage instruments. Well the mod is a mortgage instrument. The reason BofA gives for not working the mod NOW is that they don't have the note. Well then, the transfer DID impact the mortgage instruments by keeping the mod from being implemented by BofA. (Also, BofA personnel were even divided on this. Low-level managers told employees who wanted to work this out to 'not get involved'.)

Do you SMELL something? A dead rat? Putrified pork? Bloated Tarp*?

(*Tarp ?= a new form of the 'carp' fish)