New Obama plan: NACA or CW directly?

[Roberto77]

I am in the final stages of the document submission process with NACA. Dealing with NACA has become very frustrating as they constantly do not keep their telephone appointments, etc. I had a telephone appt for 7AM yesterday and they never called.

I apparently qualify on the just released Making Home Affordable (MHA)modification program. This assumes though that Countrywide is a participant in the program. Participation is voluntary but apparently mandatory for Financial Stability Plan Participants. Then the question is -- who received the $45 billion bailout, BOA or Countrywide or both?

The MHA guidelines for reducing your mortgage payment only considers your Monthly Gross Income before any payroll deductions. It also does not consider any other debt payments or any household expenses. The NACA formula relies on your Monthy Gross Income after payroll deductions and after all your other payments and household expenses. In my case, the NACA formula results in a lower mortgage payment than the the one under MHA.

My question is: In light of the new MHA program, is NACA still relevant or am I basically forced to deal directly with Countrywide?

Thanks for your help, Roberto77

[Dan Bailey]

Roberto,
Glad you found the forum and posted.

NACA is still very relevant as 1: the loan modifications they are seeking seem to be better than the obama plan mods by far
2: As you stated...participation is voluntary by investors other than fannie and freddie. CW has never done anything helpful in the past.

*** has posted a thread with a number to call to see if freddie or fannie is your investor, in this section.

[Dan Bailey]

I was mistaken, here is the link to the number to check: FannieMae or FreddieMac? Check Here to Find Out

I also need to state, if you think NACA is slow.....it is even worse with people trying to get to work with their lender directly. NACA is inundated -but they will be behind you. Unfortunately, there is no "fast track" no matter what direction you take.

[gray517]

definately stick with naca, the process is slow, we started in 9/25/08, naca submission to CW 10/16/08, verbal approval 12/12/08, emailed approval with all details and final acceptance from naca 12/30/08, mod docs via fed exp 1/9/09 (had to have Naca call them yet again to get these) changes to online account stating mod done and closed 2/6/09, so the whole process took around 120 days to get done, and most of the delays were and have been Countrywide, while naca is overwelmed, they are just as frustrated as we are with Countrywides delays. Under the plan if you qualify, your mortgage payment will be 31% of your gross, Naca uses gross pay (paystubs) but they take into account your whole budget and debt. Our payment terms submitted by Naca to cw was originally 20.15% of Husband's gross ( I lost my job in 6/08 that's what started this escalated this mess for us) husband has now had 2 more paycuts for creating an even bigger loss of income, but my payment is still at 27.75% of his gross, we qualified for the AG 12/1 settlement program as well, kept being told to wait for package, never got anything on that, and that mod still shows active processing on our account, while the Naca mod shows done, completed and closed. you never know what can happen down the road, I am glad we got the naca mod especially with the pay cuts (4 total) that hubby got I wouldn't be able to afford a 31% payment and pay my fpl and insurance and have food, something would have to go, and I don't pay my credit cards, don't eat out at all, only buy food that is one sale or 2 for 1, only time I leave the house is for grocery store or job interview, so I am very thankful for Naca's help in keeping my house and getting me an affordable payment. good luck, hang in there an be persistant, I was calling everyone, Naca and CW at least twice a week!

[helpsavemyhome]

I'm glad Roberto77 started this topic since I, too, was wondering which program (NACA or MHA) would be most beneficial...Dan brought up a lot of good points and I am definitely going to hang in there with NACA.

CW left me a message yesterday and when I called them back, the guy I spoke with actually knew who NACA was....I was surprised, since most claim to not know. Maybe there really is light at the end of the tunnel!!!

[michigan tsunami]

Dan, What is going to happen with second or heloc loans with the Obama plan? Is the 105% based on first loan or combination of first and second loans? It sounds like they are only looking at first. Why do you think Naca's workouts are going to be better? I'm self employed making, 4-5k a month and my naca proposal is for $1975 a month. Still going to be tight if they accept it. Living in Michigan, things are only going to get worse.

[LenderNoHelp]

How would they base 31% on gross monthly income when your monthly is not consistent every month because OT varies for me, also on-call pay too??

[Moe Bedard]

They will use all of it for one month...........but you will need to ask if they would average it over 6 or 12 months if it fluctuates.......this is how it is indicated in the guidelines........

The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.

Generally, the front-end ratio is the ratio of PITIA to monthly gross income. PITIA includes principal, interest, property taxes, all property-related insurance (hazard, flood, earthquake, etc) and required homeowners association payments.

Monthly gross income is the borrower’s income before any payroll deductions, including base pay, commissions, fees, tips, bonuses, housing allowances and other compensation.

Income for wage earners will have to be verified by a signed Form 4506 T (Request for Transcript of Tax Return), the most recent tax return and two recent pay stubs.

For self-employed borrowers or non-wage income, the borrower’s income must be verified by third party documents providing reasonably reliable evidence. Borrowers must also attest that they do not have sufficient liquid assets to make monthly mortgage payments.

[patnj]

I beleive the Obama plan allows refinancing for people who are current while I really beleive you need to be at least 60 days past due with countrywide to be considered. Does anyone know which dept in Countrywide is dealing with this new plan? I need to get some help for my mother who is on social security and a small penison and is paying 75% of her income to her mortgage. Thanks

[Dan Bailey]

There is no guarentee CW IS going to use the "obama plan" It is voluntary for any investors besides freddie or fannie.

At this time, there is no dept set up at CW for "the obama plan"

To check and see if your invester is frannie or freddie:FannieMae or FreddieMac? Check Here to Find Out

[jet-a]

Isn't the plan mandatory for any bank that received TARP funds? I believe B of A did receive them.

I also read that if they modify 1 loan under the new terms, then they must modify all loans, as long as Fannie & Freddie are the investor in the same manner.

[Dan Bailey]

No, it is not.
http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf

http://www.treas.gov/press/releases/...guidelines.pdf

[michigan tsunami]

Dan, you need to go through CW if fannie /freddie own your mortgage, correct? I just found out yesterday Fannie owns my mortgage after CW told me several times they owned it.

[Dan Bailey]

I believe that is correct

[kateistired]

Just wanted to mention that when I applied for a mod with CW, they told me not to include any overtime in the financials, because it is not a guarantee. Also, when they updated my financial info on Wed., they told me the same thing. My husband makes about 30k a year in OT....

[jet-a]

Originally Posted by Dan Bailey

No, it is not.
http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf

http://www.treas.gov/press/releases/...guidelines.pdf

The first link isn't working anymore - Oh no, I hope they are not making changes as we speak! The link is indeed correct after searching for it on the site.

[kateistired]

I heard it was mandatory for any banks receiving TARP funds, too. Did they change that?

[michigan tsunami]

Then it really isn't voluntary on the loans they sold to fannie/freddie. Any idea when they will be up to speed and staffed to handle the Obama plan?

[Dan Bailey]

Updated links:

Q&A http://www.financialstability.gov/docs/counselor_qa.pdf

Fact Sheet: http://www.treas.gov/press/releases/reports/housing_fact_sheet.pdf

Guidelines: http://www.treas.gov/press/releases/reports/guidelines_summary.pdf

[gray517]

the program is only mandatory for fannie & freddie loans, the other servicers, lenders and investors are being encouraged to participate in the modification part and will be given incentives to do so, but participation is strictly voluntary

[patnj]

Thanks for all the info. Has anyone recieved a mod when they were current? I have been holding back on my mother's since she refused to be deleinquent but as a result is working overtime and living off credit cards to stay afloat. She is 71 and really needs a lower payment. She was given a sub-prime by countrywide in 2007.

[jet-a]

Originally Posted by patnj

Thanks for all the info. Has anyone recieved a mod when they were current? I have been holding back on my mother's since she refused to be deleinquent but as a result is working overtime and living off credit cards to stay afloat. She is 71 and really needs a lower payment. She was given a sub-prime by countrywide in 2007.

I'm trying to do that now. I have a Phone appt with NACA today. CW asked me to send info to their HOPE team, but i'm not taking any chances. It seems that NACA will be easier to work with.

[LenderNoHelp]

CW Home Retention team called last night, said my file does qualify for the Modification plan the president announced. Please fax in 2 recent paystubs, letter of Hardship, bank statements. Hopefully this will finally get me somewhere. What happens to the second lien?? According to the new guidelines, second lien will be required to subordinate.

22. What if the borrower has a second mortgage and would like to apply for a Home Affordable Modification?

Under the Home Affordable Modification program, junior lien holders will be required to subordinate to the modified loan. However, through the Home Affordable Modification an incentive payment of up to $1,000 is available to pay off junior lien holders. Servicers are eligible to receive an additional $500 incentive payment for efforts made to extinguish second liens on loans modified under this program.

If this is true, I will not have to the lienstripping through CH. 13.

[kateistired]

I wonder if that's why I got a call today........My account was escalated, but I finally got a call from a negotiator today(after 5 months), and they wanted me to send in new paystubs and bank statements. I am a little nervous at how closely they will be scrutinizing our bank statements. We have been saving our mortgage payment as the reps told me to, so it looks like we have a decent amount of money in there. Also, we gave some money to my husband's sister to buy groceries, etc........Has anyone had them question any item in their bank statement???

[michigan tsunami]

If they subordinate my heloc, I think the Obama plan will work better for me than my Naca offer. CW is my servicer, Fannie mae my investor. So this is mandatory not voluntary for CW. Any idea when they will be ready to take my financial information? I am three months behind and need help now.