New HAMP guidelines

**mattfree99** · 01-27-2012, 03:58 PM

I just read about HAMP is going to be changed. This might actually work if they do reduce mortgage balances.

As part of its announcement on Friday, the administration also said it was extending the life of the HAMP program for one additional year through 2013, and that it would open up the program to borrowers with higher debt-to-income levels.Only about $3 billion has been spent of the $29 set aside for HAMP.In addition, the administration said it was tripling the incentives paid to lenders who reduce mortgage principal.Investors who rent out properties would also be able to access mortgage aid under the revamped program.REGULATOR NEEDS TO SIGN OFF

Here is a link with more on the story.

WBFO: Obama administration bolsters homeowner lifeline (2012-01-27)

**pollyanna** · 01-27-2012, 08:55 PM

The administration announced today that HAMP would be extended through Dec 2013. Changes include increasing incentives for banks to reduce principal and offering the same incentives to Freddie Mac & Fannie Mae. Additional changes extend HAMP eligibility to owners of rental properties. Changes will not occur until late April.

Obama administration expands HAMP program - Jan. 27, 2012

**davephx** · 01-28-2012, 12:12 AM

Not sure why this will help. The servicers could care less about principal reductions, they don't own the loans so it is actually a deisincentive for the servicer.

FHFA Republican head that Obama can't get replaced vows to do foreclosures as rapidly as possible to clear out the deadbeats. FHFA controls Fannie and Freddie and Republicans block his replacement.

Yet another new great program on top of about 10 prior ones. But banks refuse to follow the HAMP directives based on the agreements they signed and without a law, there is almost no way to enforce - other than withholding HAMP incentives on the few that are done. That of course is also counter productive.

The Republicans are winning big wanting no mods getting in the way of the bankers making $billions on foreclosures and of course taxpayers taking most of the losses. Then they blame Obama - as with all things to help the economy they block. And for the majority of ignorant voters they believe the deceptions.

**DaniNJ** · 01-28-2012, 08:06 AM

I am interested in how the current HAMP guidelines will be modified for rental properties. Those of you who are HAMP experts -- what do you think the numbers will be for someone with mortgages on both a primary residence and a rental property?

I am currently behind/underwater on the rental (trying to short sale), but primary res is current with some equity.

**RyanFL** · 01-31-2012, 11:12 AM

I have been watching this the past few days.

My question is, if I have already received a final loan modification, will I still be eligible to apply for the new principal reduction portion of the program?

I received an interest rate reduction to 2%, but it will increase and cap at 5% after 10 years. I was not able to have my principal reduced because my mortgage is backed by Fannie Mae. The modified payment is still more than 31% of my gross monthly income. Can I still claim hardship and apply for additional modifications?

**Cat Damiano** · 01-31-2012, 11:26 AM

HI Ryan,

The principal reduction program for HAMP has been in place since October 1, 2010. If you received your permanent HAMP modification after that time, then you would have already been evaluated for this.

This from the Guidelines:

Beginning on October 1, 2010 (PRA Effective Date), servicers must evaluate any mortgage loan that is being considered for HAMP with a mark-to-market LTV ratio greater than 115 percent using both the standard modification waterfall and the alternative modification waterfall that includes principal reduction as the required second step in the waterfall.

**RyanFL** · 01-31-2012, 11:35 AM

Originally Posted by Cat Damiano

HI Ryan,

The principal reduction program for HAMP has been in place since October 1, 2010. If you received your permanent HAMP modification after that time, then you would have already been evaluated for this.

This from the Guidelines:

Beginning on October 1, 2010 (PRA Effective Date), servicers must evaluate any mortgage loan that is being considered for HAMP with a mark-to-market LTV ratio greater than 115 percent using both the standard modification waterfall and the alternative modification waterfall that includes principal reduction as the required second step in the waterfall.

Wow, thank you for the very fast response!

At the time though, did that guideline apply to Fannie Mae and Freddie Mac loans? My final loan modification was completed in January 2010, prior to this Guideline taking effect either way. So am I still eligible to be reconsidered?

**Cat Damiano** · 01-31-2012, 11:43 AM

It may not have been, but if the modification is a HAMP modification, these guidelines would be in addition to the current guidelines. So it will remain to be seen if you already are in a HAMP permanent modification if you would be able to apply again or not.

**RyanFL** · 01-31-2012, 11:58 AM

Originally Posted by Cat Damiano

It may not have been, but if the modification is a HAMP modification, these guidelines would be in addition to the current guidelines. So it will remain to be seen if you already are in a HAMP permanent modification if you would be able to apply again or not.

When I signed the modification, the bank told me it was an in-house modification. Others have told me my modification looks like a HAMP though by the way the interest is structured. How can I find out for sure?

**Cat Damiano** · 01-31-2012, 12:00 PM

It would clearly state on the docs that you are in a HAMP modification and it would also have a statement for the incentive of the 1k per year for 5 years that is taken off of the principal balance for payments made on time. A good majority of the inhouse modifications mirrored the HAMP guidelines minus the incentives.

**RyanFL** · 01-31-2012, 12:10 PM

Originally Posted by Cat Damiano

It would clearly state on the docs that you are in a HAMP modification and it would also have a statement for the incentive of the 1k per year for 5 years that is taken off of the principal balance for payments made on time. A good majority of the inhouse modifications mirrored the HAMP guidelines minus the incentives.

Mine seems to be an in-house mod then. I do not get the incentive and I don't recall the final paperwork saying HAMP on it. I will double check when I get home. If my previous mod was in fact in-house then there should really be nothing stopping me from applying to HAMP under the new guidelines then right?

**Cat Damiano** · 01-31-2012, 12:21 PM

I agree, but do you remember why you were initially denied a HAMP modification and put into an inhouse modification?

**RyanFL** · 01-31-2012, 12:32 PM

Originally Posted by Cat Damiano

I agree, but do you remember why you were initially denied a HAMP modification and put into an inhouse modification?

They didn't say specifically, but I think Wells Fargo was just trying to be a pain... I don't think there is any reason I would not have qualified for an ordinary HAMP modificiation. Is there any benefit to the bank to use an in-house over HAMP? That's the only thing I can think of.

**Cat Damiano** · 01-31-2012, 12:34 PM

Not really, but I would say when the additional guidelines go into play you should definitely try to reapply since you are already over one year out on your modification.

**RyanFL** · 01-31-2012, 12:47 PM

Originally Posted by Cat Damiano

Not really, but I would say when the additional guidelines go into play you should definitely try to reapply since you are already over one year out on your modification.

How long until the new guidelines start to come into play? Has there been any word on that yet?

I just tried to call HOPE now hotline but they had to schedule a counselor to call me back on Feb 9. Should I wait before going any further with them?

**Cat Damiano** · 01-31-2012, 12:57 PM

The article states the end of April, we will be following it and update the thread accordingly.

**selawa** · 02-10-2012, 02:17 PM

so, the new program is hamp. and can't mod anything over 729k , and you can't have any financial assets. i am between two stools , i don't qualify for anything, mod or refi.

**RyanFL** · 02-19-2012, 02:06 PM

Looks like I still won't be able to get a principal reduction, Fannie Mae and Freddie Mac backed loans are still being left out.......

https://www.hmpadmin.com/portal/news/docs/2012/hampupdate021612.pdf

**PennysBoat** · 02-21-2012, 10:49 AM

I assume this program is only for lenders on the list (ie: BofA, Wells Fargo, etc.) If you lender is not one of these banks or Freddie/Fannie do you qualify for any refi or mod programs?

Thanks.

**Cat Damiano** · 02-21-2012, 10:52 AM

PennysBoat,

The HARP refi is specifically for Fannie/Freddie backed loans. This is also an addition to the HAMP program in which those loans are eligible to be modified under HAMP. Weren't you with a credit union and trying a short sale?

**PennysBoat** · 02-21-2012, 12:12 PM

Wow you have a good memory (or good searching ability) LOL

Yes I am with Navy Federal Credit Union (NFCU). Originally looking at short sale, now looking at trying to stay in my home which is slightly underwater and I current on all payments. Would like a lower payment (who wouldn't) but not sure if I will qualify for any modificaiton or refi.

**Cat Damiano** · 02-21-2012, 12:27 PM

They have since posted their options on their website. Have you tried contacting them to see if you may be eligible for modification or other options to remain in the home?
https://www.navyfederal.org/products...oreclosure.php

**PennysBoat** · 02-22-2012, 05:52 AM

Thanks Cat. I am trying to do as much research before I contact them since last time I tried to contact them they just told me I didn't qualify for anything. I am hoping to be accepted into their HAMP program but not sure if I should do it now or wait and see if any new programs or changes are coming up.

**Cat Damiano** · 02-22-2012, 08:04 AM

Another option would be to go through HUD this time. They can go over a budget with you up front and let you know if you would qualify. They would also be aware of anything that would update with the program in April.

Speak with a Housing Expert

Good Luck and keep us posted.

**davephx** · 02-28-2012, 12:06 AM

Yes the original program was from 2010. Banks often lied rarely did principal reductions if qualified since was never required and Fannie Freddie would not do.

Starting in May .. maybe... payment to INVESTOR (not servicer) is increased substantially. It clearly is mandated "required" that servicers follow as part of their partcipation agreements.. just like all the HAMP directives are required, but banks refuse to follow them. Why would this change? Banks make billions by foreclosing and commit consumer fraud as layed out in various attorney general law suits by lies, refusing to follow the directives and do all they can to earn all the foreclosure fees.

The new settlement will probably be ignored just like BoA ignored the settlement regarding Countrywide.

The other problem is with Fannie/Freddie headed by FHFA. FHFA Republican head Edward J. DeMarco that Obama can't get replaced since Republicans block new appointment, vows to do foreclosures as rapidly as possible to clear out the deadbeats. FHFA controls Fannie and Freddie and Republicans block his replacement and of course want to end HAMP.

The Republicans are winning big wanting no mods getting in the way of the bankers making $billions on foreclosures and of course taxpayers taking most of the losses. Then they blame Obama - as with all things to help the economy they block. And for the majority of ignorant voters they believe the deceptions.

**rosalinda** · 03-08-2012, 09:31 AM

Originally Posted by Cat Damiano

It would clearly state on the docs that you are in a HAMP modification and it would also have a statement for the incentive of the 1k per year for 5 years that is taken off of the principal balance for payments made on time. A good majority of the inhouse modifications mirrored the HAMP guidelines minus the incentives.

Is this "1k per year for 5 years" for HAMP or HARP or both? I didn't get it for my HAMP but my HARP. strange...

**Evan Bedard** · 03-08-2012, 09:43 AM

Originally Posted by rosalinda

Is this "1k per year for 5 years" for HAMP or HARP or both? I didn't get it for my HAMP but my HARP. strange...

The 1k a year incentive is for permanent HAMP modifications..

**rosalinda** · 03-08-2012, 10:53 AM

so i got it mixed up...i was working on a HAMP and a HARP at the same time for last few months

now i see it on my spreadsheet...it's for my HAMP...

**Evan Bedard** · 03-08-2012, 04:07 PM

Originally Posted by rosalinda

so i got it mixed up...i was working on a HAMP and a HARP at the same time for last few months

now i see it on my spreadsheet...it's for my HAMP...

Yes HARP and HAMP are two completely separate programs, HAMP is for a loan modification, while HARP is for a refinance..

**DogsandtheCity** · 04-24-2012, 05:24 PM

If the new Hamp guidelines for RENTAL properties "possibly" starting in May, would it be smart to apply for a loan mod now ? I have a NOS of sale date June 6th…I want to keep fighting as long as I can to postpone to trustee sale…I know I won't qualify & will lose the property at some point…Any advise is appreciated…(I love the Hampster Wheel Forum and want to play as long as possible)
Thanks,
DogsandtheCity

**LoanModHelpCenter.com** · 04-24-2012, 05:33 PM

Originally Posted by DogsandtheCity

If the new Hamp guidelines for RENTAL properties "possibly" starting in May, would it be smart to apply for a loan mod now ? I have a NOS of sale date June 6th…I want to keep fighting as long as I can to postpone to trustee sale…I know I won't qualify & will lose the property at some point…Any advise is appreciated…(I love the Hampster Wheel Forum and want to play as long as possible)
Thanks,
DogsandtheCity

DogsandtheCity - each servicer will roll out the new guidelines and we have generally seen Wells Fargo be the fastest at roll out.

It is to your advantage to apply as early as possible for a loan mod on the rental property but please note that even the new RMA forms for HAMP with details for rental properties are not required to be used until June 1st by servicers.

**DogsandtheCity** · 04-24-2012, 06:44 PM

Thanks so much for your quick reply!!! …Should I apply now then ?
These forums are invaluable to all of us…Everyone trying to help one another…It has been wonderful to have real support with people going through the same frustrating experience !!
Its unbelievable how much these forums have taught me in the past 2 years..I would love to meet some of these members in person & have a big party…Can you just imagine how much fun we would have telling our stories and laughing about the craziness..
I have referred this site to so many of my friends..

Thanks again…I really appreciate your support !!
DogsandtheCity
Orange County, California

**LoanModHelpCenter.com** · 04-24-2012, 07:50 PM

Originally Posted by DogsandtheCity

Thanks so much for your quick reply!!! …Should I apply now then ?
These forums are invaluable to all of us…Everyone trying to help one another…It has been wonderful to have real support with people going through the same frustrating experience !!
Its unbelievable how much these forums have taught me in the past 2 years..I would love to meet some of these members in person & have a big party…Can you just imagine how much fun we would have telling our stories and laughing about the craziness..
I have referred this site to so many of my friends..

Thanks again…I really appreciate your support !!
DogsandtheCity
Orange County, California

DogsandtheCity - you're welcome glad I could help. Each servicer is rolling out HAMP updates on their own timeline, so it may be too early to apply for a program that the servicers don't have to start implementing until June 1st.

It doesn't hurt to apply after writing in to the correspondence department to see if they will entertain your application under the new HAMP guidelines, but you should know you may need to re-apply and you would be among the first to apply for HAMP for a rental property with the expectation that it will come out approved.

I would write in to see if they will consider you instead of calling in, but if you do call in, try to speak to one of the knowledgeable folks in home retention or a supervisor or manager or Executive team member.

**DogsandtheCity** · 04-24-2012, 09:00 PM

Thank you…
As my sale date is June 6th…maybe the phone call would be best…then follow up with the letter..Both my properties are with Wells Fargo…Do they even know I have 2 different loans with them ? Doesn't seem like one hand doesn't know what the other is doing ?
I promise to post any developments as I find them on the new HAMP PROGRAM….Hopefully, this new program will help some of the other underwater homeowners on this thread !!

**LoanModHelpCenter.com** · 04-25-2012, 10:50 AM

Originally Posted by DogsandtheCity

Thank you…
As my sale date is June 6th…maybe the phone call would be best…then follow up with the letter..Both my properties are with Wells Fargo…Do they even know I have 2 different loans with them ? Doesn't seem like one hand doesn't know what the other is doing ?
I promise to post any developments as I find them on the new HAMP PROGRAM….Hopefully, this new program will help some of the other underwater homeowners on this thread !!

DogsandtheCity - yes phone call and letter would be great. When you say do "they" know that you have 2 different loans with them, your social security number is definitely tied to both loans if you are on as borrower or co-borrower.

the person who you speak to can only look at one loan at a time so they will not know immediately you have two loans unless you call in and just give them your social security number.

do please share your experience when you get underway would love to hear the first HAMP rental property mod get done here!

**DogsandtheCity** · 04-25-2012, 03:47 PM

Yes, I will keep this thread updated for sure !!
I want to "quickly" explain my hardship. Maybe some of members on this tread have a similar problem or concern.
When my journey began, I had 3 surgeries and hadn't had a paycheck in almost a year (a successful realtor over 30 years, every sale I made fell through) Since then I have had 3 different renters, always maintaining a friendly relationship with them. The 2nd one had a drastic reduction in salary, stopped paying the rent, trashed the property, having to replace almost everything. 3rd renter was excited living in an "almost new" condo. Had disclosed I was in the process of a loan mod (Wachovia had a non owner occupied program at one time). Their realtor friend looked up my property telling them I would never get mod approved owing much more than the property was worth. They accused me of committing fraud, saying I knew my loan mod would never get approved and would eventually loose the condo in foreclosure. Stopped paying the rent 6 months ago, I hired an attorney to do unlawful detainer to get them out...I can't show rental income and probably be declined..I know I will get it rented quickly as it is in an excellent location, but it might be too late !!

This has been extremely stressful and very very depressing (Having been a landlord over 30 years, never served an lawful detainer…Others have either moved out or became current on their rent)
Any advice would be GREATLY APPRECIATED…
Sorry my post was so long….

**underwatersocal** · 05-25-2012, 10:45 AM

I believe I am in the same boat as you unfortunately have a jumbo, underwater by about 40% and have some financial assets but not a ton- Dont want to liquidate the limited savings I have to throw "good money after bad" when I am so underwater....
I'm guessing I'm not the customer they want to modify, for the banks probably better to have a short sale? I just wish they would absorb some of the loss, not me

**Evan Bedard** · 05-25-2012, 12:35 PM

Originally Posted by underwatersocal

I believe I am in the same boat as you unfortunately have a jumbo, underwater by about 40% and have some financial assets but not a ton- Dont want to liquidate the limited savings I have to throw "good money after bad" when I am so underwater....
I'm guessing I'm not the customer they want to modify, for the banks probably better to have a short sale? I just wish they would absorb some of the loss, not me

Even if your mortgage balance exceeds 729k or you have some assets, that does not rule out the possibility of an in-house modification. For those who do not qualify for a modification under HAMP there are always in-house modifications you can apply for. Sometimes the outcome of in-house mods will mirror that of a permanent HAMP mod, except for the 1k a year incentive..

**IRIEBLUES** · 05-25-2012, 06:58 PM

So one year without paying my mortgage due to hardship. Contacted Wach / Wells and applied for HAMP. I qualified and I accepted the new terms. 3 months trial then changes to permanent modification. I made my first payment this past March 2012. I couldn't make the payment for April and May because I my assigned loan representative never returned my call... and I was in bankruptcy. Thus they (Wach / Wells) stated I did not fulfill my trial. I have tried numerous times to make my payment and contact my loan rep. with no success. My first payment was made via over the phone with a rep. Michelle D. was my FIRST rep that was very helpful and easy to get a hold of.... however, when my bankruptcy kicked in my rep changed to Valerie M. that I tried many times to contact her with no success. And since I was in bankruptcy NOBODY but Valerie would be able to take my payments.... So now I am here trying to find out what I can do..... very frustrated because, it really seems that the majority of the people don't really want to help.... I was going in circles... "I'm sorry Valerie can only help you with this" I finally speak to someone in her department and they say "You need to speak with someone in Bankruptcy"... then when in Bankruptcy "You need to speak with your assigned person" back and forth... then finally Wach / Wells rep says " well there's nothing we can do... you need to write a letter to Wells Fargo President"
I need help or suggestions in which I can get my HAMP active again.

Originally Posted by mattfree99

I just read about HAMP is going to be changed. This might actually work if they do reduce mortgage balances.

As part of its announcement on Friday, the administration also said it was extending the life of the HAMP program for one additional year through 2013, and that it would open up the program to borrowers with higher debt-to-income levels.Only about $3 billion has been spent of the $29 set aside for HAMP.In addition, the administration said it was tripling the incentives paid to lenders who reduce mortgage principal.Investors who rent out properties would also be able to access mortgage aid under the revamped program.REGULATOR NEEDS TO SIGN OFF

Here is a link with more on the story.

WBFO: Obama administration bolsters homeowner lifeline (2012-01-27)

**Justcharlotte** · 06-25-2012, 02:00 PM

Hoping that Cat will see this. I have posted on my situation many times
Greetree just informed (I applied feb1) that I dont qualify for Hamp on a rental.It is fannie mae backed..Before I get more confused I thought they would extend to rental . They say I don't make enough for the Appollo program(my earnings increased this month)..
??
Also when I requested copy of original loan docs they say they do not have but are quick to offer me a deed in lieu of forclosure.
Greentree said I would have to find out "who" has them..
Cat can you take a look at my previous posts..thanks in advance . C