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California Attorney General Settlement Refi?

Discussion in 'Refinance' started by boardworks, Jun 16, 2012.

  1. boardworks

    boardworks LoanSafe Member

    Hi all! First time at this forum, so I must thank you all for posting such great information!

    I've been notified by my owning & servicing bank, Wells Fargo Home Mortgage, that I qualify for the Attorney General (AG) Settlement to refinance my current loan (which is 7.005%). We have a phone interview on Monday to "apply" for this program.

    Before we start that process, I wanted to check in here and see if any of you have been part of that program or have had success with Wells on this. Our primary loan LTV is ~116%, but our CLTV is ~136%. Our primary loan was originally with World Savings, bought by Wachovia and now owned by WFHM. Our loan is not backed by Fannie nor Freddie, and was not a regular prime loan (as part of an 80/20, where the 2TD is with another bank).

    If you've had success, can you share what type of rate reduction I might expect? Did you have DTI ratio requirements to be eligible? Anything else I should watch out for?

    Many thanks in advance for anything you can share!
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi boardworks,


    This program is too new and just being implemented currently over a three year period. We have not had any successful refinance postings under this program, only modification trial periods that have begun.

    You will be able to find out the answer to these questions during your interview tomorrow. Please keep us posted on your progress.
  3. patsweetpat

    patsweetpat LoanSafe Member

    I wanna be where boardworks evidently is. My mortgage is with Chase at a rate of 6.5% for a $529,000 loan on a home that I purchased for $675,000 but which is currently valued at about $450,000. So, yeah, I'm underwater with an interest rate that's well above the 5.25% minimum required for a refi under the National Mortgage Settlement. And I seem to adhere to all of the other posted criteria for refi eligibility under the National Mortgage Settlement, as the CA AG describes said criteria: current on the mortgage, no delinquencies in my past, no bankruptcies or foreclosures.

    Unfortunately my "problem" (and, in the broad spectrum, it's a nice problem to have) is that I make a good income and am in no immediate danger of foreclosure. And so, when I called the Chase Hotline last week to begin the application process for this refi, I was consistently referred to Chase's "HAMP Team", who repeatedly told me that, yup, I make too much money to qualify for a refi under HAMP. Which *wasn't* what I was trying to do (I don't think)! I was trying to qualify for a refi under the National Mortgage Settlement! In any event, given my income, Chase's "HAMP Team" would refer me to Chase's "Refi Team", who would hear my LTV and inform me that, no, I couldn't possibly get a refi from that office because of my underwater status, but perhaps I could get some assistance from Chase's "HAMP Team". Rinse and repeat. Again and again. Three hours I'll never get back.

    So here's my question to some of you better-informed-than-me folks here: is there, in fact, some sort of maximum income (or maximum percentage-of-income-per-mortgage-payment, or similar metric) above which homeowners are ineligible for a refi under the terms of the National Mortgage Settlement? I, myself, sure can't find any such mention in any of the online FAQs, but am I missing something? And if there *isn't* any such maximum income for a refi under the National Mortgage Settlement, what should be my next step, given the big tail-chase I've thusfar gotten from, er, Chase.

    Any info/suggestions you can offer would be soooooo eagerly accepted, I can't even tell you.

    Patrick Meighan
    Culver City, CA
    Last edited by a moderator: Jun 19, 2012
  4. Cat Damiano

    Cat Damiano Mortgage Wars

  5. patsweetpat

    patsweetpat LoanSafe Member

    Thanks, Cat. I'd seen the Bankrate.com article, but unfortunately it doesn't address my question. I'll repost in the National Mortgage Settlement thread and see if anyone there knows something.

    Thanks again,

    Patrick Meighan
    Culver City, CA
  6. tvtvtv

    tvtvtv LoanSafe Member

    Hi patrick,

    I had the same experience with Chase. In my opinion, they are the worst of the big 5 that are part of the AG settlement. One thing I can def clear up for you is that NO there is no income restriction under the AG's refi program. There is however gray area in how Chase/AG program is going to calculate your home value as of Feb 2012 (per chase). I am pretty sure my home is underwater with similar numbers as you've presented but according to Chase per the AG settlement somehow my home value came in higher and I did not qualify for the refi option. If you haven't recieved any mail from chase yet, its safe to assume you're not part of the that invitation-only list either. You CANNOT apply for the AG refi program. Its by invitation only.

    Thanks,
    Tarun

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