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Rules for Non HAMP Fannie Mae Modification

Discussion in 'Making Home Affordable' started by ironwoman, Apr 26, 2012.

  1. ironwoman

    ironwoman LoanSafe Member

    I have two properties -- my primary and an investment property -- I did a HARP refinance in October of 2010, on both of these loans, when my husband and I had further hardship, we stopped making payments in April 2011 (made 5 payments on each under the new loan). I was given a Fannie Mae Loan Modification on my investment property (Non Hamp). But, I've been denied a loan modification for both HAMP and Non Hamp on my primary residence -- reason stated: Loan origination date was after Jan. 1, 2009. I keep asking Bank of America why my other investment property loan went thru with the same origination date -- no one can answer my questions. I'm trying to get answers from Bank of America with no luck. Anyone have any ideas on this??
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thanks for joining the community.

    It definitely sounds like they reviewed your account for the HAMP program which requires the mortgage origination (or refinance) date to be after Jan. 1, 2009. You need to reapply for the modification and let them know you do not meet the eligibility requirements for HAMP due to this and would like to request a traditional in-house modification.

    You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and going through the same things.
  3. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    ironwoman and Evan - from seeing these mods for 4 years now, it will be extremely hard if not impossible to modify since you only made 5 payments on the mortgage from origination.

    Fannie Mae requires 12 consecutive on time payments at to be considered for another loan mod or the first loan mod.

    Exceptions are possible but are like needles in haystacks and I haven't ever seen one go through for a loan originated after 2009 Jan 1st with less than 12 payments made on time.

    The quote from the fannie mae servicer guide page 13 of 23 under ELIGIBILITY for standard loan mods that are not hamp eligible -

    "Loan must have been originated at least 12 months prior to the loan modification evaluation date"

    You may be able to get a repayment plan to get caught up but your payments will not go down.
  4. ironwoman

    ironwoman LoanSafe Member

    Well, I can tell you, I received a Fannie Mae Loan Modification on an investment property when I had only made 5 payments on the new loan. I'm looking for someone who can help me figure out how the made an exception in my case. The Bank of America rep said that someone someone at Fannie Mae was involved with the decision. Again, I don't understand what is going on, but I truly wish they made the exception on my primary home modification. Prior to the October 2010 HARP refinance, I had been paying consistently on the loan since 2001. My mistake was, when I started having problems, I applied for HARP versus HAMP -- obviously -- big mistake -- because it may cause me to lose my home.

    If anyone has any idea as to how to be processed as the exception, let me know!!
  5. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    ironwoman -

    if that is the case that you made 5 payments and then they modified you on exception based on fannie mae, then it could be because your origination of the loan from the broker or the bank that you received the loan from had an issue that needed correction through modification.

    Getting Fannie Mae to do an exception usually rests on something that was done incorrectly by the originator or during the funding of the transaction or something caught in quality control.

    you can bring it to there attention (wrong income calculations for example) but they may still not fix it unless they are the ones who catch it.

    here is the fannie mae information for help directly from them and hope it helps.
  6. ironwoman

    ironwoman LoanSafe Member

    I want to clarify something because I'm here to help others get thru the circumstance. In fact, page 13 of the Fannie Mae Standard Modification states the following: "Loan must have been originated at least 12 months prior to the loan modification evaluation date". I meet this eligibility requirement. I also talked to Fannie Mae and they told me the same thing. There is no origination date requirement or # of payment requirements for the Fannie Mae Standard Modification. I think you are right, somehow, there was an exception requested with Fannie Mae. What I am trying to find out now is how to process the request. Anyone know this procedure? Wondering if there is a form or something like that.
  7. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Are you trying to figure out how to apply for a Fannie Mae Standard Modification?

    Fannie Mae Standard Modification/ELIGIBLE

    -Borrower previously received and defaulted on either a Fannie Mae HAMP modification (or Fannie Mae HAMP Trial Period Plan) or a Fannie Mae standard modification (as defined prior to October 1, 2011)
    -Property may be owner-occupied or non-owner occupied
    -Property may be vacant as long as it is not condemned
    -Borrower must have a financial hardship (documented in the Uniform Borrower Assistance Form (UBAF), Form 710 – See the Servicing Guide for detailed guidance)
    -Loan must have been originated at least 12 months prior to the loan modification evaluation date
    -Borrower must have verified income (unemployment benefits are not an acceptable source), documented in accordance with the UBAF
    -The pre-modification mark-to-market loan-to-value (MTMLTV) ratio must be greater than or equal to 80%


    -Borrower previously received a Fannie Mae modification other than a HAMP or a standard modification (as defined prior to October 1, 2011)
    -and became 60 or more days delinquent within 12 months of the modification effective date
    -The loan is secured by a non-owner occupied property and is current or less than 60 days delinquent
  8. ironwoman

    ironwoman LoanSafe Member

    I thought i did -- Bank of America keeps calling it the non - hamp. I'm not sure. If you have any advice about it, please let me know.
  9. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    If they are stating that it is a non-HAMP modification it is more than likely just a traditional in-house modification which does not have a set of rules or guidelines they follow.. But I know for a fact loans obtained after Jan 1, 2009 are still eligible to receive assistance under a regular in-house modification as I have seen it happen on more than one occasion..
  10. ironwoman

    ironwoman LoanSafe Member

    i'm so frustrated. To have one of my investment properties receive a Fannie Mae standard loan mod that originated at the same time as my primary, it does not make sense that they denied me based on that rule. I've asked them to review me for the Fannie Mae Standard Modification, they have not responded. I have spoken with the HUD counselor, but haven't finished the "interview". Do you think the HUD counselor would help? The HUD counselor said once we've been thru the process, he can get on the phone with me and Bank of America.
  11. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    A HUD counselor may be able to assist you and get through to BofA.. But what I would do is get around regular old customer service and go straight to the executive's office and let them know the reason you are being turned down for assistance. They should be able to escalate your account and get you assigned to a rep in a timely matter..

    BofA executive team
  12. silverwesoke

    silverwesoke LoanSafe Member

    Hi all.. I applied for a HAMP loan with BOA and it looks like they didnt review me for because I was previously denied a year ago and it did not show up in their system that I reapplied for HAMP for some reason.. I did submit a REST report with the application which showed I did qualify for HAMP. So I am trying to correct that problem now and trying to find out why I wasnt reviewed properly. Apparantly it went straight to an inhouse mod by accident.

    Meanwhile, I got approval and they sent me paperwork for trial payments for what appears to be an in house loan mod at an outrageous rate of 45% DTI and they gave me 2 weeks to send them the first trial payment. My question is this.

    If I go and try to fight them to try to put it back under HAMP review ,and then it fails HAMP for some other reason, would I still be considered for an in house loan at that point? I am worried that they have boxed me into a corner...Purposely not reviewing me for HAMP, then sending me this offer, and once I dont send the trial payment on the one they sent, will it be forever gone and I will be up a creek? The trial payments for the offer they sent is due in 2 weeks so thats how long I have to sort all this out..

    Do they have me by the throat or is is worth fighting? I dont want to lost the home in the process.

    Thanks for any input.

    Havent seen this addressed anywhere so appreciate any feedback.. Dont want to lose my home but this mod they are offering is only 10% less than my original payment..Chump change..
  13. NiecyTown

    NiecyTown LoanSafe Member

    Hi Ironwoman, this evening June 25, 2012 I attended a "Help for Homeowner's Seminar" where you get to meet one on one with the bank rep. Well my experience this evening is I have a rental property, investor is Fannie Mae, I'm told that Fannie Mae is no longer doing non-owner loan modifications and was given the pep talk as to why a short sale would be beneficial to me. Well I filed bankruptcy and was discharged. I told the rep at Bank of America that I wasn't interested in doing a short sale, however, I see that you recently received one only months ago. So I'm wondering if this was told to me so that they don't have to do the paperwork in giving me a loan modification? I'm guessing yes this is why....anyone with advice or similar experience, please share. Thank you.
  14. ironwoman

    ironwoman LoanSafe Member

    I'm not sure that it is true that Fannie Mae is no longer doing non owner occupied mods. I suggest trying to get someone on the phone from Fannie Mae to verify this is "not true". Don't believe everything you hear at these seminars.
  15. NiecyTown

    NiecyTown LoanSafe Member

    Thank you for your quick response, I have put in a request on the fannie mae website to see if I can confirm this information. Also, did more research on line where an attorney states that it more costly to do a foreclosure than a loan modification, however, it doesn't seem to matter with the amount of foreclosures in every state. I will keep you posted. I know one thing, if I can get this loan modified with BOA; the first chance I get I will be looking for another bank...they are the pits and this is an understatement. I hope they go under
  16. NiecyTown

    NiecyTown LoanSafe Member

    I would contact a lawyer and ask this question someone that specializes in working with the banks on foreclosures etc and knows the loan modification inside out. Good Luck to you
  17. Chance?

    Chance? LoanSafe Member

    Hi Guys!

    I know this is an older thread, but still very important to me!

    Does anyone know if there are EVER exceptions made to the 2009 origination date for HAMP? We got our loan in Feb 2010 and I just got denied by Chase.

    Also, anyone ever heard of exceptions being made to include 2nd mortgages in the 31% 'housing cost' ratio? I just hit 31% on my 1st but go well over if you include my 2nd - which to me, is my total housing cost! Ya know!? Chase also cited this as a reason.

    Thanks anyone for your help. I have to admit I was totally devastated to get the denial call. I was really hoping for some help so I can keep my house. I hope I am not at the end of that road yet...

    Thanks again.

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