HAMP Guidelines

Moe Bedard

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Loan Safe Mortgage
Aug 10, 2007
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One of the programs designed to help homeowners who are unable to keep up with their mortgage payments is known as the Home Affordable Modification Program. The Home Affordable Modification Program, more commonly referred to as HAMP, is essentially a debt reduction program that involves the government helping out in repaying a remaining loan balance. One of the main benefits of the program is the realization that mortgage payments will not exceed 38% of a homeowner’s gross income. In addition, homeowners, depending on their financial condition, may be eligible to receive $1,000 each year (for up to 5 years) that can be applied to a mortgage balance.

Borrower eligibility is based on meeting specific criteria including:

1) borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower's primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower's eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower's total pretax monthly income:

* First, reduce the interest rate to as low as 2%,
* Next, if necessary, extend the loan term to 40 years,
* Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

Note: Servicers may elect to forgive principal under HAMP on a stand-alone basis or before any modification step in order to achieve the target monthly mortgage payment.

There are multiple guidelines and requirements that must be fulfilled in order for a homeowner to be eligible for the Home Affordable Modification Program. The first guideline involves a requirement that the loan must have originated prior to January 1, 2009. This requirement was enacted to ensure that only those homeowners that experienced financial difficulties during the mortgage crisis were allowed to take advantage of the program.

In addition, the home associated with the program must be a homeowner’s primary residence. Homeowners must also provide proof of residence, preferably through a utility bill. Those who invest in property and receive passive income from investments are not eligible under the Home Affordable Modification Program.

A payoff maximum is also relevant for the program. The total payoff amount cannot exceed $729,750. Homeowners must also have a recent appraisal or one that is not older than 60 days. Borrowers must also provide proof of income level by submitting the appropriate IRS forms. Recent pay stubs may also be required. If a borrower’s total debt is more than 55% of the remaining loan balance, additional steps may be necessary, including a credit counseling session.

Links:

https://www.hmpadmin.com/portal/programs/hamp.jsp

https://www.hmpadmin.com/portal/programs/borrower.jsp

https://www.hmpadmin.com/portal/learningcenter/jobaids_npv.jsp

https://www.hmpadmin.com/portal/learningcenter/jobaids_reporting.jsp
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
0
0
Sacramento
anyone know an hmpadmin for the npv model v. 4? or understand the equations to rewrite it?

Within the Hamp guidelines, which seem much more official and serious about compliance then previous issues, I notice a
Has this been tested and verified that they suspend the sale (and not just push back 30 days ) -
Pg 52 of hand book
When a borrower submits a request for HAMP consideration after a foreclosure sale date has been scheduled and the request is received no later than midnight of the seventh business day prior to the foreclosure sale date (Deadline), the servicer must suspend the sale as necessary to evaluate the borrower for HAMP.

-Except 4 items, but especially this one- they have been turned down before

If so if you have never applied for hamp and your servicer is listed, they would have to suspend foreclosure with as little as 7 days?

Maybe printing out that page and qwr - ing it?
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
anyone know an hmpadmin for the npv model v. 4? or understand the equations to rewrite it?

Within the Hamp guidelines, which seem much more official and serious about compliance then previous issues, I notice a
Has this been tested and verified that they suspend the sale (and not just push back 30 days ) -
Pg 52 of hand book
When a borrower submits a request for HAMP consideration after a foreclosure sale date has been scheduled and the request is received no later than midnight of the seventh business day prior to the foreclosure sale date (Deadline), the servicer must suspend the sale as necessary to evaluate the borrower for HAMP.

-Except 4 items, but especially this one- they have been turned down before

If so if you have never applied for hamp and your servicer is listed, they would have to suspend foreclosure with as little as 7 days?

Maybe printing out that page and qwr - ing it?
Its on its way V.4.0 analytics and soon as its public we will be switching to it as well, I have seen it. I cant really say much more than that. I know the servicers are testing it now and have been for sometime. I also know GMAC is using it right now to pre qualify and get folks rolling into the program, the new waterfall introduced with the "PRA" Principal reduction Alternative looks good, but let's just see how it works. I will be keeping everyone posted in our thread below on the PRA minute its a GO, as im sure the world will know as well. And to think the media started saying get rid of HAMP all together?(just to get folks riled up i guess) because it only helped 800,000 people, last i checked that is a bit more than 0... lol
 

franklyspeaking

LoanSafe Member
Sep 3, 2009
349
3
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Lawrenceville,Georgia
I can only say two things about Charlie and the Rest Report,Wow and Wow and impressive! I've been fighting for 2 years to save both my home and my mother in laws home. After a long hard battle and doing everything asked she was denied due to failing the NPV test. I've become an expert at this out of no choice and had an auction on my home stopped 8 times so far but what Charlie and his team do and have is beyond comprehension. No I'm not a paid actor and in fact have not even finalized my report yet but the service given me by Charlie and Levi on his team has been first class. I emailed him last night,got an email back quickly at 11pm ! Next day (today) he calls me personally tells me everything I need to know,the process and what they are doing and how they do it. Nothing hidden,he and his team know their stuff. They are taking the "veil" off the process. Instead of guessing and hoping you gave the bank the right numbers their system tells you what the right numbers are but you have to be able to back them up. The info they got out of EMC and Chase in 15 minutes was more than I usually get in a month. They knew who to call ,what to ask and the reps didn't hestitate to give it or provide it or even find it if they had too! Is there an investment to make ? Yes......but well worth it ,it could have saved me 2 years of hell, emotional roller coasters and 3 am forum reading to just try to figure this stuff out . At a certain point you have to realize the bank see's your playing cards ,this lets you see theirs too and use it to your benefit and cut through the BS. I'm moving forward with the Rest Report along with my mother in law to save both our homes. Only this time I'll be doing it with knowledge and the power of the information they provide. Thanks Charlie and Levi,I look forward to finalizing this with you and updating here on the forum.

Frank Mullin
Lawrenceville, Ga
Loan With Chase
 

mimi2833415

LoanSafe Member
Jan 8, 2008
28
0
0
HAMP question

Hello:

My sister is presently on a HAMP trial with Ocwen. She received a a mod agreement to be sign & return by 5/1. Her monthly payment was lowered to 31% of her income. However, Ocwen is not lowering the original note interest rate of 9.550% Rate will be 9.550% for 25 years.
Is this correct? She says she read somewhere that HAMP modification adjusts interest rates to current market rates.
Should she bring this to Ocwen's attention? She is very nerveous about disputing anything.
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
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Sacramento
The interest rate changes the payment. I would not see how they lowered your sisters payment without lowering the interest rate, unless they extended the term (there was only 5 years left on her mortgage and they added 20 years) or reduce a lot of what she used to owe on the mortgage. It seems funny, and if you are in a hamp trail now, I bet the final number on a perm modification will have a lower interest rate. If they dont try to pull it out from under you.

SAVE EVERY DOLLAR IN THE BANk- dont pay off credit cards etc, the fight is not over. The interest rate should be capped by the 30 yr fixed avg posted by freddie mac.
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
I have a somewhat "different" situation - or maybe not - either way I need guidance. My current mortgage is through BOA - monthly payments based on income when my now ex and I applied in 2004. Ex and I divorced in 2010 - he was arrested and charged with a felony when I found a spycam and DVD that he made of my oldest daughter (then 19) in the bathroom and her bedroom. After divorce negotiations based on the premise that he "might" go to jail - I bought him out and deed is in my name only - however, mortgage is still in both names (he got probation but has a permanent felony conviction record). I have until 2/2012 to refi and have his name removed. I was laid off from my job of 12 years in November 2008 - just returned to work full time in November 2010. I carried the mortgage and all household related expenses - including supporting our now 10 year old daughter - completely alone utilizing savings. I get only child support (minimal) - no alimony - and now my savings is depleted. My income is not enough to maintain the household and I desperately want to save my home - for my little girl - and me. I applied to BOA for a modification through the HAMP program and was informed by a "negotiator" (who barely spoke English) that my investor does not participate in the modification program unless the loan is at least 30 days in default. I was shocked as this is exactly what I am trying to avoid. I was advised when I asked what my next step would be - that I had to show "need" by allowing the loan to default. I dont get that. I asked who my investor was - and was told that they only have a number and cant tell me. I found out through a link provided on this site that the investor is Federal Home Loan Bank of Boston. Please - can somebody point me in the right direction?? I need the modification ... and I need to get his name off the mortgage ... I'm desperate. Suggestions please????
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
0
0
Sacramento
Sorry to hear your situation and very proud of you to protect your family like you did.


As far as the loan, If you refinance or assume the loan you could get him off the mortgage. This is typically difficult because you lost half your income.
So let me ask
How much do you owe on the loan(s)
What are your monthly payments and does it include principal interest taxes and insurance?
how much do you make a month gross?
what is your credit score?
What is rent in the area?
why do you have until 2012 to get him off?

With this information we can check into if you can refi, assume the loan and/ or do a modification.
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
0
0
Sacramento
do you have MERS on your deed of trust? if so you should have a MIN:################## on the top of the deed of trust and possibly on your note (the loan documents signed for this loan that you were paying on) with that you may be able to look it up on the MERS website to see if FHLB is the investor or someone else pops up
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
Thank you - I am and always will be a Mom first and foremost - could've let him off the hook and made settlement "easier" ... but then he wouldnt have been held accountable for violating his step-daughter ... ugh ...

The principal balance on the mortgage is $170K +/- ... that includes principal, interest, taxes and insurance. My monthly gross is around $1500 - my credit score is excellent (ran my own credit report through all three entities last week - no bad remarks - never late - good) ... Rents in my area are typically around the same amount as my monthly mortgage payment - that's what's the kicker! I was given until 2012 to get him off of the mortgage because at the time the divorce was finalized - I was unemployed.


Sorry to hear your situation and very proud of you to protect your family like you did.


As far as the loan, If you refinance or assume the loan you could get him off the mortgage. This is typically difficult because you lost half your income.
So let me ask
How much do you owe on the loan(s)
What are your monthly payments and does it include principal interest taxes and insurance?
how much do you make a month gross?
what is your credit score?
What is rent in the area?
why do you have until 2012 to get him off?

With this information we can check into if you can refi, assume the loan and/ or do a modification.
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
do you have MERS on your deed of trust? if so you should have a MIN:################## on the top of the deed of trust and possibly on your note (the loan documents signed for this loan that you were paying on) with that you may be able to look it up on the MERS website to see if FHLB is the investor or someone else pops up
I checked on the MERS site and it said that the investor for my loan was FHLB ...
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
0
0
Sacramento
about FHLB i can not find much anything saying they participate in HAMP.

the court made it your obligation to get your ex off the loan? If you can tell them you cant will they force you to sell the house? if you sell it will you walk with money?

You said the amount owed was 170k what is the payment? From what I recall the property taxes in NJ is very high.

If it is the same for rent and everyone knows you can only count on yourself not on the modification I would like to make a suggestion.

Try for the modification, stay current and send in you modification. Try to get more income for the family (rent a room, second job, daughter helping with income).

BOFA got in trouble for telling people to be late so I am guessing calling in again you wont get the same answer.

How are you current up to this date? can you pay down the loan?
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
about FHLB i can not find much anything saying they participate in HAMP.

the court made it your obligation to get your ex off the loan? If you can tell them you cant will they force you to sell the house? if you sell it will you walk with money?

You said the amount owed was 170k what is the payment? From what I recall the property taxes in NJ is very high.

If it is the same for rent and everyone knows you can only count on yourself not on the modification I would like to make a suggestion.

Try for the modification, stay current and send in you modification. Try to get more income for the family (rent a room, second job, daughter helping with income).

BOFA got in trouble for telling people to be late so I am guessing calling in again you wont get the same answer.

How are you current up to this date? can you pay down the loan?

I am current on my payments up to now - my monthly payment is $1786 ... oh and I forgot to include the child support I get - $140/week ... not much but better than nothing ... I'm scared ... and I'm doing anything and everything to bring in more money ... not easy to do as sole custodial parent and babysitters charge about $10/hour ... I will keep contacting BOA until I drive them nutty? LOL Oh and if I sell - I might do a little better than break even in today's real estate market - and then I get to pay off all the other obligations I "inherited" in the divorce and settlement ... (I kinda feel as though I am paying for his criminal actions ... still ... ) ...
 

mojojojo_1

LoanSafe Member
Feb 8, 2010
107
0
0
Sacramento
Did you get a lawyer for the divorce? It sounds like you got the short end and he is at fault and I always heard the men get screwed...

The average time line for foreclosure is over a year. I cant find the article by the new york times to source it but that means something.
You have to be borrowing or using savings to make this payment.

If you make 1500 gross, and working 40 hours a week your babysitter at 10 an hour is making 1600 a month. This does not make any sense and does not add up to me.

DO not use all your savings, run up credit cards, borrow from family take out a loan on your 401k then lose the house.

Bother BOFA once a week. go to naca.com for more help
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
I did have an attorney - a good one - unfortunately the circumstances were such that his attorney used the criminal case as leverage ... and I was finally in a position where I either had to settle or let the case go to trial at significant cost in time, effort and attorney's fees. In other words - I got screwed.

Let me clarify one thing - I work from my home - which is truly adventageous - it allows me to be home for my little one - and at the same time I'm earning an income (albeit not alot of income) - if I were to accept a job (which I have been offered several over the past two years) outside of the home - in todays job market the offers are generally close to minimum wage or just above - babysitters charge $10/hour - for me to take one of those positions - I would end up having to spend money to work. Doesnt make sense. I am still looking though - wish the job market would get a little better ... been working since I was 14 and never had a problem getting a good job ... until now - and now I have my age working against me too. I have the experience but employers dont want to pay top dollar for that if they can get a hungry college kid to take the job for alot less money. Ugh ... thanks for your input ... will keep on BOA ... and keep you posted ...




Did you get a lawyer for the divorce? It sounds like you got the short end and he is at fault and I always heard the men get screwed...

The average time line for foreclosure is over a year. I cant find the article by the new york times to source it but that means something.
You have to be borrowing or using savings to make this payment.

If you make 1500 gross, and working 40 hours a week your babysitter at 10 an hour is making 1600 a month. This does not make any sense and does not add up to me.

DO not use all your savings, run up credit cards, borrow from family take out a loan on your 401k then lose the house.

Bother BOFA once a week. go to naca.com for more help
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
New HAMP program soon guys!!! We will be using it and I'll post about it asap, but got word it's "soon" introducing a new waterfall, GMAC is pre qualifying for "PRA" now.. Let's hope it works better than this last version of HAMP I mean 100 is more than 0 so I don't care HAMP projection was wrong long as home owners are getting help. Soon as I know more you will as well!!
 

Hopeful In Hawaii

LoanSafe Member
Apr 10, 2010
595
2
0
I have a question about a HAMP modification contract verses an "in-house"

Does HAMP allow or require this provision in their contract:


"In consideration of this Modification, Borrower agrees that if any document related to the Security Instrument, Note and/or Modification is lost, misplaced, misstated, inaccurately reflects the true and correct terms and conditions of the loan as modified, or is otherwise missing, Borrower will comply with Lender's request to execute, acknowledge, initial and deliver to Lender any documentation Lender deems necessary. If the original promissory note is replaced the Lender hereby indemnifies the Borrower against any loss associated with a demand on the original note. All documents Lender requests of Borrower shall be referred to as Documents. Borrower agrees to deliver the Documents within ten (10) days after receipt of Borrower of a written request for such replacement."

If so , why would they?

This sure sounds like it requires waving any future requirement for the servicer or investor ( or whoever )
to have correct documentation to prove ownership and right to foreclose.
 

ellenfree

LoanSafe Member
Mar 8, 2011
8
0
0
NJ
Forgive my ignorance - but ... what is "PRA"??? I'm grasping at straws here ... I need to do something and BOA sent me a letter (form letter with a checked off box) stating that my request has been denied. No explanation - just that - and trying to reach them is ... well, you all know how that goes ...

Guidance please?



New HAMP program soon guys!!! We will be using it and I'll post about it asap, but got word it's "soon" introducing a new waterfall, GMAC is pre qualifying for "PRA" now.. Let's hope it works better than this last version of HAMP I mean 100 is more than 0 so I don't care HAMP projection was wrong long as home owners are getting help. Soon as I know more you will as well!!
 

gmazz

LoanSafe Member
May 7, 2009
98
0
6
Charlie, many thanks for all your great info. . .do you have any updates on GMAC pre qualification for "PRA"? Oh, and how do I get to the MERS site to find who investor is?. . .sorry if this is posted in wrong format. . .God Bless you!
 

leonam

LoanSafe Member
Aug 4, 2009
21
0
0
New HAMP program soon guys!!! We will be using it and I'll post about it asap, but got word it's "soon" introducing a new waterfall, GMAC is pre qualifying for "PRA" now.. Let's hope it works better than this last version of HAMP I mean 100 is more than 0 so I don't care HAMP projection was wrong long as home owners are getting help. Soon as I know more you will as well!!
I am supposed to be faxing documents today to GMAC for mod we have until 3/30 though. Should I wait a bit longer to see about the new program? We've been at this since 2008 with them and I am just worn out by this. We have a "projected" foreclosure sale date of 5/23. We are just hoping to prolong it a few months. Thanks for any info!