Hamp Tier 2

lwillhite

LoanSafe Member
Hello paches,

The loan will be re-evaluated after the end of the 12 month period, but that may not be such a good thing.

If you are still unemployed, it's highly unlikely that you will be given a permanent modification, especially since most states have seen a cutback in the amount of time you can receive unemployment benefits. You will be reviewed for HAMP, and possibly a Shared Appreciation Modification (SAM).

A SAM reduces delinquent customers' principal owed but also compels them to share some of the appreciation with the mortgage's owner (not the servicer) if the house increases in value by the time they sell or <NOBR>refinance</NOBR> it. The principal of the loan is written down to 95% of the current market value of the home. The written-down portion is forgiven in one-third increments over the next three years, so long as the homeowner stays current on the modified mortgage. When the house is later sold or refinanced, the borrower must share 25% of the appreciation with the investors that own the loan; borrowers keep 75% of the gain.

Still, if there is no stable verifiable form of income in the home, there's also a very good chance that they will return the loan to normal servicing and collections. That would be anything but good news. It's definitely a case of hope for the best but prepare for the worst.

Tim Trumble
Online Operations, NACA
[email protected]
 
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paches

LoanSafe Member
Not good.. but here is some additional info that better explains my financials. My wife has her full income and I have another year of unemployment. Nationstar (was Bofa mortgage), has stated they want to proceed with a permanent mod, I said I wanted to first evaluate my options. I was hoping for a 2% forty year but even with this it doubles the present payment. So, my assumption would be they would go for another 12 month HAMP mod. But I can't see themm offering a HAMP review.
 

Cat Damiano

Mortgage Wars
Hello paches,

The loan will be re-evaluated after the end of the 12 month period, but that may not be such a good thing.

If you are still unemployed, it's highly unlikely that you will be given a permanent modification, especially since most states have seen a cutback in the amount of time you can receive unemployment benefits. You will be reviewed for HAMP, and possibly a Shared Appreciation Modification (SAM).

A SAM reduces delinquent customers' principal owed but also compels them to share some of the appreciation with the mortgage's owner (not the servicer) if the house increases in value by the time they sell or <nobr>refinance</nobr> it. The principal of the loan is written down to 95% of the current market value of the home. The written-down portion is forgiven in one-third increments over the next three years, so long as the homeowner stays current on the modified mortgage. When the house is later sold or refinanced, the borrower must share 25% of the appreciation with the investors that own the loan; borrowers keep 75% of the gain.

Still, if there is no stable verifiable form of income in the home, there's also a very good chance that they will return the loan to normal servicing and collections. That would be anything but good news. It's definitely a case of hope for the best but prepare for the worst.

Tim Trumble
Online Operations, NACA
[email protected]
HI Tim,


Steve is with Nationstar and they do not offer the SAM Modification, only Ocwen has at this time.
 

Cat Damiano

Mortgage Wars
Cat.. I found this. So I'm to understand that if I made the 12 months program payments and I am still unemployed I can then evaluated for eligibility under HAMP again???

....Provides 12 month forbearance assistance to unemployed. Servicers are required to offer forbearance assistance to unemployed homeowners for 12 months. When the borrower gains employment or the 12 months have expired, they will be evaluated for eligibility under HAMP.

I am confused????

Thks, Steve
Hi Steve,

Just an FYI, it is only necessary to post your question once on one thread as Evan and I do get email alerts to every question or thread that is posted on this forum.

In answer to your question, HAMP Tier 2 is the modification program, the HAMP UP Forbearance is its own program.

According to the guidelines;

Duration

The minimum UP forbearance period is the lesser of 12 months or upon notification that the
borrower has become re-employed. Servicers should establish procedures for tracking borrowers’
employment status and include any applicable borrower instructions in the FPN, as described
below. There is no maximum forbearance period; however, servicers are not required to offer
forbearance for a term that would cause the dollar amount of the borrower’s delinquency to
exceed 12 months of the borrower’s scheduled monthly mortgage payment (which includes taxes
and insurance for those loans where such expenses are escrowed).

Extension

Servicers may extend the minimum forbearance period in increments at the servicer’s discretion.
Any borrower eligibility review or recertification documentation requirements that may apply after
the initial forbearance period are at the servicer’s discretion. Borrowers in an active UP
forbearance plan as of October 1, 2011, must, prior to the expiration that plan, be considered for
an extension of UP for a minimum of 12 months of unemployment assistance, including UP and
Non-MHA Unemployment Assistance.

HAMP Eligibility after UP Forbearance

Borrowers should be considered for a HAMP Tier 1 or Tier 2 modification following reemployment
or expiration of the forbearance period as follows:

 A borrower who, while making timely payments in a prior HAMP Tier 1 TPP became
unemployed and requested UP forbearance, is eligible for re-consideration for HAMP Tier
1 on that mortgage loan.
 A borrower who experienced a payment default in a prior HAMP Tier 1 TPP or who lost
good standing in a prior HAMP Tier 1 permanent modification is eligible for consideration
for HAMP Tier 2 on that mortgage loan.
 A borrower who, while making timely payments in a prior HAMP Tier 2 TPP became
unemployed and requested UP forbearance, is eligible for re-consideration for HAMP Tier
2 on that mortgage loan.
 A borrower who experienced a payment default in a prior HAMP Tier 2 TPP or who lost
good standing in a prior HAMP Tier 2 permanent modification is not eligible for reconsideration
for HAMP and should be considered for other available loss mitigation
options including HAFA on that mortgage loan.

Consideration of HAMP Eligible Borrowers after Forbearance

At the earlier of 30 days following notification that the borrower has found employment or 30 days
prior to expiration of the forbearance period, the servicer must provide a HAMP-eligible borrower
with an Initial Package of HAMP documents and, upon receipt of an Initial Package from the borrower, must evaluate the borrower for HAMP. Both the borrower and the servicer must adhere to the timing and notice requirements. The servicer may extend the forbearance period by a maximum of 30 days as needed to allow the borrower time to submit the needed documentation. A borrower that has obtained employment during or after an UP forbearance plan or Non-MHA Unemployment Assistance, but still has a financial hardship and otherwise meets HAMP eligibility criteria, must be considered for HAMP (Tier 1 and/or Tier 2) prior to consideration of other loss mitigation alternatives.

If the borrower is determined to be ineligible for HAMP or other home retention options, the
borrower must be considered for other foreclosure alternatives, such as HAFA or other short sale
and deed-in-lieu programs.

When evaluating a borrower for HAMP and calculating the borrower’s total monthly mortgage
payment ratio prior to the modification, the borrower’s monthly gross income must include the
new employment income as verified by an offer letter, first pay stub or other documentation
consistent with the judgment employed by servicers when modifying mortgage loans held in their
own portfolio. Any missed payments prior to and during the UP forbearance plan should be
capitalized as part of the standard HAMP modification process.

While servicers must consider borrowers for UP eligibility through the December 31, 2015
program cut-off date, borrowers in UP who do not meet the HAMP, 2MP or HAFA program cut-off
dates described in the respective Chapters II, IV and V of this Handbook will not be eligible for
those programs and, upon re-employment or the expiration of the UP forbearance period, must
be considered for other available loss mitigation options.
 
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Cat Damiano

Mortgage Wars

paches

LoanSafe Member
Hi Cat,
Thanks so much for the info, and sorry for the duel posting, I'm starting to bounce off the walls thinking about what my options are. And as I read, not many.

So I'm hoping if 1) President Obama gets Congress to pass an extension of the Emergency Unemployment Compensation program for the remainder of 2014, thus allowing my EDD income to remain in-tacked (at least my wife has a good job). And 2) Come April/May when my present Forbearance agreement is coming to a close, NationStar offers to extend it... allowing me more breathing room to find a permanent job (who knows, miracles do happen). NationStar called last week, mentioning a want to offer a permanent loan modification but I said; as I'm just in my 9th. payment out of the 12, and I'd get back to them.

So I'm out shopping for information and enlightenment to the issue at hand. I just found out from Tim Trumble, Nationstar does not offer the SAM Modification. So that's, one idea down.

Question for anyone that has gone thru this with NationStar. I'd like to here about your endeavors with the NationStar people and outcome. Did anyone get a 2%/40 year with the deficient funds owed tacked on the end of their loan? Also, being in California, do I have any more options than people in other states?

Penny for your thoughts....

Thks,Steve
 

Cat Damiano

Mortgage Wars
Hi Cat,
Thanks so much for the info, and sorry for the duel posting, I'm starting to bounce off the walls thinking about what my options are. And as I read, not many.

So I'm hoping if 1) President Obama gets Congress to pass an extension of the Emergency Unemployment Compensation program for the remainder of 2014, thus allowing my EDD income to remain in-tacked (at least my wife has a good job). And 2) Come April/May when my present Forbearance agreement is coming to a close, NationStar offers to extend it... allowing me more breathing room to find a permanent job (who knows, miracles do happen). NationStar called last week, mentioning a want to offer a permanent loan modification but I said; as I'm just in my 9th. payment out of the 12, and I'd get back to them.

So I'm out shopping for information and enlightenment to the issue at hand. I just found out from Tim Trumble, Nationstar does not offer the SAM Modification. So that's, one idea down.

Question for anyone that has gone thru this with NationStar. I'd like to here about your endeavors with the NationStar people and outcome. Did anyone get a 2%/40 year with the deficient funds owed tacked on the end of their loan? Also, being in California, do I have any more options than people in other states?

Penny for your thoughts....

Thks,Steve
Actually it was me who pointed that out to Tim. As we have seen, that program, other than perhaps going through NACA would be the only programs that we have seen that offered the fixed 2 percent rate. These programs also figure the payment percentage to gross income, similar to HAMP criteria to create affordable payments. However, NACA utilizes more information in their affordability budget to achieve that payment, so their program is a more long term solution.

You should definitely communicate with Nationstar on the extension now since there are only two more months left on the forbearance.

Also if you go to the Google Search bar at the top right of the page you can type in Nationstar and be able to search the threads of those that are posting about their experience with this servicer.

Good Luck and please keep us posted on how it goes.
 

jimi1962

LoanSafe Member
Hello,

I need help with Ocwen Mortgage Bank. I have just been denied a loan modification. My first loan mod was from Indymac bank in 2010. Loan is now owned by Ocwen since 2013. Have never missed any payments since the first modification by Indymac in 2010. May I also state that my mortgage payment also included monthly PMI (Private Mortgage Insurance).

In July 2014, Ocwen decided to increase my mortgage payment with extra $70.65/month. I am not able to afford this extra mortgage as we have only one income household.

I spoke at length with Ocwen as am not able to afford this extra payment. I was adviced to apply for Loan Mod. Few days ago, I received a call from my relationship that my modification was denied due to high income and that the income earner was not a Co-owner of the loan. My spouse is the only income earner.

My questions now are can:
1. I appeal this and how do I apply for the HAMP TIER 2?
2. I also read on this board about Ocwen SAM Loan Modifcation. Can I get more information on this program and how to get qualified for it.
3. Should I contact NACA for help. Can NACA handle this type of situation?
4. Any other organization that might help out there?

I have missed one month of mortgage payment. Should I pay this without the extra charge as I cannot afford the extra amount added to my mortgage.

Thanks
 

RoyaleC

LoanSafe Member
Slightly confusing....

1. The increase may be due to: a schedule of payments that included an increase in the interest rate after a set period of time (usually 5 years); an increase in your escrow amount due to increased insurance or property taxes; or some other factor
2. If this is your home, your application will be reviewed for Tier 1 and if deemed not qualified, the Tier 2 review is automatic (you do not need to request it, only verify that it was done)
2. SAM is Shared Appreciation and is OCWEN's proprietary program...Servicers/lenders are required (supposed) to review for HAMP then proprietary programs, then foreclosure alternatives (HAFA). This modification will allow the servicer to participate in any appreciation in property value if you dispose of the property before the loan is extinguished.
3. I have heard mixed results about NACA....However, the rules that govern how the servicers are supposed to operate is contained in the Handbook for Servicers of Non-GSE Mortgages, v4.4 as amended by Supplemental Directives. In this case, OCWEN cannot deny non-borrower contributions if the proper documentation is provided (Non-Borrower Certification and Non-Borrower Authorization form).
4. For Tier 1 calculate 31% of your income and this is the amount they want to achieve for a fully amortizing modification. If your payment is less than this amount already, you will not qualify due to excessive income. Tier 2 has a broader range (DTI ranges from 10% to 55%) for OCWEN. However, the interest rate is linked to the Primary Mortgage Market Survey (PMMS) in effect at the time of your modification (currently 4.1%); therefore your rate can start at 2% for 5 years and step up in increments of 1% per year until you reach the PMMS rate in effect when you got the modification
5. Your spouse's income is household income, therefore, the appeal should stress this fact and provide the Non-Borrower Certificate if deemed appropriate. This may be a case where OCWEN has misunderstood your financial circumstances.

There could be more, but you did not provide enough information to determine any concrete recommendations except to stress the reading of the Handbook.
 

jimi1962

LoanSafe Member
Thank you RoyaleC, that was really detailed, although complicated a bit for a novice like me. Could you please let me know the information you needed in order to give me a better advice. As I have mentioned, the letter of denial from Ocwen specifically stated:

1. We are unable to offer you a Mod 24 modification because: The investor of your loan requires at least some of the household income to come from borrower(s) but the only qualifying income is from non-borrowers. Please note, not all eligibility factors were evaluated.

2. We are unable to offer you a Fannie Mae Capitalization and Extension modification because: This program is only for a temporary or resolved hardships but we have determined that your financial hardship is not temporary one or has not yet been resolved.

As to the #1 reason, my husband is the only income earner and the house was purchased before we got married. We are unable to refinance to include his name because the house is about $90,000.00 under water. So it is impossible to refinance. My husband completed a NON-BORROWER CONSENT FORM with the modification paperwork, so I do not understand why his income will not count.

As for #2 reason, I really do not understand what Ocwen means by that based on the information submitted to them.

I Will like to appeal this decision as I am allowed to within 30 days. I really do need help with this appeal. Any information on how to approach this will be greatly appreciated.

If you need any further information from me, please let me know.

Thank you for your help.

Jimi
 

RoyaleC

LoanSafe Member
Thank you RoyaleC, that was really detailed, although complicated a bit for a novice like me. Could you please let me know the information you needed in order to give me a better advice. As I have mentioned, the letter of denial from Ocwen specifically stated:

1. We are unable to offer you a Mod 24 modification because: The investor of your loan requires at least some of the household income to come from borrower(s) but the only qualifying income is from non-borrowers. Please note, not all eligibility factors were evaluated.

2. We are unable to offer you a Fannie Mae Capitalization and Extension modification because: This program is only for a temporary or resolved hardships but we have determined that your financial hardship is not temporary one or has not yet been resolved.

As to the #1 reason, my husband is the only income earner and the house was purchased before we got married. We are unable to refinance to include his name because the house is about $90,000.00 under water. So it is impossible to refinance. My husband completed a NON-BORROWER CONSENT FORM with the modification paperwork, so I do not understand why his income will not count.

As for #2 reason, I really do not understand what Ocwen means by that based on the information submitted to them.

I Will like to appeal this decision as I am allowed to within 30 days. I really do need help with this appeal. Any information on how to approach this will be greatly appreciated.

If you need any further information from me, please let me know.

Thank you for your help.

Jimi

In a nutshell...

A Mod 24 is a Fannie Mae loan workout option...therefore the following needs to be discussed...

  1. What is the reason for your inability to work? If it is a part of your hardship, that needs to be detailed in addition to the prospects for your return to work...This is important in that the requirement for compliance within the program ratios the current mortgage payment against your income and whether it is more than 31% (this ratio is particular to the Tier 1 application only); therefore, if you have not income, you will not qualify, unless it is for the unemployment program...you must have a reason for not having an income
  2. Fannie Mae allows loan workouts on the homeowner's principal residence within the HAMP Tier 1 Program. The HAMP Tier 1 allows for a differing set of criteria. Therefore, your 1st option needs to seek accommodation within this particular HAMP program and not the proprietary program.
  3. A proprietary program, that is not a part of the Making Homes Affordable, need make no concession it does not deem appropriate...in effect, it sets the terms and conditions; requiring the homeowner be employed may or may not be within the scope of their decisions for their particular programs or, as indicated, the demands of the Investor.
  4. HAMP language, while specific, does indicate an Investor can override any particular decision; even though it is actually in the financial benefit of the Investor, they can nix a deal (this does not obviate either the limits agreed to in the Pooling and Servicing Agreement between the Investor and the servicing entity or the Pooling and Servicing Agreement between the servicing entity and the management entity for the Making Homes Affordable (HAMP)
  5. You will be greatly helped by understanding the program stipulations as contained within the Handbook for Servicers of Non-GSE Mortgages, v4.4 as amended by Supplemental Directive. Fannie Mae does comply with the Tier 1 aspect of the HAMP (a program to assist homeowners only with their principle residence). The Handbook can be downloaded from here: https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/mhahandbook_44.pdf
Information needed:
  1. Exact status loan...Original date of loan, interest rate, type (ARM, fixed), term (15 year, 30 yr), unpaid principal balance (upb), number of months in arrears, current principal and interest payment
  2. Income (any other forms of household income or contribution)...in all cases, provide Gross
  3. Home...State, property tax, insurance, other monthly fees or assessment (association dues or other assessment attached to the home)
  4. Other loans (HELOC, etc)
  5. State or Federal tax liens
  6. Cut-off date to contest the decision
This information will allow a calculation of the HAMP Tier 1 feasibility..

I'm sorry this information is so confusing and seemingly daunting. However, the totality of information is proportional to the degree of difficulty associated with a particular loan. In your case, you have a Fannie Mae loan seeking the best circumstance, which appears to be the HAMP Tier 1 adjustment. Therefore, you have two sets of criteria that sometimes intermingle. While you may need help, that help will be better served if you have a more comprehensive understanding of the programs, stipulations and criteria, that are available to you.

Also, this information may be incomplete as I have only a short period of time per day to address issues such as these; but I am glad to offer whatever assistance I can.

I will log on again on Thursday...
 

RoyaleC

LoanSafe Member
PS..do you and your husband file a joint return?
 

jimi1962

LoanSafe Member
Thank you RoyaleC,

I admit this is really complicated and daunting for me, however, I will try my very best to provide you information needed as possible. Please pardon me if I left out any pertinent information.

Information needed:

Answers Provided below:
  1. Exact status loan...Original date of loan, interest rate, type (ARM, fixed), term (15 year, 30 yr), unpaid principal balance (upb), number of months in arrears, current principal and interest payment
In August of 2010, I was approved for a loan modification by me then servicer, Indymac Bank at 3% fixed interest rate for 5 years. The original date of the loan was April 2005 with loan amount of $425,000.00. This loan was purchased by Ocwen in September 2013. Everything stays the same, until June 2014 when my mortgage was increased by $77.00 a month from $2278.00 to $2355.00. Reason was escrow account need to be increased. I have only been late for one month. I have tried to refinance the house, but has been unable because the house was appraised for only $324000.00 and with 3% interest rate, it's impossible.

2. Income (any other forms of household income or contribution)...in all cases, provide Gross
Our combined gross income before my loss of income 2 months ago was $8333.00. My business folded up 2 months ago due to losses, so current gross income is $6698.

3. Home...State, property tax, insurance, other monthly fees or assessment (association dues or other assessment attached to the home)
Property tax is included in the mortgage. Property Insurance is $98.75/Month. Other monthly fees is $31.25.
  1. Other loans (HELOC, etc) - None
  2. State or Federal tax liens - No
  3. Cut-off date to contest the decision - 30 days - Denial letter was dated August 14, 2014
  4. Yes we filed joint tax return.

Hope the above information helps to start with. If you need any further information, please let me know.

Thank you so much for your help.

Jimi
 

Hopefull2009

LoanSafe Member
Tier 2 has a broader range (DTI ranges from 10% to 55%) for OCWEN. However, the interest rate is linked to the Primary Mortgage Market Survey (PMMS) in effect at the time of your modification (currently 4.1%); therefore your rate can start at 2% for 5 years and step up in increments of 1% per year until you reach the PMMS rate in effect when you got the modification
Hi RoyaleC,

Although I'm not the orig poster, I did notice the information you included in your HAMP Tier 2 comment. My understanding is and has been that under Tier 2, the rate is not able to go under the PMMS in effect at the time of the modification. Has this changed recently? I'm currently in Tier 2 TPP. My understanding is the changes made to Tier 2 only included the exclusion that payment be reduced by at least 10% and exclusion of the 0.50 risk assessment added. Can you tell me where you found the info regarding the interest rate allowed to start below (i.e. 2% ) the PMMS? This would be absolutely wonderful, but I'm not finding anything to confirm this? Thanks!
 

RoyaleC

LoanSafe Member
I use a calculation program that compiles information to determine the ratio's based upon the information you provide. One calculation will show how much income you need in order to pay off your mortgage. This calculator also shows if your income can result in an affordable payment via the HAMP Tier 1 or Tier 2. So far, you have not provided information sufficient to use this calculator. Please provide the following:

2010...What was amount used as Capitalized Unpaid Principal Balance (in other words, what was the amount of this newly modified loan)? What was the term (number of years) of this newly modified loan? What is the prior (before $77 increase) dollar amount of the escrow (property tax and insurance are the escrow)? What are the terms after the 5 years are over?​

As indicated your current MDTI (Mortgage Debt to Income) is 35.2%. This is above the HAMP Target Ratio of 31%. If the HAMP Tier 1 ratio were applied to your situation, the result should be a fully amortizing payment of $2,076.38. My calculations are that $2,076.38 will fully amortize a $425,000 mortgage at 3% over 35 years (HAMP allows for the length of the loan to be extended out to 40 years)...

There is also the possibility of some Mark-to-Market (Principal Reduction, PR) to assist conforming the loan to compliance. However, bearing information not know at this time, it appears you are able to pay on the entire loan without PR since this is always the last item on the list.

Since your income ceased two months ago, and provided you had previously submitted a request for assistance, you effectively have a Change in Circumstance with which to ask for a new review. The problem is that this is a Fannie Loan and you must find out from the Servicer time periods to submit an altered request (one lender specified that Fannie would not allow a change until 30 days had passed). You must ask the servicer to explain their requirements and how do you become compliant.

Also, it appears the information you provided may have clouded the true picture: Your indicated income should have been supported by a non-borrower contributor to make up the difference in the gross necessary to pay your loan. Since you file a joint return, this money should be considered as the household income. I must admit I have never experienced a situation where the borrower had not one source of income be it unemployment, disability, or other form of income; but even in that case, I assume the fight is to have your mates income viewed as household income...stress the filing of the joint return as evidence of household income. The following is quoted from the regulations concerning HAMP Tier 1:

5.1.9 Non-Borrower Household Income

For purposes of this Section, a non-borrower is someone who is not on the original note (and may
or may not be on the original security instrument), but whose income has been relied upon to
support the mortgage payment. Non-borrower household income that may be considered for
HAMP (Tier 1 or Tier 2) qualification must come from a person who resides in the borrower’s
principal residence and supports the borrower’s ability to pay the mortgage on the subject
property. Examples include a non-borrower spouse, parent, child or a non-relative, but in each
case, a person who shares in the occupancy of the borrower’s principal residence and provides
some support for the household expenses.

Servicers should include non-borrower household income in monthly gross income if it is
voluntarily provided by the borrower and if, in the servicer’s business judgment, that the income
reasonably can continue to be relied upon to support the household. Non-borrower household
income included in the monthly gross income must be documented and verified by the servicer
using the same standards for verifying a borrower’s income. The servicer must verify the
occupancy of a non-borrower in the same manner it verifies the occupancy of a borrower under
Section 5.3 after obtaining written authorization from the non-borrower to obtain the nonborrower’s
credit report.

The reason I need to know the state is to see if you have other assistance available to you through a state run program under the Hardest Hit Areas fund. There are currently 18 states and the District of Columbia providing federal assistance via this program.
 

RoyaleC

LoanSafe Member
Hi RoyaleC,

Although I'm not the orig poster, I did notice the information you included in your HAMP Tier 2 comment. My understanding is and has been that under Tier 2, the rate is not able to go under the PMMS in effect at the time of the modification. Has this changed recently? I'm currently in Tier 2 TPP. My understanding is the changes made to Tier 2 only included the exclusion that payment be reduced by at least 10% and exclusion of the 0.50 risk assessment added. Can you tell me where you found the info regarding the interest rate allowed to start below (i.e. 2% ) the PMMS? This would be absolutely wonderful, but I'm not finding anything to confirm this? Thanks!
All HAMP programs are reflective of the PMMS...in the case of the Tier 1, wherever the rate starts, it can go no higher then the PMMS at the time of the modification; in the case of Tier 2, it starts at that rate. The response you indicated was directed to one loan situation that only embraces the Tier 1 aspect of the HAMP.

So, this was/is a miscommunication on my part, I meant to put that sentence in parenthesis. It should have read:

For Tier 1 calculate 31% of your income and this is the amount they want to achieve for a fully amortizing modification. If your payment is less than this amount already, you will not qualify due to excessive income (Tier 2 has a broader range (DTI ranges from 10% to 55%) for OCWEN). However, the interest rate is linked to the Primary Mortgage Market Survey (PMMS) in effect at the time of your modification (currently 4.1%); therefore your rate can start at 2% for 5 years and step up in increments of 1% per year until you reach the PMMS rate in effect when you got the modification​
 

jimi1962

LoanSafe Member
Hello RoyaleC,

I am sorry to just be getting back to reply to this post, have been sick with IBS due to all this stress. My apology please. I have also been tied up gathering information to appeal the denial of my modification.

To answer your request:


1. 2010...What was amount used as Capitalized Unpaid Principal Balance (in other words, what was the amount of this newly modified loan)?
ANSWER: The agreement stated:
"As of 6/24/2010, the amount payable under the Note and the Security Instrument (the unpaid principal balance)is $453269.50, consisting of unpaid amount(s) loaned to Borrower by Lender plus any interest and other amounts capitalized.
$83,269.50 of New Principal Balance shall be deferred (the Deferred Principal Balance) and I will not pay interest or make monthly payment on this amount. The New Principal Balance less the Deferred Principal Balance shall be referred to as the "Interest Bearing Principal Balance and this amount is $370,000.00.. Interest will be charged on the Interest Bearing Principal Balance at the yearly rate of 3.0000% from 8/1/2010. Borrower promises to make monthly payments of principal and interest of $,1695.05, beginning on 9/1/2010. The yearly rate of 3.0000% will remain in effect until the Interest Bearing Principal Balance and all accrued interest thereon have been paid in full. The new Maturity Date will be 12/1/2036.

Upon the modification agreement becoming binding and effective the mortgage will be modified to reflect the following terms:
~ The modification makes your last payment due on: 12/1/2036
~ Your monthly principal and interest payment will change to: $1,695.05
~Your estimated monthly escrow/impound payment is: $588.26
~ Your proposed estimated total monthly payment is: $2283.31

My located in the State of Georgia.

Note: The reasons stated for denying my loan modification are:
1. We are unable to offer you Mod 24 modification because: The investor of your loan requires at least some of the household income to come from borrower(s) but the only qualifying income is from non-borrowers
2. We are unable to offer you a Fannie Mae Capitalization and Extension modification because: This program is only for temporary or resolves hardships but we have determined that your financial hardship but we have determined that your financial hardship is not a temporary one or has not yet been resolved. Please note, not all eligibility factors were evaluated.

Due to the reasons above, I was denied the modification, could you also please give me an insight into how to appeal this case based on all the information I provided. Do I have any recourse to even appeal? I have till September 12, 2014 to appeal to Ocwen.

Thank you so much for your help. Once again, I apologize for not supplying you all these information earlier. So much stress and health problem.

Jimi.
 
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