Hamp Tier 2

RoyaleC

LoanSafe Member
It is extremely difficult to form a response; I have no historical context from which to base the appeal. That means you must come to understand the basis, on then go on to form your own version of the points you wish to contest. While I can offer no insight into the programs they are denying you participation in, I can base my view to an appeal upon the seeming refusal to consider you for the HAMP...

A. Establish your belief of the review parameters
  1. OCWEN is a signatory to the HAMP, and as such, is obligated to abide by the dictates of the program, insofar as the program guidelines are allowable by Fannie Mae. Since Fannie does allow participation in the Tier1 component of the HAMP, it stands to reason you must have your application for mortgage assistance reviewed specifically for the HAMP. You can verify the information by visiting the website of Fannie and that should confirm their participation in the HAMP Tier1 program.
  2. This home is your principal residence and you own no other real estate
  3. You are married
  4. You file jointly on your tax return, therefore ALL income is household income (HAMP offers no guidelines to establish that the borrower must earn a wage and uses "Gross Household Income" and does not make reference to a distinction in income sources)
B. The Tier1 calculations
  1. The HAMP Tier1 attempts to make your PITI 31% of your gross income, provided this amount will amortize the Capitalized Unpaid Principal Balance (CUPB). In this case, the income is $6,698 and 31% of the income equates to $2,076.38.
  2. The floor interest rate (the lowest the HAMP Tier1 will allow) is 2%
  3. The duration of the loan can be extended up to 40 years (currently yours is based upon a 26.3 year loan)
  4. A set series of steps (Standard Modification Waterfall) are mandated for the HAMP Tier1 applicability calculation. These steps are to be calculated in a specific order to see if the loan can be modified within the HAMP Tier1:
    1. Calculate the Capitalized Unpaid Principle Balance (CUPB); $453,269.50
    2. Lower the interest rate to see if the payment to fully amortize the loan can be achieved ($2,076.38); 2% of CUPB=$1,848.07 plus the escrow of 588,26 for an amortizing payment of $2,436.33...this does not work so on to next step
    3. Term Extension up to 40 years, at the 36 year mark you loan amount would become fully amortizing with a monthly payment of $2,061
Here it can be plainly seen that an affordable payment can be achieved within the guidelines proffered by Fannie Mae in conjunction with the MHA HAMP. But other circumstances may prevail:
  1. This affordable payment has you paying against a larger balance, $453,269 versus the 370,000 you currently have
  2. Many times the amount not collateralized will be reduced to create an affordable monthly payment (Principle Reduction)
  3. Your prior modification may have been a HAMP and therefore you would not be eligible for the Tier1 HAMP
C. The Tier2 calculations
  1. The HAMP Tier2 attempts to make your post modification PITI up to 55% of your gross income, provided this amount will amortize the Capitalized Unpaid Principal Balance (CUPB).
  2. The interest rate is (today) 4.1%
  3. The term can extend up to 40
  4. Principle Reduction can be used to make it work
  5. The newly modified Principle and Interest payment cannot be greater than the prior Principle and Interest payment
As I see it, you fit the HAMP in both cases....However, you need to prepare your case by consulting the Handbook I listed earlier...it carries all the language you must/can use

Lastly, Georgia has funds (Hardest Hit Areas Fund) to assist homeowners:

https://www.homesafegeorgia.com

PS...You also want to fight the assignment of income since you are married filing jointly. And, get a quick part-time job and refile in 30 days due to a change in circumstance (you now earn at least part of the income used to sustain the mortgage).

Above all, no matter the outcome, put the normal mortgage payment to the side each month during this process (that is if you are not currently paying the mortgage)
 

jimi1962

LoanSafe Member
Thank you RoyaleC , really appreciate all your efforts. I will digest all this information and put together my letter of appeal after the review of this information and more research. I will also check the State of GA for the homeowner's assistance program.

Will update as it goes.

Thank you.

Jimi
 
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