Principal Reduction Timeline

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
Anyone know the timeframe for the $5000 principal reduction to be applied once the certification is sent to the Treasury? We're planning to refi but, we don't want to lose the $5K by doing it prematurely. Also, how would we check to see if the servicer ever submitted and applied the yearly $1K reduction during the first 5 or 6 years?

Many thanks for any insights. It's been a long and perilous road in the past 7 years
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,827
463
1,000
48
Southern California
www.loansafe.org
Hello,

The $1,000 a year incentive with an additional $5,000 bonus to borrowers who have been able to keep their modified mortgages current for a period of six years. This incentive is a $5,000 lump sum principal balance reduction from the outstanding mortgage principal balance.
 

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
Hello,

The $1,000 a year incentive with an additional $5,000 bonus to borrowers who have been able to keep their modified mortgages current for a period of six years. This incentive is a $5,000 lump sum principal balance reduction from the outstanding mortgage principal balance.
Although I appreciate the reply, the question is, how long after the servicer submits the certification to the Treasury does it take to actually apply the $5K reduction to the principal? Couple days, weeks, months?
 
  • Like
Reactions: NeedAdvise

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,827
463
1,000
48
Southern California
www.loansafe.org
I'm not sure. There is no research and or data that I can find detailing this information.
 

NeedAdvise

LoanSafe Member
Jul 14, 2010
36
4
8
Although I appreciate the reply, the question is, how long after the servicer submits the certification to the Treasury does it take to actually apply the $5K reduction to the principal? Couple days, weeks, months?
Make sure they mail you a Dodd frank form to sign or you may not get it.The form has to be sent to them within 30 days of your 6th year aniversary. I had a hard tiem getting them to send me mine. I am mailing certified mail with return receipt it out this week.
 

NeedAdvise

LoanSafe Member
Jul 14, 2010
36
4
8
Although I appreciate the reply, the question is, how long after the servicer submits the certification to the Treasury does it take to actually apply the $5K reduction to the principal? Couple days, weeks, months?
The incentive are suppose to post exactly on your first trial payment anniversary date. If they submit it late it will likely post late but they can credit your account and change the effective date of each payment.The 5,000 should also post on the trail payment anniversary date and not any other anniversary date. In my case Freddie mac has sent bulletins out to confirm the "trial payment start date" is the effective date. You should also get an offer to reset your loan at the new balance after the 5,000 incentive has posted for no charge not any fees. If one pays off loan prior to the incentive they can not get it.
 

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
The incentive are suppose to post exactly on your first trial payment anniversary date. If they submit it late it will likely post late but they can credit your account and change the effective date of each payment.The 5,000 should also post on the trail payment anniversary date and not any other anniversary date. In my case Freddie mac has sent bulletins out to confirm the "trial payment start date" is the effective date. You should also get an offer to reset your loan at the new balance after the 5,000 incentive has posted for no charge not any fees. If one pays off loan prior to the incentive they can not get it.
This is so annoying, OCWEN dropped the ball 8/15, didn't get the notice until 10/15 when the loan was being transferred to NationStar. THEY didn't know anything about it and claimed they were "researching it". Submitted the Dodd/Frank release and NS didn't submit it to treasury until 4/21/16 and said it takes 60-90 days!
PLUS, I have no records showing if OCWEN EVER applied for the $1K reductions on earlier anniversaries
 
  • Like
Reactions: NeedAdvise

NeedAdvise

LoanSafe Member
Jul 14, 2010
36
4
8
This is so annoying, OCWEN dropped the ball 8/15, didn't get the notice until 10/15 when the loan was being transferred to NationStar. THEY didn't know anything about it and claimed they were "researching it". Submitted the Dodd/Frank release and NS didn't submit it to treasury until 4/21/16 and said it takes 60-90 days!
PLUS, I have no records showing if OCWEN EVER applied for the $1K reductions on earlier anniversaries
In the fall of 2015 when I came across the new incentives I called my bank.They actually called the 5,000 a "coupon" for only certain accounts! After a number of calls to Freddie mac they finally sent me my notification letter about the new incentive. My bank recently told me they submit a report only once a month. My last 5 yr annual incentive payments were always late posting but I would raise cane and tell them my Hamp docs line 10 state it is to post "on 8/01" each year so they change the "effective" date each and every year once my incentive has posted to make it correct. w. I have also confirmed this date is the date I am suppose to get the 5,000 also. Now I am fighting for the recast offer letter they forgot to send me and no one knows the effective date or latest date they have to offer me the recast loan. All I can find is the recast is after the 5,000 has posted to principle?
 

NeedAdvise

LoanSafe Member
Jul 14, 2010
36
4
8
This is so annoying, OCWEN dropped the ball 8/15, didn't get the notice until 10/15 when the loan was being transferred to NationStar. THEY didn't know anything about it and claimed they were "researching it". Submitted the Dodd/Frank release and NS didn't submit it to treasury until 4/21/16 and said it takes 60-90 days!
PLUS, I have no records showing if OCWEN EVER applied for the $1K reductions on earlier anniversaries
I would request all past payment history on your loan and look for those incentive payments credited to the principle balance in the month you started your trail payment. It is suppose to be automatic if you paid on time payments and or prorated for if some were not on time. Either way make sure they are there or else they owe you some money.
 

NeedAdvise

LoanSafe Member
Jul 14, 2010
36
4
8
Although I appreciate the reply, the question is, how long after the servicer submits the certification to the Treasury does it take to actually apply the $5K reduction to the principal? Couple days, weeks, months?[/QUOTThe bank is suppose to submit it timely.Once the use the report tool my annual incentive came within the same month. 8/01 is my 6th year so hopefully no delays.
 

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
I would request all past payment history on your loan and look for those incentive payments credited to the principle balance in the month you started your trail payment. It is suppose to be automatic if you paid on time payments and or prorated for if some were not on time. Either way make sure they are there or else they owe you some money.
Therein lies the problem, NS claims they have no records prior to their taking over 10/15 and OCWEN now has no contact info
 
  • Like
Reactions: NeedAdvise

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
The incentive are suppose to post exactly on your first trial payment anniversary date. If they submit it late it will likely post late but they can credit your account and change the effective date of each payment.The 5,000 should also post on the trail payment anniversary date and not any other anniversary date. In my case Freddie mac has sent bulletins out to confirm the "trial payment start date" is the effective date. You should also get an offer to reset your loan at the new balance after the 5,000 incentive has posted for no charge not any fees. If one pays off loan prior to the incentive they can not get it.
What do you mean by "reset your loan at the new balance"?
 

stagefoursurvivor

LoanSafe Member
Nov 20, 2009
170
3
18
Are they out of business? Not familiar with OCWEN. Call the Corporate number. Found this info here https://www.ocwencustomers.com/T001/public/contactCompanyPreLogin.jsp
OK, got the records and only see 2 principal reduction payments for $750, NOT $1K. Interestingly, one shows check received $1K BUT, next line shows $750 applied???
Is this fraud or the typical service provided by OCWEN? Now I'm wondering if they kept the extra $250 and perhaps received but, never applied the other 3 $1K checks from treasury? Should I contact FannieMae?
 

just_me

LoanSafe Member
Sep 14, 2015
601
49
28
OK, got the records and only see 2 principal reduction payments for $750, NOT $1K. Interestingly, one shows check received $1K BUT, next line shows $750 applied???
Is this fraud or the typical service provided by OCWEN? Now I'm wondering if they kept the extra $250 and perhaps received but, never applied the other 3 $1K checks from treasury? Should I contact FannieMae?

Here's my recommendations -

Make copies of your evidence for uploading to all the sites who 'take complaints' - remember when you make complaints your written description is limited to so many characters - have a brief conscise statement ready and copy into the section, this prevents error on your part and you can review this later as sometimes the original complaint is simply ignored and a response is given on an entirely different item

Keep in mind, consumer sites (CFBC) will give your evidence directly to the party (Ocwen) who committed the 'error' for a 'correction.' Ocwen's response may include a refusal, non-response, or denial, for which you may not know you have to provide affirmative response or appeal.

Expect this from other org's when you complain. You, as a consumer, are merely documenting that someone, a business, needs investigation. Don't consider yourself reporting 'crime' unless the cops make it to your door and officially write it down. Note - cops don't care to investigate your finances unless you are over 80 and qualify for their 'elder crime' funding initiatives (sarcasm but true)

If you want to report 'fraud' versus 'error' submit this same complaint-evidence to your state's Attorney General - this doesn't always help you personally unless you are seeking justice in the form of 'stopping the practice' - enough people have to complain for it to be a 'public issue'

I would like nothing more than to see Ocwen held accountable for their off-shoring funds and ongoing thefts of anyone and everyone! Maybe it's time to renew interest in shutting them down, or at minimum, disgorgement of profits. There is a lot of funny business regarding Ocwen's modification schemes, settlements, and 'erroneous' business activities on their part.

I would think consumers and investors alike would want to unify on the 'corporate ability of Ocwen' to operate in this fraudulent manner. It's nothing short of thievery.

One person orchestrated these frauds (with help from others in a material manner). Given there is no jail time to the banker, these acts will simply continue with little fanfare. Complaints don't matter unless they are significant in size or significant in penalty. One would hope there is 'cause' for pursuit of the harassing nature involved in 'account corrections' when dealing with Ocwen. Attorneys don't really seem to care for these type of actions and ordinary people now know that 'class actions' don't lead to recovery of damages. Ocwen has ability to distance totals and can easily disregard processing and fulfillments through additional 'accounting frauds and misrepresentations' as to their liabilities in 'performing affirmatively' regarding the action 'they agreed to take' in the first place. It's a pattern worth repeating, or at least for Ocwen it is. No consequences.

This appears to be defrauding the government by defrauding the consumer (and also the 'investor' who lost their pension fund) by NOT taking action as agreed. However, they never agreed to do so 'legally' in their 'interpretation' and that has always been their defense to 'no crime here.' Apparently the government agrees with that and doesn't care to pursue the huge waste of tax-payer funds used as 'incentives' for what ultimately became a support mechanism of Ocwen's collection activities (which benefits Ocwen not the pension fund, the loans were bought back remember?) I mean, it really was such a small incentive comparatively, so what does it really matter? (yes, sarcasm)
 
R

R Caylor

Guest
Hello. My mortgage is serviced by Ocwen. The end of January for the past 5 years i have gotten my yearly on time 1,000 incentive principal reduction posted on my statement. I recently got a notice that they will be sending me information about re-amortization of my loan payment options before final incentive payment. I surmise it will come after the 90 day window of ineligibility has passed. As most of you know if you paid more than 30 days late you lost that 1/12th of the $1,000.00 yearly on time incentive. 1,000 /12= 83.33 per month but if you never passed the 90 day late threshold you we're still in the program. During the last year if you don't fall 90 days late you will still receive all or part of the $5,000. ( I'm assuming 5,000/12 or $416,67 a month for one time payments) and have the opportunity to re-amortize based on reduced principal. I have a 2% modified loan and although I have a balloon note due in 2032 I have no intention of refinancing my loan until the end of this mortgage. HAMP modification was a nightmare to secure but it did truly help me tremendously. With escrow my payment is $787 and original was $1,967. I could easily rent this home in this market today for $1,800.