Iraq vet given home free and clean after US Bank foreclosure thrown out of court

Christopher Joseph, a disabled Iraqi war veteran has won his 12 year battle against US Bank this past week.

Christopher and his wife have been awarded their mortgage and home “free and clear” by the ppellate division of the state Supreme Court who threw out the foreclosure case against them. (more…)

New Jersey Citizen Action, Ocwen and the NAACP Team Up to Help New Jersey Homeowners Explore Mortgage Solutions

New Jersey Citizen Action, Ocwen and the NAACP Team Up to Help New Jersey Homeowners Explore Mortgage Solutions

New Jersey Citizen Action (NJCA), Ocwen Financial Corporation (NYSE: OCN), and the NJ State Conference of the NAACP are teaming up on Thursday, November 16, 2017 at the Appian Way in to explore mortgage solutions with Ocwen borrowers from across the state who are having difficulty paying their mortgages.

Homeowners are invited to join NJCA counselors and representatives from Ocwen and the NJ NAACP for a complimentary dinner and an informative presentation about how New Jersey Citizen Action’s free HUD-certified Loan Counseling Program can help homeowners find mortgage solutions during difficult economic times. Registration for the event is required. (more…)

Flex Loan Modification Program

Flex Loan Modification Program

The U.S. government-sponsored mortgage giants, Fannie Mae and Freddie Mac announced this week a new initiative to help struggling homeowners with their mortgage. It is called the Flex Loan Modification Program, and will be a replacement of the Home Affordable Modification Program (HAMP®), which is set to expire at the end of 2016. (more…)

Jury Awards $339,642 to Homeowner Against Ocwen for Wrongful Foreclosure

Jury Awards $339,642 to Homeowner Against Ocwen for Wrongful Foreclosure

A federal jury in Bakersfield, California awarded $158,568 in economic and statutory damages and $300,000 in emotional distress damages to a homeowner against Ocwen Loan Servicing, LLC (“OCWEN”).

The homeowners, Frank and Dora Cornejo had applied for a loan modification, but claimed Ocwen was “dual tracking” in violation of California’s Homeowner Bill of Rights, Civil Code Section 2923.6. Dual tracking is against the law and occurs when a mortgage servicer continues to foreclose on a homeowner’s home while simultaneously considering the homeowner’s application for a loan modification, short sale, or other form of loss mitigation. (more…)

One Mod: The Mortgage Banker’s Association New Loan Modification Program

One Mod: The Mortgage Banker’s Association New Loan Modification Program

The Mortgage Banker’s Association is looking to help change the way mortgage servicers and lenders process loan modifications with a brand new program that they hope will someday replace the U.S. government’s Home Affordable Modification Program (HAMP).

One Mod: Principles for Post-HAMP Loan Modifications is the new initiative designed by the MBA based on the experiences of lenders familiar with HAMP to formulate universal principles that they propose should be applied to a future program. (more…)

Fannie Mae Updates Loan Modification Policies and Mortgage Servicing Guidlelines

Fannie Mae Updates Loan Modification Policies and Mortgage Servicing Guidlelines

The mortgage servicng guidelines for Fannie Mae loans were recently updated in the latest Servicing Guide Announcement SCV for 2016-2017. The changes reflect Fannie Mae Streamlined Modifications, Government Mortgage Loan Modifications, Processing a Workout Incentive Fees, and Allowable Foreclosure Attorney Fees. (more…)

Bank of America to face racketeering lawsuit for denying loan modifications

Bank of America to face racketeering lawsuit for denying loan modifications

Massive consumer victory upholds claims that BOA’s HAMP mortgage-modification program was a RICO enterprise

The nation’s seconds largest banking institution, Bank of America must face a class action lawsuit over RICO and promissory estoppel claims for conspiring to obstruct, delay and deny their Home Affordable Modification Program (HAMP) applications. (more…)

Federal Government Issues White Paper on the Future of Foreclosure Prevention

Federal Government Issues White Paper on the Future of Foreclosure Prevention

The U.S. Department of the Treasury issued a joint white paper today with the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Finance Agency (FHFA), that is designed to serve as a mortgage servicer guide for future loss mitigation programs.

In the beginning of the financial crisis, mortgage servicers were ill equipped to deal with the massive amount of struggling homeowners who were contacting them for mortgage assistance. The influx of people caused mortgage servicers to be overwhelmed and many mistakes had hampered their loss mitigation programs. (more…)

Hope Now Reports Mortgage Servicers Help 37,169 Homeowners Avoid Foreclosure

Hope Now Reports Mortgage Servicers Help 37,169 Homeowners Avoid Foreclosure

Approximately 31,000 loan modifications were made in April 2016, which was down from 32,000 in March, according to a new report Hope Now april 2016 mortgagereleased by the mortgage alliance of lenders, mortgage servicers, investors and counseling agencies, HOPE NOW.

The total number of homeowners who received mortgage solutions in April to avoid foreclosure was at 37,169. (more…)

HAMP Loan Modification Reset Rate Charts

HAMP Loan Modification Reset Rate Charts

Most of the HAMP loan modifications made to struggling homeowners over the last several years had reduced the interest rate on their mortgage for a fixed period of only five years. HAMP Tier 1 modifications included interest rate reductions to as low as 2% for the first five years to help these homeowners avoid foreclosure.

Many of these borrowers have been facing interest rate reset increases, also known as a rate step-up, of 1% per year (maximum) until their rate adjusts to the market rate at the time of their modification. Approximately 90% of the 900,000 homeowners with an active HAMP modification are scheduled for interest-rate increases from 2014 to 2021, according to a January 2014 report from the Office of the Special Inspector General for the Troubled Asset Relief Program (TARP). (more…)