Government Takes a More Hands On Approach to Mortgage Correction
Since the Obama Administration took office, many initiatives and programs have launched to help stimulate the economy as a whole. Specific tactics targeted correcting the floundering mortgage market. Even after the government invested $75 million in HAMP to incent mortgage service companies to modify loans and decrease foreclosure rates, the program has left the administration, mortgage borrowers and mortgage servicers sorely disappointed. HUD and the U.S. Treasury Department announced its plans to step in and take a more hands on approach to making the program work. Officials from HUD and the Treasury will have daily interaction with mortgage servicers and require ...
Fannie Mae Changes Rules for Servicers Too
Not only are HUD and the U.S. Treasury taking on a more active role in mortgage modifications and how mortgage service companies are doing their job, but this less than laissez faire approach has trickled down to Fannie Mae as well. According to a recent bulletin put out by Fannie Mae, mortgage service companies are now required to collect fees and documentation upfront for all of the mortgages that are moving into the HAMP program for possible mortgage modification. The full-documentation requirements include the request for mortgage modification, an affidavit, income verification documentation andInternal Revenue Service (IRS) forms 4506-T or 4506T-EZ. The ...
Pet Foreclosure
The news has been grim for quite some time, the economy is in the drain, unemployment is on the rise and foreclosures have reached an all-time high. Everyone is feeling the pinch, and none more than the multitude of animals that are being affected. Pet foreclosure victims are on the rise and rescue organizations are at their breaking points. Recently in the state of Tennessee a dog was found wandering the streets after his owner abandoned him due to home foreclosure. He had been on his own so long that most of his hair was gone and his skin was infested ...
Not All Sellers Want to Sell
As a home buyer, your focus when you’re shopping for homes is on finding the best home for the value. You want a home that conforms with specific expectations, such as offering the features you want at the price you can pay. Beware the seller that doesn’t want to sell, as they might force you
Short Sales Continue to Set Record Levels
The economic crisis and tumultuous real estate market includes an ever increasing unemployment rate and drops in home prices. The financial environment has also caused the number of homes being sold using short sales to increase. With short sale transactions limiting the loss to the lender, many lenders and borrowers are averting foreclosure and opting for short sales instead. Then in May of 2009, the government first stepped in with its Foreclosure Alternatives Program, which offers a lot of assistance to make the short sales process seamless for all parties involved. Four Benefits of the Program 1. The Foreclosure Alternatives Program provides incentives ...
FHA Reserve Running Low – Situation Not Expected to Recover Until 2012
There has been a whirlwind of talk swirling around the Federal Housing Administration (FHA) and its continuous drop below the 2% reserve requirement mandated by Congress. Most economists and financial experts believe the FHA reserves won’t fall below zero. In fact, talk is that the reserve amount even seems to be showing signs of a positive outlook. A year ago, the FHA reserve stood at 3%, but a recent independent study showed this reserve rate to be at a dangerously low level of .53%. The main reason cited for reaching this almost all-time low level is the FHA’s guarantee of an ...
Divorce Mortgage – Essential Things You Need To Know About Your House
During a divorce, division of community property is typically a big issue. Community property is considered almost anything the two of you acquired while you were married. Exceptions may include gifts, personal injury payments or any inheritance received during the marriage. Anything either of you owned before you got married is personal property and is not subject to be divided. If you bought a house together after you got married, as most couples do, it falls under the heading of community property, as does any business either of you may have started. Typically, the home is the greatest piece of community ...
President of Mortgage Brokerage Firm Charged in Fraud Scheme
David Ramnauth, 54, Levittown, New York, the President of GuyAmerican Funding Corp., is charged with conspiracy to commit bank fraud and wire fraud in connection with a scheme that defrauded banks out of more than $23 million in home mortgage loans. Ramnauth is charged along with eight other defendants who were previously charged in the same scheme in October 2009. According to the Superseding Indictment previously filed in Manhattan federal court: David Ramnauth was the President and owner of GuyAmerican Funding Corp., a mortgage brokerage firm in Queens, New York. Ramnauthfacilitated a massive mortgage fraud scheme that was being conducted though a GuyAmerican branch office located on Liberty Avenue, Jamaica, New ...
Home Affordable Modification Program
Updates to the Home Affordable Modification Program – Borrower Notices and Requirements for Tax Returns, Income Documentation, Title Endorsement and Recordation Effective Date Servicers are encouraged to adopt the policies concerning borrower notices immediately; however, servicers are required to implement them no later than January 1, 2010. The requirements for tax returns, income documentation, and title endorsement and recordation are effective immediately. A servicer must send a written notice to every borrower that has been evaluated for HAMP but is not offered a trial period plan, is not offered a permanent HAMP modification, or is at risk of losing eligibility for HAMP because ...
Top 10 Deadliest Loan Modification Mistakes
1. Trying to calculate your income and expenses while on the phone with the bank. Lenders will start asking you questions about your income and expenses the moment you inquire about a loan modification. They’re trying to determine if you will qualify. Unfortunately, too many homeowners don’t take time to accurately calculate their income and expense and get denied the opportunity to apply for a modification on the very first phone call. Instead, ask the bank representative what information they need and ask them to email or fax it to you. Then you can work on your own time to ensure ...
Legislative Brief
Amid historic compromise and promises of future cooperation, the Senate, using its Democratic majority mustered the 60 votes necessary to pass the cloture motion, which is D.C.-speak for preventing Senate Republicans from being able to filibuster the Senate bill out of existence. The result of this vote will lead to two similar cloture votes and, if things track for the supporters, a Senate version of the Healthcare bill may be passed by Christmas Eve. IMMAAG will continue to follow this bill, the House alternative and the compromise process because the majority of our followers are, ...
Hardship Letter
The hardship letter is a critical part of getting your mod done and approved. Most people botch the letter because they don't think about it from the banks' point of view. When you think about what the bank is looking for when evaluating a mod application you'll be able to write a much more compelling hardship letter that helps get your mod approved. Here's a couple of tips when writing your hardship letter (of course, only put these in there if they're relevant to you and TRUE): - express that repaying the loan and staying current is a priority for you - ...
Some Short Sale Borrowers Blocked From FHA Financing
By MortgageDaily.com staff Guidance has been provided on when borrowers who have utilized a short sale can quality for a Federal Housing Administration loan. The short-sale guidelines were outlined in Mortgagee Letter 09-52 yesterday from the U.S. Department of Housing and Urban Development. The letter indicated that borrowers who used short sales to unload their primary residences then buy nearby properties at a lower prices are ineligible for a new FHA mortgage. But if borrowers didn't use such a scheme and were current on their mortgage and installment debts at the time of the short sale, ...
Over 5k Mod Counselors at Chase
JPMorgan Chase & Co. is adding two dozen locations where borrowers can come in and try to workout delinquent and potentially delinquent mortgages. More than 5,000 loan modification counselors are employed by the company. The New York-based financial institution said in a news release today that it will open 24 more home ownership centers during the next four months. Around 200 employees will be added as a result of the expansion, a spokeswoman told MortgageDaily.com. The new centers will service the markets of Cleveland, Dallas and Houston. Also seeing new centers will be Seattle and ...
Failed Bank Restarts Originations
An Ohio-based bank that halted loan production after it failed and was taken over by another institution has resumed originations. On Dec. 4, AmTrust Bank was closed by the Office of Thrift Supervision, which noted that the Cleveland-based bank was "in an unsafe and unsound condition because of deteriorating asset quality and insufficient capital." In prior promotional material AmTrust claimed to be among the 20 largest U.S. mortgage lenders, while it ranked among the 15 biggest wholesale mortgage lenders in the country. New York Community Bank agreed to assume all of AmTrust's $8.0 billion in ...
FHA Proposed Rule Comments
FHA Proposed Rule Comments On November 30th the FHA announced an abbreviated 30-day comment period on its proposed rule: Strengthening Risk Management through Responsible FHA-Approved Lenders. On December 30th the comment period ended. Since there are over 13,800 approved mortgagees and correspondents, it may be a sign of the industry’s weariness that as of January 3rd only 275 comments have been posted, but some big hitters joined a number of correspondents to share their thoughts about the rule. The rule focuses on increased net worth requirements, elimination of approval for about 93% of the total population of ...
Homebuyer Tax Credit Update!
Who Gets What? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a ...
Latest Articles
Homebuyer Tax Credit Update!
Who Gets What? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify... [Read more of this review]
FHA Proposed Rule Comments
FHA Proposed Rule Comments On November 30th the FHA announced an abbreviated 30-day comment period on its proposed rule: Strengthening Risk Management through Responsible FHA-Approved Lenders. On December 30th the comment period ended. Since there are over 13,800 approved mortgagees and correspondents, it may be a sign of the industry’s weariness... [Read more of this review]
Failed Bank Restarts Originations
An Ohio-based bank that halted loan production after it failed and was taken over by another institution has resumed originations. On Dec. 4, AmTrust Bank was closed by the Office of Thrift Supervision, which noted that the Cleveland-based bank was “in an unsafe and unsound condition because of deteriorating asset quality and insufficient... [Read more of this review]
Over 5k Mod Counselors at Chase
JPMorgan Chase & Co. is adding two dozen locations where borrowers can come in and try to workout delinquent and potentially delinquent mortgages. More than 5,000 loan modification counselors are employed by the company. The New York-based financial institution said in a news release today that it will open 24 more home ownership centers... [Read more of this review]
Some Short Sale Borrowers Blocked From FHA Financing
By MortgageDaily.com staff Guidance has been provided on when borrowers who have utilized a short sale can quality for a Federal Housing Administration loan. The short-sale guidelines were outlined in Mortgagee Letter 09-52 yesterday from the U.S. Department of Housing and Urban Development. The letter indicated that borrowers who used short... [Read more of this review]
Hardship Letter
The hardship letter is a critical part of getting your mod done and approved. Most people botch the letter because they don’t think about it from the banks’ point of view. When you think about what the bank is looking for when evaluating a mod application you’ll be able to write a much more compelling hardship letter that... [Read more of this review]
Legislative Brief
Amid historic compromise and promises of future cooperation, the Senate, using its Democratic majority mustered the 60 votes necessary to pass the cloture motion, which is D.C.-speak for preventing Senate Republicans from being able to filibuster the Senate bill out of existence. The result of this vote will lead to two similar cloture votes and,... [Read more of this review]
Top 10 Deadliest Loan Modification Mistakes
1. Trying to calculate your income and expenses while on the phone with the bank. Lenders will start asking you questions about your income and expenses the moment you inquire about a loan modification. They’re trying to determine if you will qualify. Unfortunately, too many homeowners don’t take time to accurately calculate their income and expense... [Read more of this review]
Home Affordable Modification Program
Updates to the Home Affordable Modification Program – Borrower Notices and Requirements for Tax Returns, Income Documentation, Title Endorsement and Recordation Effective Date Servicers are encouraged to adopt the policies concerning borrower notices immediately; however, servicers are required to implement them no later than January 1, 2010. The... [Read more of this review]
President of Mortgage Brokerage Firm Charged in Fraud Scheme
David Ramnauth, 54, Levittown, New York, the President of GuyAmerican Funding Corp., is charged with conspiracy to commit bank fraud and wire fraud in connection with a scheme that defrauded banks out of more than $23 million in home mortgage loans. Ramnauth is charged along with eight other defendants who were previously charged in the same scheme... [Read more of this review]
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