Servicer Challenges in Obama Administration's Making Home Affordable Loan Modification Program
|
|
- Hector Booker
- 8 years ago
- Views:
Transcription
1 Servicer Challenges in Obama Administration's Making Home Affordable Loan Modification Program Washington, DC March 17, 2009 The Obama administration recently announced the Making Home Affordable Program. The key components of the program are the Home Affordable Refinance Program and the Home Affordable Modification Program (the Modification Program ). The Modification Program is briefly described in this memorandum, and the program guidelines released by the U.S. Department of the Treasury ( Treasury ) are attached. In particular, we describe (i) the eligibility requirements for loans to be included in the Modification Program, (ii) the modification process and (iii) the financial incentives to servicers, lenders and borrowers offered by Treasury for modifications. Finally, we highlight a number of unanswered questions and open issues for servicers. Treasury is offering substantial incentives to servicers, investors and borrowers in exchange for their participation in the Modification Program. While servicer participation in the Modification Program is voluntary at its outset, participation will be mandatory for any institution that accepts future funding from Treasury s Financial Stability Program. Modifications under the Modification Program must be commenced by December 31, Eligibility Any servicer seeking to engage in modifications under the Modification Program must enter into an agreement with Treasury s financial agent no later than December 31, No payments under the Modification Program will be made to any lender, investor, servicer or borrower unless and until the servicer has entered into such an agreement. Treasury has not yet made available a form of this agreement. To be eligible for a modification under the Modification Program, a loan must meet the following qualifications: The loan must be a first lien on an owner-occupied, one- to four-family residential property. Cleary Gottlieb Steen & Hamilton LLP, All rights reserved. This memorandum was prepared as a service to clients and other friends of Cleary Gottlieb to report on recent developments that may be of interest to them. The information in it is therefore general, and should not be considered or relied on as legal advice.
2 The loan must have been originated on or before January 1, The unpaid principal balance of the loan must be less than or equal to $729,750 for one unit properties. Higher limits are allowed for properties with two to four units. The borrower s monthly mortgage payment (including taxes, insurance and homeowners association dues or condominium fees) must be more than 31% of the borrower s gross monthly income. The borrower must be experiencing financial hardship. Hardship can include a significant change in income or expenses or payment shock an adverse readjustment of the coupon or payment on the mortgage such that the borrower s current mortgage payment is no longer affordable. The borrower need not be delinquent in order to qualify for a modification. The program guidelines suggest that a loan that is more than 60 days delinquent is eligible for modification, regardless of a change in circumstances. The loan may not have been previously modified under the Modification Program. Borrowers in bankruptcy are not automatically eliminated from consideration for a modification, and borrowers in active litigation regarding the mortgage loan can qualify for a modification without waiving their legal rights. Any foreclosure action will be temporarily suspended during a three-month trial period described below, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Modification Program or alternative foreclosure prevention options fail, the foreclosure action may be resumed. Modification Process Each participating servicer must sign a contract with Treasury s financial agent, pursuant to which the servicer must agree to review every potentially eligible borrower who contacts the servicer requesting to be considered for a modification. All loans that meet eligibility requirements and test positive for modification in a net present value model must be modified, unless there is fraud or the particular modification is prohibited by the servicing agreement that governs the servicing of the loan. Each borrower must successfully complete a three-month trial period, during which the borrower will be required to remit the estimated new monthly payment. Servicers will enter into a modification agreement upon successful completion of the trial period. 2
3 The modification will involve reducing the borrower s monthly payment (including principal, interest, insurance, taxes and homeowner/condo association fees) to an amount that is no greater than 31 percent of the borrower s gross monthly household income. The new monthly payment amount should be established using a sequential process as needed in the following order: Capitalizing arrearages, including delinquent payments, escrows and fees, if any (but not including late fees, which must be waived). Reducing the interest rate, subject to an interest rate floor of 2 percent per annum. The modified interest rate must remain in place for five years, after which the interest rate may be gradually increased as described in the guidelines. If the modified interest rate exceeds the Freddie Mac Primary Mortgage Market Survey rate in effect on the date of the modification, the modified rate will be the new note rate for the remaining loan term and may not be increased. Extending the term of the loan or the amortization term, up to 40 years. If permitted by the servicing agreement, the term of the loan should be extended. If extending the term of the loan is prohibited, but extending the amortization term is not, the amortization term should be extended. Granting partial principal forbearance. No interest will accrue on the forbearance amount. If the option to forbear principal is selected, the servicer shall forbear on collecting the deferred portion of the capitalized balance until the earliest of (i) the maturity of the modified loan, (ii) a sale of the property or (iii) a pay-off or refinancing of the loan The Modification Program does not require servicers to engage in principal reduction. However, servicers may choose to forgive principal to achieve the target monthly payment amount, subject to any contractual restrictions on its ability to do so under the servicing agreement that governs the servicing of the loan. Note that, except for the attempt to collect the principal at the termination of the loan, forgiving principal has the same effect as forbearing principal. Each modified loan would require escrow of taxes and insurance, even if the original loan did not. Furthermore, a modified loan would not be assumable (that is, we presume, would have a due on sale clause) even if the original loan was assumable. 3
4 Financial Incentives For Servicers Payment of $1,000 for each eligible modification meeting guidelines established under the Modification Program (or $1,500 for each eligible modification meeting the guidelines made while a borrower is still current on mortgage payments). Payment of up to $1,000 each year for up to three years for loans that remain current. Reimbursement of payments of up to $1,000 to junior lien holders to extinguish junior liens, plus a $500 incentive payment for efforts made to extinguish such liens. For Lenders/Investors Treasury will match reductions in monthly payments dollar-for-dollar with the lender/investor, from 38% of the borrower s gross monthly income (or, if lower, the borrower s original monthly payment) to 31% of the borrower s gross monthly income. Payment of $1,500 for each eligible modification meeting guidelines established under the Modification Program made while a borrower is still current on mortgage payments. Additional payments, not described in detail in Treasury s program guidelines, linked to declines in home prices subsequent to a modification. For Borrowers Payment of up to $1,000 each year for up to five years for loans that remain current. Payments are made to the servicer and credited to principal balance of the loan. Payment of $1,500 for borrowers who are not eligible for a modification or who default on a modification and agree to effectuate short sales and deeds-in-lieu of foreclosure. Issues for Servicers Many details of the Modification Program are still unknown. Many important features and details of the Modification Program are not included, or not fully specified, in the program guidelines released by the Treasury Department to date. 4
5 First, and perhaps most important, the form of the required agreement between the servicer and Treasury has not been released. Treasury has indicated it should be available in April. Treasury is encouraging servicers and borrowers to modify loans without waiting for that agreement. However, because no financial incentives will be paid to any party, including a borrower, unless and until the servicer of the loan has entered into such an agreement, a servicer should be cautious about promising such incentives to borrowers until it has seen, reviewed and is comfortable signing that agreement. Servicers who do begin the modification process for any loans prior to signing the agreement should be careful to inform borrowers that such incentives might or might not be available for their loans. Second, the program guidelines indicate that required parameters and computations for the net present value test will be published separately, and such details have not yet been released. These details are necessary to evaluate whether the net present value test, as implemented by the Modification Program, is consistent with a servicer s obligations under servicing agreements and pooling and servicing agreements. And, of course, such details will be needed to implement the net present value test in modifications. Third, the program summary released by Treasury indicates that the Modification Program will require servicers to collect or generate certain specific documentation to support a modification. Additionally, servicers will be required to collect and report certain information on the performance of modified loans on an ongoing basis and to implement controls to detect and prevent fraud. None of these requirements are specified in detail. Finally, the Modification Program includes an additional payment to loan owners based on the performance of an index of home prices. This provision is intended to provide partial protection for owners against further downward movements of home prices and thereby remove (or at least limit) the incentive to foreclose on troubled loans immediately for fear an owner might realize less as a result of foreclosure after a failed modification. However, the home price index and the amount of the payment per unit of movement in that index are not specified. Accordingly, it is impossible to judge how much protection this feature will provide. Servicers must evaluate each eligible modification for consistency with the servicing agreement or agreements that govern the servicing of the loan. The Modification Program does not purport to override or otherwise alter contractual relationships between lenders/investors and servicers. Consequently, it is essential that servicers perform a careful review of their servicing agreements, pooling and servicing agreements and, with respect to mortgage loans serviced for others, any other applicable servicing arrangements, to ensure compliance with any general servicing standards or express restrictions related to the modification of loan terms. 5
6 In particular, pooling and servicing agreements may restrict the following types of modifications: extensions of loan maturities forgiving or forbearing principal modification of loans not currently in default or otherwise delinquent balloon payments Additionally, pooling and servicing agreements may limit the number and/or percentage of loans in a particular deal that may be modified, as well as the number and/or frequency of modifications with respect to any particular loan. Consequently, servicers should exercise caution when modifying loans that have been previously modified. The Modification Program requires that participating servicers use reasonable efforts to remove any such restrictions and obtain waivers or approvals from all necessary parties. For loans that are securitized, however, obtaining such waivers or approvals will likely be challenging in light of the diffuse and unknown ownership of the relevant securities. There is legislation pending (the so-called Cramdown Bill, more formally, the Helping Families Save Their Homes Act of 2009) that would override contractual provisions in servicing agreements and provide certain safe harbors for servicers against liability to owners of whole residential mortgage loans and investors in a pool of residential mortgage loans (including securities backed by such loans) for actions taken under the Modification Program. The bill has been passed by the House of Representatives and is under consideration by the Senate. If passed, the bill would provide some protection for servicers but would raise a host of interpretational issues of its own, and potentially some Constitutional issues. Incentive payments to servicers may give rise to conflicts of interest issues. Servicers who are servicing loans for others will have to consider whether and to what extent accepting and receiving compensation (incentive payments) from the government for such servicing activities is consistent with their contractual and fiduciary obligations to the owners of the loans they service. The Cramdown Bill, if adopted, may (or may not) provide protection for servicers on this issue. 6
7 If you have any questions, please feel free to contact any of your regular contacts at the firm or any of our partners and counsel listed under Structured Finance or Banking and Financial Institutions under the Practices section of our website at CLEARY GOTTLIEB STEEN & HAMILTON LLP 7
8 WASHINGTON 2000 Pennsylvania Avenue, NW Washington, DC Fax NEW YORK One Liberty Plaza New York, NY Fax PARIS 12, rue de Tilsitt Paris, France Fax BRUSSELS Rue de la Loi Brussels, Belgium Fax LONDON City Place House 55 Basinghall Street London EC2V 5EH, England Fax MOSCOW Cleary Gottlieb Steen & Hamilton LLP CGS&H Limited Liability Company Paveletskaya Square 2/3 Moscow, Russia Fax FRANKFURT Main Tower Neue Mainzer Strasse Frankfurt am Main, Germany Fax COLOGNE Theodor-Heuss-Ring Cologne, Germany Fax ROME Piazza di Spagna Rome, Italy Fax MILAN Via San Paolo Milan, Italy Fax HONG KONG Bank of China Tower One Garden Road Hong Kong Fax BEIJING Twin Towers West 12 B Jianguomen Wai Da Jie Chaoyang District Beijing , China Fax
Proposed Legislation Would Require Registration and Public Disclosure Regarding Private Investment Fund
Proposed Legislation Would Require Registration and Public Disclosure Regarding Private Investment Fund New York February 5, 2009 Executive Summary On January 29, 2009, Senators Charles E. Grassley and
More informationIssuing FDIC-Guaranteed Debt under the TLGP
Issuing FDIC-Guaranteed Debt under the TLGP New York November 25, 2008 Background The FDIC Guarantee applies to all Senior Unsecured Debt identified as guaranteed by the FDIC and issued by an Eligible
More informationAlert Memo WASHINGTON, DC APRIL 9, 2009. SEC Proposes Alternative Short Sale Restrictions
Alert Memo WASHINGTON, DC APRIL 9, 2009 SEC Proposes Alternative Short Sale Restrictions At an open meeting on April 8, 2009, the Securities and Exchange Commission ( SEC ) voted unanimously to publish
More informationSEC GRANTS CLASS-WIDE RELIEF UNDER RULE 14e-5 FROM FINANCIAL ADVISOR TRADING RESTRICTIONS IN CROSS-BORDER TENDER OFFERS
SEC GRANTS CLASS-WIDE RELIEF UNDER RULE 14e-5 FROM FINANCIAL ADVISOR TRADING RESTRICTIONS IN CROSS-BORDER TENDER OFFERS London April 5, 2007 On April 4, 2007, the staff of the Division of Market Regulation
More informationAlert Memo. SEC Proposes Revisions to Remove Credit Ratings from Regulation M, Broker-Dealer Net Capital Rule, Other Exchange Act Rules
Alert Memo MAY 9, 2011 SEC Proposes Revisions to Remove Credit Ratings from Regulation M, Broker-Dealer Net Capital Rule, Other Exchange Act Rules In the third of a series of related rule proposals required
More informationHow To Decide Whether To Prosecute A Business Or Organization
Alert Memo NEW YORK JUNE 10, 2010 Manhattan District Attorney s Office Issues Guidelines Regarding the Prosecution of Businesses and Organizations The District Attorney of the County of New York (the DANY
More informationAlert Memo. Russian Federal Service for the Financial Markets to Relax Regulation on Depositary Receipts Programs
Alert Memo MOSCOW, JULY 29, 2011 Russian Federal Service for the Financial Markets to Relax Regulation on Depositary Receipts Programs On July 21, 2011, the Russian Federal Service for the Financial Markets
More informationTax Court Issues Decision Recharacterizing Term Securities Loan
Tax Court Issues Decision Recharacterizing Term Securities Loan New York April 3, 2009 On March 16, 2009, the Tax Court held in Samueli v. Commissioner, 132 T.C. No. 4, that a transaction documented as
More informationAlert Memo. SEC Proposes Rules for Whistleblower Program
Alert Memo NOVEMBER 5, 2010 SEC Proposes Rules for Whistleblower Program On November 3, 2010, the SEC voted unanimously to propose rules governing a whistleblower program to reward individuals who provide
More informationAlert Memo. Germany Adopts New Prudential Rules for High-Frequency Trading
Alert Memo MAY 16, 2013 Germany Adopts New Prudential Rules for High-Frequency Trading On May 15, 2013, the German Act on the Prevention of Risks Related to, and the Abuse of, High-Frequency Trading (Gesetz
More informationEuropean Commission Probes Member States Tax Rulings Systems
SEPTEMBER 17, 2013 clearygottlieb.com European Commission Probes Member States Tax Rulings Systems On September 11, 2013, the European Commission ( the Commission ) launched a State aid investigation by
More informationAlert Memo. SEC Approves New Whistleblower Program
Alert Memo MAY 26, 2011 SEC Approves New Whistleblower Program The SEC voted on May 25, 2011 to adopt final rules governing a whistleblower program to reward individuals who provide the agency with high-quality
More informationU.S. Public-Private Investment Program
U.S. Public-Private Investment Program New York March 26, 2009 On March 23, 2009, the U.S. Department of Treasury ( Treasury ) released muchanticipated details of its Public-Private Investment Program,
More informationUK Government Response to Consultation on Proposed Changes to TUPE
SEPTEMBER 26, 2013 clearygottlieb.com UK Government Response to Consultation on Proposed Changes to TUPE 1. Introduction On 5 September 2013, the Government published a response to its January 2013 consultation
More informationADGM consultation key features of draft companies and insolvency regulations
JANUARY 20, 2015 clearygottlieb.com ADGM consultation key features of draft companies and insolvency regulations This is our second alert memorandum covering the consultation papers on the laws and regulations
More informationSEC Issues New No-Action Relief for Short-dated Tenders
February 3, 2015 clearygottlieb.com SEC Issues New No-Action Relief for Short-dated Tenders On January 23, 2015 the staff of the SEC issued a no-action letter (the tender offer relief letter ) significantly
More informationIntroduction. Lenders, Investors, and Servicers
Introduction The Making Home Affordable Program was announced by the U.S. Department of the Treasury in February 2009 in an effort to help stabilize the housing market and provide relief for struggling
More informationHIGH COURT IMPLIES A DUTY OF GOOD FAITH INTO ENGLISH LAW DISTRIBUTION AGREEMENT
December 4, 2013 clearygottlieb.com HIGH COURT IMPLIES A DUTY OF GOOD FAITH INTO ENGLISH LAW DISTRIBUTION AGREEMENT Earlier this year, the High Court ruled that a duty of good faith may be implicit in
More informationSummary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM
Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Prepared By: Empire Justice Center Kevin Purcell and Salah Maker The Telesca Center for Justice One West Main Street, Suite 200 Rochester,
More informationMortgage & Home Equity Reporting Guidelines In Response to Current Financial Conditions
Mortgage & Home Equity Reporting Guidelines In Response to Current Financial Conditions General Reporting Guidelines Report accounts in the standard Metro 2 Format. Refer to the Credit Reporting Resource
More informationWBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit
WBA Overview of New Homebuyer Credit and Recent Government Loan Programs First-Time Home Buyer Tax Credit Additional Resources: www.federalhousingtaxcredit.com/2009 http://www.irs.gov/newsroom/article/0,,id=202222,00.html
More informationSecond Circuit Overturns Conviction of Institutional Trader But Upholds Government s Securities Fraud Theory
December 17, 2015 clearygottlieb.com Second Circuit Overturns Conviction of Institutional Trader But Upholds Government s Securities Fraud Theory On December 8, 2015, the United States Court of Appeals
More informationAlert Memo. FDIC Proposal on Insured Deposits: Depositor Preference, Foreign Deposits and Concerns Over Becoming Insurer to the World
Alert Memo FEBRUARY 19, 2013 FDIC Proposal on Insured Deposits: Depositor Preference, Foreign Deposits and Concerns Over Becoming Insurer to the World On February 12, 2013, the Federal Deposit Insurance
More informationU.S. Justice Department Issues New Guidelines Prioritizing Individual Liability For Corporate Wrongdoing
September 10, 2015 clearygottlieb.com U.S. Justice Department Issues New Guidelines Prioritizing Individual Liability For Corporate Wrongdoing Following numerous speeches over the past several months by
More informationMaking Home Affordable Updated Detailed Program Description
Making Home Affordable Updated Detailed Program Description The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout
More informationAlert Memo. New Personal Use of Corporate Aircraft Tax Rules: Notes for Tax and Executive Compensation Practitioners
Alert Memo AUGUST 22, 2012 New Personal Use of Corporate Aircraft Tax Rules: Notes for Tax and Executive Compensation Practitioners On August 1, 2012, the Internal Revenue Service (the IRS ) published
More informationHome Affordable Modification Program Guidelines March 4, 2009
Home Affordable Modification Program Guidelines March 4, 2009 Trial loan modifications consistent with these Guidelines may be offered to homeowners beginning on this date, March 4, 2009, and may be considered
More informationMergers & Acquisitions and Corporate Governance Report BY ETHAN KLINGSBERG, VICTOR LEWKOW AND NEIL WHORISKEY
Mergers & Acquisitions and Corporate Governance Report OCTOBER 2013 www.clearygottlieb.com Controlling Stockholder Going Private Transactions after In Re MFW: Reasons to Be Wary of the Path to the Business
More informationBORROWER Q&AS. 2. I'm current on my mortgage. Will the Home Affordable Refinance help me?
MAKING HOME AFFORDABLE BORROWER Q&AS 1. What is Making Home Affordable" all about? Making Home Affordable is part of President Obama's comprehensive strategy to get the housing market back on track. Through
More informationThe key components of the Making Home Affordable Program are:
REVISED AS OF JULY 13, 2009 HOUSING COUNSELOR FREQUENTLY ASKED QUESTIONS 1. What is the Making Home Affordable (MHA) Program? The Making Home Affordable Program is part of the Obama Administration s broad,
More informationSecretary of the Treasury Proposes QFC Recordkeeping Rule
February 17, 2015 clearygottlieb.com Secretary of the Treasury Proposes QFC Recordkeeping Rule On January 7, 2015, the Secretary of the Treasury (the Secretary ), as chairperson of the Financial Stability
More informationSupreme Court Clarifies Scope of Bankruptcy Courts Jurisdiction
May 28, 2015 clearygottlieb.com Supreme Court Clarifies Scope of Bankruptcy Courts Jurisdiction On May 26, 2015, in Wellness International Network Ltd. v. Sharif, No. 13-935, 575 U.S. (2015) (the Opinion
More informationCOMPREHENSIVE LOAN MODIFICATION PROGRAM
I. Definitions. COMPREHENSIVE LOAN MODIFICATION PROGRAM a) Residential mortgage loan shall mean any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or
More informationQuestions and Answers for Borrowers about the. Homeowner Affordability and Stability Plan
Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan Borrowers Who Are Current on Their Mortgage Are Asking: 1. What help is available for borrowers who stay current
More informationThe Trustee again appealed to the Seventh Circuit. The Court s Decision
JULY 14, 2015 clearygottlieb.com Seventh Circuit Affirms Dismissal of Bankruptcy Trustee Claims Against Auditor Based on In Pari Delicto Doctrine On July 7, 2015, the United States Court of Appeals for
More informationUkraine-related Sanctions: Expanded U.S. Sanctions Against Russian Financial, Energy, and Defense Sectors
September 14, 2014 clearygottlieb.com Ukraine-related Sanctions: Expanded U.S. Sanctions Against Russian Financial, Energy, and Defense Sectors On September 12, 2014, the United States imposed additional
More informationAlert Memo. IRS Regulations Affecting Debt Restructurings, Debt-for- Debt Exchanges, Reopenings and Other Liability Management Transactions
Alert Memo SEPTEMBER 28, 2012 IRS Regulations Affecting Debt Restructurings, Debt-for- Debt Exchanges, Reopenings and Other Liability Management Transactions I. Highlights On September 13, 2012, the U.S.
More informationSupplemental Directive 15-06 July 1, 2015 Making Home Affordable Program Streamlined Modification Process
Supplemental Directive 15-06 July 1, 2015 Making Home Affordable Program Streamlined Modification Process In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program
More informationHow To Modify A First Lien Mortgage
Making Home Affordable Program and Home Affordable Modification Program Frequently Asked Questions for Bankruptcy Filers Q1. What do these FAQs cover? These FAQs provide information on the Home Affordable
More informationMaking Home Affordable Act Now to Get the Help You Need
Making Home Affordable Act Now to Get the Help You Need Help for America s Homeowners SM MAKING HOME AFFORDABLE The Obama Administration s Making Home Affordable Program is a critical part of the effort
More informationMaking Home Affordable. The Second Lien Modification Program (2MP) for Trusted Advisors
Making Home Affordable The Second Lien Modification Program (2MP) for Trusted Advisors Agenda 1 2 3 4 5 6 7 8 9 10 11 12 Overview Eligibility Lien Matching Process Evaluation 2MP Modification Waterfall
More informationSupplemental Directive 10-10 September 17, 2010. Home Affordable Modification Program Modifications of Loans Guaranteed by the Rural Housing Service
Supplemental Directive 10-10 September 17, 2010 Home Affordable Modification Program Modifications of Loans Guaranteed by the Rural Housing Service In Supplemental Directive 09-01, the Treasury Department
More informationVeterans Benefits Administration Circular 26-14-22 Department of Veterans Affairs September 2, 2014 Washington, DC 20420
Veterans Benefits Administration Circular 26-14-22 Department of Veterans Affairs September 2, 2014 Washington, DC 20420 VA Making Home Affordable Program 1. Purpose. This Circular provides authority and
More informationHAMP Standard and Alternative Modification Waterfalls Training Presentation for Servicers
HAMP Standard and Alternative Modification Waterfalls Training Presentation for Servicers Agenda 1 2 3 4 5 6 7 8 Overview of HAMP Eligibility HAMP Tier 1 Standard Modification Waterfall HAMP Tier 1 Alternative
More informationFrequently Asked Questions
Frequently Asked Questions On March 26, 2010, the Administration announced several enhancements to the existing Making Home Affordable Program (MHA) and the Federal Housing Administration (FHA) refinance
More informationREALTORS Guide to FORECLOSURE RESOURCES
REALTORS Guide to FORECLOSURE RESOURCES Federal & State Programs That May Help Those Facing Foreclosure Making Home Affordable Program Designed to assist families who may face foreclosure, the federal
More informationSecuritizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer
Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Fannie Mae recently announced plans to securitize single-family, fixed-rate reperforming loans (RPLs) into Agency
More informationWhat are the HHF program eligibility criteria?
FREQUENTLY ASKED QUESTIONS What is the Hardest Hit Fund Program (HHF)? What are the HHF program eligibility criteria? What property types are eligible for HHF assistance? I or my spouse is in the U.S.
More informationSupplemental Directive 12-01 February 16, 2012
Supplemental Directive 12-01 February 16, 2012 Making Home Affordable Program Principal Reduction Alternative and Second Lien Modification Program Investor Incentives Update In February 2009, the Obama
More informationGLOSSARY COMMONLY USED REAL ESTATE TERMS
GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These
More informationAlert Memo. US Enacts Additional Iran-Related Sanctions; OFAC Amends Iranian Sanctions Regulations to Cover Entities Owned by US Persons
Alert Memo JANUARY 8, 2013 US Enacts Additional Iran-Related Sanctions; OFAC Amends Iranian Sanctions Regulations to Cover Entities Owned by US Persons On January 2, 2013, President Obama signed the National
More informationHAFA Short Sales, US Treasury, Fannie Mae & Freddie Mac Programs. Learning Objectives
HAFA Short Sales, US Treasury, Fannie Mae & Freddie Mac Programs Learning Objectives Module 1: HARP, HAMP & HAFA Overview Upon completion of Module 1 the student will be able to: Explain the advantages
More informationSupplemental Directive 10-03 March 26, 2010
Supplemental Directive 10-03 March 26, 2010 Home Affordable Modification Program Modifications of Loans Insured by the Federal Housing Administration (FHA) Background In Supplemental Directive 09-01, the
More informationJIIlI Freddie rollol'l_bo'jtrorn@frlldclirrnac.com Mcloan. VA 22102,;,'10
JIIlI Freddie rollol'l_bo'jtrorn@frlldclirrnac.com Mcloan. VA 22102,;,'10 rqmac We make home possible&\! Robert E. Bostrom T~: (103) 903-2690 8200 Jones F3r,mch ()rive Lxocutivo VIC(! PlD'Ji
More informationPrincipal Reduction Program
1. Overview The Principal Reduction ( PRP ) is one of CalHFA MAC s federally-funded programs developed with a goal to provide capital to homeowners that have suffered a hardship to reduce the outstanding
More informationAmerican Securitization Forum
Statement of Principles, Recommendations and Guidelines for the Modification of I. Introduction The American Securitization Forum (ASF) 1 is publishing this Statement as part of its overall efforts to
More informationFederal Housing Finance Agency
Fourth Quarter 20 FHFA Federal Property Manager's Report This report contains data on foreclosure prevention activity, refinance and MHA program activity of Fannie Mae and Freddie Mac (the Enterprises)
More informationSupport Under the Homeowner Affordability and Stability Plan: Three Cases
Support Under the Homeowner Affordability and Stability Plan: Three Cases Family A: Access to Refinancing In 2006: Family A took a 30-year fixed rate mortgage of $207,000 on a house worth $260,000 at the
More informationMaking Home Affordable
Making Home Affordable Overview of Programs What to Expect Overview of MHA Programs This presentation will: Provide an overview of Making Home Affordable (MHA) and its various components. Show you how
More informationGlossary of Foreclosure Fairness Mediation Terminology
Glossary of Foreclosure Fairness Mediation Terminology Adjustable-Rate Mortgage (ARM) Mortgage repaid at the rate of interest that increases or decreases over the life of the loan based on market conditions.
More informationPrincipal Reduction Program
1. Overview The Principal Reduction ( PRP ) is one of CalHFA MAC s federally-funded programs developed with a goal to provide capital to homeowners who have suffered an eligible hardship in order to reduce
More informationNo. Eligible borrowers will only be able to claim one payment from the fund.
Settlement Q&A for Consumers 1. CASH PAYMENTS TO CONSUMERS Will there be any money available to pay consumers? Yes. The court s judgment establishes a states fund of $1.5 billion nationally to pay borrowers
More informationHow To Write A Bitcoin License
August 18, 2014 clearygottlieb.com NEW YORK PROPOSES BITLICENSE REGULATIONS FOR VIRTUAL CURRENCY BUSINESSES On July 17, 2014, the New York Department of Financial Services ( DFS ) issued proposed regulations
More informationDo You HAFA? The HAFA Short Sale Program under Making Home Affordable 2
Table of Contents Do You HAFA? The HAFA Short Sale Program under Making Home Affordable 2 INTRODUCTION 2 Overview: Making Home Affordable ( MHA ) 2 HOME AFFORDABLE FORECLOSURE ALTERNATIVES PROGRAM ( HAFA
More informationAbout Northwest Counseling Service
About Northwest Counseling Service Non Profit Agency No Cost Housing Counseling Services Any Service Related To A Home Specialize In Mortgage Delinquency 96% Rate In Keeping Residents In Homes HUD Certified/OHCD
More informationMPF Xtra PFI Advisory
MPF Xtra PFI Advisory March 14, 2014 Special Attention: PFI MPF Program Management and Servicing Management Subject: Transfer of Servicing, Lender-Placed Insurance, Bankruptcy and Foreclosure Attorney
More informationRegulations Denying Foreign Tax Credits in Structured Transactions Enter into Force
Regulations Denying Foreign Tax Credits in Structured Transactions Enter into Force New York July 20, 2008 I. OVERVIEW. On July 15, 2008, the U.S. Treasury Department and the Internal Revenue Service adopted
More informationMaking Home Affordable
Making Home Affordable Working Together to Help Homeowners The Crisis Continues Foreclosures continue to devastate families and communities across the country. 2 Response to the Crisis MHA is part of Administration
More informationMortgage Loan Modification Tax Consequences
Part III Administrative, Procedural, and Miscellaneous 26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability. (Also Part I, 860D, 860F,
More informationSeptember 20, 2013 MORTGAGEE LETTER 2013-32. Update to FHA s Loss Mitigation Home Retention Options
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER September 20, 2013 MORTGAGEE LETTER 2013-32 To All Approved Mortgagees
More informationSEC Proposes Amendments to its Financial Responsibility Rules for Broker-Dealers
SEC Proposes Amendments to its Financial Responsibility Rules for Broker-Dealers Washington, DC March 20, 2007 On March 9, 2007, the Securities and Exchange Commission (the SEC ) proposed amendments (the
More informationWhat Banks and Mortgage Lenders Need to Know About the Federal Government s Comprehensive Loan Modification Program
What Banks and Mortgage Lenders Need to Know About the Federal Government s Comprehensive Loan Modification Program March 2009 BACKGROUND On February 18, 2009, President Obama announced the Homeowner Affordability
More informationWorking Out Mortgage Loans and B Notes. Presented by: Richard D. Jones Dechert LLP to ACREL
Working Out Mortgage Loans and B Notes Presented by: Richard D. Jones Dechert LLP to ACREL TABLE OF CONTENTS Page I. COMMON SPLIT MORTGAGE LOAN AND SUBORDINATE DEBT STRUCTURES... 1 II. III. A. Whole Mortgage
More informationThe Making Home Affordable Program Offers Options for Homeowners in Bankruptcy
The Making Home Affordable Program Offers Options for Homeowners in Bankruptcy By Doreen Solomon, Assistant Director, Office of Oversight, Executive Office for U.S. Trustees, and Erin Sagransky, Policy
More informationFREQUENTLY ASKED QUESTIONS
Para la versión en español, clic aquí. FREQUENTLY ASKED QUESTIONS Please click on one of the following links below to go to the section of the application process you are in. Can I sell my house or re-finance
More informationTEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST
TEN LOOPHOLES THAT CAN STOP FORCLOSURE FAST Copyright Notice All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical. Any
More informationFHA-Home Affordable Modification Program
These guidelines supplement requirements outlined in e Letter 2009-23 Guidance e Mortgagors FHA-Home Affordable Modification Program The Servicer of the modified FHA-HAMP mortgage must be FHA-Approved.
More informationHomeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA)
Homeownership Preservation Policy for Residential Mortgage Assets Section 110 of the Emergency Economic Stabilization Act (EESA) requires that each Federal property manager that holds, owns, or controls
More informationPATHS OF A FORECLOSURE IN NEW YORK STATE
PATHS OF A FORECLOSURE IN NEW YORK STATE BORROWER DELINQUENT 2-3 months late with mortgage payments 90-DAY PRE-FORECLOSURE NOTICE Lender sends notices, bills, letters to borrower stating that he/she is
More informationStatement of Edward L. Golding Senior Vice President Economics and Policy Freddie Mac
Statement of Edward L. Golding Senior Vice President Economics and Policy Freddie Mac Hearing of the Philadelphia, PA Chair Warren and members of the, thank you for inviting me to speak today. I am Edward
More informationAt the end of the bill, add the following new section:
F:\M\CARDOZ\CARDOZ_0.XML AMENDMENT TO H.R., AS REPORTED OFFERED BY MR. CARDOZA OF CALIFORNIA At the end of the bill, add the following new section: 0 0 SEC.. AFFORDABLE REFINANCING OF MORTGAGES OWNED OR
More informationAlert Memo. OCC Revises Lending Limits Rule to Include Derivatives and Securities Financing Transactions
Alert Memo JUNE 29, 2012 OCC Revises Lending Limits Rule to Include Derivatives and Securities Financing Transactions On June 20, 2012, the Office of the Comptroller of the Currency (the OCC ) issued an
More informationTHIRD AMENDMENT TO COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT and HFA PARTICIPATION AGREEMENT
THIRD AMENDMENT TO COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT and HFA PARTICIPATION AGREEMENT This Third Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement (the Third
More informationAcquiring Institutions under Share Loss Agreements and LLC Servicers under LLC Servicing Agreements
Federal Deposit Insurance Corporation Division of Resolutions and Receiverships 550 17 th Street, NW, Washington, DC 20429-9990 Risk Sharing Asset Management To: From: Acquiring Institutions under Share
More informationAlert Memo. New York s Employment At-Will Doctrine Puts Private Company Compliance Personnel At Risk
Alert Memo JULY 27, 2012 New York s Employment At-Will Doctrine Puts Private Company Compliance Personnel At Risk Corporate governance failures in the last decade have focused attention on compliance and
More informationHome Affordable Modification Program: Investor Accounting and Reporting Requirements. Elizabeth Fink December 2010
Home Affordable Modification Program: Investor Accounting and Reporting Requirements Elizabeth Fink December 2010 Agenda Home Affordable Modification Program (HAMP) Trial Period Plan Effective Date and
More informationThis revenue procedure describes the conditions under which modifications to
Part III Administrative, Procedural, and Miscellaneous 26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability. (Also Part I, 860D, 860F,
More informationUSDA Rural Development/Special Loan Servicing
Guidance Lender (Loan Holder/Loan Servicer) Borrowers USDA Rural Development/Special Loan Servicing The Lender must be a Section 502 Single Family Housing Guaranteed Loan Program approved Lender. The current
More informationUnemployment Mortgage Assistance
1. Program Overview The Unemployment Mortgage Program ( UMA ) is one of CalHFA MAC s federally-funded programs developed to provide temporary financial assistance to eligible California homeowners who
More informationPATHS OF A FORECLOSURE IN NEW YORK STATE
PATHS OF A FORECLOSURE IN NEW YORK STATE BORROWER DELINQUENT 2-3 months late with mortgage payments if S/P or N/T 90-DAY PRE-FORECLOSURE NOTICE* for all subprime and non-traditional loans (as defined by
More informationJune 22, 2016. Gerald S. Sachs, Of Counsel. 2016 Paul Hastings LLP. geraldsachs@paulhastings.com (202) 551-1975
Current trends and priorities of the Consumer Financial Protection Bureau (CFPB), including recent enforcement activity and its small dollar lending proposed regulation June 22, 2016 Gerald S. Sachs, Of
More informationMaking Home Affordable: New Challenges, New Tools
Making Home Affordable: New Challenges, New Tools Todd Hempstead Senior Vice President, Single-Family Mortgage Business Fannie Mae June 2009 1 What I ll cover today Challenges facing our communities Fannie
More informationThe Cumberland County Residential Mortgage Foreclosure Diversion Program
The Cumberland County Residential Mortgage Foreclosure Diversion Program March 9, 2012 Training Materials THE CUMBERLAND COUNTY RESIDENTIAL MORTGAGE FORECLOSURE DIVERSION PROGRAM 8:30 a.m. Welcome: President
More informationWikiLeaks Document Release
WikiLeaks Document Release February 2, 2009 Congressional Research Service Report RS20530 FHA-Insured Home Loans: An Overview Bruce E. Foote and Katie Jones, Domestic Social Policy Division October 7,
More informationSupplemental Directive 14-05 November 26, 2014
Supplemental Directive 14-05 November 26, 2014 Making Home Affordable Program MHA Program Updates In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program to stabilize
More informationNew IRS Rules Would Impose U.S. Withholding Tax on Many Derivatives and Other Financial Transactions Linked to U.S. Stock
December 19, 2013 clearygottlieb.com New IRS Rules Would Impose U.S. Withholding Tax on Many Derivatives and Other Financial Transactions Linked to U.S. Stock I. OVERVIEW On December 5, 2013, the U.S.
More informationWith bailouts of all types on the agenda for Wall Street and other
Payment Shock Relief for Homeowners: The Save New Jersey Homes Act of 2008 LEONARD A. BERNSTEIN AND ROBERT M. JAWORSKI Mortgage servicers, mortgage investors and those that are foreclosing on mortgages
More informationI. RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS
I. RETURN INTEGRITY & ACCURACY TO FORECLOSURE AND BANKRUPTCY PROCEEDINGS A. Put an end to robosigning - signing affidavits filed with the court without personal knowledge. Affidavits/sworn statements utilized
More informationTreasury Considers Role for Private Investors in Economic Stabilization Plan and Provides Guidance on Selection of Asset Managers and Financial Agents
Economic Stabilization Advisory Group, Property October 10, 2008 Treasury Considers Role for Private Investors in Economic Stabilization Plan and Provides Guidance on Selection of Asset Managers and Financial
More informationCitiMortgage Home Affordable Foreclosure Alternative (HAFA) Matrix
CitiMortgage Home Affordable Foreclosure Alternative (HAFA) Matrix All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification
More information