Tag Archives: Foreclosure Prevention

Fannie Mae and Freddie Mac recently announced they will be issuing new guidelines this summer that will align their procedures for handling past due mortgages and implement a new incentive and penalty structure based on individual servicers' performance. Moody's Investors Service says this new directive - in particular the monetary motivation involved - will likely shift servicers' focus to loans backing the GSEs' mortgage bonds and away from loans in private-label residential mortgage-backed securities (RMBS).

Veterans wounded, injured, or disabled in the line of duty can now make reduced monthly payments on CitiMortgage-owned loans as part of a new initiative by the financial services company. The Citi Disabled Veterans Mortgage Relief Program offers an interest rate reduction of 2.5 percent on existing mortgages for a period of two years. Surviving spouses may also be eligible for the program.

CitiMortgage and Los Angeles Neighborhood Housing Services will host a free homeowner outreach event for distressed homeowners in Torrance, California on Tuesday. Part of the Citi Road to Recovery Homeowner Assistance Series, the event is open to all homeowners needing help with their mortgage payments.

Chase, the consumer banking and home lending business of JPMorgan Chase & Co., opened a new Homeownership Center in Milwaukee, Wisconsin on Friday. The facility provides Chase borrowers who are struggling to make their mortgage payments with resources to help them avoid foreclosure. Trained advisors are on hand to help distressed homeowners evaluate their finances, review possible workout options, and answer any questions.

The Federal Housing Administration (FHA) recently announced a new mechanism that encourages servicers to report non-incentivized loan modifications using the agency's online system. A mortgagee letter will make this reporting a requirement in the future. FHA warns that servicers who miss the 60-day window for filing an incentive claim should still report modification terms or they may incur monetary damages by delaying future claims activity after the original loan maturity date automatically terminates the FHA insurance.

Sun Law Group, PLC, a law firm based in Grand Rapids, Michigan that assists homeowners with negotiating and coordinating short sale transactions, and Lighthouse Title Group, a title insurance agency with 18 offices throughout Michigan, have formed an alliance to offer a joint short sale and closing service solution to homeowners in the state. The companies expect the number of short sales to continue to grow but note that these transactions present a unique set of issues that often require attorney oversight.

The U.S. Treasury released updated guidance for the Home Affordable Modification Program (HAMP) this week requiring certain servicers to provide borrowers with a single point-of-contact through the entire default resolution process. The new directive applies only to the largest servicers, however Treasury says all servicers participating in HAMP are encouraged to adopt the new guidance. The rule also carries over to the government's short sale and unemployment programs.

Las Vegas residents facing foreclosure can receive help during a Home Rescue Fair this Friday and Saturday at the Palace Station Hotel Casino. Sponsored by the city of Las Vegas, the event was organized by Housing for Nevada and the Alliance for Stabilizing Communities, with the support of Bank of America.

Ohio Attorney General Mike DeWine has filed a lawsuit against The Modification Group LLC, a Cleveland business that offered to help homeowners avoid foreclosure in exchange for upfront fees. The lawsuit alleges multiple violations of Ohio consumer law, including failure to deliver. The attorney general's office currently has 70 complaints against the company dating back to December 2009. DeWine is seeking civil penalties and full restitution for consumers.

President Obama has made a public call for mortgage lenders and servicers to provide struggling homeowners with longer-term modifications and principal reductions when it fits the situation. Referring to the bailout of the banking system, which the president described as probably the most unpopular thing the government has ever done, Obama said American taxpayers were there for the banks when they got into trouble, and now it's time for the banks to be there for the American people.