Making Home Affordable Borrower Presentation
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Transcript of Making Home Affordable Borrower Presentation
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8/14/2019 Making Home Affordable Borrower Presentation
1/16
September2009lMakingHomeAffordable
MakingHomeAffordable
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8/14/2019 Making Home Affordable Borrower Presentation
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2September2009lMakingHomeAffordable
Background
Homeowner
Affordability&
StabilityPlan
MakingHome
AffordableProgram
HomeAffordable
Refinance
HomeAffordable
Modification
The
AdministrationsPlan
ProgramforHomeowners
Programs
Available
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3September2009lMakingHomeAffordable
HomeAffordable
Refinance
Program
(HARP)
Purpose
Givesborrowers
the
opportunity
to
refinance
intomoreaffordableloansattodayslowerrates
Only
for
borrowers
with
Fannie
Mae
or
Freddie
Macloans
Scope
Estimatedmillionsofborrowersareeligible
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8/14/2019 Making Home Affordable Borrower Presentation
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4September2009lMakingHomeAffordable
HARPEligibility
Criteria
Borrower
Owneroccupant
of
a14unitproperty
Iscurrentonthe
mortgage
Hasreasonableabilitytopaynewmortgagepayment
Loan
Mortgageis
owned
or
guaranteedbyFannieMaeorFreddieMac
Amountof
first mortgage
doesnotexceed125%ofpropertyscurrentmarket
value
Refinancewillimprovethelongtermaffordabilityorsustainability
of
the
loan
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8/14/2019 Making Home Affordable Borrower Presentation
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DeterminingImminent
Default
Borrowerswhoarecurrentontheirloansbut
arestruggling
to
make
payments
may
also
be
eligibleforHAMPifthey:
Have
adocumented
hardship
decreasein
income,increaseinexpenses,facinginterestrateincreasewithinthenextfourmonths,etc.
Donothavesufficientsavingsorotherliquid
assetstomakefuturepayments
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8/14/2019 Making Home Affordable Borrower Presentation
8/168September2009lMakingHomeAffordable
ModificationProcess
YourMortgageLenderorCounselor
Determinesifborrower
meets
minimum
eligibilitycriteria
Obtainsborrower
income
and
debt
information
Calculatesborrowerstargetmodifiedpayment
toreach
debt
to
income
ratio
of
31%
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ModificationProcess
Continued
YourMortgageLender
Performsstepsinordertoreachtargetmodifiedpayment
Step1:
Capitalizes
outstanding
debt,
escrow
advances
andoutofpocketservicingexpenses(nolatefees
allowed)
Step2:
Reduces
the
interest
rate
to
as
low
as
2%
Reducedrateremainsfixedfor5yearsandincreases1%per
yearthereaftertomarketinterestrateatthetimeof
modificationStep3:Extendsloantermupto40years
Step4:Defersaportionoftheprincipal,interestfree,
untilloan
is
paid
off
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SecondMortgage
Lien
Modification
Program
Purpose
Modifies
2
nd
mortgagesof
qualifying
at
risk
borrowerstoachieveaffordablepaymentson
bothmortgages
Incentives
encourage
participation
from
all
parties
Scope
Estimatedthatupto50%ofatriskborrowers
with1st mortgageshave2nd mortgages
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SecondMortgageLienModificationProgram
Continued A2nd mortgagelienmaybeeligiblewhen
ThemortgagelenderisaparticipantintheSecondMortgageLien
ModificationProgram
under
HAMP
Borrowerscorresponding1st mortgageismodifiedthroughHAMP
MortgageoriginatedonorbeforeJanuary1,2009
3rd and/or4th mortgage
liens
are
not
eligible
Mayonlybemodifiedonce
Nofeechargedtomodify
Borrowermustprovideconsenttosharetheir1st mortgage
lienmodification
data
with
the
2ndmortgage
lender
ifthe
lendersaretwodifferentparties
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BorrowerIncentives
Nocostformodification
BorrowerscanreceiveprincipalreductionsformakingHAMP
paymentson
time
Incentivescanequalupto:
$1,000peryearforfiveyearsfor1st mortgage
$250peryearforfiveyearsfor2nd mortgage(ifapplicable)
Incentivesaddupmonthlyandareallocatedonceayeartoreduce
borrowersunpaidmortgageprincipalbalance
Withnoextraeffort,borrowersincreasetheequityintheirhomes
However,ifborrowerdefaultsontheir1st or2nd modified
mortgages,then
no
additional
incentives
will
be
allocated
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GettingStarted
EasytoUseMainNavigationfor
HomeownerstoQuicklyFindInformation
OntheHomePage,consumerscan
access:
SpanishContent
1888995HOPE(4673)
BewareofScams
InformationVideo
HelpfulLinksinFooterSampleHomePage
AccessChecklisttoPrepare
BorrowerstoSpeakwiththeir
MortgageLenderorCounselor
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AreMortgage
Lenders
Required
to
Participate?
IfyouhaveaFannieMaeorFreddieMacloan YES
For
other
loans,
participation
is
optional.
However,
significantfinancialincentivesareprovidedto
encourageparticipationbyborrowers,mortgage
lendersand
investors.
Thelistofparticipatingmortgagelendersisavailable
at:www.MakingHomeAffordable.gov
Participatingmortgagelendersmaynotproceedwithaforeclosuresaleuntilaborrowerhasbeen
evaluated
for
a
Making
Home
Affordable
loan.
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Bewareof
Foreclosure
Rescue
Scams
Bewareofanycompanythatpromises:
That
its
safe
to
skip
your
mortgage
payments Thatwalkingawayfromyourhousewontaffect
yourcredit
Theywill
buy
your
house
&
sell
it
back
to
you
later
A
specific
result,
for
a
feeThereisnever afeeforgettinginformationabouttheMaking
HomeAffordableprogramfromyourmortgagelenderora
HUDapproved
housing
counselor.
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16/1616S t b 2009 l M ki H Aff d bl
AdditionalResources
ForImmediateBorrowerAssistance:
Call1888
995
HOPE
(4673)
FindaHUDApprovedHousingCounselor:
Visitwww.MakingHomeAffordable.gov
Find
Your
Mortgage
Lenders
Phone
Number: Refertoyourmonthlymortgagestatement,or
Lookuponwww.MakingHomeAffordable.gov