About Northwest Counseling Ser About Nor hwest Counseling Service - - PowerPoint PPT Presentation

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About Northwest Counseling Ser About Nor hwest Counseling Service - - PowerPoint PPT Presentation

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About Northwest Counseling Ser About Nor hwest Counseling Service ice Non Non Pr Prof ofit A it Agency No Cost Housin No Cost Housin No Cost Housing Counse No Cost Housing Counse Counseli Counseli ling ling Ser Service

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SLIDE 1
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SLIDE 2

About Nor About Northwest Counseling Ser hwest Counseling Service ice

 Non

Non Pr Prof

  • fit A

it Agency

 No Cost Housin

No Cost Housing Counse Counseli ling

 No Cost Housin

No Cost Housing Counse Counseli ling Ser Service ices

 An

Any Ser y Service R ice Relat lated T d To A A Home Home

 Specialize In Mor

Specialize In Mortgage gage

 Specialize In Mor

Specialize In Mortgage gage Delinquency Delinquency

 96% Rat

96% Rate In In Keepin eeping R g Residen sidents s In Homes In Homes

 HUD Cer

HUD Certif ified/O ied/OHCD F CD Funde nded

 33 A

33 Agencies Lik encies Like Us Us In The C In The City ty

215-32 15-324-7500 4-7500

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SLIDE 3

HAMP HAMP

Direct Director of

  • r of Business

Business De Development, NW lopment, NWCS CS Housin Housing Coun Counsel selor g Help Homeo Help Homeowner ners in in Distress Distress

Michael Brown Michael Brown

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SLIDE 4

PRINCIPAL REDUCTION ALTERNATIVE ALTERNATIVE

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SLIDE 5

Eligibility g y

You may be eligible for PRA if:

  • Program Availability

Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.

You owe more than your home is worth.

You occupy the house as your primary residence.

 More than 100 servicers

participate in HAMP and can evaluate homeowners f i i l d ti

You obtained your mortgage on or before January 1, 2009.

Your mortgage payment is more than 31 percent of your gross (pre-tax) monthly income.

for principal reduction.

 Participating servicers are

required to develop written t d d f PRA

You owe up to $729,750 on your 1st mortgage.

You have a financial hardship and are either delinquent or in danger of falling behind.

You have sufficient, documented income to

standards for PRA application.

 The largest servicers

i l d B k f A i

, support the modified payment.

You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection ith t l t t t ti

include Bank of America, CitiMortgage, JP Morgan Chase, and Wells Fargo.

with a mortgage or real estate transaction.

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SLIDE 6
  • Ext

Extension of HAMP int ension of HAMP into 20 2013

  • Ext

Extension of HAMP int ension of HAMP into 20 2013

  • HAMP w

HAMP was se s set t t to e expire f pire for ne r new trial w trial modifications modifications at the end of the y at the end of the year ar modifications modifications at the end of the y at the end of the year ar

  • HARP

HARP, the , the ne newly wly-tweak tweaked refinancing pr d refinancing program,

  • gram,

also has also has authority thr authority through 20 ugh 2013. . also has also has authority thr authority through 20 ugh 2013. .

  • This means that the bulk of the mone

This means that the bulk of the money lef y left in in HAMP accounts can actually ge HAMP accounts can actually get used. t used. HAMP accounts can actually ge HAMP accounts can actually get used. t used.

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SLIDE 7
  • B

i h d li

  • Borrowers with second liens or

additional financial exposure (like medical bills will have the chance for another evaluation

  • More flexible debt-to-income criteria

to expand modification assistance to borrowers with higher levels of secondary debt secondary debt

  • Properties intended for rental are

eligible

New principal reduction enhancements Treasury has tripled the incentive payments To mitigate FHFA’s concerns about losing taxpayer money in the deal Treasury will “pay principal for investors who agree to reduce principal for borrowers Principal reduction incentives for GSE-owned t d l y p y p p reduction incentives to Fannie Mae

  • r Freddie Mac if they allow

servicers to forgive principal in

  • r guaranteed loans

conjunction with a HAMP modification.”

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SLIDE 8

Modify or Refinance Your Loan for

  • Home

Home Home Home Af Affordable able Af Affordable able Modif Modification cation Modif Modification cation Pr Program

  • gram

Pr Program

  • gram (HAMP

(HAMP (HAMP (HAMP): : : : The The The The typical typical typical typical HAMP HAMP HAMP HAMP modi modific fication tion modi modific fication tion

Modify or Refinance Your Loan for Lower Payments

  • Home

Home Home Home Af Affordable able Af Affordable able Modif Modification cation Modif Modification cation Pr Program

  • gram

Pr Program

  • gram (HAMP

(HAMP (HAMP (HAMP): : : : The The The The typical typical typical typical HAMP HAMP HAMP HAMP modi modific fication tion modi modific fication tion results results results results in in in a a 4 a 40 40 40 per percent ent perc rcent dro rop dr drop

  • p in

in in in a a m a monthly month monthly mor

  • rtgage

tgage mor mortgage gage pa payment yment pa payment. yment. .

  • Principal

Principal Principal Principal Reducti eduction

  • n

Re Reductio ion Alternative ve Alt Alternativ rnative (PRA) PRA) (PRA): RA): : PRA RA PRA PRA was as wa was designed de design gned ed to to to help help help hom homeowner ners homeo homeowners whose whose whose whose homes

  • mes

homes homes are re are are wor

  • rth

wo worth significantl nificantly si significantl nificantly less less less less tha than than than the they the they ow

  • we
  • w
  • we by

by encoura encouragin ing encoura encouragin ing ser servicer icers ser servicer icers g y g y g y g y y y g g g g g g g g and and and and invest estors in invest stor

  • rs to

to to reduce reduce reduce the the the the amoun mount amount amount you yo you owe

  • we
  • we on
  • n
  • n your

ur yo your home home. home. .

  • Second

Second Second Second Lien Lien Lien Lien Modif Modification cation Modif Modification cation Pr Program

  • gram

Pr Program

  • gram (

(2 (2 2MP 2MP) MP): MP): : If If If the the the the fir irst fi first mortgage mor mortgage gage was was permanently ermanently per perman anentl tly modif modified ed modif modified ed under under under under HAMP AMP HAMP HAMP SM SM SM SM and and and and there here there there is is is a a s a second second second mor mortgage gage mor mortgage gage on

  • n
  • n
  • n the

the the the same ame same same prop proper erty ty, pr proper

  • perty

ty, th the th the borro rower wer borr borrower er ma may ma may be be eligible eligible eligible eligible for fo for a a modification

  • dification

modif modificati cation

  • n or
  • r
  • r
  • r pr

princi cipa pal pr princi cipa pal reduc ucti tion

  • n

reduction reduction on

  • n
  • n the

the the the second second second second mor mortgage gage mor mortgage gage under under under under 2 2MP 2MP MP MP. .

  • Home

Home Home Home Af Afford rdable able Afford rdable able Refinance finance Re Refinance Pro rogram Pr Program

  • gram (HARP)

HARP) (HARP): (HARP): : For Fo For borrowers borr borrower ers who ho who who are re are are current rrent cu current rrent on

  • n
  • n
  • n

th th i th th i tg tg g tg tg g d h b bl bl bl bl t bt bt i bt bt i t d t diti l t d t diti l fi fi fi fi b th their th their m r mortg tgage mor mortg tgage a e and an and hav ave hav ave been een been een una unabl ble una unabl ble to to o

  • obt

btain

  • bt

btain a n a a tra raditi ditiona

  • nal

tra raditi ditiona

  • nal re

refi financ nance re refi financ nance because ecause because ecause the the the the value alue va value of

  • f
  • f the

the the the home

  • me

home home has has has has declined eclined declined declined

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SLIDE 9

In today's housing market, many homeowners have experienced a d i th i h ' l L b t th MHA t decrease in their home's value. Learn about these MHA programs to address this concern for homeowners.

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SLIDE 10

Home Affordable Refinance Program (HARP)

The The mor mortgage must be gage must be owned or ned or guarant guaranteed b eed by Freddie eddie Mac or Mac or guarant guaranteed b eed by Freddie eddie Mac or Mac or Fannie Mae. nnie Mae.

The mor The mortgage must gage must ha have been been sold t sold to F Fannie Mae nnie Mae or

  • r Freddie

eddie Mac Mac

  • n or bef
  • n or before

re Ma May 3 y 31 2009 2009

  • n or bef
  • n or before

re Ma May 3 y 31, 2009 2009.

The mor The mortgage canno gage cannot t ha have been been refinanced under refinanced under HARP pre HARP previously iously unless it is a unless it is a Fannie Mae nnie Mae loan that loan that was refinanced under s refinanced under HARP fr HARP from

  • m

was refinanced under s refinanced under HARP fr HARP from

  • m

Mar March-Ma h-May, 2009. 2009.

The The current loan-t current loan-to-v

  • -value (L

lue (LTV) ) ratio must be ratio must be great greater r than 80%. than 80%. The The borr borro er m r m st be t be c rrent on rrent on

The borr The borrower m er must be st be current on rrent on the mor the mortgage at the time of the gage at the time of the refinance, refinance, with a with a good pa good payment yment his histor

  • ry in

n the past 1 the past 12 mon months hs.

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SLIDE 11

FHA Short Refinance

 The mor

The mortgage is gage is no not o t owned or wned or guaran guaranteed b eed by

 The mor

The mortgage is gage is no not o t owned or wned or guaran guaranteed b eed by Fannie nnie Mae, F Mae, Freddie Mac, FHA eddie Mac, FHA, V VA or USD

  • r USDA.

 More is o

More is owed than the home is w ed than the home is worth. h.

 Borr

Borrower is current is current on the mor

  • n the mortgag

gage pa payments yments

 Borr

Borrower is current is current on the mor

  • n the mortgag

gage pa payments yments

 The house is the primar

The house is the primary residence. y residence.

 Standard FHA under

Standard FHA underwriting requirements. riting requirements. Total debt does no tal debt does not e t e ceed 55 per eed 55 percen ent of t of the the

 Total debt does no

tal debt does not e t exceed 55 percent of ceed 55 percent of the the monthly gross income monthly gross income.

 Can not ha

Can not have been con been convict icted within the last 1 d within the last 10 year ars of s of felon lony lar larcen eny thef theft fraud fraud f forger rgery year ars of s of felon lony lar larcen eny, thef theft, fraud fraud, fo forgery, mone money l y laundering or undering or tax tax evas asion i ion in connection connection with a with a mor mortgag gage or real estat

  • r real estate transa

transaction ction

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SLIDE 12

Principal Principal Re Reduction Re Reduction Alt Alternativ ernative (PRA) (PRA)

  • Home is

Home is worth signif h significantly less icantly less than than owed ed Home is Home is worth signif h significantly less icantly less than than owed ed

  • Encourages ser

Encourages servicer icers and s and in invest stor

  • rs t

s to reduce the reduce the amount o amount owed ed Encourages ser Encourages servicer icers and s and in invest stor

  • rs t

s to reduce the reduce the amount o amount owed ed

  • Treasur

easury/FHA Second Lien /FHA Second Lien Pr Program (FHA2LP):

  • gram (FHA2LP):

Treasur easury/FHA Second Lien /FHA Second Lien Pr Program (FHA2LP):

  • gram (FHA2LP): If

f there is there is a a second second If there is a If there is a second second mor mortgage and tgage and the the 1 mor mortgage and tgage and the the 1st

st st st mor

mortgage ser tgage servicer agrees icer agrees to par participat icipate in e in FHA FHA mor mortgage ser tgage servicer agrees icer agrees to par participat icipate in e in FHA FHA Shor Short R t Refinance finance, the second mor the second mortgage ma e may qualif ualify t to be be reduced or reduced or Shor Short R t Refinance finance, the second mor the second mortgage ma e may qualif ualify t to be be reduced or reduced or , g , g g y q y , g , g g y q y eliminat eliminated thr ed through FHA2LP h FHA2LP eliminat eliminated thr ed through FHA2LP h FHA2LP

  • The

The total amount of the tal amount of the mor mortgage tgage debt af debt after the refinance cannot r the refinance cannot The The total amount of the tal amount of the mor mortgage tgage debt af debt after the refinance cannot r the refinance cannot exceed 115% of the home ceed 115% of the home’s current v s current value lue exceed 115% of the home ceed 115% of the home’s current v s current value lue exceed 115% of the home ceed 115% of the home s current v s current value lue exceed 115% of the home ceed 115% of the home s current v s current value lue

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SLIDE 13

Assistance for Unemployed Homeowners

  • Home Af

Home Affordable Unemplo rdable Unemployment Program (UP) ment Program (UP)

  • FHA F

FHA Forbearance f rbearance for r Unemplo Unemployed Homeo ed Homeowner ners:

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SLIDE 14

FHA FHA-Home Af Home Affordable Modif rdable Modification cation Pr Program (FHA

  • gram (FHA-HAMP)

HAMP) Pr Program (FHA

  • gram (FHA-HAMP)

HAMP)

 Allo

Allows homeo ws homeowner ners t to modif modify FHA FHA-insured mor insured mortgages t es to y g g g g reduce monthly mor reduce monthly mortgage pa gage payments and yments and avoid f

  • id foreclosure

reclosure

 Allo

Allows ws the use of a par the use of a partial ial claim up t claim up to 30 percent of the 30 percent of the id id i i l b l b l f f th th d d t f f d f lt lt unpa unpaid id pr princ ncipa pal b l balance ance as as of th f the d date of d f defau ault lt combined with a combined with a loan modif loan modification cation

 Must successfully complet

Must successfully complete a a three month trial pa three month trial payment yment

 Must successfully complet

Must successfully complete a a three month trial pa three month trial payment yment plan plan

 Monthly pa

Monthly payment during the trial must be yment during the trial must be the amount of the amount of future modif future modified pa ed payment yment

 The Mor

The Mortgagee must ser gagee must service the mor e the mortgage during the trial gage during the trial period in the same manner as it w period in the same manner as it would in f uld in forbearance rbearance period in the same manner as it w period in the same manner as it would in f uld in forbearance rbearance.

 If trial is not complet

If trial is not completed pr d properly

  • perly, the mor

, the mortgagor is no gagor is no longer eligible f longer eligible for r FHA FHA-HAMP HAMP.

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SLIDE 15

LENDER WILL AD LENDER WILL ADVANCE FUNDS IN NCE FUNDS IN AN AN AMOUNT NECESS AMOUNT NECESSARY T TO REINST REINSTATE DELINQUENT L E DELINQUENT LOAN (NO AN (NOT TO EX EXCEED CEED THE THE EQUIV EQUIVALENT OF LENT OF 12 MONTHS PITI) MONTHS PITI)

FHA P FHA PARTIAL RTIAL CLAIM CLAIM

EQUIV EQUIVALENT OF LENT OF 12 MONTHS PITI) MONTHS PITI) BORR BORROWER, UPON WER, UPON ACCEP CEPTANCE OF ANCE OF THE AD THE ADVANCE NCE, WILL WILL EXECUTE A EXECUTE A PR PROMISSOR OMISSORY NO NOTE TE AND AND SUBORDINA SUBORDINATE MORT E MORTGAGE GE PAYABLE T BLE TO HUD HUD CURRENTL CURRENTLY, THES , THESE PR E PROMIS OMISSORY OR OR “P “PARTIAL CLAIM” ARTIAL CLAIM” NO NOTES TES CARR RRY Y NO INTERES NO INTEREST T AND ARE NO AND ARE NOT DUE AND P T DUE AND PAYABLE BLE UNTIL UNTIL CARR RRY Y NO INTERES NO INTEREST T AND ARE NO AND ARE NOT DUE AND P T DUE AND PAYABLE BLE UNTIL UNTIL BORR BORROWER EITHE WER EITHER P R PAYS OFF OFF THE FIRST MORT THE FIRST MORTGAGE OR GE OR NO NO LONGER O NGER OWNS WNS THE PR THE PROPERT OPERTY. FOLL LLOWING REINST G REINSTATEM TEMENT NT LENDER WILL FILE A LENDER WILL FILE A PARTIAL RTIAL” FOLL LLOWING REINST G REINSTATEM TEMENT NT, LENDER WILL FILE A LENDER WILL FILE A PARTIAL RTIAL” CLAI CLAIM F M FOR R THE AMOUNT OF THE AMOUNT OF THE AD THE ADVANCE PL NCE PLUS THE LENDER'S US THE LENDER'S INCE INCENTIVE FEE, AND TIVE FEE, AND FORWARD A ARD A COPY OF COPY OF THE RECORDE THE RECORDED DOCUMENT DOCUMENTS T S TO HUD. HUD. A A CONTRA CONTRACT CTOR RET OR RETAINED B INED BY HUD HUD WILL SER WILL SERVIC ICE THE P THE PARTIAL RTIAL CLAI CLAIM LIENS. M LIENS.

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SLIDE 16

Individuals who have been declined for the Home Affordable Modification Program Home Affordable Modification Program (HAMP) or MHA program may find assistance under the Tier 2 level of eligibility through the following changes:

  • 1. Expansion of eligibility: Homeowners who

did not qualify under the HAMP Tier 1

https://www.hmpadmin.com/port

did not qualify under the HAMP Tier 1 program may apply under Tier 2. The new guidelines calculate debt-to-income ratios by taking other debt into account.

  • 2. Extension of eligibility to rental property
  • wners: Owners of investment properties will

al/programs/docs/hamp_servicer/ escalated_case_docs/hampresoluti

  • nmatrix.pdf

p p be eligible to apply for assistance under Tier 2 if they are current on their investment payments.

  • 3. Fannie Mae and Freddie Mac to receive

same incentives: If either provider allows servicers to forgive principal with a HAMP modification, the United States Treasury will pay the same principal reduction incentives.

  • 4. Triple balance-reduction incentives: HAMP

will pay between 18 cents and 63 cents for every dollar the lenders take from the t i i l Th b mortgage principal. These numbers were

  • riginally between 6 cents and 21 cents.