Posted on Tuesday, February 2, 2010
There is a daily exchange between the Treasury and FNMA as administrator of MHA, in particular the FNMA group dedicated to servicing, vis-à-vis a 9 AM conference call that typically lasts about an hour.
FHA has it’s own separate HAMP program. Lenders and servicers also have their own current loss mit programs as per their contractual limitations.
Borrowers are reporting fake government websites. For example, bailout.hud-gov.us.
Servicing is an asset. FNMA servicers earn ¼ point fee. Servicers can also earn the “float” when payments are collected the first day of the month but don’t have to be remitted to the lender or investor until later. They also have a chance to cross sell other products. Hence the SRP (service release premium) paid for servicing rights.
Mortgage insurance is a big obstacle with modifications, especially in Florida. Under HAMP need MI approval but have to waive requirements for more money to get HAFA approval.
FNMA and Freddie are holding Borrower Outreach events. Schedule can be found on MHA or MHA admin sites. Also can get help from FNMA by “2nd look.” See FNMA website.
Estimate $300 to $500K in community resources lost per foreclosure.
HAMP ends Dec 31, 2012.
Beginning soon all information will have to be written – no more verbal.
Outstanding assessments are part of PITIA.
For NPV calculations see HMPadmin.com
When waterfall approach is used, interest rates are reduced 1.8% at a time.
FNMA and Freddie both do principal forbearances. They do not do principal forgiveness.
The GSEs always had loss mitigation programs. MHA is just one, they still have others. Some more lenient than HAMP.
Shot sale remains on credit for 1 year, foreclosure for 7.
HAFA becomes effective April 5, 2010. Will need to have everything fully executed by Dec 31, 2012. Reporting systems are not yet in place.
During MHA work out period, lenders can still initiate a foreclosure action, just can’t take it through sale.
Under Sup Dir 0908 servicers have to tell borrowers if they qualify for a mod or not. Under HAFA have to tell why and give 800 number.
RASS is a Request for Approval of Short Sale
The $1500 payment to the borrower under HAFA has to be given at closing or mailed with in 5 days. If the HAFA solution doesn’t materialize, costs can be added to the debt.
Information on Deed for Lease can be found at FNMA.com. Other program details will be released in the next few months.