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STATEWIDE:
Fannie Mae Relaxes Florida Condo Standards
Fannie Mae is seeking to prop up Florida's ravaged real estate market by reviewing hundreds of condo projects in the state that currently don't qualify for its loans. The mortgage finance company said Thursday that buildings deemed stable after the review will be given a special approval lasting up to 18 months. If they are approved, lenders will be allowed to offer mortgages to homebuyers and sell those loans to Fannie Mae, which pools them into bonds and sells them to investors SOURCE AP
Showing posts with label Mortgage Info. Show all posts
Showing posts with label Mortgage Info. Show all posts
Friday, January 8, 2010
Wednesday, December 2, 2009
LOAN MODIFICATIONS
Press Release FROM US TREASURY
Updated: November 30, 2009
November 30, 2009
Contact: Office of Public Affairs, (202) 622-2960
OBAMA ADMINISTRATION KICKS OFF
MORTGAGE MODIFICATION CONVERSION DRIVE
WASHINGTON - The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide campaign to help borrowers who are currently in the trial phase of their modified mortgages under the Obama Administration’s Home Affordable Modification Program (HAMP) convert to permanent modifications. The modification program, which has helped over 650,000 borrowers, is part of the Administration’s broader commitment to stabilize housing markets and to provide relief to struggling homeowners and is a primary focus of financial stability efforts moving forward. Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year. Through the efforts being announced today, Treasury and HUD will implement new outreach tools and borrower resources to help convert as many trial modifications as possible to permanent ones.
"We are encouraged by the pace at which trial modifications are now being made to provide immediate savings to struggling homeowners," said the new Chief of Treasury’s Homeownership Preservation Office (HPO), Phyllis Caldwell. "We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones." In her new role, Caldwell will lead HPO’s conversion drive efforts.
"Encouraging borrowers to move through the process of converting trial modifications to permanent modifications remains a top priority for HUD," said HUD Assistant Secretary for Housing and FHA Commissioner David Stevens. "As a part of our continuing efforts to improve the execution of the HAMP program, HUD is committed to working with servicers, borrowers, housing counselors and others dedicated to homeownership preservation to improve the transition of distressed homeowners into affordable and sustainable mortgages."
With tens of thousands of trial modifications being made each week, the Administration is now working to ensure that eligible borrowers have the information and the assistance needed to move from the trial to the permanent modification phase. (All mortgage modifications begin with a trial phase to allow borrowers to submit the necessary documentation and determine whether the modified monthly payment is sustainable for them.) As the first round of modifications convert from the trial to permanent phase, the Administration has identified several strategies for addressing the challenges that borrowers confront in receiving permanent modifications.
In addition to the conversion drive that kicks off today, the Obama Administration has already taken several steps to make the transition from trial to permanent modification easier and more transparent by:
Extending the period for trial modifications started on or before September 1st to give homeowners more time to submit required information;
Streamlining the application process to minimize paperwork and simplify the submission process; meeting regularly with servicers to identify necessary improvement to borrower outreach and responsiveness;
Developing operational metrics to hold servicers accountable for their performance, which will soon be reported publicly;
Enhancing borrower resources on the MakingHomeAffordable.gov website and the Homeowner’s HOPE Hotline (888-995-HOPE) to provide direct access to tools and housing counselors.
The Mortgage Modification Conversion Drive will include the following:
Servicer Accountability. As part of the Administration’s ongoing efforts to hold servicers accountable for their commitment to the program and responsibility to borrowers, the following measures will be added:
Top servicers will be required to submit a schedule demonstrating their plans to reach a decision on each loan for which they have documentation and to communicate either a modification agreement or denial letter to those borrowers. Treasury/Fannie Mae "account liaisons" are being assigned to these servicers and will follow up daily as necessary to monitor progress against the servicer’s plan. Daily progress will be aggregated by the end of each business day and reported to the Administration.
Servicers failing to meet performance obligations under the Servicer Participation Agreement will be subject to consequences which could include monetary penalties and sanctions.
The December MHA Servicer Performance Report will include the data on permanent modifications as well as the number of active trial period modifications that may convert by the end of the year if all borrower documents are successfully submitted, sorted by servicer and date.
Servicers will be required to report to the Administration the status of each modification to provide additional transparency about situations where borrowers face obstacles to moving to the permanent phase.
Web tools for borrowers. Because the document submission process can be a challenge for many borrowers, the Administration has created new resources on www.MakingHomeAffordable.gov to simplify and streamline this step. New resources include:
Links to all of the required documents and an income verification checklist to help borrowers request a modification in four easy steps;
Comprehensive information about how the trial phase works, what borrower responsibilities are to convert to a permanent modification, and a new instructional video which provides step by step instruction for borrowers;
A toolkit for partner organizations to directly assist their constituents;
New web banners and tools for outreach partners to drive more borrowers to the site and Homeowner’s HOPE Hotline (888-995-HOPE).
Engagement of state, local and community stakeholders. Through the conversion drive, the Administration is engaging all levels of government - state, local and county - to both increase awareness of the program and expand the resources available to borrowers as they navigate the modification process.
HUD will engage staff in its 81 field offices to distribute outreach tools. HUD will also encourage its 2700 HUD-Approved Counseling Organizations to distribute outreach information to participating borrowers.
By engaging the National Governors Association (NGA), National League of Cities (NLC) and National Association of Counties (NACo) the Administration is connecting with the thousands of state, local, and county offices on the frontlines in large and small communities across the country who are hardest hit by the foreclosure crisis. These offices will now have the tools to increase awareness of the program, connect with and educate borrowers and grassroots organizations on how to request a modification and take the additional steps to ensure they are converted to permanent status; and serve as an additional trusted resource for borrowers who are facing challenges with the program.
In partnering with the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, state regulators will now have enhanced tools to assist borrowers who are facing challenges in converting to a permanent modification and to report to the Administration on the progress and challenges borrowers and servicers are facing on the ground. Regulators will also be empowered to work directly with escalation and compliance teams to ensure that HAMP guidelines are consistently applied.
More information about the Obama Administration’s mortgage modification program can be found at www.MakingHomeAffordable.gov.
Updated: November 30, 2009
November 30, 2009
Contact: Office of Public Affairs, (202) 622-2960
OBAMA ADMINISTRATION KICKS OFF
MORTGAGE MODIFICATION CONVERSION DRIVE
WASHINGTON - The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide campaign to help borrowers who are currently in the trial phase of their modified mortgages under the Obama Administration’s Home Affordable Modification Program (HAMP) convert to permanent modifications. The modification program, which has helped over 650,000 borrowers, is part of the Administration’s broader commitment to stabilize housing markets and to provide relief to struggling homeowners and is a primary focus of financial stability efforts moving forward. Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year. Through the efforts being announced today, Treasury and HUD will implement new outreach tools and borrower resources to help convert as many trial modifications as possible to permanent ones.
"We are encouraged by the pace at which trial modifications are now being made to provide immediate savings to struggling homeowners," said the new Chief of Treasury’s Homeownership Preservation Office (HPO), Phyllis Caldwell. "We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones." In her new role, Caldwell will lead HPO’s conversion drive efforts.
"Encouraging borrowers to move through the process of converting trial modifications to permanent modifications remains a top priority for HUD," said HUD Assistant Secretary for Housing and FHA Commissioner David Stevens. "As a part of our continuing efforts to improve the execution of the HAMP program, HUD is committed to working with servicers, borrowers, housing counselors and others dedicated to homeownership preservation to improve the transition of distressed homeowners into affordable and sustainable mortgages."
With tens of thousands of trial modifications being made each week, the Administration is now working to ensure that eligible borrowers have the information and the assistance needed to move from the trial to the permanent modification phase. (All mortgage modifications begin with a trial phase to allow borrowers to submit the necessary documentation and determine whether the modified monthly payment is sustainable for them.) As the first round of modifications convert from the trial to permanent phase, the Administration has identified several strategies for addressing the challenges that borrowers confront in receiving permanent modifications.
In addition to the conversion drive that kicks off today, the Obama Administration has already taken several steps to make the transition from trial to permanent modification easier and more transparent by:
Extending the period for trial modifications started on or before September 1st to give homeowners more time to submit required information;
Streamlining the application process to minimize paperwork and simplify the submission process; meeting regularly with servicers to identify necessary improvement to borrower outreach and responsiveness;
Developing operational metrics to hold servicers accountable for their performance, which will soon be reported publicly;
Enhancing borrower resources on the MakingHomeAffordable.gov website and the Homeowner’s HOPE Hotline (888-995-HOPE) to provide direct access to tools and housing counselors.
The Mortgage Modification Conversion Drive will include the following:
Servicer Accountability. As part of the Administration’s ongoing efforts to hold servicers accountable for their commitment to the program and responsibility to borrowers, the following measures will be added:
Top servicers will be required to submit a schedule demonstrating their plans to reach a decision on each loan for which they have documentation and to communicate either a modification agreement or denial letter to those borrowers. Treasury/Fannie Mae "account liaisons" are being assigned to these servicers and will follow up daily as necessary to monitor progress against the servicer’s plan. Daily progress will be aggregated by the end of each business day and reported to the Administration.
Servicers failing to meet performance obligations under the Servicer Participation Agreement will be subject to consequences which could include monetary penalties and sanctions.
The December MHA Servicer Performance Report will include the data on permanent modifications as well as the number of active trial period modifications that may convert by the end of the year if all borrower documents are successfully submitted, sorted by servicer and date.
Servicers will be required to report to the Administration the status of each modification to provide additional transparency about situations where borrowers face obstacles to moving to the permanent phase.
Web tools for borrowers. Because the document submission process can be a challenge for many borrowers, the Administration has created new resources on www.MakingHomeAffordable.gov to simplify and streamline this step. New resources include:
Links to all of the required documents and an income verification checklist to help borrowers request a modification in four easy steps;
Comprehensive information about how the trial phase works, what borrower responsibilities are to convert to a permanent modification, and a new instructional video which provides step by step instruction for borrowers;
A toolkit for partner organizations to directly assist their constituents;
New web banners and tools for outreach partners to drive more borrowers to the site and Homeowner’s HOPE Hotline (888-995-HOPE).
Engagement of state, local and community stakeholders. Through the conversion drive, the Administration is engaging all levels of government - state, local and county - to both increase awareness of the program and expand the resources available to borrowers as they navigate the modification process.
HUD will engage staff in its 81 field offices to distribute outreach tools. HUD will also encourage its 2700 HUD-Approved Counseling Organizations to distribute outreach information to participating borrowers.
By engaging the National Governors Association (NGA), National League of Cities (NLC) and National Association of Counties (NACo) the Administration is connecting with the thousands of state, local, and county offices on the frontlines in large and small communities across the country who are hardest hit by the foreclosure crisis. These offices will now have the tools to increase awareness of the program, connect with and educate borrowers and grassroots organizations on how to request a modification and take the additional steps to ensure they are converted to permanent status; and serve as an additional trusted resource for borrowers who are facing challenges with the program.
In partnering with the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, state regulators will now have enhanced tools to assist borrowers who are facing challenges in converting to a permanent modification and to report to the Administration on the progress and challenges borrowers and servicers are facing on the ground. Regulators will also be empowered to work directly with escalation and compliance teams to ensure that HAMP guidelines are consistently applied.
More information about the Obama Administration’s mortgage modification program can be found at www.MakingHomeAffordable.gov.
Thursday, September 17, 2009
Could you have an illegal mortgage and not know it?
From the Sun-Sentinel
> Posted by Daniel Vasquez on September 16, 2009 10:50 AM in the Sun-Sentinel
Apparently a majority of Florida attorneys say homeowners are not typically the first to realize they have a mortgage with terms that violate their consumer rights, such as hidden fees or balloon payments they were not told about at signing.
The culprits: Predatory lenders who took advantage of consumers willing to sign anything to get their dream home.
If you've been through the loan process, you realize how confusing the forms and laws can be. Many consumers found out the hard way that they were tricked into signing a bad mortgage, and many will find out soon, according to the Consumer Mortgage Audit Center, which analyzes loan data and problems.
The Center hosted a recent webcast poll in which nearly 64 percent of Florida lawyers who responded said that most homeowners with problematic mortgages are clueless about it. Also, most respondents warned that more mortgage violations and predatory lending will be "detected" in the coming 12 months as opposed to the past 12 months.
Best practices that the Consumer Mortgage Audit Center recommends to homeowners nearing or in foreclosure are:
Compare your HUD-1 document, which buyers get at settlement to outline most costs, with the same lender’s good faith estimate. If the figures on your HUD-1 and your good faith estimate look different, it may be time to call an attorney.
If you suspect there are violations in your mortgage paperwork but can’t be sure, take the time to consult an attorney. Your legal team will appreciate your efforts to be proactive, rather than reactive.
Look for an attorney in your area who handles foreclosure defense cases, as they’re typically most familiar with national homeowner’s rights, as well as laws designed to protect borrowers in your state. Most foreclosure attorneys do not charge for an initial consultation; further, if an attorney wins the foreclosure case against a lender, the lender is responsible for paying the homeowner’s attorney fees.
About the poll: The Consumer Mortgage Audit Center sponsored a Continuing Legal Education webinar for attorneys on July 31, 2009. Of the attorneys in attendance, 47 who practice in Florida shared their opinions, which were used in the above release. Responding attorneys specialize in foreclosure defense (42.6 percent), general practice (17 percent) and real estate (17 percent).
> Posted by Daniel Vasquez on September 16, 2009 10:50 AM in the Sun-Sentinel
Apparently a majority of Florida attorneys say homeowners are not typically the first to realize they have a mortgage with terms that violate their consumer rights, such as hidden fees or balloon payments they were not told about at signing.
The culprits: Predatory lenders who took advantage of consumers willing to sign anything to get their dream home.
If you've been through the loan process, you realize how confusing the forms and laws can be. Many consumers found out the hard way that they were tricked into signing a bad mortgage, and many will find out soon, according to the Consumer Mortgage Audit Center, which analyzes loan data and problems.
The Center hosted a recent webcast poll in which nearly 64 percent of Florida lawyers who responded said that most homeowners with problematic mortgages are clueless about it. Also, most respondents warned that more mortgage violations and predatory lending will be "detected" in the coming 12 months as opposed to the past 12 months.
Best practices that the Consumer Mortgage Audit Center recommends to homeowners nearing or in foreclosure are:
Compare your HUD-1 document, which buyers get at settlement to outline most costs, with the same lender’s good faith estimate. If the figures on your HUD-1 and your good faith estimate look different, it may be time to call an attorney.
If you suspect there are violations in your mortgage paperwork but can’t be sure, take the time to consult an attorney. Your legal team will appreciate your efforts to be proactive, rather than reactive.
Look for an attorney in your area who handles foreclosure defense cases, as they’re typically most familiar with national homeowner’s rights, as well as laws designed to protect borrowers in your state. Most foreclosure attorneys do not charge for an initial consultation; further, if an attorney wins the foreclosure case against a lender, the lender is responsible for paying the homeowner’s attorney fees.
About the poll: The Consumer Mortgage Audit Center sponsored a Continuing Legal Education webinar for attorneys on July 31, 2009. Of the attorneys in attendance, 47 who practice in Florida shared their opinions, which were used in the above release. Responding attorneys specialize in foreclosure defense (42.6 percent), general practice (17 percent) and real estate (17 percent).
Friday, July 24, 2009
MORTGAGE DISCLOSURE INFORMATION ACT
There are recent changes in the federal Truth in Lending Act regulations which will have an impact on mortgage processes. It will require a fundamental change in how lenders finalize loan terms for the borrower prior to closing. Changes at the closing table could require the borrower to reschedule the closing date if a revised Truth In Lending statement is needed.
Summary
The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8th and it is applicable to all mortgage lenders (federally chartered or state licensed). For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR (annual percentage rate) disclosure at least three business days prior to closing. It must be in their hands three business days prior to closing and they are permitted to close on the 3rd business day after receiving it or later
An easy way to remember new rule is 3/7/3. This means
3 days after application – An initial truth in lending statement must be provided no later than 3 business days after receipt of the application. Some lenders such as Coldwell Banker Mortgage have a current process which generates an auto-compliance package which complies with this requirement so no changes are needed.
7 business days after initial application – Waiting period - the borrower is not permitted to close until at least seven business days have passed since the TIL (Truth in Lending statement) was placed in the mail or provided to the borrower.
3 business days prior to closing – Waiting period - The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th (¼ for construction loans).
If the final loan terms cause the TIL APR to be understated by more than 1/8th, a revised TIL with an accurate APR must be provided to the borrower so they receive it at least three business days prior to closing. It must be in their hands at that time and they may close on the 3rd business day after it.
Some issues to consider and address:
New timing requirements will limit rush closings and could delay closings.
Closing table changes and redraws may result in having to reschedule the closing date.
Summary
The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8th and it is applicable to all mortgage lenders (federally chartered or state licensed). For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR (annual percentage rate) disclosure at least three business days prior to closing. It must be in their hands three business days prior to closing and they are permitted to close on the 3rd business day after receiving it or later
An easy way to remember new rule is 3/7/3. This means
3 days after application – An initial truth in lending statement must be provided no later than 3 business days after receipt of the application. Some lenders such as Coldwell Banker Mortgage have a current process which generates an auto-compliance package which complies with this requirement so no changes are needed.
7 business days after initial application – Waiting period - the borrower is not permitted to close until at least seven business days have passed since the TIL (Truth in Lending statement) was placed in the mail or provided to the borrower.
3 business days prior to closing – Waiting period - The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th (¼ for construction loans).
If the final loan terms cause the TIL APR to be understated by more than 1/8th, a revised TIL with an accurate APR must be provided to the borrower so they receive it at least three business days prior to closing. It must be in their hands at that time and they may close on the 3rd business day after it.
Some issues to consider and address:
New timing requirements will limit rush closings and could delay closings.
Closing table changes and redraws may result in having to reschedule the closing date.
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