The AP – The Obama administration, scrambling to get its main housing initiative on track, extracted a pledge from 25 mortgage company executives on Tuesday to improve their efforts to assist borrowers in danger of foreclosure.
Blah, blah, blah…..blah, blah, blah……….
This is a blog, my blog and I simply do not have to abide by the same journalistic standards of Main Street media and no one owns me or my words. With that said, I blog the whole truth and nothing but the truth, so help me God. I have been at this now for over two years and have researched and written on the subject of loan modifications more than anyone on the planet.
So, with that said, honestly Main Street readers, I feel that this is just more propaganda and the same lip service that has been coming from lenders and mortgage servicers for two years. Why? Because over in my forum at www.LoanSafe.org/forum, I am seeing the same pattern of no help and even with the Making Home Affordable (MHA) plan, I feel that homeowners are still in the same boat they were before Obama came into power
I am sure you are experiencing the same issues? You are not alone. Please visit the forum with over 17,000 homeowners just like you at www.LoanSafe.org and tell us your story. Maybe we can help?
Here is some more info for you from the AP article and something I have been saying again, for two years and they are still using the same lame excuse.
One reason progress has been sluggish is that loan servicers have had to hire and train thousands of employees.
The loans have been bundled and sold to hundreds of investors as securities, which often have differing rules about changes.
Many servicers did not get set up to deal with the surge in problem loans until this year, said Thomas A. Lawler, a housing economist in Northern Virginia.
The administration said it:
- Will start publicly reporting program results Aug. 4 for specific services, including the number of trial modification offers each has extended to eligible borrowers, the number of trial plans underway, the number of final modifications and, eventually, the long-term success of those modifications;
- Will work with servicers to “set more exacting operational metrics to measure the performance of the program,” such the average time borrowers wait when first contacting services, the completeness and accuracy of information provided, document handling and response time for completed applications.
- Has also asked mortgage giant Freddie Mac to develop a “second look” process under which it will audit a sample of declined modification applications.
- The administration’s goal is to have half a million trial modifications underway by Nov. 1.
In the news release, HUD Secretary Shaun Donovan said: “I am confident that the best practices shared today, combined with more transparent reporting methods, better communication among all parties, and a strong commitment from servicers, will ensure that we can ramp up the (Making Home Affordable) program’s pace to meet these ambitious goals.”
SCOTT TALBOTT, SR. VP GOV’T AFFAIRS, FINANCIAL SERVICES ROUNDTABLE: What we’d like to see is having a common set of documents. There’s different forms that you have to fill out, depending on which program you’re going into and there isn’t a clear definition of all the key relevant terms.
DHUE: One of the most confusing terms is imminent default. What’s unclear is just when borrowers are at risk, if they are still current with their payment. Keith Ernst of the Center for Responsible Lending says borrowers are getting mixed signals.
KEITH ERNST, RESEARCH DIR., CENTER FOR RESPONSIBLE LENDING: There’s a lot going on in this program. Servicers are largely overwhelmed and it’s easy for misinformation to get into the system. Borrowers should have a chance to correct that before their home is taken away.
It is encouraging to see that there is pressure being placed on lenders and servicers to comply with the guidelines and that additional clarification and standardization may come in the very near future. I am confident that this may happen but conservative in my stance. We all know that BS walks and action make things happen.
The guidelines published by the FDIC and the U.S. Treasury are very clear, however, it is each lender and/or servicer that has deviated from the guidelines to create there own forms and non-standardized process that is contributing to the confusion. In the defense of lenders and servicers we all expect real-time change, this has been difficult for all of us given that some have taken fraudulent actions and made many confused and weary. The FBI crackdown is helping to vet out the rotten apples.
I am not convinced that the homeowner working with the lender is the best method. In fact, 1st-Trust.Net’s business model is designed to help mediate the process between the homeowner and lender based on the published guidelines. Give this thought; your home is mostly likely your largest single investment that you will make in your life, would you trust the next series of decisions to an unseasoned professional. The lenders term them counselors, consultants and loan or mortgage specialists, etc…
Many of these of people with all due respect have never serviced a mortgage and are unfamiliar with the terminology and lending process. They are akin to customer service representatives, which we all know are good at passing the buck.
You know what they say, screw me once shame on you, screw me again shame on me. Not all loan modification companies are fraudulent, some are very committed to helping their clients navigate these turbulent waters and we shall continue to do so until America is back on its feet.
Be cautious of those that attempt to provide you with “free” (with the exception of Moe of course, Mr. Bedard has been a beacon and role model for many) or very low cost service, we all know that you ultimately get what you pay for! Shop for the best possible deal and make sure you know who you elect to work with and how they will deliver on their promise.
1st-Trust.Net, The Loan Modification Corporation has created a streamlined standardized process to prepare the loan modification proposal documents. Our system automatically analyses whether the modification will be a success based on the FDIC guidelines. We can also provide the Net Present Value analysis to deliver to the lender meaningful information to help their investor’s further evaluate and support the modification.
Our back office support system has been tested to support over 9 million modifications and provide the reporting and transparency long needed in this developing industry. Moreover, we will deliver a shared cost model to aid lenders and servicers scale and outsource their overflow demands during peek times so they may support their clients efficiently and offset the capital investment required to meet their client demands.
If you have any questions regarding loan modification or loan refinance under the Making Home Affordable program, 1st-Trust.Net welcomes the opportunity to provide a no cost consultation. We do not charge advance fees for modification. Should we be fortunate to represent you during the negotiation cycle, you will not be charged until we gain acceptance from your lending institution or servicers until we are 100% confident that the modification proposal will be approved. We are truly on the side of the homeowner and understand this is a difficult process and experience. We are willing to provide a reasonable payment plan option to help you resolve these outstanding matters.
Thank you for your time and consideration.
Sincerely,
Mr. Sharaf
loanmodification@1st-Trust.Net