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With states on the fence rejoining the deal with the major mortgage lenders, it appears that this settlement may get approved soon.

Forgetting the politics and the reality of the settlement being much less than the issues behind it, I want to examine the actual financial results to normal folks, whether it be checks, changes to their mortgage, etc. If someone has a even more comprehensive link to what the deal is, I would appreciate it. I will update with information as it becomes available.

http://www.nationalmortgagesettlement.com/

So far, here is what I have:

If all states participate, $25 billion (with a possible loan mod value of even more).

The mortgage companies involved:
-Bank of America (includes Countrywide)
-JP Morgan (includes Chase and WaMu loans)
-Ally (includes GMAC)
-Citigroup
-Wells Fargo (includes Wachovia)

-Not about MBS issues, this is primarily about "robo-signing" and other direct underwriting/foreclosure abuses

$5 billion paid to troubled borrowers, states, and federal government
-$1.5 billion of the $5 billion is for foreclosed borrowers (750,000 folks in this category)
-Each borrower expected to receive average $1500 to $2000 check for these categories

Other $20 billion is really aid, not cash for cutting balanced owed for and refinancing those who are current but underwater
-$3 billion of it to lower rates of those who are current, but underwater (I am guessing the cost for the rate buydown and closing fees due to LTV). I have no idea what the criteria is for this one, but it appears these refinances will become loans guaranteed by FHA. These loans cannot be GSE loans (primarily Fannie and Freddie).
-$17 billion for those who are not current and need loan balances reduced or some other modification.
-Writing down principal for those who are in trouble will be encourage versus short-sale and other options
-Penalties payable in cash to federal government if the banks do not meet their thresholds on this part of the package within two years.

Rasheed

References:
http://www.nytimes.com/2012/02/06/business/mortgage-relief-plan-...
http://www.forbes.com/sites/deborahljacobs/2012/02/06/what-the-m...
http://www.forbes.com/sites/danielfisher/2012/02/09/states-feds-...
http://www.chicagotribune.com/business/breaking/chi-robisigning-...

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I got a boilerplate response from Chase which basically says that they are following the rules of the settlement but it ... (more)

qcumber98 (May. 02, 2012 @ 11:47p) |

Yes, you're a drag on their thieving.

BitemeIamtoxic (May. 03, 2012 @ 12:15a) |

They told me to stop trying and I'll be notified by August. Pretty annoying.

freakinfreak (May. 03, 2012 @ 4:33p) |

If all states participate, $25 billion (with a possible loan mod value of even more).

The mortgage companies involved:
-Bank of America (includes Countrywide)
-JP Morgan (includes Chase and WaMu loans)
-Ally (includes GMAC)
-Citigroup
-Wells Fargo (includes Wachovia)

-Not about MBS issues, this is primarily about "robo-signing" and other direct underwriting/foreclosure abuses

$5 billion paid to troubled borrowers, states, and federal government
-$1.5 billion of the $5 billion is for foreclosed borrowers (750,000 folks in this category)
-Each borrower expected to receive average $1500 to $2000 check for these categories

Other $20 billion is really aid, not cash for cutting balanced owed for and refinancing those who are current but underwater
-$3 billion of it to lower rates of those who are current, but underwater (I am guessing the cost for the rate buydown and closing fees due to LTV). I have no idea what the criteria is for this one, but it appears these refinances will become loans guaranteed by FHA. These loans cannot be GSE loans (primarily Fannie and Freddie).
-$17 billion for those who are not current and need loan balances reduced or some other modification.
-Writing down principal for those who are in trouble will be encourage versus short-sale and other options
-Penalties payable in cash to federal government if the banks do not meet their thresholds on this part of the package within two years.

References:
http://www.nytimes.com/2012/02/06/business/mortgage-relief-plan-...
http://www.forbes.com/sites/deborahljacobs/2012/02/06/what-the-m...
http://www.forbes.com/sites/danielfisher/2012/02/09/states-feds-to-announce-25-billion-mortgage-settlement/
http://www.chicagotribune.com/business/breaking/chi-robisigning-settlement-to-be-finalized-20120209,0,1608260.story
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I've heard talk of $20k principal reduction , but CA was pushing for more as many people here are $3-400k underwater and $20k won't help at all here.

Also talk of a $2-3k payment if someone lost their home but was trying to do a mod and got foreclosed

Anxious to hear the final details of this

When you have a mortgage with BofA, you have a loan with a bully.

I hope one of my three Wells Fargo homes that I am in good standing with currently and have been for the life of the loans will be able to receive some of this "refinance those who are current but underwater." Not really too far underwater but haven't seen value increae in a couple of years. I have about $400K between all three houses, not much compared to CA and other states. Is this a too big to fail scenario, where my small dollars will not be protected like everyone else's big dollars? Or are my small dollars being protected by protecting the "big boys?" Not throwing stones, just dropping a question I have often wondered about.

oncelost said:   I hope one of my three Wells Fargo homes that I am in good standing with currently and have been for the life of the loans will be able to receive some of this "refinance those who are current but underwater." Not really too far underwater but haven't seen value increae in a couple of years. I have about $400K between all three houses, not much compared to CA and other states. Is this a too big to fail scenario, where my small dollars will not be protected like everyone else's big dollars? Or are my small dollars being protected by protecting the "big boys?" Not throwing stones, just dropping a question I have often wondered about.

Are you not eligible for HARP today? Did you ask Wells? HARP 1.0 and 2.0 on investment property is possible. HARP 3.0 unsure. This program, unsure too.

Rasheed

Latest updates.

For the folks who are current, but underwater who have a GSE loan, there is no love here. You need to get your refinance via one of the HARP programs (1.0,2.0, or the potential 3.0).

The ones who will benefit are those who have things like Pick a Payment (Wachovia was the leader here) or any other loan that the bank did not sell to the GSEs. Also, the rates are not necessarily going to be the best market rates (as we have seen with HARP), but it should provide some help from those who have felt stuck without any HARP options (not qualifying).

Even if your loan was after the 6/1/2009 cut-off for HARP, but sold to a GSE and you are current, but under-water, no help here.

Rasheed

so according to these two options, i should start being behind on my loan since the $3bil option can't be GSE?

Other $20 billion is really aid, not cash for cutting balanced owed for and refinancing those who are current but underwater
-$3 billion of it to lower rates of those who are current, but underwater (I am guessing the cost for the rate buydown and closing fees due to LTV). I have no idea what the criteria is for this one, but it appears these refinances will become loans guaranteed by FHA. These loans cannot be GSE loans (primarily Fannie and Freddie).
-$17 billion for those who are not current and need loan balances reduced or some other modification.
-Writing down principal for those who are in trouble will be encourage versus short-sale and other options

It looks like you need to be delinquent if you are underwater and want principal reduction.... Or you need to be current if you want a refi

$2000 cash payment if you got foreclosed

This has finally been passed
http://www.chicagotribune.com/business/breaking/chi-robisigning-settlement-to-be-finalized-20120209,0,1608260.story

I am underwater, BoA, and am current and good credit. All I want is a refi.

So since I'm current, underwater, and have a GSE loan, in order to be eligible for this I just need to stop paying my mortgage?

bombcar said:   I am underwater, BoA, and am current and good credit. All I want is a refi.
Looks like you should be able to get one now.

skooba said:   So since I'm current, underwater, and have a GSE loan, in order to be eligible for this I just need to stop paying my mortgage?
If you want a principal reduction.

If you just want a refi, you can get it without being late


More details here
http://oag.ca.gov/nationalmortgagesettlement/faqs

To qualify for a refinance under the settlement, your loan must be serviced and owned by one of the settling banks. You must also be current on your mortgage and have no delinquencies within the past 12 months. You must also be underwater and your interest rate must be at least 5.25 percent. Unfortunately, the following types of loans are excluded from the refinance program: FHA Loans, VA Loans, and loans on manufactured homes. In addition, if you have been in bankruptcy in the last 24 months or have been in foreclosure in the last 24 months, you are ineligible.

In order to qualify for a principal write-down, your loan must be otherwise eligible and the value of your unpaid principal balance must be higher than the current market value of your home. You also must have either missed a mortgage payment or be imminently at risk of doing so.

more details,
Wells Fargo’s commitment under its agreement is $5.3 billion, which is comprised of three components:
Refinance Program: For qualified borrowers with little or negative equity in their home and a loan owned and serviced by Wells Fargo, an expanded first-lien refinance program estimated to provide $900 million of aggregate payment relief over the life of the refinanced loans.
Consumer Relief Program: For qualified borrowers with financial hardship and a loan owned and serviced by Wells Fargo, $3.4 billion in consumer relief programs, including expanded first and second mortgage modifications that broaden the use of principal reduction to help customers achieve affordability, as well as an expanded short sale program that includes waivers of deficiency balances.
Foreclosure Assistance Payment: $1.0 billion paid directly to the federal government and the states for their use to address the impact of foreclosure challenges as they see fit.
The expanded refinance and consumer relief programs will be available starting March 1. Customers who may qualify for a refinance under the expanded refinance program will be sent letters in the weeks following March 1, and borrowers who may qualify for the expanded modification program will be contacted through Wells Fargo’s ongoing outreach to borrowers facing payment challenges. Wells Fargo customers with questions about the expanded programs can call 800-288-3212 or get more information online at wellsfargo.com/homeassist.

Another bailout for banks, masked in the "help for homeowners" category. When will this crap ever stop!

I'm current, underwater, and would rather have a reduction than a refi. But my loan is CalHFA through Chase. Am I not eligible?

http://finance.yahoo.com/

In addition, the $20 billion isn't coming out of the banks' pockets; it's coming from investors and, ultimately, taxpayers.

"The mortgage principal write-downs are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401 (k)s," writes Yves Smith at Naked Capitalism. "That $20 billion actually makes bank second liens sounder, so this deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public."

Seems like a bailout to me.

This really isnt going to be a good thread for asking individual questions. You are going to need to contact your servicers directly, and likely wait a month or so as they dont yet have all the procedures in place.

This thread is much more valuable if people POST INFORMATION they receive from their lender or find on the net rather than ask questions which no one here can definitively answer

then I will find out from my lender and report back. I wonder how much harm will come to my credit score if i were to miss a payment.

qcumber98 said:   then I will find out from my lender and report back. I wonder how much harm will come to my credit score if i were to miss a payment.

I'm wondering the same. I just checked the fannie/freddie loan lookups and it looks like my loan is not owned by them. I'm current, but underwater (not that I really care), but if I can get a $20k write down, I'm probably going to miss a payment.

skooba said:   qcumber98 said:   then I will find out from my lender and report back. I wonder how much harm will come to my credit score if i were to miss a payment.

I'm wondering the same. I just checked the fannie/freddie loan lookups and it looks like my loan is not owned by them. I'm current, but underwater (not that I really care), but if I can get a $20k write down, I'm probably going to miss a payment.


and we would need to miss a payment ASAP. I'm also a little concerned that since we've been current for so long, we'll still end up with refis anyways. In which case, we would just end up shooting ourselves in the foot. /shrugs/

I stopped caring about my credit score anymore.

Yea, so I bought in 09 at 350. Home is probably worth about 300, so I am likely a bit underwater, but have always been current and have no real financial hardship. I assume I will get nothing based on what I've read.

This program does not require financial hardship, unlike HAMP

Did you read whats been posted? You should be eligible for a refi , which will save most people about $3000. A year. That is the benefit of this program for those underwater borrowers who are current.

If you are late or in imminent default you could qualify for principal writedown

well according to the wells fargo site ... i may really need to miss a payment.... i've never had a hardship but back in 2010 they did an interest rate reduction on my loan so i wouldn't be able to get another one unless i have some form of hardship now... but i can't refi because my LTV ratio is to high now.

Q8: If a borrower already has
received a modification through HAMP or another program, will they be
eligible to receive another modification through
the program?
Customers who received a previous modification will not be re-reviewed unless there has been a change in circumstances as a result of an additional hardship.

This agreement was just announced today. You have to wait until the bank decide on their guidelines, etc. Wells will be sending letters to eligible customers after March 1st.

The limited info available now doesn't mention rental properties as exclusions. Also i am not clear if this settlement applies to mortgages serviced by these banks or owned by these banks? Have a rental at 6.5% interest only with BofA (formerly Countrywide) but BofA is only a servicer, the owner of the mortgage is Bank of New York. I think i found out thru MERS lookup.

I also am with BoA and the Bank of New York Mellon.

SUCKISSTAPLES said:   More details here
http://oag.ca.gov/nationalmortgagesettlement/faqs

To qualify for a refinance under the settlement, your loan must be serviced and owned by one of the settling banks. You must also be current on your mortgage and have no delinquencies within the past 12 months. You must also be underwater and your interest rate must be at least 5.25 percent.


so this must explain why chase offered the rate reduction program then? does this make all those who refinanced to under 5.25% ineligible? lucky me, they were nice enough to give me 5.13%.

Good luck to the 0.02% that qualify, but I repeat myself.

disposablereviewer said:   SUCKISSTAPLES said:   More details here
http://oag.ca.gov/nationalmortgagesettlement/faqs

To qualify for a refinance under the settlement, your loan must be serviced and owned by one of the settling banks. You must also be current on your mortgage and have no delinquencies within the past 12 months. You must also be underwater and your interest rate must be at least 5.25 percent.


so this must explain why chase offered the rate reduction program then? does this make all those who refinanced to under 5.25% ineligible? lucky me, they were nice enough to give me 5.13%.

No, this program is brand new and no lender has made offers under this new govt program .

I looked at the wells site as listed above and they have all their requirements in the FAQ section... So regardless if this program is new and banks haven't started offering yet, at least wells has already stated what they will be doing. unless of course they reverse their stance and do things differently.... but i guess we will know come march 1st when they say that their representatives will be able to answer questions.

skooba said:   So since I'm current, underwater, and have a GSE loan, in order to be eligible for this I just need to stop paying my mortgage?

It's what I've wondered, same situation. That's just dandy, that maybe many of us are getting by - not by much but are OK - so therefore, no help for us. Nice.

Does anyone know if any of this, for ex doing a refi through this program, would help with PMI? I put down 20% initially, sure that's all gone at the moment with the drop in value in CA, so I want to refi but I don't want to pay PMI.

I'm really not liking what this program is sounding like...the nothing programs this administration has already tried.

elizard said:   skooba said:   So since I'm current, underwater, and have a GSE loan, in order to be eligible for this I just need to stop paying my mortgage?

It's what I've wondered, same situation. That's just dandy, that maybe many of us are getting by - not by much but are OK - so therefore, no help for us. Nice.

Does anyone know if any of this, for ex doing a refi through this program, would help with PMI? I put down 20% initially, sure that's all gone at the moment with the drop in value in CA, so I want to refi but I don't want to pay PMI.

I'm really not liking what this program is sounding like...the nothing programs this administration has already tried.


Have you even contacted your lender to try to do a HARP refi? Do it now, you dont need to wait for this. If you had no PMI on your original loan youll have no PMI on a HARP refi.

Wellsfargo information for their program


WF Refinance program:
If you meet all of the following eligibility criteria, you will receive a letter in the weeks following the March 1 start date of the expanded program:
• You are current on your payments, with no delinquencies in the last12 months
• You owe more than your home’s current market value (a loan-to-value ratio greater than 100%)
• Your loan was obtained prior to January 1, 2009
• Your loan must have a current interest rate of 5.25% or higher
• Your loan balance is no more than $729,750 (for a single family dwelling) in any
of the 50 states and within the highest of the 2010 Fannie Mae/Freddie Mac limits for two-to-four family homes.
• Your loan is in a first lien position (it is not a second mortgage), regardless of property type — primary residence, second home, or investment property
• Your loan has not been modified in the last 24 months
• Your loan is serviced and owned byWells Fargo — that means it is not an FHA, VA, Fannie Mae, or Freddie Mac loan, nor is it a loan owned by a private investor



p.s. - I meet all eligibility, I will see if I can get principal reduction, because like everyone else, that's what we wants. Will post with answers

Any idea if this applies to loans that originated from those banks in the list and were later sold to other banks? My loan started with countrywide and was sold to usbank.

I'm trying to understand all this HARP and HAMP and new 3.0 program.

My loan is with penfed. I dunno what GSE means. Dunno if they fund their own loans or sell em off.

I'm about 85% LTV counting both my first mortgage and my HEL all with Penfed.

Wondering if I qualify for any of this? My current primary rate is 4.75. My HEL is about 7%.

I'd be willing to miss a payment for 20K though I've never been late on a payment on my life.

BLASK said:   Wellsfargo information for their program


WF Refinance program:
If you meet all of the following eligibility criteria, you will receive a letter in the weeks following the March 1 start date of the expanded program:
• You are current on your payments, with no delinquencies in the last12 months
• You owe more than your home’s current market value (a loan-to-value ratio greater than 100%)
• Your loan was obtained prior to January 1, 2009
• Your loan must have a current interest rate of 5.25% or higher
• Your loan balance is no more than $729,750 (for a single family dwelling) in any
of the 50 states and within the highest of the 2010 Fannie Mae/Freddie Mac limits for two-to-four family homes.
• Your loan is in a first lien position (it is not a second mortgage), regardless of property type — primary residence, second home, or investment property
• Your loan has not been modified in the last 24 months
• Your loan is serviced and owned byWells Fargo — that means it is not an FHA, VA, Fannie Mae, or Freddie Mac loan, nor is it a loan owned by a private investor



p.s. - I meet all eligibility, I will see if I can get principal reduction, because like everyone else, that's what we wants. Will post with answers

Nope, you missed one qualification. Fine print says loan must have been funded on a Tuesday between the hours of 12 and 1pm. Better luck next time.

Skipping 46 Messages...
freakinfreak said:   brreddy said:   Called Wells Fargo since I didn't receive letter from them. They said I was not eligible. I asked them the reasons and they don't have any. Their system does not tell why?
My Interest rate is 5.75%, current on loan with zero late payments. Underwater by 200K. Not sure, what to do now, I was hoping to get my interest rate to around 4% but luck is not favoring me.


Same thing... Their system basically tells them yes or no and not why.

They told me to try back next month.


They told me to stop trying and I'll be notified by August. Pretty annoying.



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