News and Information from HLP JUL 2015

Seeking Quick Decisions for Their Clients, More than 600 Attorneys Now Use HLPThe threat of foreclosure drives homeowners to seek help from a variety of professional and legal experts. While credit counselors and mortgage servicers often receive the first requests for help, many homeowners also seek counsel from bankruptcy attorneys in the quest to save their home.

Did You Know...

HLP is a member of the

Loan Modification Scam

Network, which assists

consumers in avoiding

foreclosure and other

housing-related scams.

HLP works with a national

coalition of governmental

and private organizations

that provides resources to

combat loan modification

scams. HLP’s participation

in the Network has resulted

in a significant working rela-

tionship with the Lawyers’

Committee, a nonpartisan,

nonprofit organization

dedicated to fair housing

and fair lending.

The Lawyers’ Committee

manages the Loan Modi-

fication Scam Database

in support of the Network.

The bilateral communica-

tion between the Lawyers’

Committee and HLP’s

ATP registration process

provides vital information

for the Network.

As part of HLP’s mission

to help people attain

and sustain homeown-

ership, we bring together

all parties who can help

homeowners avoid fore-

closure. As a result, more

than 600 attorneys nationwide are now using

HLP to file a request for a loan modification.

These attorneys see value in HLP’s technology

platform, which is used by 19 of the largest

mortgage servicers to quickly reach decisions

on requests for loan modifications and other

solutions.

During the past 45 days, HLP officials met with

hundreds of attorneys to discuss their needs

and how HLP can assist them. The meetings

occurred at the National Association of Con-

sumer Bankruptcy Attorneys (NACBA) con-

ference in Chicago in June and the National

Association of Chapter 13 Trustees (NACTT)

conference in Salt Lake City in early July.

While the needs of attorneys attending these

two events differed, HLP officials helped both

groups understand that the portal is a much

more efficient and effective way to file a loan

modification request for their clients.

“It’s clear that the top priority for debtor’s attor-

neys is to get their workout package to the right

contact at the servicer and get a timely answer

for their clients,” said Jon Ballard, HLP’s Direc-

tor of Business Development. “Habbo Fokkena,

an advisor to HLP, and I spoke with hundreds

of attorneys at these conferences and let them

know how HLP can provide the help they need.

We’ve been communicating data and sending

documents to servicers since 2009 and we’ve

helped more than 400,000 homeowners get

their modification request in front of the right

contact at the loan servicer.”

Ballard says it’s important for attorneys to

know that HLP has service level agreements

with mortgage companies to provide a quick

response. Attorneys can also use HLP as a

compliance tool since the portal provides an

audit trail of all communications and documen-

tation between the attorney and the mortgage

servicer.

Since it is critical for attorneys to find out if their

client can receive a loan modification before

filing for bankruptcy, HLP’s ability to facilitate a

quick decision on a request is another major

benefit. “Getting a timely answer may pre-empt

…continued on page 3

Jon Ballard

Take Five is a regular feature that enables a leader in the housing sector to share valuable insight on important and emerging topics. Future “Take Five” Q&As will feature leaders from mortgage companies, counseling agencies and investors.

Habbo Fokkena has more than 40 years of experience as a bankruptcy

attorney. He formerly served as a United States Trustee, a panel trustee, and

counsel for the Wells Fargo legal department. A widely respected industry expert,

he is a frequent speaker and presenter at conferences and other events for

bankruptcy attorneys. Based in Clarksville, Iowa, Habbo is also an advisor to

HLP on its emerging practice in the bankruptcy and meditation sectors.

What are some of the biggest challenges for

debtor attorneys seeking loan modifications?

While it sounds easy, finding the right contact within a

servicer or lender to look at a loan modification request,

and to receive a prompt response, has been a major

industry problem. Documents are lost, responses are

not timely, and attorneys must frequently resubmit their

documents many times. To solve this problem, the key

stakeholders joined forces with HLP to develop solutions.

Does the client have to file bankruptcy before

applying for a loan modification?

No. Applying for a loan modification, and receiving a final

decision, is often a better option. If a successful loan mod

solves the problem of retaining the home, the other client

issues may be resolved by filing a Chapter 7 instead of a

13. And even if a Chapter 13 must be filed, using HLP will

probably provide a faster response to the attorney. That

makes the confirmation process easier.

What kind of cases can be submitted to HLP?

Attorneys may submit any consumer home mortgage

modification request. The portal has contractual arrange-

ments with nearly all lenders and servicers, and can

provide a prompt response to the attorney indicating

the correct lender has been contacted. Because HLP

requires lenders to respond promptly to new cases,

it will escalate the case to the lender when a prompt

response doesn’t occur.

What are the advantages of using HLP?

HLP is a one-stop, transparent and accountable electronic

portal that makes it much simpler to apply to many

different lenders and servicers. Documents can’t be lost,

it tracks the progress of the application, and everyone

can see who has reviewed the submitted documents. The

average time from complete submission to a final deci-

sion is about 60 days. Last, but not least, the portal has a

high level of security features to safeguard submitted

information.

Is HLP involved in making the decision on

a loan modification?

No, HLP is a nonprofit organization. It acts as a neutral,

intermediary document repository and tracking mecha-

nism designed to facilitate the exchange of information

and needed documents between lender and borrower.

It is not involved in the decision making process. However,

HLP does provide a clear timeline and response record of

the case status to all parties involved.

“Unifying the Efforts to Help Families Achieve and Sustain Homeownership” MCole@hopeloanportal.org | 410.942.6464 x1021 | 100 International Drive | 23rd Floor | Baltimore, Maryland 21202

How Does HLP Work?After registering your firm with HLP, it takes only a few minutes to create a case on the HLP website—hopeloanportal.org. So,

instead of sending a package via overnight mail or faxing documents to a servicer, here’s how it works:

• Enter Basic Client Information. Simply enter the name of the servicer and homeowner; last four digits of homeowner’s

Social Security Number; loan number, property address and reason for hardship.

• Load a Standard Set of Documents. Once you upload bank statements, tax returns and other key documents, a complete

package is submitted to the mortgage servicer. The system will also automatically create some required documents and many

fields can be pre-filled in since we have key information.

• Communicate Securely. The right contact at the mortgage servicer receives the documents electronically and all

communications are available to all parties.

• Receive an Answer. The servicers’ response timelines are monitored and audited. As a result, they respond quickly and

often provide a decision on a request for a lower monthly payment within 30-60 days.

96% of loan modification applications submitted via HLP are accepted by mortgage companies.

…continued from page 1

Bankruptcy Attorneys

the need for a bankruptcy filing or alter its terms considerably,”

says Ballard. “Though they may not always get a modification

approval, they will get a timely response and can proceed with

whatever action is appropriate.”

In addition to sending loan modification requests to the correct

person at the mortgage servicer, and receiving timely action on

their request, Ballard says HLP has several other key features that

can help attorneys. They include:

• Work document preparation templates that are automatically

populated with key client information;

• Direct communication via messaging with servicer.

• No missing documents or lost packages

• Verification of loan ownership

• Permanent, indisputable record of all activity, including

all documents submitted

• Real-time messaging and status change notifications

Coming Next MonthIt won’t be long until a new school year begins. To promote learning and

help all of our stakeholders make their operations more productive, our

August issue will have a “Back to School” theme featuring the top

10 tips for how HLP can help your business.