Making Home Affordable Borrower Presentation

8/14/2019 Making Home Affordable Borrower Presentation

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September2009lMakingHomeAffordable

MakingHomeAffordable


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2September2009lMakingHomeAffordable

Background

Homeowner

Affordability&

StabilityPlan

MakingHome

AffordableProgram

HomeAffordable

Refinance

HomeAffordable

Modification

The

AdministrationsPlan

ProgramforHomeowners

Programs

Available


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HomeAffordable

Refinance

Program

(HARP)

Purpose

Givesborrowers

the

opportunity

to

refinance

intomoreaffordableloansattodayslowerrates

Only

for

borrowers

with

Fannie

Mae

or

Freddie

Macloans

Scope

Estimatedmillionsofborrowersareeligible


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HARPEligibility

Criteria

Borrower

Owneroccupant

of

a14unitproperty

Iscurrentonthe

mortgage

Hasreasonableabilitytopaynewmortgagepayment

Loan

Mortgageis

owned

or

guaranteedbyFannieMaeorFreddieMac

Amountof

first mortgage

doesnotexceed125%ofpropertyscurrentmarket

value

Refinancewillimprovethelongtermaffordabilityorsustainability

of

the

loan


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7/167September2009lMakingHomeAffordable

DeterminingImminent

Default

Borrowerswhoarecurrentontheirloansbut

arestruggling

to

make

payments

may

also

be

eligibleforHAMPifthey:

Have

adocumented

hardship

decreasein

income,increaseinexpenses,facinginterestrateincreasewithinthenextfourmonths,etc.

Donothavesufficientsavingsorotherliquid

assetstomakefuturepayments



ModificationProcess

YourMortgageLenderorCounselor

Determinesifborrower

meets

minimum

eligibilitycriteria

Obtainsborrower

income

and

debt

information

Calculatesborrowerstargetmodifiedpayment

toreach

debt

to

income

ratio

of

31%



ModificationProcess

Continued

YourMortgageLender

Performsstepsinordertoreachtargetmodifiedpayment

Step1:

Capitalizes

outstanding

debt,

escrow

advances

andoutofpocketservicingexpenses(nolatefees

allowed)

Step2:

Reduces

the

interest

rate

to

as

low

as

2%

Reducedrateremainsfixedfor5yearsandincreases1%per

yearthereaftertomarketinterestrateatthetimeof

modificationStep3:Extendsloantermupto40years

Step4:Defersaportionoftheprincipal,interestfree,

untilloan

is

paid

off



SecondMortgage

Lien

Modification

Program

Purpose

Modifies

2

nd

mortgagesof

qualifying

at

risk

borrowerstoachieveaffordablepaymentson

bothmortgages

Incentives

encourage

participation

from

all

parties

Scope

Estimatedthatupto50%ofatriskborrowers

with1st mortgageshave2nd mortgages



SecondMortgageLienModificationProgram

Continued A2nd mortgagelienmaybeeligiblewhen

ThemortgagelenderisaparticipantintheSecondMortgageLien

ModificationProgram

under

HAMP

Borrowerscorresponding1st mortgageismodifiedthroughHAMP

MortgageoriginatedonorbeforeJanuary1,2009

3rd and/or4th mortgage

liens

are

not

eligible

Mayonlybemodifiedonce

Nofeechargedtomodify

Borrowermustprovideconsenttosharetheir1st mortgage

lienmodification

data

with

the

2ndmortgage

lender

ifthe

lendersaretwodifferentparties



BorrowerIncentives

Nocostformodification

BorrowerscanreceiveprincipalreductionsformakingHAMP

paymentson

time

Incentivescanequalupto:

$1,000peryearforfiveyearsfor1st mortgage

$250peryearforfiveyearsfor2nd mortgage(ifapplicable)

Incentivesaddupmonthlyandareallocatedonceayeartoreduce

borrowersunpaidmortgageprincipalbalance

Withnoextraeffort,borrowersincreasetheequityintheirhomes

However,ifborrowerdefaultsontheir1st or2nd modified

mortgages,then

no

additional

incentives

will

be

allocated



GettingStarted

EasytoUseMainNavigationfor

HomeownerstoQuicklyFindInformation

OntheHomePage,consumerscan

access:

SpanishContent

1888995HOPE(4673)

BewareofScams

InformationVideo

HelpfulLinksinFooterSampleHomePage

AccessChecklisttoPrepare

BorrowerstoSpeakwiththeir

MortgageLenderorCounselor



AreMortgage

Lenders

Required

to

Participate?

IfyouhaveaFannieMaeorFreddieMacloan YES

For

other

loans,

participation

is

optional.

However,

significantfinancialincentivesareprovidedto

encourageparticipationbyborrowers,mortgage

lendersand

investors.

Thelistofparticipatingmortgagelendersisavailable

at:www.MakingHomeAffordable.gov

Participatingmortgagelendersmaynotproceedwithaforeclosuresaleuntilaborrowerhasbeen

evaluated

for

a

Making

Home

Affordable

loan.



Bewareof

Foreclosure

Rescue

Scams

Bewareofanycompanythatpromises:

That

its

safe

to

skip

your

mortgage

payments Thatwalkingawayfromyourhousewontaffect

yourcredit

Theywill

buy

your

house

&

sell

it

back

to

you

later

A

specific

result,

for

a

feeThereisnever afeeforgettinginformationabouttheMaking

HomeAffordableprogramfromyourmortgagelenderora

HUDapproved

housing

counselor.


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AdditionalResources

ForImmediateBorrowerAssistance:

Call1888

995

HOPE

(4673)

FindaHUDApprovedHousingCounselor:

Visitwww.MakingHomeAffordable.gov

Find

Your

Mortgage

Lenders

Phone

Number: Refertoyourmonthlymortgagestatement,or

Lookuponwww.MakingHomeAffordable.gov

Making Home Affordable Borrower Presentation

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