Tag: hamp

By November 17, 2013 2 Comments Read More →

Nationstar Issues Public Apology to Elderly Oregon Couple For Botched Modification

An Oregon couple has received a public apology from Nationstar, one of the nation’s largest mortgage loan servicers, for botching their loan modification. Nationstar approved Michael and Judith McElderly for a trial period plan in January 2013. Nationstar promised the McElderlys that it would permanently modify their loan if they made three trial payments of […]

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By August 9, 2013 2 Comments Read More →

Ninth Circuit Adopts Wigod: Lender Contractually Obligated to Offer Permanent Modification If Borrower Complies With TPP

An important new opinion is out from the Ninth Circuit holding that Wells Fargo was contractually obligated to offer a permanent modification after the plaintiff-homeowners fully complied with the terms of their HAMP trial period plan. In Corvello v. Wells Fargo Bank, the Ninth Circuit reversed a California district court’s dismissal of plaintiffs’ breach of […]

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Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle
By July 22, 2013 3 Comments Read More →

Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle

In the past year, there has been a massive sell-off of mortgage servicing rights (MSRs), especially for nonperforming loans. In some cases, the transferor retains ownership of the MSRs and merely transfers subservicing to a new servicer. For example, in January 2013, Bank of America and Fannie Mae reached an agreement to transfer servicing for […]

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Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward
By July 21, 2013 0 Comments Read More →

Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward

Does a recent Ninth Circuit opinion suggest a new line of attack for victims of predatory mortgage loan servicing? In Schlegel v. Wells Fargo Bank, the Ninth Circuit held that a servicer’s failure to give an adverse action notice after revoking a loan modification gives rise to a claim under the Equal Credit Opportunity Act […]

Posted in: Cases
By July 11, 2013 4 Comments Read More →

Did You Know? How the Terms of a HAMP Modification Are Determined

Have you ever wondered how the servicer decides what terms to offer when evaluating a borrower for HAMP? Despite appearances, the terms that are modified are not arrived at randomly. The servicer applies a “waterfall” that specifies which terms will be adjusted, to what extent, and in what order. The waterfalls—there are a few—are described […]

Posted in: Did You Know?
By July 8, 2013 5 Comments Read More →

Did You Know? The Difference Between Principal Forbearance and Principal Forgiveness

The goal in modifying mortgage loans is to bring the borrower current while reducing the total monthly housing cost (principal, interest, taxes, insurance and HOA dues) to a target percentage of gross monthly income (usually 31%). The servicer achieves this payment reduction by serially modifying specific loan terms, especially the interest rate and the length […]

By May 30, 2013 0 Comments Read More →

HAMP Extended Through 2015

The Treasury Department announced today that the Home Affordable Modification Program (HAMP) will be extended through December 31, 2015. Earlier this year, Treasury extended the deadline for the Home Affordable Refinance Program (HARP) through the same date. HAMP provides loan modifications through the Making Home Affordable program launched in March 2009. As of March 2013, […]

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By May 29, 2013 2 Comments Read More →

Did You Know? Loan Modifications Are Exempt From Most Federal Disclosure Requirements

When you take out a mortgage on your home, you are handed a stack of paperwork to review including all kinds of notices and disclosures required by the Truth in Lending Act (TILA) and the Real Estate Settlement and Procedures Act (RESPA). Did you know that when a borrower enters into a loan modification agreement […]

Young v. Wells Fargo: First Circuit Holds That Failure to Timely Convert Trial Modification Gives Rise to Breach of Contract Claim
By May 28, 2013 1 Comments Read More →

Young v. Wells Fargo: First Circuit Holds That Failure to Timely Convert Trial Modification Gives Rise to Breach of Contract Claim

Yet another circuit has held that a servicer may be held liable for failure to timely convert a trial loan modification to a permanent modification. The Sadly Typical Story of Susan K. Young The facts in Young v. Wells Fargo are unfortunately typical but also appalling. Plaintiff Susan Young ‘s income fell in 2008 after […]

Posted in: Cases
The Latest HAMP Statistics: What Do the Numbers Tell Us?
By January 12, 2013 0 Comments Read More →

The Latest HAMP Statistics: What Do the Numbers Tell Us?

The Treasury Department has released the November 2012 Making Home Affordable Program Performance Report with a colorful array of graphs and charts trying to make the point that servicers are finally getting better at loan modifications. While the bars on the bar charts definitely trend up, the numbers are not all reassuring. Less Favorable Terms […]

Posted in: Features