How Banks View Loan Modifications

mortgagemess at 08:28 2009-11-11 said:

Copy of letter sent out by Indymac Bank to homeowners trying to modify with foreign investors, like Deutsche bank...third paragraph blames or rather thanks Obama's HAMP....This was for my moms loan.. Date 10/23/09

Thank you for your recent request to modify the terms of your mortgage serviced by IndyMac Mortgage Services, a division of OneWest Bank.

On March 4, 2009 the Deparment of the Treasury launched the Home Affordable Modification Program(HAMP). The program was adopted by IndyMac Mortgages Services on August 11, 2009. By signing up for the HAMP, IndyMac Mortgage Services has agreed to follow the rules and guidelines that have been established by the United States Department of Treasury. While the program is designed to help borrowers who are expecting a financial hardship, not all borrowers will meet the eligibility qualifications established by the Department of the Treasury, and therefore, not all borrowers are eligible for a HAMP modification.(not comes the juciy part)

In reviewing your loan for a possible modification(now it has been almost a year), we have determined that your loan does not qualify for a HAMP due to OUR CONTRACTUAL OBLIGIATIONS WITH THE OWNER OF YOUR LOAN. IndyMac Services performs loan servicing for numerous different owners and in each case, a SERVICING AGREEMENT with the OWNER of the LOAN GOVERNS OUR ACTIONS. HAMP REQUIRES the servicer to comply with the terms of THEIR SERVICING CONTRACT WITH THE OWNER OF THE LOAN(so bascially HAMP is there to hurt you not help you). This REQUIREMENT prohibits us for modifying your loan at this time.

We are prepared to discuss alternatives to foreclosure and work with you to find the option that works best for you. We also strongly encourage you to consult with a HUD approved housing counselor to discuss potential alternatives for reducing expenses not related to your primary mortgage(so they want me to replace one useless law like HAMP with a another useless goverment agency!) HUD approved housing counselors can be reached at 1-800-280-6194.

We regret that we are unable to modify the terms of your loan(love this part coming up), but are interested in working with you to determine if there are any further alternatives to foreclosure tha best fit your circumstances. We encourage you to call us at 1.888.280.6194 to discuss possible PARTICIPATION in our short sale or CASH FOR KEYS(oh wow how generous of them!..so I guess they can pay me from my tax dollars that bailed them out!) PROGRAM.

Sincerely,

Brandon Latman First Vice President IndyMac Mortgage Services

http://www.huffingtonpost.com/propublica/analyzing-the-loan-modifi_b_253890.html?

Quote From Huffingtonpost.com article..

In late May, President Barack Obama signed a bill that included a "safe harbor" provision designed to protect servicers from being sued by investors. The original draft of the legislation included a clause that provided protection "notwithstanding any investment contract between a servicer and a securitization vehicle or investor," but after lobbying efforts by Frey and other investors, Congress removed that clause from the final version of the law. Permalink

kindandgentlejd at 00:17 2009-11-15 said:

The Legislature finds and declares that any duty servicers may have to maximize net present value under their pooling and servicing agreements is owed to all parties in a loan pool, not to any particular parties, and that a servicer acts in the best interests of all parties if it agrees to or implements a loan modification or workout plan...

In effect, the legistlature acknowledged that the duty of servicers is to maximize the net present value to parties of a loan pool, and that the servicer must act in the best interest of all parties if they do a loan modification. That is the big get out of jail card because they cannot give you a loan modification unless it is in yours and their best interest. So, all they do is have a program that benefits them and when you do not fit it... THEY CANNOT GIVE YOU A LOAN MODIFICATION UNDER California law. It created a defense for them that they did not have before.

Consumers reading the law think it favors them. It screwed them! Permalink