Chronicles of a Loan Modification
Chronicles of a Loan Modification
Chronicles of a Loan Modification
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March 15, 2011 (Chris Moore)
mortgage-mod-help-image
In a presentation for investors, Bank of America chronicled the life and times of 100 random mortgage loans that were 60 days or more delinquent on their way down the path to a permanent HAMP loan modification. HAMP is in the House Financial Services Committee’s crosshairs this week, aiming to terminate the Obama Administrations troubled flagship anti-foreclosure program.

In the first phase of the chronicled loan modification process, 28 loans fell out of the program because Bank of America could not get hold of the borrower.

“We conduct extensive outreach activity to these including 110 phone calls and eight customized letters,” Bank of America Executive Vice President Terry Laughlin said, “in addition to door-knocking in hard hit markets and hundreds of outreach events across the country.”

The remaining 72 provided financial documentation, but 52 did not pass the HAMP underwriting guidelines. Approximately half of the 52 did not pass because they already had mortgage payments at or below 31 percent of their monthly income. Twenty-three percent did not have enough monthly income to qualify and 17 percent did not submit their hardship paperwork.

That left 20 borrowers that made it to the trial stage. Fourteen completed the process by making three consecutive mortgage payments required under the programs new terms.

14 out of 100.

What Bank of America did not release was the amount of loans that received private loan modifications through HOPE NOW. Since the beginning of HAMP, private loan modifications have been nearly double the amount of HAMP loan modifications.

Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), said recently before a House committee, “HAMP’s failure to meet its original expectations has many causes, starting with a rushed launch based on inadequate analysis, an insufficient incentive structure, and without fully developed rules, which has required frequent changes to program guidelines.”

Unfortunately the reality is, due to the hard economic times, many people are not going to qualify for a loan modification. According to Laughlin, “We’ve reached the crossroads. Despite the loan modification programs, our best efforts, and our industry’s best efforts, foreclosure will be unavoidable going forward.”

Tags: Bank of America, loan modification, HAMP, mortgage loans, underwriting guidelines, mortgage payments, HOPE NOW

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Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

March 15, 2011 (Chris Moore)
mortgage-mod-help-image
In a presentation for investors, Bank of America chronicled the life and times of 100 random mortgage loans that were 60 days or more delinquent on their way down the path to a permanent HAMP loan modification. HAMP is in the House Financial Services Committee’s crosshairs this week, aiming to terminate the Obama Administrations troubled flagship anti-foreclosure program.

In the first phase of the chronicled loan modification process, 28 loans fell out of the program because Bank of America could not get hold of the borrower.

“We conduct extensive outreach activity to these including 110 phone calls and eight customized letters,” Bank of America Executive Vice President Terry Laughlin said, “in addition to door-knocking in hard hit markets and hundreds of outreach events across the country.”

The remaining 72 provided financial documentation, but 52 did not pass the HAMP underwriting guidelines. Approximately half of the 52 did not pass because they already had mortgage payments at or below 31 percent of their monthly income. Twenty-three percent did not have enough monthly income to qualify and 17 percent did not submit their hardship paperwork.

That left 20 borrowers that made it to the trial stage. Fourteen completed the process by making three consecutive mortgage payments required under the programs new terms.

14 out of 100.

What Bank of America did not release was the amount of loans that received private loan modifications through HOPE NOW. Since the beginning of HAMP, private loan modifications have been nearly double the amount of HAMP loan modifications.

Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), said recently before a House committee, “HAMP’s failure to meet its original expectations has many causes, starting with a rushed launch based on inadequate analysis, an insufficient incentive structure, and without fully developed rules, which has required frequent changes to program guidelines.”

Unfortunately the reality is, due to the hard economic times, many people are not going to qualify for a loan modification. According to Laughlin, “We’ve reached the crossroads. Despite the loan modification programs, our best efforts, and our industry’s best efforts, foreclosure will be unavoidable going forward.”

Tags: Bank of America, loan modification, HAMP, mortgage loans, underwriting guidelines, mortgage payments, HOPE NOW

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

March 15, 2011 (Chris Moore)
mortgage-mod-help-image
In a presentation for investors, Bank of America chronicled the life and times of 100 random mortgage loans that were 60 days or more delinquent on their way down the path to a permanent HAMP loan modification. HAMP is in the House Financial Services Committee’s crosshairs this week, aiming to terminate the Obama Administrations troubled flagship anti-foreclosure program.

In the first phase of the chronicled loan modification process, 28 loans fell out of the program because Bank of America could not get hold of the borrower.

“We conduct extensive outreach activity to these including 110 phone calls and eight customized letters,” Bank of America Executive Vice President Terry Laughlin said, “in addition to door-knocking in hard hit markets and hundreds of outreach events across the country.”

The remaining 72 provided financial documentation, but 52 did not pass the HAMP underwriting guidelines. Approximately half of the 52 did not pass because they already had mortgage payments at or below 31 percent of their monthly income. Twenty-three percent did not have enough monthly income to qualify and 17 percent did not submit their hardship paperwork.

That left 20 borrowers that made it to the trial stage. Fourteen completed the process by making three consecutive mortgage payments required under the programs new terms.

14 out of 100.

What Bank of America did not release was the amount of loans that received private loan modifications through HOPE NOW. Since the beginning of HAMP, private loan modifications have been nearly double the amount of HAMP loan modifications.

Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), said recently before a House committee, “HAMP’s failure to meet its original expectations has many causes, starting with a rushed launch based on inadequate analysis, an insufficient incentive structure, and without fully developed rules, which has required frequent changes to program guidelines.”

Unfortunately the reality is, due to the hard economic times, many people are not going to qualify for a loan modification. According to Laughlin, “We’ve reached the crossroads. Despite the loan modification programs, our best efforts, and our industry’s best efforts, foreclosure will be unavoidable going forward.”

Tags: Bank of America, loan modification, HAMP, mortgage loans, underwriting guidelines, mortgage payments, HOPE NOW

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.