The database was planned and created by HUD in partnership with the Loan Modification Scam Prevention Network and the Lawyers’ Committee for Civil Rights Under Law.
Homeowners who believe they have been victimized can fill out a complaint online.
Ocwen a Winner in Loan Modification Arena
Ocwen is gaining a reputation as one of the most aggressive lenders when it comes to offering programs for loan modification under the Home Affordable Modification Program (HAMP).
Ocwen’s rate of converting trial modifications to permanent ones is 10 to 20 times higher than other lenders, and the new loans are more sustainable than those devised by the competition. Ocwen’s HAMP re-default rate is under 5%, while the industry average is 19 to 34%.
Ocwen’s president, Ronald M. Faris, has testified to Congress that principal write downs should be a part of the HAMP process. He also recommends that under performing banks should be required to outsource their loan modification work to others who are meeting performance standards. Faris believes that only with principal reduction modifications can the current negative equity problem be effectively beaten.
SunTrust Reducing Loss Mitigation Timeframe
SunTrust has reduced its estimated loss mitigation time by one or two days by using a new outbound calling system that keeps in contact with homeowners at certain critical times.
For example, by contacting homeowners just prior to the due date of the first loan payment it has cut initial payment delinquencies by 62%. The predictive calling system also helps to keep in contact with people in the loan modification process so that submission of paperwork is more likely to stay on track.
The automated system is helping the lender to avoid having to start all over with the processing of loan modification applications. It helps human loss mitigation specialists to handle the more complex issues because the phone is not tied up with inbound calls from homeowners on routine matters.
States Helping to Stave Off Foreclosure
Pennsylvania has had a model program to help its unemployed citizens get back on their feet by paying for mortgages for up to 36 months and up to $60,000 in loan value. This innovative program has been in existence since 1983 and is credited with saving 3,250 homes just last year and has helped 43,000 since the beginning of the program. Delaware, North Carolina and Massachusetts have similar programs.
The people who have been most likely to be approved for these programs are those with temporary hardships, credit card debt that is under control, and good track records in gaining and keeping employment. Those likely to fall behind again are generally not accepted and thus the success rate for Pennsylvania’s program has been around 80%. Generally, the loan is paid directly to the mortgage processor and is repaid over a 10 year period at an interest rate of around 5.25% until the state’s lien on the property is cleared.
Now the Obama Administration is encouraging other states to follow Pennsylvania’s example in providing loans for those who face difficulty making home payments because of unemployment, illness, divorce and similar crises. The federal government initiated a $1.5 billion program in February to help hardest hit states—Florida, Michigan, California, Arizona, and Nevada—to provide unemployed workers with loans to pay their mortgages. Now officials from these states are inquiring about the Pennsylvania program to use as a model.
Have a great afternoon!