Archive

Posts Tagged ‘HAMP’

New Hampshire’s Community Loan Fund converts MHC #106

August 21st, 2013 Comments off

nh-community-loan-fund-logo-posted-daily-business-news-manufactured-home-pro-news-Residents of Lamprey River and Railroad Street land lease communities in Newmarket, NH recently purchased their communities. Heron Point Estates Cooperative, New Hampshire’s 106th manufactured-home cooperative forged through the work of the state’s Community Loan Fund, will manage both communities.  Education, technical assistance and funding were arranged by the New Hampshire Community Loan Fund, which allowed Lamprey River and Railroad Street residents to organize and form Heron Point Estates Cooperative, Inc. in June 2012. The coop then negotiated with the Wajda Family Trust – the communities private owner- for the final purchase price of $1.295 million before finalizing with mortgages from the Community Loan Fund and Profile Bank. Fosters says the Community Loan Fund converted its first manufactured home community (which it refered to as “mobile home parks”) in Meredith, NH in 1984. Their strategy is being applied in other parts of the U.S. by what Fosters calls a spinoff organization, ROC USA.  Cooperative President Susan Robshaw said: “We own it, we manage it and we will never have to worry about someone coming in and taking it away from us. It has brought a lot of us closer together and formed or renewed friendships. We will now work together to make it an awesome place to live because it is ours! It is my hope that everyone will take pride in ownership.”  ##

(Image credit: NH Community Loan Fund)

 

CFPB Issues New Mortgage Rules

January 10th, 2013 Comments off

The long-anticipated set of mortgage rules, including the qualified mortgage, promised by the Consumer Financial Protection Bureau (CFPB) have finally been released, according to CNNMoney. Designed to correct the lax underwriting practices that led to the housing bubble fiasco, the new rules require documented financial feasibility of repaying the loan has to be fully determined by the lender before issuing the loan—income, debts, assets, credit scores, ability to take care of the home, etc. In exchange, lenders and originators will be protected from lawsuits brought by borrowers or mortgage-backed bond holders. If borrowers fall a little short in meeting all the guidelines, the mortgage may still be issued but only if the borrower can show mortgage payments do not exceed 43% of the borrower’s pretax income. MHProNews has been informed these rules take effect Jan. 21 with a 12-month trial period. Exceptions to the rules, which will be finalized this spring, include: Certain non-profits that issue mortgages to low-income homebuyers are to be exempt; some refis through the Home Affordable Modification Program (HAMP); and for certain loans made by small community lenders.

(Photo credit: globeandmail–Canada homebuyers)

Loan Mods Rise in August

October 16th, 2012 Comments off

NationalMortgageNews reports loan modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP) rose to 76,000 in August, an increase over the 66,000 in July and 46,400 in June. Of the 59,459 proprietary loan modifications in August, Hope Now says 93 percent had fixed interest rates of five years or more. Eighty-two percent of the proprietary modifications have reduced principal and interest payments. Seventy-one percent had reductions of ten percent or more. Hope Now tells MHProNews over the last five years 5.75 million loan revisions have been completed.

(Image credit: MortgageLoanRealtor)

FOMC Notes: What to Do, What to Do?

January 5th, 2012 Comments off

MHProNews.com has learned from NationalMortgageNews the minutes from the Federal Open Market Committee (FOMC) meeting Dec. 13 reveal disappointment that attempts by the government to stimulate a housing recovery, combined with low interest rates and increasing employment, has had little effect. Response to the expansion of the Home Affordable Refinance Program (HAMP) to assist more underwater borrowers with their Fannie Mae and Freddie Mac has been limited. The Fed’s purchase of MBS (mortgage-backed securities) designed to keep refinancing interest rates low is also having minor effect because of tight credit and low equity levels. Regardless, the FOMC will continue the MBS purchase program.

(Graphic image: Wikipedia)

Homeowner Sues Mortgage Servicer over HAMP Loan Denial

April 8th, 2011 Comments off

Yahoo!Finance reports an Associated Press story from Los Angeles that a homeowner who applied for a loan modification under the Home Affordable Modification Program (HAMP) is suing Saxon Mortgage Services, Inc. for breach of contract and deceptive debt collection.  The homeowner alleges she complied with all the requirements of this mortgage-servicing unit of Morgan Stanley, including making monthly payments well beyond the three they initially asked for, and providing the necessary documentation, only to be turned down for the HAMP loan.  Saxon allegedly dragged out the process for months and turned down her application, saying she did not make the payments.  The complaint was filed in U.S. District Court for the Northern District of California.

 

HAMP Program Not Yet Terminal

March 16th, 2011 Comments off

According to HousingWire.com, the Republican leadership in the House of Representatives said they could not find time on the floor to bring a vote to end the Home Affordable Modification Program (HAMP).  Intended to reach three to four million troubled homeowners by 2012, servicers have begun only 600,000 applications in two years.  Democrats say, in light of complaints from borrowers about lost paperwork and foreclosures occurring during the process, the Treasury Department needs to oversee the servicers better.  However, the Congressional Oversight Panel (COP) notes the problems banks have with their balance sheets in light of all the negative equity, foreclosures and delinquencies. Each HAMP modification program will cost the government about $20,000.

Congressional Committee to End Foreclosure Programs

February 24th, 2011 Comments off

A press release from the House Financial Services Committee says hearings will be held March 2 to terminate four housing foreclosure programs that Committee Chairman Spencer Bachus (R-AL) said were not effective.  The Neighborhood Stabilization Program, the FHA Refinance Program, the Emergency Homeowner Relief Program, and the Obama Administration’s Home Affordable Modification Program (HAMP) are all destined to be axed.  The HAMP program made matters worse for some at-risk homeowners with modified mortgages.  This will end the treasury secretary’s ability to provide any new assistance under the programs, and rescind any unobligated funds.

Categories: Legislation Tags: , ,

HAMP Not Preventing Enough Foreclosures

December 14th, 2010 Comments off

The Congressional Oversight Panel released its December oversight report this week, finding in the eight months since the Panel’s last report on the Home Affordable Modification Program (HAMP), that Treasury has made minor tweaks to the program, but the changes have not resolved the Panel’s core concerns. The Panel now estimates that, if current trends hold, HAMP will prevent only 700,000 foreclosures—far fewer than the three to four million foreclosures that Treasury initially aimed to stop, and vastly fewer than the eight to 13 million foreclosures expected by 2012. While HAMP’s most dramatic shortcoming has been its poor results in preventing foreclosures, the report says the program has had other significant flaws. For example, despite repeated urgings from the Panel, Treasury has failed to collect and analyze data that would explain HAMP’s shortcomings, and it does not even have a way to collect data for many of HAMP’s add-on programs. Further, Treasury has refused to specify meaningful goals by which to measure HAMP’s progress, while the program’s sole initial goal—to prevent three to four million foreclosures—has been repeatedly redefined and watered down.