Posts Tagged ‘hamp calculator’

Hamp Calculator Now Available

A free online calculator is now available to homeowners who are looking for a loan modification under the Hamp program. The calculator was released by the Treasury Department for homeowners to see if they will potentially qualify for the Home Affordable Modification Program (HAMP). Presently you cannot use the calculator for any other loans that are not government sponsored.

According to Treasury sources, the new calculator can be used a point of reference for borrowers, housing counselors and any others in the loan modification industry that may use the process, but using the calculator does not mean that you will qualify. The information/data the calculator uses to qualify the borrower is based on interest rate, term and forbearance amount and may be inputted differently depending on the servicer.

An NPV(net present value) test is typically conducted by servicers when evaluating a borrower for HAMP. The test determines the value of the loan if it is modified according to program guidelines against the loan being left in its current state or “as is.” If the NPF test out higher for the workout, the servicer is required to provide the modification.

Since the HAMP program began in March 2009, permanent loan modifications have been received by approximately 670,000 borrowers. Yet according to the Treasury, the original estimate was between 3 and 4 million borrowers, thus the program has fallen short. To encourage greater opportunity for eligibility for the program, the Treasury made some changes including mandating that servicers provide a single point of contact or relationship manager, to assist a borrower in getting the evaluation handled and completed in a timely, organized manner in order to facilitate approval and increase the success rate .