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 .
Categories: HAMP, Loan Modification, Obama plan Tags: hamp calculator, HAMP Loan modifictions, HAMP program, Loan Modification, new calculator, Obama plan
Loan Modification Approvals Increase
In December the amount of homeowners receiving permanent Loan modifications using the Obama HAMP program outnumbered those dropped from the program.
The Treasury Department stated that 30,030 homeowners received permanent loan modifications in December under the Home Affordable Modification Program, or HAMP, slightly above the 29,972 that received permanent modifications in November.
A total of 18,448 borrowers were cut from both permanent and trial modifications in December about the same level as in November and less than the month’s tally of new permanent modifications.For much of 2010, dropouts had outnumbered new permanent modifications as documentation requirements became more stringent.
However, 792,529 borrowers had been dropped from the program through December, or about 54 percent of the 1.47 million modifications that had been started since the program was launched in 2009.
The Treasury data showed that there were about 521,630 borrowers that had received a permanent modification at the end of December, compared to about 505,000 at the end of November and 483,000 at the end of October.
But this was far short of the administration’s initial goals of helping 3 million to 4 million homeowners, a goal that has since been scaled back. Under the tougher guidelines put in place last year, about 1.42 million borrowers were eligible for the program.
The Treasury also released new data about the borrowers who are receiving loan modifications under the program. The median gross annual income for a homeowner entering a trial modification was $46,344, while the median loan balance for those starting a trial modification was $223,283.
The top five metropolitan areas for active permanent modifications were Los Angeles, with 6.9 percent of the total volume, New York with 6.1 percent, Riverside-San Bernardino with 5.4 percent, Chicago with 5.3 percent and Miami-Fort Lauderdale with 4.6 percent.
you can read more @
http://www.reuters.com/article/2011/01/31/us-usa-housing-workouts-idUSTRE70U68K20110131
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