Sunday, November 23, 2008

Details and Tools for Understanding FDIC Loan Modification Program.

While there has been much general information discussed about the FDIC loan modification process, I have found a link to some important new information posted by FDIC HERE.

The New FDIC Mod in a Box Includes Net Present Value Excel Spreadsheet.
Much more detail is found in the "Mod in a Box" FDIC link HERE.
Perhaps MOST importantly, FDIC has included an Excel spreadsheet HERE which allows a comparison of net present value of a loan modification with costs of a mortgage foreclosure. This is the first tool from any agency or lender that I have seen that allows that comparison to be made.

Kudos to FDIC leadership and staff for the transparency that these materials provide.


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I would next like to see a side by side comparison of the various mortgage modification proposals that have been announced to date from Bank of America, Wells Fargo, FHFA, FDIC HUD, etc.There appears to be significant variation on qualifying ratios, whether interest rate adjustment is permanent or temporary and other important differences).

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