Friday, February 20, 2009

HASP Loan Modification Estimator Updated.

I had previously posted a version of an estimator that attempts to illustrate buyer savings and lender and government costs for the new loan modification program announced this week as part of the Homeowner Affordability and Stability Plan (aka HASP).

This estimator will be a work in progress for the foreseeable future, as new information is received and my understanding improves. (I have removed the prior version).

In the new version
  1. Cell entries are allowed in grey shaded cells only (Line items 1,3, and 29).
  2. I have updated the cost sharing arrangements to reflect my current understandings.
  3. Mortgage payment does not currently include taxes and insurance.
  4. Default entries for the baseline assumption have been set to actual owner occupant subprime average interest rate, term remaining, and mortgage principal for Oregon subprime borrowers. Borrower income is not tied to any specific known amount. See assumptions worksheet for source/link to assumptions.
  5. Line 5 A was added to indicate if current ratio is already 31% or below. If that is true, then ALL following calculations shown below for that column are INVALID, and borrower does NOT qualify for loan modification program.
  6. Under certain assumptions, it is possible that the lender would have NO net cost, but net income. This can only occur in a limited set of circumstances, and always would be subject to the borrower making 3 years of on time payments. "Possible" is key word here; will clearly be the exception and NOT the rule.
  7. An assumptions worksheet has been added to track current assumptions used for the estimator.
  8. Line item 29 is an input and can be changed to estimate costs for specific number of borrowers.
You can download the estimator HERE.

(TIP: The estimator is in Excel 2007 file format. Some users report when they save Excel 2007 files they end up with a compressed .zip file extension. My suggestion is to download and save the file to your pc, find the downloaded file, and if necessary change the .zip extension to .xlsx and THEN open the file with Excel).


Please do drop me a note if you discover problems : housepdx@gmail.com

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