Interesting way of trying to stay in front of issues; new page posts "Questions Asked and Answered" HERE.
Initial entries are from prior White House event.
Showing posts with label HASP. Show all posts
Showing posts with label HASP. Show all posts
Friday, May 1, 2009
Friday, March 6, 2009
Fannie Mae and Freddie Mac Issue Housing Plan Guidance: Refis on Second Homes, Really?
Washington Post news story HERE says that Fannie and Freddie WILL allow refinances of second home under the refinance component of the Making Home Affordable Plan.
If this report is accurate, I see this as a big problem. (I get the reduction in foreclosure risk via lower payment, but this will create a avoidable backlash against the entire effort).
I have pulled, but have not yet read, related guidance from Fannie and Freddie. (If I see anything important, will post later).
Fannie 09-04 amendment to selling guide for refinances is HERE; their amendment to servicing guide (09-05) for loan modifications is HERE.
Freddie 09-05 Relief Refinance Bulletin HERE provides details about their refinance program. I don't yet see a specific loan modification bulletin, their related web page is HERE and they have a fact sheet HERE.
If this report is accurate, I see this as a big problem. (I get the reduction in foreclosure risk via lower payment, but this will create a avoidable backlash against the entire effort).
I have pulled, but have not yet read, related guidance from Fannie and Freddie. (If I see anything important, will post later).
Fannie 09-04 amendment to selling guide for refinances is HERE; their amendment to servicing guide (09-05) for loan modifications is HERE.
Freddie 09-05 Relief Refinance Bulletin HERE provides details about their refinance program. I don't yet see a specific loan modification bulletin, their related web page is HERE and they have a fact sheet HERE.
Thursday, March 5, 2009
Making Affordable Home Plan is Still Missing Data for Key Loan Modification Net Present Value Calculation.
In reading through loan modification guidelines under the new Making Affordable Home Plan, it became obvious that key data required to complete the net present value calculation has yet to be published by Treasury and the Federal Housing Finance Agency.
So,this morning I asked a question on a Washington Post /Neighborworks on line chat about the new program and the response pretty much confirms that Treasury and FHFA have not shared any SPECIFIC date for the release of that data. (HERE is a link to the complete chat).
Here's what I asked and the answer returned from Neighborworks Rep ( I don't blame her, she is only confirming the absence of any SPECIFIC date commitment):
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So,this morning I asked a question on a Washington Post /Neighborworks on line chat about the new program and the response pretty much confirms that Treasury and FHFA have not shared any SPECIFIC date for the release of that data. (HERE is a link to the complete chat).
Here's what I asked and the answer returned from Neighborworks Rep ( I don't blame her, she is only confirming the absence of any SPECIFIC date commitment):
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Portland, Ore.: A Key provision of the loan modification guidance is the Net Present value determination but key variables are yet to be published.The Modification Program Guidelines document says 1. That FHFA will provide key information necessary to complete this calculation ".... home price forecast, valuation of the house price depreciation reserve, foreclosure timelines, and foreclosure costs and REO stigma". 2.Treasury is also supposed to provide updated "Cure Rates and Redefault Rates"
WHEN will these key variables be available?
Tom Cusack
Marietta Rodriguez: THe NPV test is a key element of this plan....we hope that specifics will be released soon. Certainly your lender should be able to walk you through your specific property valuation and you should ask them to do so.
Wednesday, March 4, 2009
Update: Making Home Affordable Program: Maximum Government Paid Fee Table.
Update: Corrected total for deed in lieu/short sale to $3,000 instead of $4,500.
The HASP program has converted to a new name, the Making Home Affordable program.
I have started to look at documents published today and have constructed the maximum fee table HERE.
It shows MY understanding of the MAXIMUM fee amounts that the government would pay under the current guidelines for servicers, lender/investors, and to borrowers NOT including it's share of costs to get borrowers to a 31% monthly payment level. Includes maximum government paid fees for either a loan modification OR deed in lieu/short sale. Average fees per loan are likely to be well below those show as only a FEW loans will have ALL of the incentive fees shown.
Links to the source documents are included in this one pager, the date of the table is at the bottom. (If updated in the future there will be a date different than March 4th).
The HASP program has converted to a new name, the Making Home Affordable program.
I have started to look at documents published today and have constructed the maximum fee table HERE.
It shows MY understanding of the MAXIMUM fee amounts that the government would pay under the current guidelines for servicers, lender/investors, and to borrowers NOT including it's share of costs to get borrowers to a 31% monthly payment level. Includes maximum government paid fees for either a loan modification OR deed in lieu/short sale. Average fees per loan are likely to be well below those show as only a FEW loans will have ALL of the incentive fees shown.
Links to the source documents are included in this one pager, the date of the table is at the bottom. (If updated in the future there will be a date different than March 4th).
Tuesday, March 3, 2009
HASP Program Guidelines Issued; Includes Consumer, Counselor, and Lender/Servicer Information.
HASP program information has been released on this new MAIN PAGE HERE:
Consumer Questions and Answers are HERE.
An ON LINE consumer eligibility screening tool
- For the mortgage REFINANCE component of the program is included HERE.
- For the mortgage MODIFICATION component of the program is include HERE.
Modification Program Guidelines 
Before HASP Program Announcement Tomorrow, a Basic Eligibility Screening Tool.
The details of the Homeowner Affordability and Stability Program (HASP) details are scheduled for release tomorrow.
I am hopeful (for no good reason) that there will be job aids, including some on line or Excel screening tools, that housing counselors can use to screen homeowners to see if they meet basic eligibility standards for consideration under either the HASP refinance or loan modification programs.
I put together an Excel based screening tool that attempts to do that, using the information available prior to the formal announcement tomorrow. It requires 6 simple data entries, and then returns results indicating whether borrower MAY meet some basis eligibility requirements. This is ONLY for illustration purposes and should NOT be used to make any kind of determination about eligibility.
It's HERE, and depending on what happens tomorrow, I may either refine this or drop it.
(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 Excel 2007 extension (.xlsx), and THEN open the file with Excel).
I am hopeful (for no good reason) that there will be job aids, including some on line or Excel screening tools, that housing counselors can use to screen homeowners to see if they meet basic eligibility standards for consideration under either the HASP refinance or loan modification programs.
I put together an Excel based screening tool that attempts to do that, using the information available prior to the formal announcement tomorrow. It requires 6 simple data entries, and then returns results indicating whether borrower MAY meet some basis eligibility requirements. This is ONLY for illustration purposes and should NOT be used to make any kind of determination about eligibility.
It's HERE, and depending on what happens tomorrow, I may either refine this or drop it.
(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 Excel 2007 extension (.xlsx), and THEN open the file with Excel).
Saturday, February 21, 2009
HASP Excel Estimator Updated: Results Match White House Example.
I have updated the Homeowner Affordability and Stability Loan Modification Excel Estimator HERE.
(Current Feb.21 version is now 1.1; prior version of the Estimator has been removed).
Updates:
(Current Feb.21 version is now 1.1; prior version of the Estimator has been removed).
Updates:
- Changed baseline loan assumption to match the White House /Treasury example provided HERE on page 2. Good news is that my calculations match their example, AND I build from that to breakout/allocate costs to lender and government with user selected options for incentive payments and universe of loans.
- Added the ability to vary inputs in line item 13. Users can now select different pull down values of $0-$5,000, in $1,000 increments, to see net cost impacts of various scenarios. (Lender income is automatically adjusted in line item 17 to match inputs in line item 13, subject to a cap of $3,000.
- Deleted ability to input monthly income inputs, this line is calculated from annual income input.
- Added clarifying comments in several line items.
Wednesday, February 18, 2009
HASP Note 3: Some Examples and a Q and A Page.
From Treasury website some examples of refinancing and subprime loan modification are HERE.
Note that there are a possible $8,000 in additional government costs beyond those I included in my initial Excel workbook (HERE). From page two of the Treasury document :
"If Family ..remains current on their payments, they will receive incentive payments up to $1,000 a or $5,000 a year over five years, that would go towards reducing the principal they owe. Additionally, the mortgage servicer can earn an up-front incentive fee of $1,000, plus up to $1,000 per year in “Pay for Success” fees for three years, so long as Family ...remains current."
There is also a question and answer page HERE.
Note that there are a possible $8,000 in additional government costs beyond those I included in my initial Excel workbook (HERE). From page two of the Treasury document :
"If Family ..remains current on their payments, they will receive incentive payments up to $1,000 a or $5,000 a year over five years, that would go towards reducing the principal they owe. Additionally, the mortgage servicer can earn an up-front incentive fee of $1,000, plus up to $1,000 per year in “Pay for Success” fees for three years, so long as Family ...remains current."
There is also a question and answer page HERE.
UPDATE: HASP Note 2: Excel Subprime Loan Modification Cost Calculator.
NOTE: Excel link below no longer works. New estimator was substituted and updated; see post HERE.
One aspect of the HASP plan announced this morning is a program that would encourage loan modifications for "subprime" borrowers. General idea is that as part of loan modification lender would modify loan with a TEMPORARY (up to 5 year) reduction in interest rate so that the borrowers payment would be reduced to 38% of their income. Government would then cover the costs necessary to reduce the borrowers payment to 31% of their income.
I have thrown together an Excel calculator that shows how this might work out HERE. (right click it to download and then open the downloaded file).It includes a baseline set of assumptions and then two scenarios where either the borrowers current payment or their income is less. Current version number is .8, I may tweak and update versions as more information becomes available.
If you want to experiment with other examples ONLY change entries in line 1 and 3.
Bottom line: Lender and Government 5 year costs are shown on lines 10 and 11.
If you discover problems with the calculator drop me an email at housepdx@gmail.com
One aspect of the HASP plan announced this morning is a program that would encourage loan modifications for "subprime" borrowers. General idea is that as part of loan modification lender would modify loan with a TEMPORARY (up to 5 year) reduction in interest rate so that the borrowers payment would be reduced to 38% of their income. Government would then cover the costs necessary to reduce the borrowers payment to 31% of their income.
I have thrown together an Excel calculator that shows how this might work out HERE. (right click it to download and then open the downloaded file).It includes a baseline set of assumptions and then two scenarios where either the borrowers current payment or their income is less. Current version number is .8, I may tweak and update versions as more information becomes available.
If you want to experiment with other examples ONLY change entries in line 1 and 3.
Bottom line: Lender and Government 5 year costs are shown on lines 10 and 11.
If you discover problems with the calculator drop me an email at housepdx@gmail.com
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