Bank of America selling $1.2B in delinquent home loans | 2015-08-07

Bank of America (BAC) is selling $1.2 billion of mostly delinquent home loans, meeting investor demand for soured mortgages. Per Bloomberg:

The company is selling five pools consisting of nonperforming debt, loans that have been modified and resumed payment, and some that haven't defaulted, according to a person with knowledge of the matter. Four of the pools are being serviced Bank of America and one is managed by Ocwen Financial Corp., said the person, who asked not to be identified because the planned sale is private.

CitiMortgage - Retail - Mortgage Homeowner Assistance

To avoid challenges and obstacles along the path to preventing foreclosure, consider the help of a professional HUD, state, or other not for profit counselor.

Unfortunately, there are several scam artists seeking to take advantage of homeowners in financial trouble. These people often market themselves as "foreclosure consultants" or as working for a "loan modification company". These people may even tell you that they are acting on CitiMortgage's behalf in the loan modification process. We advise that you use caution when dealing with any third party that claims they can save your home from foreclosure or obtain a loan modification for you.

At CitiMortgage, we are happy to work directly with you to try to find a workable solution to your situation. We independently review borrower information and process loan modifications for eligible borrowers. We never charge a fee to process a hardship loan modification. Unauthorized Third Parties often require you to pay an upfront fee or request that you make your mortgage payments directly to them. Please contact the Homeowner Support Team at 1-866-272-4749+ if you have any questions or concerns about a solicitation for loan modification services.

Housing refinance program offered by federal agencies

NEW YORK (CNNMoney) -- In the latest attempt to address the ailing housing market, the government on Monday announced changes to a federal program that will make it easier for struggling homeowners to refinance to today's near-record low rates.

Under the new program, homeowners who owe more on their homes than they are worth will be able to refinance no matter how much they are underwater, as long as they are current on their payments.

More than 1 million homeowners could get cheaper mortgages as a result, officials estimated.

The revamped Home Affordable Refinance Program (HARP) will also streamline the refinancing process, doing away with certain types of appraisals and underwriting requirements, and reducing or eliminating fees that prevented homeowners from refinancing in the past.

More than 890,000 homeowners have already refinanced under HARP, which is available to borrowers with loans backed by Fannie Mae and Freddie Mac originated before May 31, 2009.

But hundreds of thousands more could not qualify -- mainly because of the previous 125% loan-to-value limit on the program or because banks would not take on the risk.

"We know there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach," said Edward DeMarco, acting director for the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac.

Currently, about 11 million borrowers are underwater on their mortgages, with about 4.7 million of those loans meeting or exceeding the 125% loan-to-value limit, according to CoreLogic, a financial analytics company.

By the time HARP expires in 2013, the federal housing agency estimates, up to 1 million more borrowers may benefit from the new regulations.

Many of those borrowers will be from states like Florida, California, Nevada and Arizona where home values have been hit the hardest. In metro areas like Las Vegas, for example, prices have plunged nearly 60% from their early-2006 peak.

The new rules and other details have yet to be finalized, but FHFA said that should all be worked out by Nov. 15. Banks may be able to start issuing refinanced loans by Dec. 1.

Lifting the loan-to-value restrictions may still only help a limited number of borrowers, according to Jaret Seiberg, an analyst for MF Global Inc.'s Washington Research Group, which analyzes public policy for institutional investors.

The problem: Mortgage holders still must be current on their payments for the past six months -- with no more than one missed payment in the past 12 months --and they also must be able to qualify for a new loan.

However, Seiberg believes, the changes should allow banks to refinance loans without worrying that Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500) will force them to repurchase the loans if the borrower defaults.

In the past, banks have been reluctant to refinance loans because they didn't want to take on that liability, explained Shaun Donovan, the secretary of the U.S. Department of Housing and Urban Development. By doing away with that liability, more lenders will compete to refinance the loans, which he believes will make them more affordable for borrowers.

That should help remove one of the biggest barriers to refinancing through HARP, said Gene Sperling, director of the National Economic Council.

Under the newly-revamped program, Fannie and Freddie will also reduce the fees they have charged in the past in order to enable borrowers to better afford the new loans.

Among the fees that may be reduced or eliminated are those for loan level price adjustments. Going forward, borrowers may not be penalized for less-than-perfect credit scores, for example.

Fees will also be waived for some underwater borrowers who refinance into 20-year or other, shorter-term loans. By doing so, it could help homeowners get above water faster.

A homeowner who has a $200,000 balance on a 30-year mortgage with a 6.5% rate and a home value of $160,000, for example, currently makes payments of $1,264 a month.

If they refinance into a 20-year fixed-rate loan at 4.25%, it will reduce monthly payments to $1,238 and slash the balance to $160,000 in just five-and-a-half years. If they refinance to a 30-year loan at 4.5%, however, their monthly payments will be much lower, $1,038, but it will take 10 years to reach $160,000.

"It's an opportunity for borrowers to improve their household balance sheets by repaying their mortgages much quicker," said DeMarco. To top of page

First Published: October 24, 2011: 9:21 AM ET

The Big Number: Nearly 10M Americans With 'Underwater' Mortgages Video

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What Can You Are Doing As a Mortgage Lender If Your Borrower Dies Before Paying

With all of the different players in the. However these days, things are different. There were around a million of the house owners who were dependent about the Bank of England and its decision that the rate of financial institutions ended up fixed to 0. It used being that banks and other, larger finance institutions had the mortgage business sewn up and that competitors could not get a toe hold. However these days, the situation is different.

Just look for a good contracting website and you\'ll find the contractor calculator somewhere around the main page. The most usual may be the adjustable rate home finance loan (Adjustable rate mortgage), which to begin with with charges a preset interest, after which turns into a floating charge based on an index chart interest rate, plus a margin. In ARM the periodic payments that the lending company make may change plus some cases even the term may change.

Refinancing. The amount that you now owe your charge card companies and other lenders not only affects your credit score, but in addition affects whether you qualify to get a mortgage. In the boom years many mortgage companies weren\'t portfolio lenders – this implies they originated the credit using a warehouse line of credit or in the role of a correspondent to a more substantial lender and servicer. For the duration of this period due towards the cheaper interest levels numerous subprime mortgage loan providers were much more lax using their procedures. Usually, these calculators are available freely about the internet.

penalized or rejected by a lender if you are doing not surpass its. The thing is though that these deals dont often last long and you\'ve to become ready to strike even though the proverbial iron is hot. This type of type of lending is actually a common practice. A reputation paying your bills late can decrease your score and negatively impact your power to qualify for any mortgage and other loans.

Refinancing. If the amount is low then your lender usually discards such loans. 9 percent from the end of the season 2012 and by the ending of the year of 2014 this rate would go up by 2 percent. 9 percent from the end of year 2012 and through the ending of the year of 2014 this rate would go up by 2 percent.   Working early shows good faith along with a willingness to work with the financer, which hopefully can make them more prepared to work together with you on your payments.

A process generally known as risk-dependent pricing is used to be able to calculate mortgage prices and terms basically the worse your present credit, the greater pricey the loan. This includes assessment, consideration and exchange of mortgage contracts as well because the transfer of funds. A reputation paying your bills late can reduce your score and negatively impact your capability to qualify to get a mortgage along with other loans.

-          A shiny credit rating makes all of it easy: Try to conserve a a good credit score rating to make everything simple and easy , simple. This is surely an estimate and real fees may be higher. 9 percent from the end of year 2012 and by the ending of the season of 2014 this rate would increase by 2 percent. Veterans are guaranteed by the State and they can get yourself a mortgage loan with negligible or no down payment.   Negotiating late payments with mortgage lenders can be tricky.


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