FHFA Program

What is the Federal Government Loan Modification Program?

The Federal Government Loan Modification Program is designed to reduce preventable foreclosures with a simplified, streamlined loan modification program to put struggling homeowners into mortgages they can afford.  The goal is to have a uniform process for loan modifications that the majority of lenders and servicers will use.  Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.

When does the program begin?

The Federal Government Loan Modification Program is scheduled to be implemented on Dec. 15, 2008.

Who is eligible?

The eligibility requirements are as follows:

• Borrower must have missed three or more payments.
• Must be primary residence and owner occupied.
• Borrower has not filed for bankruptcy.
• Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.

Who should I contact?

Troubled homeowners should inquire with their lenders or servicers as to participation and eligibility for this new program.

How can I learn more about the program and start the application process?

To learn more about the program and the participating lenders, please visit either the FHFA Web site at http://www.fha.gov or Hope Now at http://www.hopenow.com/loan_services/servicer_directory.php

HOPE for Homeowners Program

What is the HOPE for Homeowners (H4H) Program?

This is a new program for borrowers at risk of default and foreclosure.  The program provides new, 30-year, fixed-rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary.  Both lender(s) and borrower(s) must agree to participate.

When does H4H Begin?

The program begins Oct. 1, 2008, and ends Sept. 30, 2011.

Who is eligible?

You should contact your lender to determine eligibility, but you may be eligible if, among other factors:

• The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
• Your existing mortgage was originated on or before Jan. 1, 2008 and you have made at least six payments.
• You are not able to pay your existing mortgage without help.
• As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
• You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).

Who should I contact?

Contact your existing lender or another FHA-approved lender to see if they are participating in the H4H program.  FHA does not accept loan applications.  
Like all FHA programs, you only can apply through a participating lender.  You also may wish to contact a housing counselor to learn more about your options.

How much can I borrow?

Your new H4H mortgage will be no more than 90 percent of the new appraised value of your home, with your lender essentially writing down your current mortgage to that amount. Please note: Your lender may choose not to write down your mortgage, in which case you would not be able to participate in the program.

What costs do I have to pay?

• The new mortgage, if approved, will replace all of the current mortgages on your home.  You will not owe any payments, fees, or debts on mortgages you now hold.
• You must agree to share both the equity created at the beginning of this new mortgage and a portion of any future appreciation in the value of your home.
• In addition to an upfront mortgage insurance payment of 3 percent, you will pay a 1.5 percent annual mortgage insurance premium on your outstanding mortgage balance.  This premium will be included in your monthly payments.
• You will need to pay closing costs on the loan.  You will receive a Good Faith Estimate of these costs. 

Will my new interest rate be lower than my current rate?

The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender.

If needed, can I take out a second mortgage under this program?

You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.

How can I learn more about the program and start the application process?

• Review the Frequently Asked Questions page at www.fha.gov  to learn more about the program.
• Read the Consumer Disclosure on www.fha.gov.
• Contact an FHA-approved lender to apply.  You can find a list of lenders at www.fha.gov.
• Contact a Housing Counselor.  A list of Housing Counselors can be found at www.fha.gov.
• Information on the shared equity and appreciation may be found by clicking HERE

Citigroup, CitiMortgage Program

What is the Citi Homeowner Assistance Program?

The Citi Homeowner Assistance Program will preemptively reach out to homeowners in need of assistance and will not initiate a foreclosure or complete a foreclosure sale on any eligible borrower where Citi owns the mortgage.

When does the Citi Homeowner Assistance Program Begin?

The program begins Nov. 11, 2008 and ends May 2009.

Who is eligible?

Contact your lender to determine eligibility.  However, some of the eligibility requirements for the Citi Homeowner Assistance Program are as follows:

• Must be first mortgage and must be a loan Citi owns.
• The property must be the primary residence and owner occupied (owner may own a second home).
• The borrower is working in good faith with Citi.
• The borrower currently may not be behind on their payments but may require help to stay current.
• Current total monthly mortgage payments exceed 38 percent of gross monthly income.

Who should I contact?

To determine eligibility, contact Citi at (800) 667-8424.

How can I learn more about the program and start the application process?

More information can be found at www.mortgagehelp.citi.com

JPMorgan Chase & Co. Program

What is the program offered by JPMorgan Chase & Co.?

Chase is expanding the mortgage modification program by undertaking multiple initiatives designed to keep more families in their homes, including extending its modification programs to Washington Mutual (WaMu) and EMC Mortgage Corp.  The program offers:

• Proactive outreach to borrowers, offering them pre-qualified modification terms in writing
• New regional centers, more counselors, and expanded loan alternatives
• New independent review process to head off unnecessary foreclosures
• No additional Chase-owned loans will be put into the foreclosure process while enhancements implemented

When does the program begin?

Chase expects to implement the program by Jan. 31, 2009, and will extend it two years after implementation.

Who is eligible?

• Must be first mortgage and must be a loan JP Morgan Chase owns.
• Must be primary residence and owner occupied (owner may own a second home).
• Targets Chase, WaMu, and EMC Mortgage Corp. borrowers with adjustable-rate mortgages (ARMs) including subprime and pay-option ARMs.
• Modifications would be designed to achieve sustainable payments at 31 to 40 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.

Who should I contact?

To check for eligibility, call Chase at (866) 550-5705 with the following information:

How can I learn more about the program and start the application process?

To learn more about the program, visit the Chase Web site at www.chase.com

Countrywide Financial (Bank of America) Program

What is the Countrywide Financial (Bank of America) Program?

The Homeownership Retention Program for Countrywide Customers Program will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principle reductions for nearly 400,000 Countrywide customers nationwide.

When does it Begin?

The program begins Dec. 1, 2008, and has no end date specified.

Who is eligible?

Borrowers eligible for loan modifications under this program must have received a qualifying subprime mortgage or a pay-option adjustable rate mortgage (ARM) prior to Dec. 31, 2007, and the property must be a one- to four-unit owner-occupied residential property. In addition, certain other requirements are set out in the program:

• The borrower is 60 days or more delinquent, and the current loan-to-value ratio is 75 percent or greater;
• The borrower is current today but becomes 60 days or more delinquent at any time prior to June 30, 2012, and the loan-to-value ratio at the time of the modification is 75 percent or greater;
• The borrower has a subprime hybrid ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset, and the loan-to-value ratio at the time of the modification is 75 percent or greater;
• The borrower has a pay-option ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast based on negative amortization, and the loan-to-value ratio at the time of the modification is 75 percent or greater.
• Modifications would be designed to achieve sustainable payments at a 34 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.

In addition, customers may be eligible for the early payment default benefit of this program if: The customer has a Countrywide-originated first lien loan; the loan was funded on or prior to Dec. 31, 2007; the customer's primary residence is the property that secures the loan; the customer has made three or fewer payments over the life of the loan (the borrower's state may expand eligibility); and the customer has either lost his home to foreclosure or is at least 120 days in arrears on mortgage payments.

Who should I contact?

Countrywide will begin its proactive outreach to eligible borrowers on Dec. 1, 2008.  You can reach the Homeownership Retention Division at (800) 669-6650.

What costs do I have to pay?

• Countrywide will waive late/delinquency fees for missed payments when modifying loans and will not charge modification fees to borrowers in the participating states.
• When possible, Countrywide will waive prepayment penalties in connection with any workout or refinance, whether or not the new loan is originated with Countrywide.

What options does the Homeownership Retention Program offer?

Countrywide will first offer eligible borrowers an FHA refinance under the HOPE for Homeowners Program. If not eligible for that program, Countrywide will offer these specific programs based on product type.

Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5 percent (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years.

Pay-option ARM borrowers accepting a streamlined loan modification option will have the negative amortization feature eliminated from their loan. The mortgage interest rate will be reduced to as low as 2.5 percent, and the loan will be converted into either a fixed-rate mortgage or a ten-year interest-only loan. For single property owners who currently have no equity in their homes, Countrywide will write-down the principal balance to as low as 95 percent of the current value of the property to restore an equity position.

Subprime Fixed-Rate borrowers will receive a streamlined loan modification, by reducing the mortgage interest rate to as low as 2.5 percent and converting the loan into a fixed-rate or 10-year interest only loan with affordable step rate increases and lifetime cap.

Additional programs available to California residents:
Relocation Assistance Program: Countrywide borrowers facing foreclosure who agree to voluntarily leave the premises at the time of the foreclosure sale will be provided with a cash payment. Countrywide anticipates payments to 35,000 borrowers in a total amount of more than $70 million to assist with relocation costs.
Foreclosure Relief Program: Countrywide will allocate up to $150 million nationally under a foreclosure relief program to provide relief for borrowers whose loans were originated directly by Countrywide (or through brokers) with owner-occupied properties who have either experienced a foreclosure sale or are 120 days or more delinquent as of the date of this agreement. These borrowers will be eligible for the payment if they made three or fewer payments over the life of the loan (or meet more inclusive criteria determined by each state). The funds will be allocated for each state through a pro-rata formula based on the number of eligible borrowers with a Countrywide-originated first mortgage.

How can I learn more about the program and start the application process?

The Homeownership Retention Program is not available until Dec. 1, 2008.  Please visit the Countrywide Financial Web site for more information at  http://my.countrywide.com/media/FinancialAssistance1.html

IndyMac Federal Bank, FDIC Program

What is the program that IndyMac Federal Bank and FDIC offer?

IndyMac Federal Bank has implemented this program to modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans.

When does the program begin?

The program began in Aug. 2008 and has no specified end date.

Who is eligible?

The eligibility requirements for this program are as follows:

• Must be a first mortgage and must be a loan owned, or securitized and serviced, by IndyMac Federal
• Primary residence and owner occupied
• IndyMac borrower already seriously delinquent or in default.
• IndyMac borrowers at risk of default due to payment resets or changes in the borrowers’ repayment capacities.
• Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.

Who should I contact?

Call (800) 781-7399 or (877) 908-4357 to talk with an IndyMac Federal customer service specialist and find out if you qualify for a loan modification under this program.

What costs do I have to pay?

There are no fees or other charges for this modification.  Additionally, all unpaid late charges will be waived.

How can I learn more about the program and start the application process?

To learn more about this program, visit either the FIDC Web site at http://www.fdic.gov or IndyMac at http://indymac.com/default.aspx?id=1178