Komara Consulting Group

Vermont settles with Countrywide over home loans

komaraconsulting — Wed, 31 Mar 2010 23:16:17 +0000

MONTPELIER, Vt. – The Vermont Attorney General’s office says a $100,000 settlement over the home loan practices of Countrywide Financial Corp. will be used to help people whose loans have been foreclosed on.

The Vermont Attorney General’s office says half of the settlement will go to borrowers whose Countrywide loans were foreclosed upon. The rest will be used in general foreclosure relief efforts.

The Vermont settlement is part of a $3 billion nationwide agreement that Countrywide reached with the attorneys general in 43 states and the District of Columbia.

The Vermont settlement is similar to those entered into by other states, including states that alleged that Countrywide engaged in predatory lending practices.

Countrywide is now a part of Bank of America Corp.

By: The Associated Press

Our Website Is Relaunched!

komaraconsulting — Wed, 31 Mar 2010 22:47:08 +0000

We are proud to announce the relaunching of our website which went live today. In addition to this, we are also very proud to announce that we have lowered our loan modification fee to only $300. We will continue to bring our clients the best possible service in the industry and now we are pleased to offer it at an even more affordable price.

We will continue to work in an ethical manner and abiding by all state guidelines. We are the only company that doesn’t charge ANY upfront loan modification fees. We encourage anyone who is trying to get a loan modification, to not work with any company that charges upfront fees. Thank you and we look forward to continuing our relationship with you.

-Jake Komara

Another modification scam: SaveMTG.com not helping borrowers or employees

komaraconsulting — Wed, 13 May 2009 07:23:13 +0000

Savemtg.com is a loan Modification Company based out of Gaithersburg Maryland. On Friday May 8th, it closed its doors letting go of all of there employees. The problem is that they still have over 300 clients who are waiting to get a loan modification and paid over $2000 to attain there services. Savemtg demanded the fee from them upfront before working on their case. So where is the money? There has been no indication that the borrowers got there money back. Employees who worked there say that they never got paid for the final weeks they worked there. Again, where is the money??? The president of Savemtg is Robert Butler. It was operated by Phillip Burgess. Both were no longer around the facility before closing there doors. The Company’s bank accounts have been emptied and the ones with any money in them have been frozen. What happened at Savemtg has been happening in other places across the Country. It obviously gives Company’s who are actually helping people a bad name. For all consumers who want to hire someone to do a loan modification for you here are some things that you need to address before going ahead with there services.

Do you charge an upfront fee for your services?

If the answer is yes then that is a red flag and the first indication that you should cut ties with this Company. Most states have already passed laws that prohibit Company’s even attorneys from collecting fees upfront to do a loan modification. It’s a pretty good chance there operating the business out of compliance with state business laws

Will you give me my money back if you can’t get a workout with my mortgage?

Don’t be surprised if the answer is NO! Make sure you only work with a Company that says YES 100%!

Should I still make my monthly mortgage payment?

No one should ever tell you not to make your monthly mortgage payment. It is unethical practices.

Are you attorney based?

The secret about the whole attorney based part of this industry is the only reason an attorney is there is for the sole purpose to have the ability to collect a fee upfront. Attorneys contract there work out to a third party or hire temps to come in and do all of the negotiations. Unless you are hours from your house going to sale an attorney rarely gets involved. Make sure to look them up on the state bar website. There have been cases where people have lied about being able to practice in a state.

Fannie Mae Reports First-Quarter 2009 Results: Losses $23.2 Billion

komaraconsulting — Wed, 13 May 2009 06:55:30 +0000

WASHINGTON, DC — Fannie Mae (FNM/NYSE) today reported its first-quarter 2009 results and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission. The filing provides consolidated financial statements for the first quarter of 2009.

View and download the press release here:

http://www.fanniemae.com/media/pdf/newsreleases/q12009_release.pdf

Streamlined Modification Program (SMP) Now Available to Borrowers

komaraconsulting — Wed, 13 May 2009 06:47:31 +0000

WASHINGTON, DC — Fannie Mae (FNM/NYSE), today said that the Streamlined Modification Program (SMP) announced by the Federal Housing Finance Agency (FHFA) in November is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. Fannie Mae on December 12, 2008, provided information and guidelines to its servicers regarding the implementation of the SMP. The SMP is designed to be a streamlined process for modifying the loans of a large number of borrowers who are delinquent in their mortgage payment and may be able to avoid a foreclosure through the program. As FHFA has indicated, SMP was intended to help set standards in the mortgage servicing industry for conducting loan modification programs on a large scale as a foreclosure prevention measure. Fannie Mae has been working with FHFA and 27 lenders and servicers in the HOPE NOW alliance to implement the SMP. Under the program, borrowers who meet certain eligibility criteria and demonstrate financial hardship may be eligible for a loan modification that reduces their monthly principal and interest payment. The streamlined process allows a borrower to sign a single document at the outset of the workout process that both establishes a new monthly payment during a three-month trial period, and sets forth the modification terms that will take effect if the borrower makes the new payments during the trial period. The program is available to borrowers who have missed at least three monthly payments on their existing mortgages. “By bringing the collective efforts of FHFA, Treasury, HOPE NOW, Fannie Mae, Freddie Mac and other mortgage industry participants together through the SMP to confront the foreclosure challenge, we’ll be able to help more families across America stay in their homes,” said Herb Allison, Fannie Mae president and CEO. “Along with other recently announced initiatives by Fannie Mae to reach and help financially troubled borrowers earlier, including our Early Workout program, the SMP is a critical component of our company’s foreclosure prevention efforts. These efforts are helping more than 10,000 delinquent borrowers every month get back on track.” Modification Options Through the SMP, servicers may change the terms of a loan to reduce a borrower’s first lien monthly mortgage payment, including taxes, insurance and homeowners association payments, to an amount equal to 38 percent of gross monthly income. The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; Extending the length of the mortgage loan as appropriate; Reducing the mortgage loan interest rate in increments of 0.125 percent to an interest rate that is not less than 3 percent. If the new rate is set below the market interest rate, after five years it will step up in annual increments to either the original loan interest rate or the market interest rate at the time of the modification, whichever is lower; Forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced. Eligibility Highlights of the SMP’s eligibility requirements communicated to servicers include: Conforming conventional and jumbo conforming mortgage loans originated on or before January 1, 2008; Borrowers who are at least three or more payments past due and are not currently in bankruptcy; Only one-unit, owner-occupied, primary residences; and Current mark-to-market loan-to-value ratio of 90 percent or more. Servicers will be sending modification solicitation letters beginning this month to thousands of borrowers believed to be eligible for the program. It is critical that eligible borrowers respond to these letters and reach out to their servicers to determine if they can receive SMP assistance. Also, borrowers who don’t receive a letter are encouraged to contact their servicer to see if they may be eligible for SMP help. Fannie Mae will be working with servicers to monitor and improve implementation of the program as necessary.



	Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. In 2008, we mark our 70th year of service to America’s housing market. Our job is to help those who house America.



	Fannie Mae Resource Center	Telephone 1-800-7FANNIE (1-800-732-6643)

How to Dispute Credit Report Errors

komaraconsulting — Wed, 06 May 2009 05:53:05 +0000

Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. Some financial advisors and consumer advocates suggest that you review your credit report periodically. Why? Because the information it contains affects whether you can get a loan — and how much you will have to pay to borrow money. To make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. To help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job. Getting Your Credit Report An amendment to the FCRA requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.

No bankruptcy help for homeowners

komaraconsulting — Mon, 04 May 2009 22:46:08 +0000

Measure to modify delinquent loans in bankruptcy court fails in Senate. Obama administration loses big stick to prod loan servicers to aid troubled borrowers.

The Obama administration lost a bid to add a powerful weapon in its fight against foreclosure Thursday, after the Senate voted down a proposal to allow bankruptcy judges to modify mortgages.

The defeat left many housing advocates questioning the effectiveness of the president’s loan modification plan. The so-called cramdown provision, which would allow judges to reduce mortgage principal, would have put pressure on servicers to modify loans before borrowers file for bankruptcy.

The financial industry lobbied hard against the bill, arguing that letting judges change mortgage contracts would add instability to the market and raise interest rates. Senate Republicans and some moderate Democrats were concerned about the bill’s impact and about the growing resentment among homeowners in good standing.

The bill was defeated by a 51-45 vote. The House had passed similar legislation last month.

The vote comes on the day that a new report showed foreclosure starts spiking to a record high in March. Servicers initiated foreclosure proceedings against 290,000 borrowers, according to Hope Now, a coalition of lenders, servicers, investors and housing counselors. That’s the highest monthly total since the group began tracking data in mid-2007.

In offering the bill, Sen. Richard Durbin, R-Ill., cited Moody’s statistics showing that 8.1 million borrowers are facing foreclosure. The bankruptcy provision could prevent up to 1.7 million of them, he said.

What now?

Bankruptcy reform was a key part of Obama’s foreclosure prevention plan, which was introduced in mid-February. It aims to encourage servicers to be more aggressive in modifying loans through a mix of carrots, in the form of incentive payments, and the stick of cramdowns. Servicers have come under fire for not helping enough homeowners through voluntary initiatives.

Now, it remains to be seen how many people will get relief, experts said.

“It won’t render the loan modification program useless, but it removed an important ingredient that would have helped realign everybody’s interests,” Barry Zigas, director of housing policy for the Consumer Federation of America, said of the measure’s defeat.

Servicers covering 75% of the nation’s mortgages are now participating in the modification program, which calls for banks to lower troubled borrowers’ monthly payments to 31% of their pre-tax income. Many major servicers said they have beefed up their loan workout departments to handle more calls.

However, most just started accepting applications, so experts say they won’t be able to judge the program until the fall at the earliest. By then, hundreds of thousands of borrowers could lose their homes.

“If it’s not working, it’s kind of too late then,” said Adam Levitin, an associate law professor at Georgetown University. Cramdown was designed as “a backstop to protect homeowners if modifications didn’t work. It’s supposed to be a safety net to catch homeowners.”

The cramdown measure also addressed a major hole in the Obama plan — helping homeowners who owe far more than their homes are worth. Bankruptcy judges could address this problem by reducing the principal balance on the home, said Bruce Dorpalen, director of housing counseling for Acorn Housing.

Wells Fargo Loan Modification – Important Debt Ratio Qualification Information

komaraconsulting — Tue, 28 Apr 2009 03:01:43 +0000

Confused about whether you can qualify for a Wells Fargo loan modification to lower your mortgage payment? Homeowners facing financial difficulties may apply for a loan workout to lower their monthly loan payment to help them to stay in their home. However, each applicant must complete a loan modification package that will be reviewed for eligibility by the lender. One of the most important qualifications is called debt ratio-this is a percentage figure that Wells Fargo deems acceptable when calculating your new modified mortgage payment. Learn what this figure is and how to calculate your own debt ratio to make sure you have a chance at loan modification approval.

A Wells Fargo loan modification can use a number of options to achieve a new mortgage payment that is affordable and meets the banks guidelines for approval. This new modified payment is targeted to equal 38% of the homeowners gross monthly income. This new lower payment can be accomplished by one or more of the following options:

Longer loan term up to 40 years
Reduction in interest rate
Principal forbearance whereby a portion of the current loan balance is deferred interest free
In rare instances, principal forgiveness

To help struggling borrowers apply for a Wells Fargo loan modification, the lender has increased its full-time home retention staff by 125% to almost 6,000 employees. The bank plans to continue adding staff as the demand warrants. These employees are trained to work with financial troubled borrowers to find a solution that is most appropriate to their circumstances.

Interested borrowers are encouraged to take the time to learn about how to meet the requirements for a Wells Fargo loan modification before contacting the bank. Homeowners can pre-qualify themselves by learning how to calculate their own debt ratio, how to arrive at a target modified mortgage payment and how to complete the required loan modification forms properly. Borrowers who submit a complete, accurate and acceptable package to the bank will have a better chance of getting the results the need and deserve.

Countrywide Loan Modification Tips – Not Knowing the Basics Could Hurt Your Chances of Success

komaraconsulting — Tue, 28 Apr 2009 02:59:55 +0000

Not knowing the loan modification basics could hurt your chances of receiving a Countrywide Loan Modification. Most of the deserving homeowners are declined the much needed help simply because they do not know how to prepare the paperwork correctly. The package has to be completed in a manner which meets their strict guidelines for approval. If you are considering applying for a Countrywide Loan Modification this article contains important information.

About Countrywide Loan Modification:

Many homeowners have already received loan modifications, many of which have been able to modify their interest rate to as low as 3%.

Things you need to know about the Countrywide Loan Modification Process:

1. Loss of equity in your home does not qualify as a hardship for your hardship letter.

2. Because of their size they are less patient with forms that are filled out incorrectly, or similarly, if you forget a document your case can be held up for months.

3. Countrywide has released some initial statistics of its loan modification program stating better than expected results and is therefore very willing to work with you to become current on your loan.

Are you aware of approval guidelines?

A qualified homeowner applying for a Countrywide Loan Modification must be successful in meeting all the lenders guidelines. The best way to learn about the required guidelines is to research exactly what the most current guidelines are.

Do you know how to prepare the forms for a Loan Modification correctly?

This is the single most important factor that will determine whether your application is approved or denied. This should be considered as an opportunity to explain in simple terms your current situation and make the lender aware that you are a deserving candidate. It is not difficult to get a Countrywide loan modification once you are aware of their requirements. Thousands of homeowners have been approved for loan workouts which saved their home. You can now achieve the same results, provided you commit yourself to learn and prepare your paperwork correctly.

By Jonathan Gillham

Home Affordable Modification Program Hardship Affidavit

komaraconsulting — Wed, 22 Apr 2009 02:48:37 +0000

Borrowers use this form to document their financial hardship in connection with the Home Affordable Modification program. This form was revised in April 2009 to include a section requesting government monitoring information.

View and download the Hardship form by clicking the link below.

https://www.efanniemae.com/sf/formsdocs/forms/pdf/servicingtrans/1021.pdf