HAMP Program help requested?

Question

A close friend of mine has been approved for the HAMP mortgage modification program. The lender is PNC Bank. They have informed her of her new payment to avoid foreclosure. Her interest rate has gone down from 5,875% to 3.2%. They used last years tax return (which included overtime that she no longer gets) to calculate her payment (31% of Gross). They also added taxes and insurance on top of the 31%. They also say that after the three month trial payment period is over they will calculate her final payment, which will probably be even higher.

According to the .gov website, the 31% should INCLUDE taxes, insurance and Home Owners Association fees (if applicable). The 31% is supposed to be based upon current income not past income. After all an income reduction past to current is the whole reason for the HAMP modification process.

Her adjusted payment is only slightly less than the original payment. Theoretically, PNC has approved a loan which will have an adjusted payment higher that the original payment, which she was unable to pay.  PNC representatives don't return phone calls. None of this makes any sense.

Is there a Federal agency who monitors or audits these calculations?  Where can she file a complaint? Can she just call her Senator's office?

Lee · Accepted Answer

This is the Way it should break down:
Under the HAMP program the 1st mortgage can be lowered to as low as 2% to lower your monthly mortgage payment to 31% of your gross income. If after lowering the interest rate to 2% your mortgage payment is still higher than 31% of your gross monthly income then the length of the loan is extended to as long as 40 years.

If after extending the loan to 40 years your mortgage payment is still higher than 31% of your gross monthly income now your unpaid principal balance will have a portion deferred interest free to finally lower your monthly mortgage payment to 31% of your gross monthly income.

Gross Monthly Income: is the total income of all borrowers who signed your mortgage before any taxes or other deductions are made. If more than one person signed your mortgage, such as your spouse or a co-signer, add the gross monthly income of all borrowers only.

Now here is the catch: Borrower Income/Asset Documentation and Verification of Eligibility may not be more than 90 days old as of the date the Initial Package is received by the 
servicer.  If the borrower was qualified using any sub-version of a HAMP major model 
version on the portal, the borrower should  be re-tested using  at least the same 
HAMP major model version (and are encouraged to re-test using the specific 
model release (e.g. 3.x) if possible).  For borrowers initially tested on the portal, 
the portal automatically sorts borrowers into the appropriate model version based 
on the NPV Run Date.

Your friend has to re-submit for re-testing to get the Overtime out of the calculation.

US Dept. of the Treasury Washington, D.C> call 888-995-HOPE (4673)

I wish you the best of LUCK!

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Have A Nice Afternoon !

Lee

Danny L · Answer

You can definitely escalate your case, you can use OCC, CFPB, local attorney generals office, or congressional complaints.
It's definitely a good idea because they bank has to respond to these escalations with a summary of what has transpired up to that moment as well as what they did to resolve the situation.

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HAMP Program help requested?

2 Answers