Making Home Affordable

The Treasury Department announces their new Making Home Affordable program

Recently the Treasury Department announced their new program to help homeowners obtain a low fixed rate with a new refinance.  The Making Home Affordable program is the latest effort to help prevent the foreclosure crisis from spreading.  California homeowners know all too well the devastation the foreclosure crisis has caused.  The Treasury hopes the new Making Home Affordable program will allow more California homeowners to stay in their properties and help revive our economy.  The program allows for the refinance of a mortgage that is more then the value of the property.  30-year fixed rate mortgage loans and 15-year fixed rate mortgage loans are the two programs being offered.  With interest rates at historic lows, the time is right to look into refinancing even if you owe more then the house is worth.  At HomeLoanQT.com we have the opportunity to provide you a loan under the new program.  Call today to find out how we can help secure a better future for you and your family. 

Here are the basics, call for more details:

U.S. DEPARTMENT OF THE TREASURY

Washington

March 4, 2009

Making Home Affordable

Summary of Guidelines

Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today's lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

GSE lenders and servicers already have much of the borrower's information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments. The detailed guidelines (separate document) provide information on the following:

Eligibility and Verification

• Loans originated on or before January 1, 2009.
• First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
• All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
• Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
• Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.