homeowner affordability and stability plan · hamp / gse-smp / fdic-lmp comparison this is a...
TRANSCRIPT
©2009 Genworth Financial, Inc. All rights reserved.
Homeowner Affordability and Stability Plan
Helping Homeowners Today
Genworth Mortgage Insurance
1For Homeowner Assistance questions, call 800 444.5664
Homeowner Affordability and Stability Plan
Disclaimer: This Presentation Is Designed To Be A General Overview Of The Home Affordability And Stability Plan. It Is Not A Complete Set Of Guidelines And Should Not Be Used As The Comprehensive SourceOr For Qualification Purposes. This Presentation Will Provide A General Understanding Of The Program And Will Also Direct The Audience To Consult With The Appropriate Guidelines Sources.
2For Homeowner Assistance questions, call 800 444.5664
Homeowner Affordability and Stability Plan
1. Home Affordable Modification Program
2. Home Affordable Refinance Program
3. Supporting Fannie Mae and Freddie Mac
3For Homeowner Assistance questions, call 800 444.5664
Home Affordable Program – HAMP or HARP?
Standard Refi *
No
GSE Loan?
OO SFH Primary?
HARP**
No
Delinquent on Mtg?
Yes
Imminent Default?
No
LTV > 105%?
HAMP
Yes
HDTI < 31%?
Yes
Qualify for HAMP?
No
HAMP or HARP**
Yes
Yes Yes No Yes No No
Once You Get To Green Box – See If Your Homeowner Qualifies for That Program
Possible Program
Servicer of Loan?
Yes
Start Here
Genworth MI?
DU Refi Plus** or GNW Insured Refi
MI?
DU RefiPlus**
No
No
DU RefiPlus**
No
Yes Yes
(1-4)
Caution – This Flow Chart Only Discusses HAMP and HARP – Other Mod Programs and RefiPrograms May Be Available
*For Those Servicers Who Have Received TARP Funds, HAMP is Also an Option.
** HARP & DU Refi Plus Boxes May Include Standard Rate and Term Refi and GNW Insured Refi Where Applicable
4For Homeowner Assistance questions, call 800 444.5664
Loan Workout Modification PlansMar ‘09Dec ‘08Jun ‘08 Sep ‘08
• Making Home Affordable Modification
– Fannie, Freddie, Bank Portfolio Loans
& Other Mortgages
– For Delinquent Borrowers and
Borrowers at Risk of “Imminent Default”
• HopeNow Streamlined Modification Program
– Fannie & Freddie
• FDIC Loan Modification Program
– FDIC Banks– Recommended Guidelines
for the Mortgage Industry
• Traditional WorkoutModifications
5For Homeowner Assistance questions, call 800 444.5664
HAMP / GSE-SMP / FDIC-LMP Comparison
This is a general overview and should not be considered complete as it is used for example purposes only.
PROGRAM Home Affordable Mod GSE's - HOPE NOW Streamline Mod FDIC Modification Program
Days past due required Imminent Default or Defaulted borrowers will qualify 90 Days past due 60 Days past due
Target HDTI 31% 38% 10% Decrease in HDTI - starting with 38%
In Foreclosure ? Yes Yes Yes
In Bankruptcy? Yes No No
Mark-to-Market LTV N/A Mark-to-Market LTV > 90% None
Subordinate Financing CriteriaProgram has incentives of $250 for servicer to extinquish 2nd
liens - details are expected soon
Subordinate Liens are not considered in LTV
or PITIA pmtSubordinate Liens are not in LTV or PITIA
Property Value Appraisal, AVM, BPO Appraisal, AVM, BPO Appraisal, AVM, BPO
NPV Test Yes No Yes
Owner-occupied Yes Yes Yes
Primary Residence Yes Yes Yes
Investor Property No No No
Property Type 1- 4 Single-family dwelling (co-op, condo, or mfg housing) Single-family dwelling (co-op, condo, or mfg
housing) excludes 2 - 4 family props
Only borrower's primary residence
(1 - 4 units OK)
Counseling RequirementBorrowers w TDTI of > 55% they need to agree to get
Borrower Counseling to be approved
Probation/Trial Period? 90 Day Trial Period 90 Day Probation Period First payment
Principal Write-down? Yes - May Do Principal Waiver as well No No
Incentives Servicer, Investor & Borrower Incentives Servicer Incentives Servicer Incentives
Servicer Incentive? (A) Up-Front One Time Payment of $1,000 Yes - $800 $1,000 Payment
Servicer Incentive? (B) 3 yr "Pay for Success" Fee of up to $1,000 per yr
Servicer Incentive? ( C): Up Front, Imminent Default Borrower, Payment of $500
Lender/Investor Incentive?(A) 50% of Investor cost to take pmt from 38% to 31% HDTI
for up to 5 years
Lender/Investor Incentive? (B) Up-Front One Time Payment of $1,500
Lender/Investor Incentive? (C): Home Price Decline Incentives
Borrower Incentive? (A) 5 yr "Pay for Success" Fee of up to $1,000 per year
6For Homeowner Assistance questions, call 800 444.5664
Popular And Rapidly Evolving Programs
Loan Modifications
1.Capitalization
2.Rate
3.Term
4.Principal Forbearance
7For Homeowner Assistance questions, call 800 444.5664
Home Affordable Modification Waterfall on Loans With MI
Borrower
Eligible?
Determine Affordable Payment
For 31% HDTI*
Capitalize
Past Due
Amounts
Principal Forbearance
(Balloon Due at Loan Payoff
Extend the TermTo
40 Years
Reduce the
Interest Rate
(floor of 2%)
Borrower Doesn’t Qualify for HASP
Modification
HDTI of 31%Obtained
Passes
NPV Test?**
Conclusion TBD on Case
By Case Basis
Servicer Completes
HASP Loan
Modification
MI Co PerformsCase-by-Case
Review for OtherLoss Mit Options
Servicer SendsReport to MIBased on
Established Requirements
HDTI of 31%Obtained
HDTI of 31%Obtained
Borrower Considered For Other
Workout Options
Need MI
Approval?
Servicer CompletesAlternative
Workout Option
So
lve f
or
Aff
ord
ab
le P
aym
en
tE
lig
ibilit
y
YesYes
No
No No
Yes
No
No
1
2
3
4
5
6
7
Yes
Borrower in Default or Imminent Default - Servicer Obtains Required Documentation
*First Solve for 38% HDTI. Then, if Applicable, Solve for 31%. It Is Assumed in This Flow Chart, That the Reader Will Want To Qualify the Borrower at 31% HDTI.
** NPV Test of Freddie, Fannie or Applicable Investor
8For Homeowner Assistance questions, call 800 444.5664
Home Affordable Modification
Program
•GSE & Other Mortgages
•Hardship Letter
•In Default or Imminent Default
•Current HDTI >31%
•Owner Occupied / Primary
•Single Family (1-4 unit)
•90 Day Trial Period After Approved
•Up To 40 Year Term
•Rate Floor of 2%
•Original Loan Closed Before 1/1/09 –
Mod Closed Before 12/31/12
•Forbearance Allowed
•May Forgive Principal-Not Required
Process•Verify Gross Monthly Income
– Verbal Now / Written at Closing
•Solve for 31% HDTI (PITIA)
•Capitalize Arrearages
•Reduce Note Rate
– 5 Year Term
– Step Up
•Amortize Over 40 Years
•Forbear Principal if Necessary
– Forgive Principal if Chosen
•Apply NPV Test (Freddie, Fannie Or
Applicable Investor)
This is a general overview and should not be considered complete as it is used for example purposes only.
1
2
3
4
5
6
7
9For Homeowner Assistance questions, call 800 444.5664
Borrower Profile (example)•Owes $320,000
•FMV $275,000
•Rate 7.0%
•Term is 30 Year
•PITIA $2,728– PI $2,128 + TIA $600
•Income $5,000
•HDTI 55%
•90 Days Behind
•OO SFH
This is a general overview and should not be considered complete as it is used for example purposes only.
Home Affordable Modification
Program•GSE & Other Mortgages
•Hardship Letter
•In Default or Imminent Default
•Current HDTI >31%
•Owner Occupied / Primary
•Single Family (1- 4 Unit)
•90 Day Trail Period After Approved
•Up To 40 Year Term
•Rate Floor of 2%
•Original Loan Closed Before 1/1/09 –
•Mod Closed Before 12/31/12
•Forbearance Allowed
•May Forgive Principal-Not Required
10For Homeowner Assistance questions, call 800 444.5664
Borrower Profile
•Owes $320,000
•FMV $275,000
•Rate 7.0%
•Term is 30 Year
•PITIA $2,623
– PI $2,023 + TIA $600
•Income $5,000
•HDTI 55%
•90 Days Behind
•OO SFH
Step 1: Solve for 31% HDTI•Income x .31 = PITIA (MI Not Included)
•5,000 x .31 = 1,550
•TIA is Fixed at 600
•PI Needed is $950
$1,550 – $600 = $950
This is a general overview and should not be considered complete as it is used for example purposes only.
Home Affordable Modification
Step 2: Capitalize Past Due•Principal + Past Due
•$320,000 + $8,184 = $328,184
3
Step 3: Adjust Rate•$328,184 @ 30 Year Term @ 2.00%
•PI = $1,213
4
2
11For Homeowner Assistance questions, call 800 444.5664
Profile•Owes $320,000
•FMV $275,000
•Rate 7.0%
•Term is 30 Year
•PITIA $2,623
– PI $2,023 + TIA $600
•Income $5,000
•HDTI 55%
•90 Days Behind
•OO SFH
Step 4: Adjust Term•$328,184 @ 40 Year Term @ 2.00%
•PI = $994
PI Needed is $950
This is a general overview and should not be considered complete as it is used for example purposes only.
Home Affordable Modification
Step 5: Principal Forbearance•$313,700 @ 40 Year Term @ 2.00%
•PI = $950
•$14,484 Principal Forbearance Addedas Non-Accruing/Non-Interest Balloon
5
6
7 Step 6: NPV Pass/Fail Test•If NPV Test a Pass – Mod Completed
•If NPV Test a Fail Case by Case Conclusion
12For Homeowner Assistance questions, call 800 444.5664
Link to Guideline
•Click Here to Go To The Guidelines
•http://www.ustreas.gov/press/releases/reports/modification_program_guidelines.pdf
•https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf
•http://www.freddiemac.com/sell/guide/bulletins/pdf/bll096.pdf
13For Homeowner Assistance questions, call 800 444.5664
Homeowner Affordability and Stability Plan
1. Home Affordable Modification Program
2. Home Affordable Refinance Program
3. Supporting Fannie Mae and Freddie Mac
14For Homeowner Assistance questions, call 800 444.5664
Refinance Plans
Freddie Mac Borrower
Same Servicer
Relief Refi
Fannie Mae Borrower
Same Servicer
Refi Plus
DU Refi Plus
Fannie Mae Borrower
Different Servicer
DU Refi Plus
Not GSE Borrower w/ Genworth MI
Different Servicer or Same Servicer
Genworth Insured Refinance
15For Homeowner Assistance questions, call 800 444.5664
Home Affordable Refinance Plan
Homeowners with Less Than 20% Equity and Current on Mortgage
Max 105% LTV on Current FMV (Includes Closing Costs)
No Limit on CLTV – 2nds Must Subordinate
All Loan Types Eligible – Primary, 2nd Homes, Investment, Condos, Co-op
New Loan is Fixed or Long Term ARM
Original Loan Closed before March 1, 2009 - Refi Must Be Closed Before June 10, 2010
Original File Docs Included In New File (Same Servicer Only) and Reps and Warrants Continue
MI – Not Needed if Not on Current Loan
Freddie and Fannie Have Different Programs (Above is Applicable to Freddie and Fannie HARP)
GNW Rule - 1 x 30 in Last 12 Months on Mortgage Max and No MTG Lates in Last 90 Days
GNW Rule – Max Origination Fees is Less of 5% or $5,000
GNW Rule – 3 Months Seasoning
Designed for Responsible Homeowners in a Depreciating Home
16For Homeowner Assistance questions, call 800 444.5664
Home Affordable Refinance Plan
Freddie Loans – Same Servicer
Charge Changing Condition Market Fee – No Other LLPA
Max Lender Fee is $2,500
Manual Underwrite Only
15, 20 or 30 year Term
3 Months Seasoning
If P & I Payment Jumped 20% in Past 12 months – Min 620 FICO
New Appraisal, AVM or HVE
MI – Same Provider, Same Rate, Same Coverage
Freddie Mac Relief Refinance – Current Servicer Only
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll095.pdfThis Is Not a Compete Detail of the Program. Please Refer to Complete Set of Guidelines to Determine Qualification.
17For Homeowner Assistance questions, call 800 444.5664
Home Affordable Refinance Plan
Fannie Loans – Same Servicer
LLPA Based Upon FICO, LTV & Property Type
Not Available for if Existing Loan is EA, Refer w/ Caution IV, Subprime, Alt A, Reverse, 2nds, Recourse (Full or Partial) or Government
Up To 40 year Term
New Loan - No Short ARMs, IO, Potential Neg Am, Balloons or MyCommunity
Manual Underwrite Only
No Seasoning Required (GNW Requires 3 Months)
New Appraisal (Exterior Only if <95% LTV) or Warrant No Decline in Original Value
MI – Same Provider, Same Rate, Same Coverage
Fannie Refi Plus – Same Servicer Only
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0904.pdf
This Is Not a Compete Detail of the Program. Please Refer to Complete Set of Guidelines to Determine Qualification.
18For Homeowner Assistance questions, call 800 444.5664
Home Affordable Refinance Plan
Fannie Loans – Any FNMA Approved Lender Can Do the Refi Starting April 4 (MI May 1)
LLPA Based Upon FICO, LTV & Property Type
Not Available for Reverse, 2nds, Recourse (Full or Partial), Government or LPMI
Up To 40 year Term
New Loans - No Short ARMs, IO, Potential Neg Am, Balloons or MyCommunity
DU Only – Cannot Flip to Manual Underwrite if Don’t Like DU Finding
No Seasoning Required (GNW Requires 3 Months)
Unless Waived, New Appraisal (Exterior Only if <95% LTV) or Warrant No Decline in Original Value
MI – Same Servicer w/ Same MI Provider = Same Rate, Same Coverage
New Servicer* w/ Same MI Provider = New Rate, Same Coverage
Fannie DU Refi Plus – All FNMA Approved Lenders – Same or New Servicer
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0904.pdf
This Is Not a Compete Detail of the Program. Please Refer to Complete Set of Guidelines to Determine Qualification.
* >620 FICO – DTI Max 45% - Full Doc – Meet Standard Genworth Guidelines
19For Homeowner Assistance questions, call 800 444.5664
Genworth-Insured Refinance
This Is Not a Compete Detail of the Program. Please Refer to Complete Set of Guidelines to Determine Qualification.
Homeowners with Less Than 20% Equity and Current on Mortgage
Max 105% LTV on Current FMV (Includes Closing Costs)
No Limit on CLTV – 2nds Must Subordinate
All Loan Types Eligible – Primary, 2nd Homes, Investment, Condos, Co-op
New Loan is Fixed or Long Term ARM
1 x 30 in Last 12 Months on Mortgage Max and No MTG Lates in Last 90 Days
Max Origination Fess is Less of 5% or $5,000
3 Months Seasoning
MI – Same Servicer w/ Same MI Provider = New Rate, Same Coverage, 575 FICO Floor, New Appraisal or Warrant No Decline in Original Value
New Servicer w/ Same MI Provider = New Rate, Same Coverage, 620 FICO, Max 45%DTI, New Appraisal, Full Doc
Outside of GSE – Same or New Servicer
20For Homeowner Assistance questions, call 800 444.5664
For More Info
http://mortgageinsurance.genworth.com/RatesAndGuidelines/MakingHomeAffordable.aspx
For Questions
Call 1 800 444-5664 for Genworth ActionCenter
Email – [email protected]