Loan Modification/BAC Home Loans

[CA renter]

Would someone who got this offer mind calling them to see what it’s about (ALL the details)? I think this could be a bigger story. I will pay you for your time (seriously).

[fsbo]

[quote=CA renter]Wow, that is interesting. Did you ever ask them for a loan mod or a refi? Any reason you can think of that they would send this to you, or do you think they might be sending it to every one of their mortgage borrowers????

Thanks for your insights![/quote]

I never ever ask BAC for any loan mod, neither refi. My first thought was a fake letter kind of similar to email SCAM, as it asks for every financial detail. But looking at the package which has BAC letterhead and also my loan number printed, I could not find any suspicious.

I called their phone number on the letter, it was debt collector/BAC home retention. After double checking my loan number, he removed me from their “loan modification candidate database”. Asking how I was on the list, I was told he has no idea, all he could tell is some folks call in just do the same as I did, some other folks decide to have a try – in case if they’d be eligible for the program….

[fsbo]

[quote=CA renter]Wow, that is interesting. Did you ever ask them for a loan mod or a refi? Any reason you can think of that they would send this to you, or do you think they might be sending it to every one of their mortgage borrowers????

Thanks for your insights![/quote]

I never ever ask BAC for any loan mod, neither refi. My first thought was a fake letter kind of similar to email SCAM, as it asks for every financial detail. But looking at the package which has BAC letterhead and also my loan number printed, I could not find any suspicious.

I called their phone number on the letter, it was debt collector/BAC home retention. After double checking my loan number, he removed me from their “loan modification candidate database”. Asking how I was on the list, I was told he has no idea, all he could tell is some folks call in just do the same as I did, some other folks decide to have a try – in case if they’d be eligible for the program….

[fsbo]

[quote=CA renter]Wow, that is interesting. Did you ever ask them for a loan mod or a refi? Any reason you can think of that they would send this to you, or do you think they might be sending it to every one of their mortgage borrowers????

Thanks for your insights![/quote]

I never ever ask BAC for any loan mod, neither refi. My first thought was a fake letter kind of similar to email SCAM, as it asks for every financial detail. But looking at the package which has BAC letterhead and also my loan number printed, I could not find any suspicious.

I called their phone number on the letter, it was debt collector/BAC home retention. After double checking my loan number, he removed me from their “loan modification candidate database”. Asking how I was on the list, I was told he has no idea, all he could tell is some folks call in just do the same as I did, some other folks decide to have a try – in case if they’d be eligible for the program….

[fsbo]

[quote=CA renter]Wow, that is interesting. Did you ever ask them for a loan mod or a refi? Any reason you can think of that they would send this to you, or do you think they might be sending it to every one of their mortgage borrowers????

Thanks for your insights![/quote]

I never ever ask BAC for any loan mod, neither refi. My first thought was a fake letter kind of similar to email SCAM, as it asks for every financial detail. But looking at the package which has BAC letterhead and also my loan number printed, I could not find any suspicious.

I called their phone number on the letter, it was debt collector/BAC home retention. After double checking my loan number, he removed me from their “loan modification candidate database”. Asking how I was on the list, I was told he has no idea, all he could tell is some folks call in just do the same as I did, some other folks decide to have a try – in case if they’d be eligible for the program….

[fsbo]

[quote=CA renter]Wow, that is interesting. Did you ever ask them for a loan mod or a refi? Any reason you can think of that they would send this to you, or do you think they might be sending it to every one of their mortgage borrowers????

Thanks for your insights![/quote]

I never ever ask BAC for any loan mod, neither refi. My first thought was a fake letter kind of similar to email SCAM, as it asks for every financial detail. But looking at the package which has BAC letterhead and also my loan number printed, I could not find any suspicious.

I called their phone number on the letter, it was debt collector/BAC home retention. After double checking my loan number, he removed me from their “loan modification candidate database”. Asking how I was on the list, I was told he has no idea, all he could tell is some folks call in just do the same as I did, some other folks decide to have a try – in case if they’d be eligible for the program….

[CA renter]

Thanks for following up, fsbo.

If you and CBad (whose mortgage is paid off) got these notices, one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

Also, IF they are only mailing these out to borrowers with conforming mortgages, might it be related to this (bold is mine):

At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury’s funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.

Neither firm is near the $200 billion per institution limit established under the PSPAs. Total funding provided under these agreements through the third quarter has been $51 billion to Freddie Mac and $60 billion to Fannie Mae. The amendments to these agreements announced today should leave no uncertainty about the Treasury’s commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.

The PSPAs also cap the size of the retained mortgage portfolios and require that the portfolios are reduced over time. Treasury is also amending the PSPAs to provide Fannie Mae and Freddie Mac with some additional flexibility to meet the requirement to reduce their portfolios. The portfolio reduction requirement for 2010 and after will be applied to the maximum allowable size of the portfolios – or $900 billion per institution – rather than the actual size of the portfolio at the end of 2009.

Treasury remains committed to the principle of reducing the retained portfolios. To meet this goal, Treasury does not expect Fannie Mae and Freddie Mac to be active buyers to increase the size of their retained mortgage portfolios, but neither is it expected that active selling will be necessary to meet the required targets. FHFA will continue to monitor and oversee the retained portfolio activities in a manner consistent with the FHFA’s responsibility as conservator and the requirements of the PSPAs.

Treasury is making two additional changes to the PSPAs. Treasury will delay setting the Periodic Commitment Fee by one year to December 31, 2010. Treasury will also make technical changes to the definitions of mortgage assets and indebtedness to make compliance with the covenants of the PSPAs less burdensome [anyone know what that’s about? -car] and more transparent in light of impending accounting changes.

http://www.ustreas.gov/press/releases/2009122415345924543.htm

[CA renter]

Thanks for following up, fsbo.

If you and CBad (whose mortgage is paid off) got these notices, one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

Also, IF they are only mailing these out to borrowers with conforming mortgages, might it be related to this (bold is mine):

At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury’s funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.

Neither firm is near the $200 billion per institution limit established under the PSPAs. Total funding provided under these agreements through the third quarter has been $51 billion to Freddie Mac and $60 billion to Fannie Mae. The amendments to these agreements announced today should leave no uncertainty about the Treasury’s commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.

The PSPAs also cap the size of the retained mortgage portfolios and require that the portfolios are reduced over time. Treasury is also amending the PSPAs to provide Fannie Mae and Freddie Mac with some additional flexibility to meet the requirement to reduce their portfolios. The portfolio reduction requirement for 2010 and after will be applied to the maximum allowable size of the portfolios – or $900 billion per institution – rather than the actual size of the portfolio at the end of 2009.

Treasury remains committed to the principle of reducing the retained portfolios. To meet this goal, Treasury does not expect Fannie Mae and Freddie Mac to be active buyers to increase the size of their retained mortgage portfolios, but neither is it expected that active selling will be necessary to meet the required targets. FHFA will continue to monitor and oversee the retained portfolio activities in a manner consistent with the FHFA’s responsibility as conservator and the requirements of the PSPAs.

Treasury is making two additional changes to the PSPAs. Treasury will delay setting the Periodic Commitment Fee by one year to December 31, 2010. Treasury will also make technical changes to the definitions of mortgage assets and indebtedness to make compliance with the covenants of the PSPAs less burdensome [anyone know what that’s about? -car] and more transparent in light of impending accounting changes.

http://www.ustreas.gov/press/releases/2009122415345924543.htm

[CA renter]

Thanks for following up, fsbo.

If you and CBad (whose mortgage is paid off) got these notices, one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

Also, IF they are only mailing these out to borrowers with conforming mortgages, might it be related to this (bold is mine):

At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury’s funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.

Neither firm is near the $200 billion per institution limit established under the PSPAs. Total funding provided under these agreements through the third quarter has been $51 billion to Freddie Mac and $60 billion to Fannie Mae. The amendments to these agreements announced today should leave no uncertainty about the Treasury’s commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.

The PSPAs also cap the size of the retained mortgage portfolios and require that the portfolios are reduced over time. Treasury is also amending the PSPAs to provide Fannie Mae and Freddie Mac with some additional flexibility to meet the requirement to reduce their portfolios. The portfolio reduction requirement for 2010 and after will be applied to the maximum allowable size of the portfolios – or $900 billion per institution – rather than the actual size of the portfolio at the end of 2009.

Treasury remains committed to the principle of reducing the retained portfolios. To meet this goal, Treasury does not expect Fannie Mae and Freddie Mac to be active buyers to increase the size of their retained mortgage portfolios, but neither is it expected that active selling will be necessary to meet the required targets. FHFA will continue to monitor and oversee the retained portfolio activities in a manner consistent with the FHFA’s responsibility as conservator and the requirements of the PSPAs.

Treasury is making two additional changes to the PSPAs. Treasury will delay setting the Periodic Commitment Fee by one year to December 31, 2010. Treasury will also make technical changes to the definitions of mortgage assets and indebtedness to make compliance with the covenants of the PSPAs less burdensome [anyone know what that’s about? -car] and more transparent in light of impending accounting changes.

http://www.ustreas.gov/press/releases/2009122415345924543.htm

[CA renter]

Thanks for following up, fsbo.

If you and CBad (whose mortgage is paid off) got these notices, one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

Also, IF they are only mailing these out to borrowers with conforming mortgages, might it be related to this (bold is mine):

At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury’s funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.

Neither firm is near the $200 billion per institution limit established under the PSPAs. Total funding provided under these agreements through the third quarter has been $51 billion to Freddie Mac and $60 billion to Fannie Mae. The amendments to these agreements announced today should leave no uncertainty about the Treasury’s commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.

The PSPAs also cap the size of the retained mortgage portfolios and require that the portfolios are reduced over time. Treasury is also amending the PSPAs to provide Fannie Mae and Freddie Mac with some additional flexibility to meet the requirement to reduce their portfolios. The portfolio reduction requirement for 2010 and after will be applied to the maximum allowable size of the portfolios – or $900 billion per institution – rather than the actual size of the portfolio at the end of 2009.

Treasury remains committed to the principle of reducing the retained portfolios. To meet this goal, Treasury does not expect Fannie Mae and Freddie Mac to be active buyers to increase the size of their retained mortgage portfolios, but neither is it expected that active selling will be necessary to meet the required targets. FHFA will continue to monitor and oversee the retained portfolio activities in a manner consistent with the FHFA’s responsibility as conservator and the requirements of the PSPAs.

Treasury is making two additional changes to the PSPAs. Treasury will delay setting the Periodic Commitment Fee by one year to December 31, 2010. Treasury will also make technical changes to the definitions of mortgage assets and indebtedness to make compliance with the covenants of the PSPAs less burdensome [anyone know what that’s about? -car] and more transparent in light of impending accounting changes.

http://www.ustreas.gov/press/releases/2009122415345924543.htm

[CA renter]

Thanks for following up, fsbo.

If you and CBad (whose mortgage is paid off) got these notices, one has to wonder if they’ve sent them out to everybody, and whether or not every borrower is getting the opportunity to apply for a principal reduction. I wonder if there’s not some kind of program going on behind the scenes where the govt is going to guarantee more than they are publicly admitting for losses on principal reductions. BAC would only have an incentive to mail these out to everyone if somebody (govt?) was making an offer they can’t refuse, IMHO.

Also, IF they are only mailing these out to borrowers with conforming mortgages, might it be related to this (bold is mine):

At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury’s funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.

Neither firm is near the $200 billion per institution limit established under the PSPAs. Total funding provided under these agreements through the third quarter has been $51 billion to Freddie Mac and $60 billion to Fannie Mae. The amendments to these agreements announced today should leave no uncertainty about the Treasury’s commitment to support these firms as they continue to play a vital role in the housing market during this current crisis.

The PSPAs also cap the size of the retained mortgage portfolios and require that the portfolios are reduced over time. Treasury is also amending the PSPAs to provide Fannie Mae and Freddie Mac with some additional flexibility to meet the requirement to reduce their portfolios. The portfolio reduction requirement for 2010 and after will be applied to the maximum allowable size of the portfolios – or $900 billion per institution – rather than the actual size of the portfolio at the end of 2009.

Treasury remains committed to the principle of reducing the retained portfolios. To meet this goal, Treasury does not expect Fannie Mae and Freddie Mac to be active buyers to increase the size of their retained mortgage portfolios, but neither is it expected that active selling will be necessary to meet the required targets. FHFA will continue to monitor and oversee the retained portfolio activities in a manner consistent with the FHFA’s responsibility as conservator and the requirements of the PSPAs.

Treasury is making two additional changes to the PSPAs. Treasury will delay setting the Periodic Commitment Fee by one year to December 31, 2010. Treasury will also make technical changes to the definitions of mortgage assets and indebtedness to make compliance with the covenants of the PSPAs less burdensome [anyone know what that’s about? -car] and more transparent in light of impending accounting changes.

http://www.ustreas.gov/press/releases/2009122415345924543.htm

[fsbo]

mine is conforming

[fsbo]

mine is conforming

[fsbo]

mine is conforming

[fsbo]

mine is conforming

[Author]

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