$700 Billion Draft RESIDENTIAL MORTGAGE LOAN SERVICING
1 SEC. 109. FORECLOSURE MITIGATION EFFORTS.
2 (a) RESIDENTIAL MORTGAGE LOAN SERVICING
3 STANDARDS.—To the extent that the Secretary acquires
4 mortgages, mortgage backed securities, and other assets
5 secured by residential real estate, including multifamily
6 housing, the Secretary shall implement a plan that seeks
7 to maximize assistance for homeowners and use the au8
thority of the Secretary to encourage the servicers of the
9 underlying mortgages, considering net present value to the
10 taxpayer, to take advantage of the HOPE for Home11
owners Program under section 257 of the National Hous12
ing Act or other available programs to minimize fore13
closures. In addition, the Secretary may use loan guaran14
tees and credit enhancements to facilitate loan modifica15
tions to prevent avoidable foreclosures.
16 (b) COORDINATION.—The Secretary shall coordinate
17 with the Corporation, the Board (with respect to any
18 mortgage or mortgage-backed securities or pool of securi19
ties held, owned, or controlled by or on behalf of a Federal
20 reserve bank, as provided in section 110(a)(1)(C)), the
21 Federal Housing Finance Agency, the Secretary of Hous22
ing and Urban Development, and other Federal Govern23
ment entities that hold troubled assets to attempt to iden24
tify opportunities for the acquisition of classes of troubled
25 assets that will improve the ability of the Secretary to im26
prove the loan modification and restructuring process and,
26
O:\AYO\AYO08C04.xml
1 where permissible, to permit bona fide tenants who are
2 current on their rent to remain in their homes under the
3 terms of the lease. In the case of a mortgage on a residen4
tial rental property, the plan required under this section
5 shall include protecting Federal, State, and local rental
6 subsidies and protections, and ensuring any modification
7 takes into account the need for operating funds to main8
tain decent and safe conditions at the property.
9 (c) CONSENT TO REASONABLE LOAN MODIFICATION
10 REQUESTS.—Upon any request arising under existing in11
vestment contracts, the Secretary shall consent, where ap12
propriate, and considering net present value to the tax13
payer, to reasonable requests for loss mitigation measures,
14 including term extensions, rate reductions, principal write
15 downs, increases in the proportion of loans within a trust
16 or other structure allowed to be modified, or removal of
17 other limitation on modifications.
Sunday, September 28, 2008
“EMERGENCY ECONOMIC STABILIZATION ACT OF 2008”
SUMMARY OF THE “EMERGENCY ECONOMIC STABILIZATION ACT OF 2008”
I. Stabilizing the Economy
The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the
Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets
of financial institutions and making it difficult for working families, small businesses, and other
companies to access credit, which is vital to a strong and stable economy. EESA also establishes
a program that would allow companies to insure their troubled assets.
II. Homeownership Preservation
EESA requires the Treasury to modify troubled loans – many the result of predatory lending
practices – wherever possible to help American families keep their homes. It also directs other
federal agencies to modify loans that they own or control. Finally, it improves the HOPE for
Homeowners program by expanding eligibility and increasing the tools available to the
Department of Housing and Urban Development to help more families keep their homes.
III. Taxpayer Protection
Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation requires
companies that sell some of their bad assets to the government to provide warrants so that
taxpayers will benefit from any future growth these companies may experience as a result of
participation in this program. The legislation also requires the President to submit legislation
that would cover any losses to taxpayers resulting from this program from financial institutions.
IV. No Windfalls for Executives
Executives who made bad decisions should not be allowed to dump their bad assets on the
government, and then walk away with millions of dollars in bonuses. In order to participate in
this program, companies will lose certain tax benefits and, in some cases, must limit executive
pay. In addition, the bill limits “golden parachutes” and requires that unearned bonuses be
returned.
V. Strong Oversight
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250
billion immediately, then requires the President to certify that additional funds are needed ($100
billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the
use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight
Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special
inspector general to protect against waste, fraud and abuse.
Read more by visiting financialservice.house.gov
I. Stabilizing the Economy
The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the
Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets
of financial institutions and making it difficult for working families, small businesses, and other
companies to access credit, which is vital to a strong and stable economy. EESA also establishes
a program that would allow companies to insure their troubled assets.
II. Homeownership Preservation
EESA requires the Treasury to modify troubled loans – many the result of predatory lending
practices – wherever possible to help American families keep their homes. It also directs other
federal agencies to modify loans that they own or control. Finally, it improves the HOPE for
Homeowners program by expanding eligibility and increasing the tools available to the
Department of Housing and Urban Development to help more families keep their homes.
III. Taxpayer Protection
Taxpayers should not be expected to pay for Wall Street’s mistakes. The legislation requires
companies that sell some of their bad assets to the government to provide warrants so that
taxpayers will benefit from any future growth these companies may experience as a result of
participation in this program. The legislation also requires the President to submit legislation
that would cover any losses to taxpayers resulting from this program from financial institutions.
IV. No Windfalls for Executives
Executives who made bad decisions should not be allowed to dump their bad assets on the
government, and then walk away with millions of dollars in bonuses. In order to participate in
this program, companies will lose certain tax benefits and, in some cases, must limit executive
pay. In addition, the bill limits “golden parachutes” and requires that unearned bonuses be
returned.
V. Strong Oversight
Rather than giving the Treasury all the funds at once, the legislation gives the Treasury $250
billion immediately, then requires the President to certify that additional funds are needed ($100
billion, then $350 billion subject to Congressional disapproval). The Treasury must report on the
use of the funds and the progress in addressing the crisis. EESA also establishes an Oversight
Board so that the Treasury cannot act in an arbitrary manner. It also establishes a special
inspector general to protect against waste, fraud and abuse.
Read more by visiting financialservice.house.gov
Wednesday, September 24, 2008
$700 Billion Blank Check????????
Dear Oscar,
No $700 Billion Blank Check
Any bailout package that Congress passes must be balanced to help Main Street as well as Wall Street.
Contact your member of Congress today.
George Bush, Henry Paulson and Ben Bernanke came to Congress last weekend with a request for a $700 billion blank check to bail out Wall Street. Thankfully, our allies in Congress are pushing back against this dangerous and ill-conceived bill.
To ensure that the bill Congress passes is a balanced one, our congressional leadership needs to hear from you. Contact your member of Congress and their leaders today and tell them "no blank checks" for Wall Street.
Our nation is facing a real financial crisis, brought on by seven years of Bush-McCain financial policies, that calls for action that is thoughtful and swift—but not hasty. The actions we take at this perilous time must set the stage for a real recovery that benefits Main Street as well as Wall Street.
The last thing we should do is compound the enormous imbalances in our economy with an enormously imbalanced rescue package. To accomplish this, any bailout must:
Be governed by an independent board with transparency and effective public and congressional oversight.
Use the full array of financial and legal tools available to the government to stop foreclosures and restructure home mortgage loans for working families.
Address the cause of the crisis on Main Street in addition to the symptoms on Wall Street. Congress should pass a second stimulus package in its entirety.
Work to address the disastrous weaknesses in our financial regulatory system and corporate governance system that allowed this disaster to happen.
Contact your member of Congress and their leaders today and tell them to ensure that any bailout package is a balanced one.
The current Bush-Paulson-Bernanke proposal does nothing for families facing foreclosure or for working people hit hard by the economy, and it does nothing to hold those who caused this crisis accountable. Meanwhile, it grants unlimited authority to the Bush administration to spend $700 billion of the public’s money to prop up whomever they wish on Wall Street, without any rules or independent oversight.
This is not acceptable.
The stakes are enormous. If this plan ends up squandering hundreds of billions of dollars of the public’s money, the damage will not be limited to the financial system. As a nation, we must address the health care crisis, the infrastructure crisis, the energy and environmental crisis and the jobs crisis. Our future and our children’s future depend on focusing our nation on these challenges in the real economy.
Contact your member of Congress and their leaders today and tell them "no blank checks" for Wall Street.
In solidarity,
Working America, AFL-CIO
Tell-a-friend!
If you received this message from a friend, you can sign up for Working America.
National Office 815 16th St., N.W. • Washington, DC 20006 • 202-637-5137 • info@workingamerica.org
Copyright © 2007 WORKING AMERICA.
No $700 Billion Blank Check
Any bailout package that Congress passes must be balanced to help Main Street as well as Wall Street.
Contact your member of Congress today.
George Bush, Henry Paulson and Ben Bernanke came to Congress last weekend with a request for a $700 billion blank check to bail out Wall Street. Thankfully, our allies in Congress are pushing back against this dangerous and ill-conceived bill.
To ensure that the bill Congress passes is a balanced one, our congressional leadership needs to hear from you. Contact your member of Congress and their leaders today and tell them "no blank checks" for Wall Street.
Our nation is facing a real financial crisis, brought on by seven years of Bush-McCain financial policies, that calls for action that is thoughtful and swift—but not hasty. The actions we take at this perilous time must set the stage for a real recovery that benefits Main Street as well as Wall Street.
The last thing we should do is compound the enormous imbalances in our economy with an enormously imbalanced rescue package. To accomplish this, any bailout must:
Be governed by an independent board with transparency and effective public and congressional oversight.
Use the full array of financial and legal tools available to the government to stop foreclosures and restructure home mortgage loans for working families.
Address the cause of the crisis on Main Street in addition to the symptoms on Wall Street. Congress should pass a second stimulus package in its entirety.
Work to address the disastrous weaknesses in our financial regulatory system and corporate governance system that allowed this disaster to happen.
Contact your member of Congress and their leaders today and tell them to ensure that any bailout package is a balanced one.
The current Bush-Paulson-Bernanke proposal does nothing for families facing foreclosure or for working people hit hard by the economy, and it does nothing to hold those who caused this crisis accountable. Meanwhile, it grants unlimited authority to the Bush administration to spend $700 billion of the public’s money to prop up whomever they wish on Wall Street, without any rules or independent oversight.
This is not acceptable.
The stakes are enormous. If this plan ends up squandering hundreds of billions of dollars of the public’s money, the damage will not be limited to the financial system. As a nation, we must address the health care crisis, the infrastructure crisis, the energy and environmental crisis and the jobs crisis. Our future and our children’s future depend on focusing our nation on these challenges in the real economy.
Contact your member of Congress and their leaders today and tell them "no blank checks" for Wall Street.
In solidarity,
Working America, AFL-CIO
Tell-a-friend!
If you received this message from a friend, you can sign up for Working America.
National Office 815 16th St., N.W. • Washington, DC 20006 • 202-637-5137 • info@workingamerica.org
Copyright © 2007 WORKING AMERICA.
Tuesday, September 16, 2008
FHA To Rescue Home Owners Facing Foreclosure
Federal housing package
The Housing and Economic Recovery Act of 2008, will assist an estimated 400,000 homeowners currently facing foreclosure, many of whom reside in California, by allowing them to refinance their current sub prime mortgages with a more affordable Federal Housing Administration (FHA)-backed loan. This particular feature of the bill aims to stem the rising tide of foreclosures that have been driving down home values across the state and creating tougher lending rules that have pushed many potential first-time buyers with good credit off to the sidelines.
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic sub prime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Knowledge is Power. Ask questions you should received an answer.
Call Oscar Matamoros to have a private appointment to discus your situation.
714-609-3434
The Housing and Economic Recovery Act of 2008, will assist an estimated 400,000 homeowners currently facing foreclosure, many of whom reside in California, by allowing them to refinance their current sub prime mortgages with a more affordable Federal Housing Administration (FHA)-backed loan. This particular feature of the bill aims to stem the rising tide of foreclosures that have been driving down home values across the state and creating tougher lending rules that have pushed many potential first-time buyers with good credit off to the sidelines.
FHA foreclosure rescue – development of a refinance program for homebuyers with problematic sub prime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
Knowledge is Power. Ask questions you should received an answer.
Call Oscar Matamoros to have a private appointment to discus your situation.
714-609-3434
Monday, September 8, 2008
Fannie and Freddie Take over
The federal takeover was initially welcomed by banks and market watchers outside the U.S. who saw it as a way to dispel some of the uncertainty roiling the world's financial markets. The intervention could eventually be a boon for Wall Street, by providing a boost to the moribund mortgage industry and by perhaps diminishing the influence of Wall Street's two largest competitors in the market of packaging and reselling mortgage-backed bonds.
The move is also likely to nudge down mortgage rates for consumers, who are facing the worst housing bust since the 1930s. Despite steep interest-rate cuts by the Federal Reserve, the cost of a typical 30-year fixed-rate mortgage has remained well over 6% for most of the past year. To bolster the mortgage market, Treasury said it will buy, on the open market, at least $5 billion of new mortgage-backed securities issued by Fannie and Freddie.
Taken from California Association fo Realtors
http://www.homesbyarea.com
homesbyareamail@yahoo.com
The move is also likely to nudge down mortgage rates for consumers, who are facing the worst housing bust since the 1930s. Despite steep interest-rate cuts by the Federal Reserve, the cost of a typical 30-year fixed-rate mortgage has remained well over 6% for most of the past year. To bolster the mortgage market, Treasury said it will buy, on the open market, at least $5 billion of new mortgage-backed securities issued by Fannie and Freddie.
Taken from California Association fo Realtors
http://www.homesbyarea.com
homesbyareamail@yahoo.com
Saturday, September 6, 2008
$7,500 Home Buyers Credit
Starting this week, hundreds of thousands of potential buyers who've been on the sidelines can purchase a new or resale house and qualify for the credit. The National Association of Realtors estimates that up to two million sales could be stimulated by the credit in the coming 11 months, and the National Association of Home Builders anticipates a "multiplier effect" in the move-up segment of the market.
That's because people who sell houses to buyers using the credit will then often need to go out and find replacement homes for themselves -- effectively rippling the impact of the credit upstream, triggering even more sales.
Since there's no Congressional limit on how many buyers can take advantage of the new incentive, it could prove to be huge. It all depends on whether Realtors, builders and individual sellers educate potential buyers about how to factor the credit into affording a new home.
In other economic news this week, mortgage rates jumped to their highest level in nearly a year, 6.6 percent for 30-year fixed rate conventional loans, according to the Mortgage Bankers Association of America.
On the plus side, the University of Michigan's Consumer Sentiment survey -- a key economic barometer affecting consumers' willingness to spend - rose a surprising five points last month.
And still another surprise: The national home ownership rate -- defying all gloom and doom predictions -- jumped to 68.1 percent in the latest quarter, up from 67.8 percent.
That's because people who sell houses to buyers using the credit will then often need to go out and find replacement homes for themselves -- effectively rippling the impact of the credit upstream, triggering even more sales.
Since there's no Congressional limit on how many buyers can take advantage of the new incentive, it could prove to be huge. It all depends on whether Realtors, builders and individual sellers educate potential buyers about how to factor the credit into affording a new home.
In other economic news this week, mortgage rates jumped to their highest level in nearly a year, 6.6 percent for 30-year fixed rate conventional loans, according to the Mortgage Bankers Association of America.
On the plus side, the University of Michigan's Consumer Sentiment survey -- a key economic barometer affecting consumers' willingness to spend - rose a surprising five points last month.
And still another surprise: The national home ownership rate -- defying all gloom and doom predictions -- jumped to 68.1 percent in the latest quarter, up from 67.8 percent.
Wednesday, September 3, 2008
Loss Mitigation- Federal House Administration-FHA-
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSINGFEDERAL
HOUSING COMMISSIONER
August 14, 2008
MORTGAGEE LETTER 2008-21
TO: ALL APPROVED MORTGAGEES
ATTENTION: Single Family Servicing Managers
SUBJECT: FHA Loss Mitigation Program Updates
The Federal Housing Administration (FHA) is pleased to announce several changes to its
Loss Mitigation Program that will strengthen both the Loan Modification and Partial Claim
Initiatives.
While these changes are designed to address borrowers who are facing serious defaults,
most delinquencies can and should be resolved through early intervention. Mortgagees are
reminded of the critical importance of early and constructive contact with delinquent borrowers and
the requirement to notify borrowers of the availability of default counseling by HUD-approved
counseling agencies.
Loss Mitigation Program Changes
This Mortgagee Letter announces three changes to the existing Loss Mitigation program
designed to give mortgagees additional latitude to help borrowers cure defaults and retain
homeownership. The changes noted below are effective immediately.
First, with respect to Loan Modifications, mortgagees may use the Treasury 10-year
constant maturity as a basis for establishing the maximum interest rate for loan modifications. The
maximum interest allowable should be calculated as 200 basis points above the monthly average
yield on United States Treasury Securities, adjusted to a constant maturity of 10 years. Mortgagees
shall refer to the rate that is in effect as of the date of execution of the loan modification. For
information on the 10-year monthly constant maturities, please refer to the statistical release H.15,
which is available on the following web site: http://www.federalreserve.gov/releases/h15/data.htm
Next, where loss mitigation is being attempted after foreclosure has been initiated, mortgage
servicers and mortgagors have advised that foreclosure related costs and legal fees are often
impediments to successful loss mitigation. Many mortgagors who are able to resume making
monthly mortgage payments frequently do not have sufficient funds to reimburse the mortgagee the
legal fees and foreclosure costs incurred prior to qualifying for loss mitigation and therefore are
denied participation.
www.hud.gov espanol.hud.gov
Effective with this Mortgagee Letter, the Department will begin allowing legal fees and
foreclosure costs related to a canceled foreclosure action to be incorporated into either the Loan
Modification or the Partial Claim subject to the following requirements. This guidance expands and
supersedes, in relevant part, the guidance provided in Loan Modifications section F (page 21) and
Partial Claims section F (page 26) of Mortgagee Letter 00-05.
For Loan Modifications, legal fees and related foreclosure costs may now be capitalized
into the modified principal balance. For Partial Claims (PC), mortgagees may now include legal
fees and foreclosure costs related to a canceled foreclosure in the Partial Claim.
Mortgagees are reminded that all such foreclosure costs must reflect work actually
completed to the date of the foreclosure cancellation and the attorney fees should not be in excess of
the fee schedule that HUD has identified as customary and reasonable for FHA claim
reimbursement. Late fees should not be capitalized in a Modification or included in a Partial Claim.
As the goal in providing the mortgagor either a Loan Modification or a Partial Claim is to bring the
delinquent mortgage current and give the mortgagor a new start, the mortgagee should waive all
accrued late fees.
Please refer to Mortgagee Letter 2005-30 (or any subsequent guidance issued by FHA on
reasonable and customary foreclosure costs) for the fee schedule for legal fees that HUD has
identified as customary and reasonable for FHA claim reimbursement. Lenders should perform a
retroactive escrow analysis at the time of the loan modification to ensure that the delinquent
payments being capitalized reflect the actual escrow requirements required for those months
capitalized.
Finally, in response to the industry’s request to provide adequate time for the mortgagee to
complete all required actions related to a loan modification, the Department provides the following
clarification. When establishing a loan modification, it is acceptable for mortgagees to include all
payments due including an additional month in the loan modification.
Consider the following example. The mortgagor is due for the January 2008 and all
subsequent payments. The mortgagee completes its loss mitigation evaluation on June 27, 2008.
To allow adequate time to complete the loan modification, obtain all required signatures and
provide adequate notice to the mortgagor of the new payment, the mortgagee may include the
payments due for July 2008 and August 2008 in the loan modification. The mortgagor will begin
remitting payments due under the modified mortgage effective with the installment due September
1, 2008.
Any questions regarding this Mortgagee Letter or requirements for use of the partial claim
and loan modification authorities may be directed to HUD's National Servicing Center (NSC) at
888-297-8685 or hsg-lossmit@hud.gov.
Sincerely,
Brian D. Montgomery
Assistant Secretary for Housing –
Federal Housing Commissioner
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSINGFEDERAL
HOUSING COMMISSIONER
August 14, 2008
MORTGAGEE LETTER 2008-21
TO: ALL APPROVED MORTGAGEES
ATTENTION: Single Family Servicing Managers
SUBJECT: FHA Loss Mitigation Program Updates
The Federal Housing Administration (FHA) is pleased to announce several changes to its
Loss Mitigation Program that will strengthen both the Loan Modification and Partial Claim
Initiatives.
While these changes are designed to address borrowers who are facing serious defaults,
most delinquencies can and should be resolved through early intervention. Mortgagees are
reminded of the critical importance of early and constructive contact with delinquent borrowers and
the requirement to notify borrowers of the availability of default counseling by HUD-approved
counseling agencies.
Loss Mitigation Program Changes
This Mortgagee Letter announces three changes to the existing Loss Mitigation program
designed to give mortgagees additional latitude to help borrowers cure defaults and retain
homeownership. The changes noted below are effective immediately.
First, with respect to Loan Modifications, mortgagees may use the Treasury 10-year
constant maturity as a basis for establishing the maximum interest rate for loan modifications. The
maximum interest allowable should be calculated as 200 basis points above the monthly average
yield on United States Treasury Securities, adjusted to a constant maturity of 10 years. Mortgagees
shall refer to the rate that is in effect as of the date of execution of the loan modification. For
information on the 10-year monthly constant maturities, please refer to the statistical release H.15,
which is available on the following web site: http://www.federalreserve.gov/releases/h15/data.htm
Next, where loss mitigation is being attempted after foreclosure has been initiated, mortgage
servicers and mortgagors have advised that foreclosure related costs and legal fees are often
impediments to successful loss mitigation. Many mortgagors who are able to resume making
monthly mortgage payments frequently do not have sufficient funds to reimburse the mortgagee the
legal fees and foreclosure costs incurred prior to qualifying for loss mitigation and therefore are
denied participation.
www.hud.gov espanol.hud.gov
Effective with this Mortgagee Letter, the Department will begin allowing legal fees and
foreclosure costs related to a canceled foreclosure action to be incorporated into either the Loan
Modification or the Partial Claim subject to the following requirements. This guidance expands and
supersedes, in relevant part, the guidance provided in Loan Modifications section F (page 21) and
Partial Claims section F (page 26) of Mortgagee Letter 00-05.
For Loan Modifications, legal fees and related foreclosure costs may now be capitalized
into the modified principal balance. For Partial Claims (PC), mortgagees may now include legal
fees and foreclosure costs related to a canceled foreclosure in the Partial Claim.
Mortgagees are reminded that all such foreclosure costs must reflect work actually
completed to the date of the foreclosure cancellation and the attorney fees should not be in excess of
the fee schedule that HUD has identified as customary and reasonable for FHA claim
reimbursement. Late fees should not be capitalized in a Modification or included in a Partial Claim.
As the goal in providing the mortgagor either a Loan Modification or a Partial Claim is to bring the
delinquent mortgage current and give the mortgagor a new start, the mortgagee should waive all
accrued late fees.
Please refer to Mortgagee Letter 2005-30 (or any subsequent guidance issued by FHA on
reasonable and customary foreclosure costs) for the fee schedule for legal fees that HUD has
identified as customary and reasonable for FHA claim reimbursement. Lenders should perform a
retroactive escrow analysis at the time of the loan modification to ensure that the delinquent
payments being capitalized reflect the actual escrow requirements required for those months
capitalized.
Finally, in response to the industry’s request to provide adequate time for the mortgagee to
complete all required actions related to a loan modification, the Department provides the following
clarification. When establishing a loan modification, it is acceptable for mortgagees to include all
payments due including an additional month in the loan modification.
Consider the following example. The mortgagor is due for the January 2008 and all
subsequent payments. The mortgagee completes its loss mitigation evaluation on June 27, 2008.
To allow adequate time to complete the loan modification, obtain all required signatures and
provide adequate notice to the mortgagor of the new payment, the mortgagee may include the
payments due for July 2008 and August 2008 in the loan modification. The mortgagor will begin
remitting payments due under the modified mortgage effective with the installment due September
1, 2008.
Any questions regarding this Mortgagee Letter or requirements for use of the partial claim
and loan modification authorities may be directed to HUD's National Servicing Center (NSC) at
888-297-8685 or hsg-lossmit@hud.gov.
Sincerely,
Brian D. Montgomery
Assistant Secretary for Housing –
Federal Housing Commissioner
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