New Mortgage Modification Rules Could Be A Good Deal For Homeowners

New Mortgage Modification Rules Could Be A Good Deal For Homeowners

The Treasury Department has just announced that mortgage servicers must now offer a single point of contact for new and existing mortgage modification participants.

The twenty largest servicers participating in any type of mortgage modification program including HAMP, the Home Affordable Foreclosure Alternatives Program, and even the private modification programs will be governed by these rules. What does this mean for the average homeowner trying to win a mortgage modification while fighting foreclosure? Let’s take a look:

1. Every homeowner who attempts to negotiate a mortgage modification will receive a case manager who will remain their main point of contact throughout the process. Even if the homeowner’s status changes (e.g. losing their job) they will remain with the same case manager. That could mean the end of being shuffled around from one voicemail to another when trying to talk to someone who can help you at the mortgage servicing company.

2. New and existing mortgage modification participants (and those in the negotiating phase) will no longer be forced to divulge and explain their financial lives to people who are not trained by the mortgage company. The new rules prohibit the use of contractors as case managers; but case managers are allowed to delegate other tasks to subordinates and contractors.

3. One potential pitfall of these new rules is that case managers have no limit on the amount of homeowners they can have on their caseload. Sounds like a possible future case manager burnout scenario could be brewing if mortgage servicers don’t act responsibly when assigning workloads
as their employees sift through the mortgage modification mess.

You can read up on reverse mortgage costs and learn all the secrets of the trade by visiting the website of Dominion Lending Centres. Arm yourself with all the information you need to make a concious and intelligent decision.

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