WSJ: Second-Lien, H4H Incentives On The Way

Posted by Orb Staff on April 28, 2009 No Comments
Categories : Mortgage Servicing

tails on the administration's plan to tackle second-lien mortgages as part of its Making Home Affordable program have been reported by [u][link=http://online.wsj.com/article/SB124091319810563169.html]The Wall Street Journal[/link][/u]. The paper, citing an unnamed senior administration official, says the government is prepared to offer servicers incentives for the successful modification of second liens and for refinancing borrowers into the Federal Housing Administration's Hope for Homeowners program. The plan could be announced by the U.S. Department of Housing & Urban Development as early as today, and the official says Bank of America, Wells Fargo and J.P. Morgan Chase have already agreed to participate. Servicers stand to receive a $500 up-front payment and $250 per year for three years for each successful second-lien mod. Seconds will have to be modified in all instances where the first lien has bee modified, and borrowers may receive up to $250 per year for up to five years if they stay current on the second lien. Servicers that refinance borrowers into Hope for Homeowners will receive a $2,500 up-front payment, and the lenders originating the loans will get $1,000 per year for three years, provided the loans stay current, the report says. SOURCE: Wall Street

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