| Date post: | 05-Jan-2016 |
| Category: |
Documents |
| Upload: | mariko-wilder |
| View: | 48 times |
| Download: | 0 times |
The Implementation of the National Mortgage
Settlement
Elizabeth M. LynchStaff Attorney
MFY Legal Services, Inc.
June 28, 201324th Annual Fair Lending Conference – Fair Housing in an Era of Foreclosure and Abandonment
Levin College of Urban Affairs, Cleveland State University
I. Second Mortgage Shell Game
National ReliefBenefits to Date: March 1, 2012 – March 31, 2013
Type of Relief Number of Borrowers
Served
Percentage of Borrowers
Number of People Receiving Relief Under NMS
607,015 --
Number of People Receiving 1st Lien Modification
66,140 10.9%
Number of People Receiving 2nd Lien Extinguishment
196,730 32.4%
Number of People Receiving a Short Sale 174,802 28.8%
Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/
New York ReliefBenefits to Date: March 1, 2012 – March 31, 2013
Type of Relief Number of Borrowers
Served
Percentage of Borrowers
Number of People Receiving Relief Under NMS
19,601 --
Number of People Receiving 1st Lien Modification
2,917 14.9%
Number of People Receiving 2nd Lien Extinguishment
11,086 56.6%
Number of People Receiving a Short Sale 2,212 11.3%
Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/
Ohio ReliefBenefits to Date: March 1, 2012 – March 31, 2013
Type of Relief Number of Borrowers
Served
Percentage of Borrowers
Number of People Receiving Relief Under NMS
9,593 --
Number of People Receiving 1st Lien Modification
980 10.2%
Number of People Receiving 2nd Lien Extinguishment
2,525 26.3%
Number of People Receiving a Short Sale 1,777 18.5%
Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/
California ReliefBenefits to Date: March 1, 2012 – March 31, 2013
Type of Relief Number of Borrowers
Served
Percentage of Borrowers
Number of People Receiving Relief Under NMS
177,164 --
Number of People Receiving 1st Lien Modification
21,953 12.4%
Number of People Receiving 2nd Lien Extinguishment
49,577 28.0%
Number of People Receiving a Short Sale 61,746 34.9%
Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/
Florida ReliefBenefits to Date: March 1, 2012 – March 31, 2013
Type of Relief Number of Borrowers
Served
Percentage of Borrowers
Number of People Receiving Relief Under NMS
111,913 --
Number of People Receiving 1st Lien Modification
10,400 9.3%
Number of People Receiving 2nd Lien Extinguishment
46,074 41.2%
Number of People Receiving a Short Sale 30,275 27.1%
Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/
Where’s the Relief?
STATE Percentage of Homeowners Nationally That Received First Lien Permanent Modifications
(As of March 31, 2013)
New York 4.4%
Ohio 1.6%
California 33.2%
Florida 15.7%
First Lien Permanent Modifications Saves Homes.
But Are All States Receiving A Proportional Number of First Lien Modifications?
II. Fair Housing Implications Of The National Mortgage
Settlement
Credit Under the Settlement
Type of Loan Loan to ValueRatio
Credit for Every $1 Forgiven
Portfolio Loan(loans kept on the books)
</= 175% $1.00
LTV > 175% $0.50 (for only the portion of principal forgiven over 175%)
Service for Others Loan(loans sold off – securitized)GSE loans do NOT participate in principal forgiveness)
</= 175% $0.40
LTV > 175% $0.40 (settlement makes no distinction)
First Lien Mortgage Modifications
Type of Relief Credit for Every $1 Forgiven
Second Lien Writedown
Performing Second Lien(0-90 days delinquent)
$0.90
Seriously Delinquent Second Lien(91-179 days delinquent)
$0.50
Non-performing Second Lien(180 or more days delinquent)
$0.10
Short Sale/Deficiency Forgiveness
Deficiency Forgiveness on First Lien Portfolio Loans
$0.45
Deficiency Forgiveness on First Lien Portfolio Loans for Service for Others Loans
$0.20
Credit Under the SettlementSecond Lien Extinguishments & Short Sales
