New changes will streamline mortgage mod program

TRD New York /
Oct.October 13, 2009 06:44 PM

Banks will present Banks will present to the Obama administration a plan to rework the $75 billion “Home Affordable” federal program. According to JPMorgan Chase, the new plan includes expanding the program to allow interest-only periods on reworked loans, seeking to bring more homeowners into the initiative. “The benefit of allowing interest-only periods as well would be a significant pickup in terms of mods being done because the current methods often fail to allow loans to pass required tests on whether modifications serve lenders better than foreclosures,” Douglas Potolsky, senior vice president at JPMorgan’s Chase home-loan unit, said. So far, only a couple thousand loan conversions have been completed under the current plan due to an extensive paperwork process, according to Laurie Ann Maggiono, director of the Treasury’s policy office for homeownership preservation. The new plan will include document changes, such as creating more “customer-friendly” layouts, eliminating the need for homeowners to provide tax returns and streamlining the lengthy paperwork process. [Bloomberg]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
100 East 53rd Street,  China Vanke chairman Yu Liang and RFR's Aby Rosen (Photos via Structure Tone and Getty)

Aby Rosen accuses Chinese partner of “power grab” after condo loan default

Aby Rosen accuses Chinese partner of “power grab” after condo loan default
(Getty)

When the music stops: Guitar Center could file for bankruptcy

When the music stops: Guitar Center could file for bankruptcy
Jules Trump talks luxury towers and assembling in Sunny Isles Beach in TRD's Coffee Talks

Jules Trump talks luxury towers and assembling in Sunny Isles Beach in TRD’s Coffee Talks

Jules Trump talks luxury towers and assembling in Sunny Isles Beach in TRD’s Coffee Talks
Sam Chang and 140 West 28th Street (Gene Kaufman Architects)

Sam Chang sells hotel in Chelsea for $147M

Sam Chang sells hotel in Chelsea for $147M
New York Attorney General Letitia James and 63-36 99th Street in Rego Park (Getty; StreetEasy)

“Not on my watch”: AG Tish James fines developers who violated 421a

“Not on my watch”: AG Tish James fines developers who violated 421a
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...