CheckMyNPV.com - Overview for Trusted Advisors€¦ · •Home Affordable Modification Program® (HAMP) •Second Lien Modification Program℠ ... If you know the Discount Rate Risk

June 2013 | Making Home Affordable

Overview

CheckMyNPV.com Overview for Trusted Advisors

2 June 2013 | Making Home Affordable

Agenda

Discussion / Questions 6

CheckMyNPV Overview and Calculator 4

MHA Overview 1

HAMP Eligibility Criteria 2

Resources 5

NPV Definition 3


MHA Overview

• Home Affordable Modification Program® (HAMP)

• Second Lien Modification Program℠ (2MP)

• Home Affordable Refinance Program (HARP)

• Home Affordable Unemployment Program℠ (UP)

• Principal Reduction Alternative℠ (PRA)

• Home Affordable Foreclosure Alternatives® (HAFA)

Making Home Affordable (MHA) Programs


MHA Enhancements to Help More Homeowners

Enhancements designed to provide relief to more homeowners and to accelerate housing market recovery.

MAKING HOME AFFORDABLE

Help for More Homeowners

Expansion of Program Eligibility

Extension of Application Deadlines

Increase in Investor

Incentives for Principal

Reduction


Agenda



MHA Overview 1


Resources 5

NPV Definition 3


HAMP Eligibility Criteria

Criteria Guideline

HAMP Tier 1

HAMP Tier 2

Servicer, Investor, Insurer

Guidance applies to MHA-participating servicers of mortgages not owned, guaranteed, or insured by Fannie Mae, Freddie Mac, FHA, VA, or USDA.

Origination The mortgage loan is a first lien originated on or before January 1, 2009.

Unpaid Principal Balance Limits

The unpaid principal balance, prior to capitalization, must be less than or equal to:

• $729,750 for a one-unit property • $934,200 for a two-unit property • $1,129,250 for a three-unit property • $1,403,400 for a four-unit property

Financial Hardship

The homeowner must be able to document a financial hardship.


HAMP Eligibility Criteria (continued) Criteria Guideline

HAMP Tier 1

HAMP Tier 2

“Natural” Persons

The homeowner is a “natural” person. Mortgage loans made to business entities are not eligible for assistance under HAMP.

Occupancy The mortgage loan is secured by a single family property that is occupied by the homeowner as his or her principal residence.

Occupancy

The mortgage loan is secured by a single-family property that is used by the homeowner for rental purposes only and not occupied by the homeowner, whether as a principal residence, second home, or vacation home. The homeowner may not own more than five single-family properties in addition to the principal residence.

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Agenda



MHA Overview 1


Resources 5

NPV Definition 3


NPV Definition

NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account (www.investopedia.com).

• When considering a homeowner’s mortgage, investors will compare the mortgage with and without a modification to see which option produces a higher NPV.

• If the modified NPV is positive, the servicer must offer the modification to the homeowner.

• Servicers are required to offer the HAMP modification for an eligible mortgage if the NPV of the mortgage with the HAMP modification is greater than the mortgage as is.

• Reminder: The NPV evaluation result is one of many eligibility factors that must be considered in determining whether a homeowner qualifies for HAMP.

What is Net Present Value (NPV)?

What is the NPV Evaluation Under HAMP?

How Does NPV Apply to Modifications?


Agenda



MHA Overview 1


Resources 5

NPV Definition 3


CheckMyNPV Overview

• Help homeowners understand the HAMP NPV evaluation process

• Provide an easy to use tool for homeowners to conduct an NPV self-evaluation of their mortgage

• Promote and facilitate dialogue between homeowners and servicers

Purpose

www.CheckMyNPV.com


A homeowner's Non-Approval Notice containing a list of NPV inputs used by the servicer, if an NPV evaluation was completed.

A homeowner's own documents, such as mortgage statements, tax returns, income statements, and other publicly available resources.

CheckMyNPV Overview (continued)

Where Do Homeowners Get Their Information?


Homeowners receive servicer-provided NPV inputs on the Non-Approval Notice, if an NPV evaluation was completed.

These homeowners may use CheckMyNPV.com to review their servicer NPV results using the servicer-provided inputs or enter their own estimated input values and compare the outcomes.


Non-Approval Notice


Homeowners without servicer-provided NPV inputs will have to estimate all input values.

These homeowners may use the CheckMyNPV.com website, which uses the same underlying formula as that of HAMP servicers, to conduct an NPV evaluation with their own estimated inputs.


Homeowner Documents


CheckMyNPV Calculator

4. Mortgage Information

5. Monthly Payment Information

3. Homeowner & Property Information

2. Servicer & Investor Information

6. Review & Submit

Steps to Complete Evaluation

7. NPV Evaluation Results

www.CheckyMyNPV.com

1. Terms of Use Agreement


CheckMyNPV Calculator (continued)

CheckMyNPV.com Home Page


CheckMyNPV Calculator (continued)

CheckMyNPV.com Home Page


1

1 2 3 4 5 6 7

Terms of Use Agreement


Servicer & Investor Information

1 2 3 4 5 6 7

2

To determine if Fannie Mae or Freddie Mac is your investor, visit: • www.fanniemae.com/loanlookup • www.freddiemac.com/mymortgage

Look-Up Your Investor

Visit www.MHA.gov for a complete list of mortgage servicers participating in HAMP.

Look-Up Your Servicer

If you know the Discount Rate Risk Premium for your non-GSE servicer, enter value here.

Discount Rate Risk Premium


Is this the primary residence of the homeowner?

Visit www.AnnualCreditReport.com to obtain your credit score.

Borrower/Co-borrower Credit Scores

The total amount of monthly gross income from all homeowners on the loan.

Monthly Gross Income

All mortgage data that changes over time is relative to the data collection date which may not be today.

Data Collection Date

3

Reside in Property

3 Homeowner & Property Information

1 2 3 4 5 6 7


This is the estimated or the appraised value of the property.

This is the income collected from the tenants.

If “no” is selected, additional information must be provided.

Reside in Property

The total amount of monthly expenses related to maintaining the primary residence.

Housing Expense of Primary Residence

3

Monthly Gross Rental Income of Property

Property Value

3 Homeowner & Property Information (cont.)

1 2 3 4 5 6 7

This is the method used to value the property.

Property Valuation Type


4

The beginning balance to calculate the terms of the proposed modification.

Number of months that are left to be billed on the mortgage.

Percentage of coverage provided by mortgage insurance.

The fees and costs paid by the investor for a HAMP modification.

Total First Mortgage Debt

Remaining Term on Your Mortgage

Mortgage Insurance Coverage Percent

Modification Fees Paid by Investor

4 Mortgage Information

1 2 3 4 5 6 7


The date on which the next principal and interest payment is due.

4

The expected interest rate on the mortgage at the next payment reset date.

Next Payment Reset Date

Next Reset Rate

4 Mortgage Information (continued)

1 2 3 4 5 6 7

If mortgage is not fixed, enter No.

Do you have a fixed rate mortgage

Enter either Yes or No.

Is your principal and interest payment scheduled to reset within 120 days from Data Collection Date?


Monthly cost of real estate or property taxes. Real estate taxes may be part of the monthly escrow payment.

Monthly cost of the homeowner’s hazard and flood insurance coverage. This may also be a part of the monthly escrow payment.

Hazard and Flood Insurance

Real Estate Taxes

1 2 3 4 5 6 7

Number of mortgage payments needed to be paid for the mortgage to be considered “current,” as of the Data Collection Date.

The mortgage is current or less than 30 days past due and the homeowner has suffered a hardship that puts them at risk of not being able to make future payments.

Monthly homeowner or condominium association (HOA) fee payments, plus any monthly escrow shortages. If there are none, enter “0.”

Imminent Default

Homeowner Association Fees and Escrow Shortage

Months Past Due

5 Monthly Payment Information


After clicking “Calculate,” a homeowner can not save any information or go back to the screens so they may want to print, save a copy as a PDF, or email this page to themselves. If all the information provided in this summary is correct, the homeowner may submit by clicking

Calculate

Important

6 Review & Submit

1 2 3 4 5 6 7

Information That You Provided



7

• A summary of a homeowner's NPV evaluation results based on the information that was provided.

• For system errors, further instructions are provided based on homeowner self-identification.

NPV Evaluation Results

7 NPV Evaluation Results

1 2 3 4 5 6 7

May Be Eligible

Based on the information you provided you may be eligible for a HAMP modification. Be sure to save a copy of the information below and share it with your mortgage servicer to discuss options available to you.

Please note, CheckMyNPV.com provides only an estimate of a servicer's NPV evaluation. While the NPV formula used is required to be the same as your mortgage servicer's, differences in input data and other industry-related data may result in different outputs.

Your session has ended and you will not be able to run an NPV evaluation without completing this process again.


Provides the key financial mortgage terms of

the proposed HAMP modification you may be

eligible for.

Information Calculated For You

A display of every field directly entered by

the homeowner.


7 NPV Evaluation Results (continued)

1 2 3 4 5 6 7


Reminder notifies homeowners of the possible

limitations of results provided by the calculator.

Important information regarding NPV Evaluation results

7 NPV Evaluation Results (continued)

1 2 3 4 5 6 7


Agenda



MHA Overview 1


Resources 5

NPV Definition 3


Documents and information that the homeowner will need to begin using CheckMyNPV.com

Detailed explanation of HAMP and NPV, plus answers to common homeowner inquiries.

A complete listing of all the input fields on CheckMyNPV.com

These are located next to the input fields. Hovering the cursor over these icons reveals further information.

An example of the NON-APPROVAL document that the mortgage servicer may have sent to the homeowner.

Definitions to many of the terms used on the site.

Instructions and worksheet for calculating monthly gross income.

Interactive worksheet to obtain a rough estimate of the principal balance used by the servicer.

Quick Start Guide

Frequently Asked Questions

Input Worksheet

Information Icons (i)

Glossary of Terms

Sample HAMP Non-Approval Notice

Income Worksheet

Total First Mortgage Debt Worksheet

CheckMyNPV.com Resources


CheckMyNPV.com Resources (continued) Input Worksheet


CheckMyNPV.com Resources (continued)

Income Worksheet


Industry Resources

Resources

HAMP Solution Center • (866) 939-4469 • [email protected]

HOPE Hotline • 888-995-HOPE

Fannie Mae

• (800) 7Fannie • KnowYourOptions.com • [email protected]

Freddie Mac • (800) Freddie, select option 2 • FreddieMac.com

FHA Loans FHA National Servicing Center

• (877) 622-8525 • HUD.gov/offices/hsg/sfh/nsc/nschome.cfm

USDA RHS Loan Centralized Servicing Center

• (800) 414-1226

VA Loans • (877) 827-3702 • HomeLoans.va.gov


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escalate cases to

escalations@

HMPadmin.com.

Follow up by

phone to

(866) 939-4469.


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Have them shipped to you at no cost.


Discussion/Questions

U.S. Department of the Treasury Homeownership Preservation Office

Thank You!

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