Under the new Homeowner’s Affordability and Stability Plan (HASP), the government is allowing certain qualified homeowners the opportunity to refinance their current mortgage into a more palatable payment plan. The requirements and details are still being ironed out.

 

The banks are waiting for the following information before beginning their own programs:

 

·        Determine the impact on the loan pricing (rates and costs) to the borrower

 

·        Understand the proper paperwork that must be presented for the qualified loans and borrowers

 

·        Get the rules and guidelines from the government agency

 

·        The lenders must identify the impact on their own business model

 

 

As a licensed and qualified mortgage broker in the State of New York, I will be able to assess, assist and assume responsibility to educate and guide homeowners whom qualify for this program. For this, I receive a usual broker fee directly from my direct lenders. Wells Fargo, Citi, HSBC and Bank of America will be offering these plans to their approved mortgage brokers and bankers. There will of course be both government and bank guidelines to follow. These guidelines will be rolled out shortly.

 

As you might have seen and heard, a mini industry has already popped up out of anticipation of these guidelines and availability. I, as a mortgage broker, have received hundreds of emails, letters and phone calls from nationwide companies asking me for referral business. For these candidates that I refer to these “mortgage modifications” companies I will receive a referral fee.  According to NYS Banking Department guidelines, I am not allowed to receive a fee. This is known as a kickback.

 

We have seen and heard the like of ex Countrywide employees and American Home Mortgage personnel putting together offices and programs nationwide. There have been training and marketing programs in the mortgage industry on how to jump on the bandwagon and getting rich quick from HASP. The mortgage brokers, ex-mortgage brokers, Realtors and other sorts believe there will be a good 6-12 month ride on this to make some money. I find these schemes devious and loathsome, once again. Be aware, that if you are a candidate for the HASP Program only go directly to your current lender or a reputable mortgage broker affiliated with your lender. Never answer a solicitation or go back to the loan officer that put you in the loan in the first place (that is getting kicked in the pants twice!)

 

Dale Siegel