Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer

Lost documents, robo-signing, getting different messages from different bank departments, broken verbal promises for modifications, loan servicing being transferred, and unexplained modification denials- are these all things of the past with settlements like the Independent Foreclosure Review, Attorney General Settlement, and here in California, the new Homeowner Bill of Rights?

Not exactly.

At the national level, the Consumer Financial Protection Bureau recently made its complaint database public and complaints about mortgage loan servicing issues represent 55% of the 90,000 complaints. The Bureau is making the data public and asking for people’s ideas on how to use the data.  As an example, the Bureau created a sort-able spreadsheet that allows users to sort by the type of complaint, company, etc.

HousingWire recently touched on some of these issues in their April 23rd article, “Loan mods, inaccessible websites irritate servicing customers the most.” The article describes Craig Martin’s recent presentation where he said that loan modification and inaccessible/difficult to maneuver websites are two top complaints of homeowners.   Martin is with J.D. Power and Associates, which publishes an annual rating on mortgage loan servicers.

In J.D. Power and Associates’ most recent survey of 5,623 homeowners ,  BB&T, Regions Mortgage, SunTrust Mortgage, Chase, and PNC Mortgage were ranked the highest quality.  In comparison, the five lowest rated banks/servicers were Aurora Loan Services, OneWest Bank (formerly Indymac), Homeward Residential, Nationstar Mortgage, and Ocwen Loan Servicing.   You can see the full chart of all the banks on page 4:  J.D. Power and Associates Reports: Amid Record-Low Interest Rates and Improved Loan Modification Programs, Customer Satisfaction Increases

If you live in San Jose or Sunnyvale and you’re struggling with your mortgage, you may want to sit down and meet with a housing counselor from ForeclosureHelp.  At your appointment, they’ll review your mortgage, your income/monthly budget, and then help you understand your eligibility for programs like HAMP, HARP, in-house modifications, and Keep Your Home California– a program that over 600 Santa Clara County residents have already accessed and used.

The services at ForeclosureHelp are paid for through a federal Community Development Block Grant from the City of San Jose and from a grant from the City of Sunnyvale- so there is no charge to the homeowner.

 Other resources to review:

Consumer Financial Protection Bureau warns mortgage servicers about legal protections for consumers when transferring loans

The CFPB takes action against mortgage insurers to end kickbacks to lenders

Maggie’s Five Rules for Working with Your Bank or Servicer

California Monitor (for Attorney General Settlement with 5 largest banks) Website

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Foreclosure Help is a coalition program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.   However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

ForeclosureHelp partners include the Housing Trust Silicon Valley (lead agency), the Fair Housing Law Project at the Law Foundation of Silicon Valley, SurePath Financial Solutions, Project Sentinel, Asian Inc, Neighborhood Housing Services of Silicon Valley, and the Santa Clara County Association of Realtors.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

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FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: help@foreclosurehelpscc.org) to request this accommodation.

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Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.

New info on Independent Foreclosure Review

By Sean Coffey, MPA, Program Manager at Foreclosure Help

April 25, 2013 Update: Representative Elijah Cummings (D-MD7) introduced legislation today to create a monitor to review the Independent Foreclosure Review, you can read more at our new blog post: “New Federal Bill Introduced to Create Independent Monitor”

Editor’s note: Foreclosure Help is a program funded by the city of San Jose and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website and if you have questions about the information below, please contact Rust Consulting (1-888-952-9105).

A press release jointly issued today by the Office of the Comptroller Currency and the Federal Reserve provides homeowners some additional details about the changes made to the Independent Foreclosure Review and how these changes could impact homeowners.

In January 2013, the regulators announced that most of the original banks/servicers had agreed to replace the program because of concerns over the cost, timeliness, and administration of the reviews (For more about these concerns, see our previous post:         7 Reasons to Postpone the Independent Foreclosure Review).

The 13 banks that are part of the replacement program include:

Aurora, Bank of America, Citibank, Goldman Sachs (Litton Loan Servicing), HSBC, JP Morgan Chase, MetLife Bank, Morgan Stanley (Saxon Mortgage), PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

However, three banks (GMAC Mortgage, Everbank, and OneWest/IndyMac), did not agree to change their program, and will continue using the Independent Foreclosure Review process, which had a deadline to apply of December 31, 2012.  According to the press release, “Regulators expect the reviews for these servicers to be completed over the course of the coming year.”

What’s next?

According to the regulators, Rust Consulting, Inc. has been appointed as the payment regulator and Rust Consulting will begin contacting homeowners by the end of March 2013.    Homeowners can also contact Rust Consulting to update their contact information (which is important to do, especially if the bank/servicer’s only contact information is a mailing address or phone number for a house that was already foreclosed on).  The phone number for Rust Consulting is 1-888-952-9105, and representatives can also verify a person’s eligibility.

Am I eligible? 

Similar to the original Independent Foreclosure Review, the replacement program is only for homeowners who were part of a foreclosure action (pending or completed) between January 1, 2009, and December 31, 2010.  The homeowner did NOT have to lose their home in order to qualify, but did need to be “in any stage of the foreclosure process” during that timeframe.

How much money?

The money is being divided into two categories: Cash payments and loss mitigation assistance.

Cash Payments: The 13 banks/servicers have agreed to provide a total of $3.6 billion to homeowners.  Individual amounts to homeowners will depend on the severity of the mistakes the bank/servicer made, and could range from hundreds of dollars up to $125,000 plus lost equity.  The Washington Post has created a helpful table of borrower categories: Waterfall of Borrower Categories (from their article: “Foreclosure victims to get compensation alerts in $9.3B agreement starting Friday”

Loss Mitigation Assistance: The 13 banks/servicers will provide $5.7 billion is assistance to homeowners through loss mitigation efforts, with “preference given to activities designed to keep borrowers in their homes through affordable, sustainable, and meaningful home preservation actions.”  The banks and servicers are given until January 7, 2015 to complete the loss mitigation assistance.

Bank/Servicer Cash Payments Loss Mitigation Assistance
Aurora Loan Servicing $93 million $149 million
Bank of America $1.1 billion $1.7 billion
Citibank $306 million $486 million
Goldman (Litton Loan Servicing) $135 million $195 million
HSBC $96 million $153 million
JP Morgan Chase $753 million $1.2 billion
MetLife Bank $30 million $48 million
Morgan Stanley (Saxon Mortgage) $97 million $130 million
PNC $69 million $69 million
Sovereign $6 million $9 million
SunTrust $62 million $100 million
U.S. Bank $80 million $128 million
Wells Fargo $765 million $1.2 billion
Total $3.6 billion $5.7 billion

Note: Figures are rounded.  Source: Amended Consent Orders posted on OCC and Federal Reserve website.

What Should I do next?  Rust Consulting will likely be overwhelmed by the number of phone calls from homeowners in the next few days, but it is worth taking the time to call them over the next few weeks and confirm that they have your current contact information and to verify your eligibility. The phone number for Rust Consulting is 1-888-952-9105.

For more information, visit:
Federal Reserve Press Release: “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

January Foreclosure Update for California

California 2013 Foreclosure Update

By Sean Coffey, Program Manager at ForeclosureHelpSCC

1) Debt Forgiveness at the state level.   The Federal Mortgage Debt Forgiveness Act was recently extended for another year.  While debt forgiveness in now extended for another year at the federal level, this same forgiveness has not been extended at the state level in California.  According to a press release from the California Association of Realtors, Senate Bill 30, which was recently introduced by Senator Ron Calderon (D-Montebello), would exempt the taxation of forgiven mortgage debt at the state level.  The bill was referred to the Committee on Government and Finance on January 10, 2013.

2) Homeowner Bill of Rights went into effect on January 1, 2013.   ForeclosureHelpSCC has translated the information about the Homeowner Bill of Rights into Spanish (“La Declaración de Derechos de los Propietarios de Vivienda en California”) and Vietnamese (Luật Dân Quyền cho Chủ Nhà ở trong Tiểu Bang California”).   We encourage homeowners to remind their banks and servicers about this new law in California, especially the ban on dual tracking, the required single point of contact, and the new protections for tenants in foreclosed home in California, which is now 90 days.

3) Litton Loan Servicing and Saxon Mortgage companies both agreed to settlements similar to the Independent Foreclosure Review process that was dramatically changed in January.  The settlement will include $232 million in direct payments to homeowners and $325 million in “other assistance.”   You can see a press release about their settlements here:  Goldman Sachs and Morgan Stanley have reached agreements in principle with the Federal Reserve Board to pay $557 million in cash payments and other assistance to help mortgage borrowers.

4) Scam letters continue to target homeowners:  Homeowners visiting our office for a housing counseling appointment continue to bring in official-looking letters from companies that are offering modifications, debt forgiveness, and other assistance with mortgages.

As a reminder, it is ILLEGAL to charge an upfront fee for a loan modification in California.  Also, when a homeowner stops paying their mortgage, a Notice of Default can be filed by the bank or servicer with the County Recorder’s office (after you miss the second mortgage payment).  This is public record, and people use this information to send out official looking notices/advertisements to homeowners.

It is really important to carefully read any mail you receive.  Also, be very cautious about companies that contact you who promise or guarantee they can modify your loan.  At the end of the day, it is your bank or servicer (and possibly the investor who holds your mortgage) who will decide whether or not the loan is modified.

5) Foreclosure Crisis continues in California:  While the numbers of Notices of Default have reduced, a recent Realty Trac report indicates that California is still in the top ten in terms of foreclosure rates, and one out of 430 homes  has a foreclosure filing in California.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org. Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi: help@foreclosurehelpscc.org.

New Details on Independent Foreclosure Review: What Banks Are Included, What banks are not

Federal Reserve Independent Foreclosure Review Information

More details are emerging about the replacement of the Independent Foreclosure Review, and we will continue to update as more information is released from the Federal Reserve and the Office of the Comptroller Currency.    We suspect that it will be several weeks before actual program details emerge, and there have been suggestions that payments to homeowners would not start until March 2013 at the earliest.  Homeowners should keep their eye on the Independent Foreclosure Review website and we suspect that more information will be posted by the end of January 2013.

1. How much is the new settlement?   $3.3 billion will be distributed in direct payments to eligible borrowers, while an additional $5.2 billion in relief will be granted through loan modifications and forgiveness of deficiency judgments.

2. How will compensation be determined?  Huffington Post (Foreclosure Review In New Settlement Leaves Homeowners In Banks’ Hands January 7, 2013) reports that banks and servicers will now look at the 4.4 million homeowners who were foreclosed on from 2009-2010 and:

broadly classify them into 11 “buckets” corresponding to the level of fraud during the foreclosure process. Borrowers with foreclosed loans that fall into the highest-priority bucket, such as foreclosures illegally conducted on U.S. troops while they were fighting overseas, will qualify for a payout of as much as $125,000. Those in the lowest-level group, such as loans with a clerical error, will qualify for at least $250.

3. What banks are included?  According to the Federal Reserve press release, participating in this new agreement “would meet the requirements of the enforcement actions that mandated that the servicers retain independent consultants to conduct an Independent Foreclosure Review.”  (In other words, this is replacing the Independent Foreclosure Review for these banks and servicers)

Aurora Loan Servicing

Bank of America

Citibank

HSBC (added January 18th)

JPMorgan Chase

MetLife Bank

PNC

Sovereign

SunTrust,

U.S. Bank

Wells Fargo

4. What banks are not included? According to the HuffingtonPost article cited earlier, these banks are not included and reviews will continue for homeowners whose loans were serviced by these companies:

Ally Financial,

EverBank,

OneWest Bank (formerly IndyMac bank)

The Federal Reserve press release states: “The agencies continue to work to reach similar agreements in principle with other servicers that are not parties to the agreement announced today, but that are also subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing.”

5. What about Litton and Saxon customers?   Jan. 16th, 2013 Update: Litton and Saxon have both agreed to conduct a process similar to the 10 banks/servicers mentioned earlier in this post, you can see a press release about their settlements here: Goldman Sachs and Morgan Stanley have reached agreements in principle with the Federal Reserve Board to pay $557 million in cash payments and other assistance to help mortgage borrowers.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Seven Reasons to Postpone the Independent Foreclosure Review

February 28, 2013 Update: New information about the amounts, administration, and timeline of the replacement for the Independent Foreclosure Review was released today.  Please read our latest post: “Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance”


January 7, 2013 Update: 
The regulators in charge of the program released information today, explaining that the Independent Foreclosure Review program is being replaced by a settlement program that will give money directly to homeowners.  A payment agent for the new program will be appointed in March 2013.  For more information, visit our blog: “Independent Foreclosure Review Program is Replaced With New Settlement”

Editor’s Note:  While we strongly encourage anybody reading this article to see if they are potentially eligible for the Independent Foreclosure Review and to apply, we remain deeply concerned with the outreach and administration of the Independent Foreclosure Review. Guides for applying: English: Independent Foreclosure Review (the deadlines is December 31, 2012- you can also call them at: 1-888-952-9105) and Spanish:La Revisión Independiente de la Ejecución Hipotecaria.”  You should also see if you’re eligible for the Foreclosure Refund (offered under the Attorney General Settlement- Deadline in California is January 18, 2013). 

While 4.3 million homeowners were in foreclosure from 2009-2010, recent estimates suggest that under 300,000 people have applied for the review, and none of those who have applied have heard about the results of their reviews.  For this reason, we have started a petition asking that the deadline be extended until two months after at least 215,000 homeowners have heard about the results of their reviews.  If you agree, please sign the petition and share with your networks, friends, family, facebook, etc: Postpone the Deadline for the Independent Foreclosure Review Until 215,000 Cases Have Been Released”

A big thank you to the investigative reporters who have followed the creation of the Independent Foreclosure Review and have asked important questions about the outreach, implementation, and conflicts of interests with the program.

1) After a year of accepting homeowner applications, we still don’t know the results: The results of the reviews, including if compensation is paid to homeowners, will not be released until AFTER the deadline has passed.   If it’s important to reach eligible homeowners and former homeowners, wouldn’t it make sense to release the results of some of the reviews for people who have already applied during the past year so that they can tell their friends, family, neighbors, communities and local newspapers about the reviews?

2) Homeowner gets $1, consultant gets $4.  One media report suggests that for every $1 a homeowner may receive as a result of the review finding that a bank/servicer improperly processed a case, a consultant may have received $4.  From American Banker’s November 1, 2012 article “Foreclosure Reviews: Exorbitant for Banks, Gold Mines for Consultants“:  “Bankruptcy filings by ResCap, the former GMAC mortgage servicer slated to be acquired by Ocwen, state that the company will pay consultant PricewaterhouseCoopers $12,500 to review each of 20,000 loans for a total cost of a quarter-billion dollars. Yet ResCap expects to pay only $35 million to $60 million to harmed homeowners.”

3) There are a lot more potentially eligible homeowners than have applied so far: A November 2012 report found that 800,000 more homeowners should have qualified for the Making Home Affordable program, and would have, if all of the banks/servicers were modifying mortgages at the same rate as the most efficient banks/servicers. (Thank you to Huffington Post for highlighting this report in their October 2012 article: “Mounting Evidence Raises Questions About Independent Foreclosure Review.”)

4) What to do if your loan was serviced by Litton or Saxon?  Both Saxon Mortgage Services and Litton Loan Servicing were also targeted by federal regulators for their sloppy work with homeowners, yet it remains unclear what homeowners should do if they were a customer of these clients.   According to Federal Reserve press releases (Saxon press release; Litton/Goldman Sachs press release), both Saxon and Litton are supposed to engage consultants to conduct reviews.  However, there is no information on the independent foreclosure review website for homeowners who had their loans serviced by these companies.

5) Banks get to appeal, but homeowners don’t: According to Propublica’s October 11 article, “Is BofA’s Foreclosure Review Really Independent? You Be the Judge” it appears that Bank of America will get to appeal decisions made by its independent reviewer, but a homeowner will not get the chance for an appeal: “The Bank of America memo also announced another change: the creation of a de facto appeals procedure for the bank. Designed in part “as a response” to Promontory deciding homeowner compensation, the bank would be adding an “Additional Information” unit, the executives wrote. The unit’s job, an employee said, is to respond when Promontory finds that a homeowner deserves compensation by producing any evidence that the bank didn’t commit the abuse or error. In contrast, homeowners who file a complaint will have no opportunity to appeal the determination of whether they deserve compensation or not.”

6) Consultants may have conflicts of interest: There have been a number of reports about conflicts of interest between the consultants hired to do the reviews and the banks that hired them.   Francine McKenna detailed these conflicts in a March 5, 2012 article in American Banker:“The Little We Know About Foreclosure Reviews Is Troubling.”  She explained: “The Deloitte partner in charge of the JPMorgan engagement, Ann Kenyon, was a partner on Deloitte’s audit of Washington Mutual. So it would not be in her interest for Deloitte’s consultants to turn up any auditing errors the firm made with that mortgage originator, particularly since Deloitte is a defendant in shareholder litigation related to Washington Mutual’s collapse.”

7) Official who led “Hustle” at Countrywide is in charge of Chase’s Foreclosure Review According to Propublica’s November 9, 2012 article “Exec Who Allegedly Enabled Fraud Runs Chase’s Effort to Compensate Foreclosure Victims” the same woman who was the Chief Operating Officer at Countrywide’s lending division which carried out the “Hustle” (Motto was “Loans move forward, never back”), is now in charge of JPMorgan Chase’s Independent Foreclosure Review.  The article explains that the “Hustle” ended up costing Fannie Mae and Freddie Mac over $1 billion in losses when the loans went bad.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Joseand the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.