UMMAA Newsletter June 2009
Things are changing everyday in the loan modification industry! I get up every morning and get online to do some research, I want to know what is going on in the industry and I want to make sure I am able to give you the most up to-date information available. I went crazy during the month of May trying to keep up with all of the changes and news spewing from the media and politicians on a daily basis LOL.The month of May was very busy for the UMMAA. We had our first Trainer Training program in San Diego and it went very well. We also had the Advance Training Seminar in Las Vegas and had a wonderful turnout. I also trained 16 Loan Modification Workshops round the country and had incredible enrollments. I am so excited to see what June brings!
This months newsletter is filled with very exciting news.
Foreclosures and Delinquencies Hit New Record Highs
The seasonally adjusted delinquency rate for mortgage loans on one-to-four unit residential properties increased to 9.12 percent during the first quarter, the MBA said today.
That’s up 124 basis points from the fourth quarter of 2008 and 277 basis points from a year ago, a new record going back to 1972.
The delinquency rate includes loans at least one month behind, but does not include those in foreclosure.
Three Out of Four Loan Modifications May Re-default
Between 65 percent and 75 percent of modified mortgages may re-default after 12 months, according to a new report from Fitch Ratings.
The credit ratings agency noted that though loan servicers are ramping up loan workouts, they’re fighting off the effects of the recession, including rising unemployment, shrinking disposable income, and possibly "deceptive practices" by borrowers themselves.
Loan Modifications are on the rise, with seven percent of all residential mortgage-backed securities and 18 percent of subprime loans modified through the end of last month, but concerns remain whether they’ll do any good.
Scams, Scams and More Scams
What can I say? Here is another article from the FTC showing how people are just flat out taking advantage of people and committing fraud. I just do not understand this, modifications can be done for most homeowners when you know the proper process. The thing that really irks me is that we can all make a great living and help people in our communities with integrity, morals and ethics. We do not have to resort to this kind of behavior to make a great living.
I know that the great people f the UMMAA have integrity and just as importantly know how to gt the modifications done properly. I am very proud of that fact and love to share it with everyone, Thank you!
Please read this entire article and pay close attention to the charges against the defendants.
HomeSaver Program
HomeSaver Advance, a loss mitigation progrm offered by Fannie Mae, sounds like a pretty good deal.
A struggling homeowner can get an unsecured personal loan if they fall behind on their monthly mortgage payments. While the homeowner won’t receive any cash in hand, they can use the proceeds to pay off delinquent mortgage payments, interest, taxes, insurance, and even foreclosure-related fees. The loan comes at a low, low five percent fixed rate, with no payments or interest accrued for the first six months.
So why is it that performance on the February through April offerings of such loans displayed a re-default rate of nearly 70 percent?
IndyMac Guidelines
I highly encourage you to read this entire article and visit the two sites below "Loan Modification Guidelines and Loan Modification Tools". Both of these site will give you great insight to the process Indymac and the FDIC are using to grant loan modification to your clients.
Loan Modification: Official FDIC Loan Modification Guidelines
This guide provides an overview of the FDIC’s program to assist bankers, servicers, and investors in this process. It outlines FDIC program terms at IndyMac Federal Bank, offers insight into the specific portfolio characteristics that drive modification modeling at that bank, and provides a framework for developing and implementing a similar program at your institution.
Citi Mortgage: Loan Modifications Outnumbered Foreclosures 10 to 1 in First Quarter
Citibank said last week that loan modification efforts exceeded completed foreclosures by 10-to-1 during the first quarter.
The lender also said it helped more than 80,000 borrowers avoid foreclosure during the first quarter of 2009.
Since the housing crisis began in 2007, the New York-based bank has worked with 520,000 homeowners to avoid "potential foreclosure" on their mortgages worth a combined $50 billion.
However, Citibank had a foreclosure moratorium place for at least a month during the quarter, if not more, so that could certainly skew the numbers.
We Need To Push For More Balance Reductions
FDIC Chairwoman Sheila Bair said the ultimate success of loan modifications depends on the direction of the economy, during remarks at the Chicago Federal Reserve Bank’s annual bank structure conference.
She said executed mortgage modifications were having great results, but also warned that there’s still distress in the mortgage markets.
Additionally, she noted that homeowners will stick to making on-time payments on their mortgages if they are brought down to affordable levels, even if they have negative equity. I think she is full of something stinky! I think most people will leave their home if they have 200% LTV because if you do the math it will take several years to get to a break even LTV.
90,000 NYC Apartments At Risk of Foreclosure
If I was lived in or near NY City I would working my rear off doing loan modifications for these people.
Up to 90,000 apartment units in New York City are facing the prospect of going into foreclosure, according to comments made by the commissioner of the Department of Housing Preservation Development.
Commissioner Rafael Cestero told the City Council Community Development Committee last week that 2.6 percent of the city’s apartments, up to 90,000, are in danger of foreclosure thanks to "predatory equity" practices carried out by private equity firms.
Lender Updates and UMMAA Members
Below are a few lender updates and results, we now reserve the remainder of the lender updates for the UMMAA members. If you would like to become a member and have access to the lender updates, loan modification forum, audio files, video files and news articles you need to join the UMMAA. We do reserve membership to the UMMAA to professionals that have completed our training course. You may complete our course in one of our many workshops or our DVD and e-Book training program as well.
I look forward to you joining our outstanding team of professionals in the loan modification industry.
As always, give us a call if you have any loan modification questions or training questions as we will do our best to point you in the right direction.
UMMAA Workshops and Advance Training Program
I am amazed at the response to our Loan Modification Workshop, the 3 day Advanced Loan Modification Training Program, Processing Training and the incredible Loan Modification Trainer Training results.
I personally am conducting 4 Loan Modification Workshops per week around the country. The great news is we now have 20 trained loan modification trainers from all corners of the country that will be conducting an additional 20 workshops per week.
We will be having our 3 day Advanced Loan Modification Training in Las Vegas at the Harrah’s Casino on the Las Vegas Strip. We have worked a deal with Harrah’s to hold all of our multiple day training events at this location. This will make it much easier for travel and accommodations. Our next 3 day Advanced Loan Modification Training is June 26 through June 28.
Become a Trainer and Speaker
I am getting tired LOL. I have been on the road for over two years traveling from city to city training thousands of people on loan modifications. I have come to the conclusion that I can no longer train all of the people that need the knowledge to handle the loan modifications.
In light of that I have decided to train and mentor people all over the country that have an interest in becoming a loan modification trainer teaching people how to get modifications done the proper way. You will be trained on conducting seminars, holding in office trainings and developing your speaking skills.
I will teach you the following:
How to advertise your event
How to plan your event
How to structure the fees
How to register people
How to convert attendees to clients
How to train law firms
How to speak to groups in a professional manner
How to build rapport with the group
How to sell products
How to generate leads
How to generate the content
How to feel comfortable in front of a group.
What are you doing different to make a difference in your life?
What are you doing this week that will have an affect on your business? I ask that because I have been getting a lot of calls from people that seem to be lost. These people have gotten so caught up in the bad news of the economy and they have started to believe it. I remind people that the news only pertains to them if they let it. You see we have a perfect opportunity for greatness if we just reach out and grab it.
This month I am going to give you the top 10 ways people sabotage themselves everyday in this economy:
- Playing the Ostrich Game (ignorance)
- Procrastinate on Training
- Lazy
- Lack of Caring (Poor Attitude)
- Lack of Vision
- Too low expectations
- Lack knowledge of consequences of Action
- Very bad habits
- Very poor role models
- NO PLAN AT ALL
UMMAA Web Site is Here and is Wonderful!!!
I am very proud to announce the new website is serving its purpose for the UMMAA members. It is equipped with a forum for the members to be able to ask questions and get feed back from other loan modifiers. UMMAA members have full time access to the lender updates, downloads, videos, audio files, news articles and other great information relating to loan modifications. Information will be added every week so make sure you check the site often. I will be adding the content over the weekend so it will be complete ASAP.
Please to go the site today and post on the forum asap so we can get it going. The site will ask you for your information to register, after you register I will give the members access to all of the other areas.
Thank you a ton and I am looking forward to getting this site running full steam.
