SIGTARP Wants to Know Why Servicers Deny 70% of HAMP Requests

BY BONNIE SINNOCK

JUL 29, 2015 12:01am ET

The Special Inspector General for the Troubled Asset Relief Program is renewing calls for further investigation of servicers it claims may be denying too many Home Affordable Modification Program applications.

"Treasury has a small window of opportunity to figure out why so many people have been denied HAMP and to establish a zero tolerance standard for servicers who do not follow HAMP's rules," Special Inspector General Christy Romero said in a statement accompanying SIGTARP's latest quarterly report, issued Wednesday.

According to SIGTARP, 70% of homeowners who applied to lower their mortgage payment through HAMP have been denied assistance by their servicer. At some of the largest servicers, that percentage is even higher, the watchdog adds.

"There is a massive lost opportunity for an emergency program designed to help homeowners through the crisis if only 20-30% of families seeking help from HAMP actually get into HAMP," she said.

SIGTARP years ago pushed Treasury to require servicers to report why homeowners were rejectedfor HAMP, and found that servicers largely blamed it on "incomplete" applications.

It is now suggesting that the problem may lie in servicer rather than borrower inadequacies.

"Even if some people did not meet Treasury's eligibility standards, SIGTARP has repeatedly pointed out, and Treasury has found in their reviews, known problems by the largest HAMP servicers that have plagued homeowners," she said.

Examples of these include income calculation errors, lost paperwork, and improper denials, according to Romero.

HAMP mods were expected to experience some stress from upward adjustments in rate set to occur this year. Re-defaults have been high, and the program also has been the target of scam artists who have fraudulently promised borrowers assistance through the program in exchange for a fee.

Comments (4)

I can vouch that SIGTARP is correct. I applied for a HAMP loan 10 times with the same lender over 3 yrs. I was told this reason and that reason. I never missed a payment. Massive drop in income. I had to move out to another region, and was told they wouldn't do second homes. One person called me a dirt bag, another told me to stop making my payments.

Finally on attempt 9 I was told I would qualify if I rented the home. I was stunned at the rent I got. It was twice what I had expected. After getting a tenant and 3 months rent, plus 3 months up front I reapply. Again this major Bank denies the loan after 5 months.

Posted by brian B | Wednesday, July 29 2015 at 10:47AM ET

My awesome servicer just kept stating the following in mediation "we did not take any federal money so we do not need to offer any assistance". That's what I call a Class Act!!!

Posted by rita a | Wednesday, July 29 2015 at 11:02AM ET

Everytime I have any kind of interaction with a rep of my servicer it turns into a boondoggle and a quagmire swamp of practiced indifference from what sounds like to me, a barely adult arrogant, rule babbling shallow, silly illiterate.

Invariably they sound less like someone genuinely interested in helping the client than a loan shark intent on taking you for whatever you're worth. I've begun a couple of talks with various reps about modifications and/or refi's but always back out or lose interest after reminding myself of the fines and penalties associated with any further investment of my time.

The number of horrendous stories online of people just trying to hold onto their houses in the face of this Machiavellian korprate tornado of personal destruction is astounding.

We (the people) need some intervention from some loftier power; if God's too busy..., the Feds will do.

Posted by Duncan M | Wednesday, July 29 2015 at 11:42AM ET

AMEN!

Posted by Todd K | Wednesday, July 29 2015 at 1:15PM ET

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Please contact us if you need help or resources as we are here and happy to help!

Respectfully,

Dana Shafman

Managing Member

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SPECIALIZED LOAN SERVICING

SLS COMPLAINT:

Submitted:      June 2015

Reported By:     SLS Victim Clare in Milwaukee, WI

Report Link:   CLICK HERE

False Delinquency Notice

Our mortgage was bought by Specialized Loan Servicing from our original mortgage holder about 18 months ago.

We had no problem until recently when we received a delinquent payment notice from a COLLECTION AGENCY. SLS claimed that we had not made our June payment. We had made the June payment early as we were going to be out of the country after May 25, 2015.

I attempted to call SLS as soon as I saw the delinquency notice. After a 10 minute wait - accompanied by loud music - I was connected with "Erika". She informed me that the May 20th early payment was viewed as an addition to the original May payment. She asked for a phone contact number, which I supplied. She said the situation would be rectified the next morning (June 30). She announced she needed to put me on hold. I requested no music. She said she would put me on "mute". In the process we were disconnected. Since I had just given her my phone number, I assumed that she would use it to call me back. Nothing.

I do not wish to be subjected to another annoying 10 minute episode of music. I therefore await a return call - preferably from FREDERICK KORB or DOLORES GILDEN to settle this matter immediately.

END CONSULTING ADVICE:

Hi SLS Victim Clare,

You are so right to be upset about the delinquency notice you received from a collection agency and about the actions of SLS with regard to posting your payment as I can completely validate your complaints after many dealings with SLS. I commend you for voicing your concerns as it is an important step in asserting your consumer rights.

You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC for an immediate response and action.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB and the FTC - thank you for posting your complaint online via Complaints Board so that others will have the opportunity to learn from your experiences in dealing with SLS. There are firm rules in place with regard to the posting of your payments and correcting errors made by the servicer in a timely manner, you must know your rights in order to exercise your rights.

In addition to submitting complaints to the CFPB, I would suggest preparing a QWR or Notice of Error for SLS – you can learn how through the CFPB by typing in QWR in their search bar and you never have to speak with them or listen to that awful hold music again. They are required to acknowledge the QWR or Notice of Error per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold SLS accountable for their actions!

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

CALIBER HOME LOANS

CALIBER COMPLAINT:

Submitted:      May 2015

Reported By:     Ramona in Waterford, Michigan

Report Link:   CLICK HERE

Disorganized crime somewhere in the US

I've been working on a modification with these people [Caliber Home Loans] for the last year and a half. I submitted full paperwork no less than three times and finally got some help when I involved the State of Michigan. I received HAMP funds and a new payment but now not only are my new payments not being recorded, they're sending foreclosure notices based on not receiving the amount of the old payment. There's ONE 800 number that rings at a call center but you can't get past them to get any real help. Is this a scam company? Does anybody know what's going on here?

END CONSULTING ADVICE:

Hi Ramona,

I have had many dealings with Caliber Home Loans and can completely validate your complaints. I commend you for contacting the state of Michigan, as that is an excellent and important step in asserting your consumer rights.

You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC for an immediate response and action.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB - thank you for posting your complaint online via the Ripoff Report so that others will have the opportunity to learn from your experiences in dealing with Caliber Home Loans. There are firm rules in place with regard to the posting of your payments during the MHA HAMP trial period plan and also to moving forward with foreclosure but again, you must know your rights in order to exercise your rights.

In addition to submitting complaints to the CFPB, I would suggest preparing a QWR for Caliber Home Loans – you can learn how through the CFPB by typing in QWR in their search bar. They are required to acknowledge the QWR per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold Caliber Home Loans accountable for their actions!

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

NATIONSTAR MORTGAGE

NATIONSTAR COMPLAINT:

Submitted:      May 2015

Reported By:     Abarmin in Collinsville Oklahoma

Report Link:   CLICK HERE

Nationstar Mortgage fraudulently Raises Payment after they did not escrow correctly.

After fighting with Bank of America for 6 years over our mortgage, the mortgage was sold to Nationstar. Nationstar quickly modified our loan and sent documents with our new payment that included escrowing taxes and insurance. After noticing that my insurance company was still billing me directly, after 4 months, I called Nationstar and they stated that their escrow department did not set up the insurance payment in the escrow and that if I wanted them pay the insurance they would raise my payment by $90.00.  They paid the insurance and have refused to honor their original contracted payment. I do not know who to turn to for assistance. All I know is that they have not kept the contract that they agreed to.

If there is a class action against Nationstar, I would be willing to join.

END CONSULTING ADVICE:

Hi Abarmin,

You have rights and they are being violated by Nationstar Mortgage as you already know. They cannot make you pay for their mistakes nor can they alter your contract (loan modification) and per RESPA, they are required to pay your taxes and insurance if escrowed. Check out the CFPB's website and click on this link to your basic consumer rights via the CFPB's website ConsumerFinance.gov. You may also want to visit HUD with regard to FAQs About Escrow Accounts for Consumers by clicking here and getting familiar with the responsibilities of your mortgage servicer and your rights as a borrower.

Once you get to the CFPB’s website, you should absolutely get familiar with how to write a Qualified Written Request as well as the formats for submitting a Notice of Error and a Request for Information; this is the best way to begin holding Nationstar accountable for their abusive and unlawful actions and to achieve your desired results.

We reviewed your complaint on our radio show this morning called "The Daily Complaint" and we suggest that you begin by preparing a QWR and submitting it directly to Nationstar while also submitting a CFPB complaint - you can listen for FREE by simply going to The Daily Complaint Show Page as you do not need to pay anyone to resolve the abuses and violations that you have suffered at the hands of Nationstar and in my opinion, a class action lawsuit will be extremely lengthy and may not produce the results that you are immediately seeking. We always get way more satisfaction out of exposing companies like Nationstar Mortgage to the regulatory agencies that can hold them accountable.

Please feel free to contact me if you need additional help as we never charge to speak with you and certainly not to point you in the direction for success. You can fight Nationstar Mortgage and win, just know that, but you must know your rights in order to assert them and the CFPB is an excellent place to start to get educated.

Good luck!

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com

WELLS FARGO HOME MORTGAGE

WFHM COMPLAINT:

Submitted:      May 2015

Reported By:     DebbieRising in Florida

Report Link:   CLICK HERE

My husband was off work for a month due to MRSA and I'm disabled. We got behind, he called and asked what we should do. They suggested we put our home up for short sale since we can't afford it. We can but when you lose a month wages its tough. So every other week we were paying 1500.00, the last payment they said was 574.00 so we paid it. All the while kept telling us we were going into foreclosure. Got a call yesterday stating that we owe 98.00 in late fees. They call 4 to 6 times a day, different person each time. No compassion and they don't want to work with you they just want your home. My husband is working 80/hr week just to keep us in our home. Noone will help because we're not far enough behind, but get 3 months and they threatiening to foreclose.

END CONSULTING ADVICE:

Hi DebbieRising,

You have rights and they are being violated by WFHM...period. Check out the CFPB's website and here is a link to your basic consumer rights via the CFPB's website ConsumerFinance.gov - http://www.consumerfinance.gov/newsroom/consumer-financial-protection-bureau-rules-establish-strong-protections-for-homeowners-facing-foreclosure/. You may also want to visit the FTC with regard to debt collection at FTC.gov to understand debt collection laws and your rights (they cannot harass you or lie to you).

Without knowing the in's and out's of your situation, you DO NOT NEED a short sale and you should qualify for mortgage assistance if you are behind or are in imminent danger of falling behind per the MHA HAMP website MakingHomeAffordable.gov (do not let any lawyers or loan officers above bait you into something you do not need.

We reviewed your complaint on our radio show this morning called "The Daily Complaint" and we put together an attack strategy for you on the show - you can listen for FREE by simply going to TheDailyComplaint.com as you do not need to pay anyone to cure the default and abuses/violations that you have suffered at the hands of WFHM.

Please feel free to contact me if you need additional help as we never charge to speak with you and certainly not to point you in the direction for success. You can fight WFHM and win, just know that, but you must know your rights in order to assert them and the CFPB is an excellent place to start to get educated.

Good luck!

Every new beginning comes from some other beginning's END

Respectfully,

Dana Shafman

Managing Member

END Consulting

(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com