If you have an Indymac Bank Loan you may be a perfect candidate for home loan modifications? Read article below why the government is pushing lenders to do loan modifications.
If you like to see if you qualify for loan modifications, visit our website www.CarlosSamaniego.com and you can watch a video on the loan modification how it can help you or call our 24 hour recorded message 1-800-257-1883 ext 200, "What is a Loan Modification"
Carlos Samaniego, CMPS
Loan Modification Specialist &
Certified Mortgage Planning Specialist
Office (909)512-6418
FDIC Will Modify Mortgages for Some IndyMac Borrowers (Update2)
By Alison Vekshin
Aug. 20 (Bloomberg) — The Federal Deposit Insurance Corp.
may lower mortgage interest rates for delinquent IndyMac Federal
Bank FSB borrowers after suspending foreclosures on $15 billion
in loans it’s managing as successor to the failed lender.
The FDIC, which is running IndyMac while seeking a buyer,
may also extend repayment terms or base payments on reduced
principal to help borrowers, FDIC Chairman Sheila Bair said
today in a conference call with reporters. The program might
serve as a “catalyst to promote more loan modifications for
troubled borrowers throughout the country,” Bair said.
“We hope to keep tens of thousands of troubled borrowers
in their homes and avoid the negative consequences that
foreclosures can have on the broader economy,” she said.
Bair has led regulators in pressing mortgage-servicing
companies to modify loans amid rising foreclosures in the worst
housing slump since the 1930s. IndyMac Federal has about 740,000
mortgages that it owns or services for other companies, the FDIC
said.
The FDIC, a Washington-based agency that insures deposits
at U.S. banks, took over Pasadena, California-based IndyMac
Bancorp Inc. on July 11, making it the third-largest federally
insured bank to be seized by federal regulators. Bair said July
14 the agency would halt foreclosures to weigh modifications.
`Maximize the Value’
The program announced today “will maximize the value of
these loans, ultimately returning more money to uninsured
depositors and creditors, along with investors in the servicing
portfolio,” Bair said. The world’s largest banks and investment
firms have reported $503.8 billion in writedowns and credit
losses on securities tied to mortgages since the start of 2007.
The modifications will aim to make monthly payments more
affordable by cutting homeowners’ debt to no more than 38
percent of income. IndyMac will send modification proposals to
about 4,000 borrowers this week, according to the FDIC. About
25,000 homeowners will get offers over the next several weeks.
Borrowers will be eligible for the program if they have a
first mortgage serviced by IndyMac and are “seriously
delinquent” or in default, the FDIC said. The program is aimed
at borrowers with Alt-A mortgages, which don’t require borrowers
to provide proof of income. Borrowers will have to provide
documents verifying their incomes to have their loans modified.
If the plan works, it will help the FDIC sell the bank by
reducing foreclosures, said Jim Carr, chief operating officer at
the National Community Reinvestment Coalition in Washington.
The FDIC plan appears to go further than industry-led
efforts, which “weren’t substantial enough” to stem
foreclosures, Carr said
“I don’t see much of an impact because a lot of this is
what the industry is doing,” said Jay Brinkmann, financial
economist at the Washington-based Mortgage Bankers Association.
Delaying Foreclosures
Bair’s efforts may lower the value of mortgage-bond
holdings by delaying foreclosures until home prices are lower,
said Julian Mann, a mortgage- and asset-backed bond manager at
First Pacific Advisors LLC in Los Angeles, which oversees $11
billion.
“It hurts the bondholders that are off any shelf of any
bank that is perceived as weak and potentially seizure bait,
because the collateral is now in question,” Mann said.
U.S. bank repossessions in July almost tripled from a year
earlier as foreclosure filings increased 55 percent, RealtyTrac
Inc. said in an Aug. 14 report.
To contact the reporter on this story:
Alison Vekshin in Washington at
avekshin@bloomberg.net.
Last Updated: August 20, 2008 17:19 EDT
