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The Law Office of R. Spencer Lauterbach is a full service general practice law firm. Mr. Lauterbach and his staff service individuals, families and business owners. The Law Office of R. Spencer Lauterbach provides “boutique” quality service to all clients, with a commitment to giving individual attention at a reasonable fee.
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Broadening HARP to Reach More Borrowers
The Senate Banking Committee convened a hearing this past Wednesday April 25th in an effort to make Home Affordable Refinance Program (HARP) a more effective and accessible option for responsible, underwater borrowers. During the hearing, testimony from experts was given on how to broaden HARP to reach more of these borrowers. Currently, only mortgages backed by Fannie May and Freddie Mac are eligible for refinancing under HARP.
The Obama Administration has worked with the Federal Housing Finance Agency (FHFA) to bring about lower loan-to-value ratio requirements, remove obstacles for lenders and servicers and allow homeowners to trade up on their mortgages at the current low rates.
The consensus of the testimony at Wednesday’s hearing is that the number one priority should be to allow for competition by permitting different servicers to refinance a borrower on the same terms that apply to the current servicer. Laurie Goodman, Senior Managing Director of the Amherst Securities Group, testified that “this will allow for much better rates to the borrower and much more refinancing of the targeted HARP population”.
In addition, testimony noted that the FHFA has resisted requests for principal reductions which, according to Chris Mayer, a professor of real estate and finance at Columbia Business School, would provide the opportunity for an estimated 2 million to 3 million homeowners to refinance and prevent foreclosure.
In an election year, it will be interesting to see how and what refinance expansions materialize.
As always, the Law Office of R. Spencer Lauterbach will keep abreast of developing legislation and continue to advocate on behalf of homeowners’ rights. If you would like discuss your own rights and protections as a homeowner, please call Mr. Lauterbach at (845) 639-1699 to schedule an appointment.
22.8% of U.S. Homes Underwater
The number of homes with negative equity, defined as homes where the mortgage balance exceeds the market value, stands at 11.1 million, or 22.8% for the fourth quarter 2011. This figure was up from 10.7 million or 22.1% for third quarter 2011. Chief economist Mark Fleming with CoreLogic explains the increase in the negative equity is “due to the seasonal declines in home prices and the slowing foreclosure pipeline which is depressing home prices”. The current negative equity percentage is now back to the same level as the 2009 third quarter, when this negative equity reporting methodology first began.
As more governmental initiatives become implemented on behalf of homeowners, hopefully we will see a gradual decline in the number of underwater homes. Please know that if you are facing foreclosure or attempting a modification or short sale, the Law Office of R. Spencer Lauterbach can help defend you in court and assist in the modification or short sale process. If you have any questions, or would like to schedule a consultation, please call the Law Office of R. Spencer Lauterbach at (845) 639-1699.
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$25 Billion Dollar Settlement
$25 Billion Dollar Agreement Reached in Loan Servicing and Foreclosure Abuses.
This past Thursday, the federal government along with 49 state attorneys general reached a $25 billion dollar agreement with the nation’s five largest mortgage servicers to address what authorities describe as “unsafe and unsound mortgage servicing and foreclosure practices”. These top five servicers are Bank of America, Citibank, JP Morgan Chase, Well Fargo and Ally Financial.
This represents the largest joint federal-state civil settlement in history and follows 16 months of investigation and negotiations. The goal of the settlement is to provide many homeowners who had fallen victim to unethical loan servicing and foreclosure practices, including robo-signing, some financial relief and to establish new homeowner protections.
Under the agreement, banks are to be forced to reduce the principal balance on many loans, to refinance loans for underwater borrowers and pay billions to federal and state government agencies and consumers.
The settlement is a good start. However, economists say that in the larger scheme this monetary agreement is not nearly large enough to alter the housing market’s outlook.
As always, The Law Office of R. Spencer Lauterbach is here to fight for the rights of homeowners facing foreclosure or seeking modifications as well as to keep you informed of the current laws to protect homeowners. For legal assistance, please call the Law Office of R. Spencer Lauterbach at (845) 639-1699.
