The Hope Now Alliance has
launched a new website in a further attempt to work through some of the
wrinkles that have plagued both the Home Affordable Mortgage Program (HAMP) and
other loan modification programs.
The site, nicknamed HOPE LoanPort is located
at http://www.hopeloanportal.org/,
and is designed to assist homeowners to assess their eligibility for a loan
modification, apply for assistance, and submit the documents required for modification
assistance. Loan counselors will be able
to collect documents from borrowers, upload the completed application package,
submit it directly to servicers, and track the status of each borrower's
application, all on-line.
HUD believes the
new site has the potential to significantly improve the execution of
modifications by providing the following benefits:
- Eliminate lost
documents. It is designed to address addresses
servicer challenges in receiving applications, and counselor challenges in
sending applications and documentation.
- Standardization - The site
will collect complete HAMP applications that include all required data elements
and documentation;
-
Communication - Servicers can update the status of in-process
modifications;
- Efficiency
- Improves servicer efficiency in completing modifications;
- Transparency
- Increases accountability and transparency for all stakeholders;
HAMP has come under
widespread criticism over the last six months because of its low conversion
rate. While nearly 1.2 million homeowners have entered into the three month
trial period required to test the feasibility of their modifications, only
230,000 had been converted to permanent status by the end of March. The
servicers who operate the program have blamed borrowers for not providing
required documents while borrowers and counselors have complained that
servicers are mismanaging the data and losing documents. The new portal is one
of several changes announced over the past months to improve the conversion
rate.
While the new website is
designed primarily as a management tool for mortgage counselors, there are
several features for homeowners. An interactive
self-assessment tool allows a homeowner to answer a set of six questions about
income and mortgage payments and immediately scores their answers. While it is
up to servicers to make a final determination of eligibility, homeowners can then
fill out a preliminary application for help on line. The site also offers links
to a long list of HUD approved mortgage counselors and features a Federal Trade
Commission produced video warning visitors of the characteristics and prevalence
of foreclosure scams.
HOPE LoanPort is not a HUD initiative, rather it was developed by six
servicer member of the industry-led non-profit, HOPE NOW, along with six
non-profit housing counseling agencies. While the web portal is used
for uploading of HAMP loan modification applications, it is also used
for other proprietary loan mod products offered by the 10 participating
mortgage servicers. HOPE LoanPort is a non-profit organization and not
affiliated with or managed by the government.