Currently, the government is using all its manpower to help in the approval of any banks or financial institutions that wants to join in the Home Affordable plan of President Obama. These lenders are opting to join in the program and be approved as much as possible since there are a lot of incentives in store for them if they get to complete mortgage loan modifications under the program's guidelines. Almost $9 billion dollars is in store for the lenders as well as the borrowers. For the homeowners, if they pay their monthly payments on time under the modified loan, they will receive up to a thousand dollars each year for five years. This plan helps homeowners as they only get interest rates as low as 2% up to 40 years.
The first six approved banks and financial institutions include: Saxon Mortgage, Wells Fargo Services (Wells Fargo and Wachovia), CitiMiortgage (CitiBank mortgages), Chase (J.P. Morgan Chase, EMC., Washington Mutual), Select Portfolio Mortgage, and GMAC.
Today, there are still a lot of lenders that are not approved. This includes the big ones like Bank of America. This bank is considered a big participant since it covers almost 20% of home mortgage loans in the US. As of now, they are still applying and seeking approval. They should be approved anytime soon. With regards to homeowners who plan on modifying their loan mortgages, they should also be ready with the necessary documents for application.
There are also lenders who are almost finished with the final approval process. This includes Ocwen Financial Corp. Now they are already starting to receive applications for mortgage loan modifications. Homeowners should have the necessary documents and files as soon as possible when planning to apply under the Home Affordable Plan.
There are times when our bank of choice is not yet approved under the Home Affordable plan. You should not be disheartened as it is certain that they are in the process. To find out, you should check it out from time to time. As a homeowner, you should also prepare in advance the required papers and documents for an application for loan mortgage modification.
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