Nine million homeowners are facing serious financial issues related to their home mortgages.  Some are underwater on mortgages, owing more than their homes are worth.  Others are dealing with a decrease in income, making it difficult to make mortgage payments that, at one time, were not a strain on their household budgets.

The government rolled out a $75 billion effort to help banks provide assistance to struggling homeowners. Through its Homeowner Affordability and Stability Plan, the Treasury is asking mortgage service providers to consider lowering mortgage payments for financially-strapped homeowners by lowering interest rates, increasing loan terms, reducing principal balances and waiving default amounts and/or fees. 
 

Sounds simple, right?  Not so fast.  While the guidelines are relatively straight forward, there are accompanying reporting requirements aimed at ensuring the terms and conditions of the Plan are being adhered to.  That’s where we come in.
 

Profit Technologies, acting as an independent third party, will provide analytical support to report and verify that your bank is following the terms and conditions of the Homeowner Affordability and Stability Plan.  These reports, in turn, may be used by Regulators as a due diligence instrument. 
 

Our Analytics Review will verify:

• Borrower eligibility and qualifications
• Only primary residences are eligible
• Adherence to underwriting criteria
• Mortgage payment to  income ratio must be greater than 38%
• Loan modification process review
• Interest rate is greater than or equal to 2%
• Modified mortgage payment to income is less than 31%
• Modified term of loan is less than 40 years
• Net Present Value (NPV) of loan after modification is positive
   

Our Analytics Report will contain:

• Summary results from the verification process
• Summary report of incentive payments
• NPV of the modified loans
• Post-loan modification performance review
   

How we will do it:

• Review that all policy guidelines laid out by the Treasury have been adhered to.
• Report any discrepancy across borrow eligibility, property valuation, underwriting criterion, incentive payments, and mortgage NPV requirements.
• Where appropriate, make recommendations for change.  You may use these recommendations for future process improvement.

With more than 30 years’ experience in the financial services industry, the Profit Technologies leadership team has a deep understanding of the mortgage business, issues related to mortgages, and treasury requirements for loan modifications.  We have a track-record for providing in-depth data analysis. 

Will you let us put our track record to work for you?