Ask your lender or loan servicer about options for avoiding foreclosure. “Inquire about your eligibility for the government program and the possibility of lowering your monthly payment by reducing the interest rate, extending the length of the loan or forgiving some of the principal,” suggested Sam Frumkin, an FDIC Senior Policy Analyst.

If you think you need help working with your lender, contact a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). A trained, reputable, non-profit counseling agency will provide free or low-cost services. For a referral to a HUD-approved counselor, see Foreclosure Prevention Resources.

Beware of foreclosure rescue and loan modification scams. These frauds typically involve criminals who charge large upfront fees and falsely “guarantee” to rescue a home from foreclosure. Homeowners should avoid any company or individual who requires a fee in advance, “guarantees” to stop a foreclosure or modify a loan, or recommends to stop paying or speaking with the lender. In some cases, homeowners have lost their homes while waiting for results from con artists who had promised to help them. A new Federal Trade Commission rule prohibits these practices by nonbank providers of mortgage relief services. The use of a HUD-approved housing counselor also can help you avoid foreclosure rescue scams.

Learn more about the government’s programs. Go to the Web site http://www.makinghomeaffordable.gov/ for detailed information. You can also learn more by speaking with your lender, loan servicer or housing counselor. The Web site can help you determine if you may be eligible, but only the servicer of your loan can tell you if you qualify. Here’s a snapshot of the main programs:

• The Home Affordable Modification Program is designed to help as many as three to four million homeowners at risk of losing their homes by reducing the monthly payments on their mortgages.
• The Second Lien Modification Program enables homeowners to reduce the cost of their second mortgage if their first mortgage has already been modified under the Home Affordable Modification Program. Examples of second mortgages include some home equity loans and loans that homeowners may have taken to help with the down payment on their home.
• The Home Affordable Refinance Program is intended to help people who have been unable to refinance into mortgages with a lower interest rate because their homes have decreased in value.
• The Home Affordable Foreclosure Alternatives Program is designed for homeowners who can no longer afford to stay in their homes but want to avoid the stigma of foreclosure. This program is for people who agree to leave their property for more affordable housing after either selling the home for less than what they owe on their first mortgage or voluntarily transferring ownership to the loan servicer.

Source:  FDIC.gov

If you have real estate questions or are wondering what the value of your home maybe feel free to call (360) 303-2734 or visit www.JohnsonTeamRealEstate.com to view the latest real estate deals and information.  On the website you will also be able to search for the latest Short Sales and Foreclosures that are currently listed in Bellingham and around Whatcom County.

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!

As I have been following the FDIC press releases in recent months, I have been amazed at the number of warnings that come out regarding forged cashier’s checks.  They seem to come in bunches – the phonies will show up drawn on 10 or 12 different banks within 24 or 48 hours, then there will be nothing for another several weeks until there is another rash of them. 

As all of us sell more things on Craig’s List and other venues where we don’t know the people to whom we are selling, we are more likely to become the victims of a fake check.  I haven’t heard any solid suggestions on how best to protect oneself – I would probably call my bank before accepting a cashier’s check and ask their guidance.

Has anyone had experience with a bad cashier’s check?  Does anyone have suggestions on how to handle the potential receipt of one?  If so, please share.  You could save someone else from a bad experience.  

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!

Agencies Issue Interim Final Rule for Mortgage Loans Modified Under the Making Home Affordable Program

The federal bank and thrift regulatory agencies today invited public comment on an interim final rule that provides that mortgage loans modified under the U.S. Department of the Treasury’s Making Home Affordable Program (MHAP) will retain the risk weight applicable before modification.

On March 4, 2009, the Treasury announced guidelines under the MHAP to promote sustainable loan modifications for homeowners at risk of losing their homes to foreclosure. The interim final rule would provide a common interagency capital treatment for mortgage loans modified under MHAP. For example, mortgage loans risk weighted at 50 percent prior to modification would continue to be risk weighted at 50 percent after modification provided they continue to meet other applicable criteria.

The interim final rule, by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision, will take effect upon publication in the Federal Register, which is expected shortly. Public comments must be submitted within 30 days after publication in the Federal Register.

The Federal Register notice is attached.

# # #

Attachment
Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance; Capital —Residential Mortgage Loans Modified Pursuant to the Making Home Affordable Program – PDF (PDF Help)

GovDelivery, Inc. sending on behalf of FDIC Subscriptions · 3501 Fairfax Drive · Arlington VA 22226 · 877-275-3342

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!

 FDIC Report Reviews Events and Lessons of 2008

The Federal Deposit Insurance Corporation (FDIC) is the federal agency that insures the money you have deposited in a US bank, in the event that bank should fail.  They are proud to point out that not a dollar of deposits has been lost to an account owner since this agency was established.  It is funded by insurance premiums paid by the banks.  It is important to note that this agency does not cover all deposits in all types of financial institutions.

The FDIC regularly sends out updates on topics as diverse as changes in the insurance premiums to warnings about counterfeit cashiers checks to recent bank failures.  Some are very interesting and some are pretty mundane, but we may differ on which is which.  So…as we receive these updates, we will be posting them on the blog for your information.

Following is a notice about and link to an interesting report recently issued by the FDIC.

Press Release

FDIC Report Reviews Events and Lessons of 2008

The Summer 2009 issue of Supervisory Insights, released today, documents some of the major financial events of a tumultuous 2008 and highlights areas of current and future supervisory emphasis, including key regulatory developments and the ongoing technological evolution of bank products.

“Looking back, 2008 was a year that will reshape and define the financial services industry,” said Sandra L. Thompson, Director, Division of Supervision and Consumer Protection. “Based on the events of last year, supervisors can discern areas that will frame the future supervisory agenda – in the areas of both safety and soundness and compliance.”

“A Year in Bank Supervision: 2008 and a Few of Its Lessons” chronicles a year in which financial institution credit risk and liquidity stresses came to the fore, triggering an array of emergency financial support programs and reassessments of financial regulation. This article concludes with observations on how these events may influence the future focus of bank supervision.

This issue of Supervisory Insights also previews new requirements included in amendments to Regulation Z (Truth-in-Lending) and the Home Ownership and Equity Protection Act, which will take effect later this year. “Changes to Regulation Z Afford Increased Consumer Protections” identifies useful implications of these new requirements for examiners and bankers.

More banks are offering Remote Deposit Capture (RDC) as an alternative to processing check deposits and, although RDC offers substantial benefits, this technology is not without risks. “Remote Deposit Capture: A Primer” describes the growing popularity of this product, identifies the risks, and provides an overview of appropriate risk-mitigation strategies.

Supervisory Insights provides a forum for discussing how bank regulation and policy are put into practice in the field, sharing best practices, and communicating about the emerging issues that bank supervisors face. The journal is available on the FDIC’s Web site at http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html. Suggestions for future topics and requests for permission to reprint articles should be e-mailed to supervisoryjournal@fdic.gov. Requests for print copies should be e-mailed to publicinfo@fdic.gov.

If you have comments or questions about the FDIC’s report, share them here.  We  all learn more when we share our experiences.

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!