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Help4TheLenders™ | Help4TheServicers™
HELPING BANKS, LENDERS & SERVICERS HELP BORROWERS!™
2009-2012
Public Policy & Best Practices Now Require “True Affordability”
to Achieve the “Best Interests” in a “Net Present Value” Calculation
for the Borrower, Taxpayer, and Investor!
Specialized Loan Workouts & Infused Lender Risk & Loss Mitigation
Avoid Delays, Foreclosures & REOs! Critical Solutions for all Market Participants!
HotNeutral.Com™ | NeutralHotTransfers™ | BankRiskMitigation™ | Help4ThePeople™
2009-2012 Issues:
Litigation Exposure & Lack of Clear Guidelines for Loss Mitigation including
Short Payoff Refinances, Modifications, Principal Reductions, BK Cramdowns, and Investor Conflicts.
Ever-Changing Laws & Regulations Are One-Step Closer to Servicer Safe Harbors:
Safe Harbors. Protocols and Best Practices are still uncertain in definition and application!
H.R. 1106 - Passed House 3/5/09
- §201 Servicer safe harbor-mortgage loan modifications
- “ServicerSafeHarbor for Mortgage Loan Modifications”
- §202 Changes to HOPE for Homeowners Program
- §203 FHA approved mortgage requirements
- §204 Enhance liquidity of insured depository institutions
H.R. 384 - Passed House 1/21/09
Safe Harbor limited to modifications that are allowed pursuant to the Pooling & Servicing Agreement (PSA)
expressly or per industry standards, but not to PSA provisions that limit or expressly preclude or dictate terms
and conditions of a modification.
TARP Reform and Accountability Act of 2009
- §206 of the bill is entitled “Servicer Safe Harbor”
- Exposure exists including Jumbo, Non-Agency and Private Label Modifications
- Exposure from Investors and Mortgage Holders
- Conflicts Among Tranches
Bankruptcy Modifications or Cram Downs
After unsuccessful efforts of borrower to obtain an “affordable” modification,
bankruptcy courts would be allowed to modify personal residence mortgage loans.
3/4/09 Treasury Announcement
“Working with the FDIC, other federal banking and credit union regulators, the FHA and the Federal Housing Finance Agency, the Administration today announced guidelines for sustainable mortgage modifications that may be used by all federal agencies and the private sector –bringing order and consistency to foreclosure mitigation. The guidelines include detailed protocols for loss mitigation and will serve as standard industry practice.”
Best Practices:
RacgiDetailed protocols for loss mitigation and standard industry practices will serve as a
practice safe harbor. The litigation exposure question will revolve around whether
or not the protocols and best practice is subjective enough to allow legal business
judgment attacks, or objective enough to be defensible per se, at law, or in fact.
Consulting & Product & Service Solutions:
www.ProCouncil.Com
Richard Ivar Rydstrom, Esq.
Chair Coalition for Mortgage Industry Solutions
Chair, ProCouncil.Com
949-678-2218 | rrydstrom@gmail.com
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Drill Down For The Topic of Concern:
BANKING & MORTGAGE LENDING LITIGATION | SETTLEMENTS:
www.Procouncil.Com™
Special Solutions Counsel, Mortgage Industry Group™
Confidential Legal Strategy Representation
BANKING, MORTGAGE LENDING & SERVICING
LITIGATION | SPECIAL SETTLEMENTS | PLANNING & RISK PROTECTIONS
DEFENSE & PROSECUTION
New Federal & State Law Coordination and Compliance
Mortgage Loss Mitigation Planning
Avoidable “Conflicts” in Mortgage Loan Modifications & Workouts
New Standards for “Neutral” Workouts - Avoiding Lawsuits
Multi Tier Servicing or M&A Conflicts of Interests, Suitors, Investors & Solutions
“Advance” Reimbursements
Pooling & Servicing Agreements and Authority Issues
Protections from Investors
Protections from Borrowers
Enforcement of Insurance Claims & Bad Faith Insurance Denials
Negotiations of Mortgage Insurance Disputes & Denials
Protections from Property & Casualty Underinsurance Risks
Problems Relying on Ratings Based Upon
Thinly Capitalized “Reps & Warranties”
Lawsuit Defense & Prosecution
Buy Backs & Repurchase Agreements, Negotiations, Settlements & Litigation
Secondary Market Liability Issues
Assignee or Trust Issues - Lawsuits
Merger & Acquisition (M&A) Liability Issues - Lawsuits
Loan Risks & Portfolio Issues - Lawsuits
Insurance Sufficiency Representations - Lawsuits
Risk Assessment, Exposure, & Mitigation
For information click here.
Richard Ivar Rydstrom, Esq.
National Joint Client Group
(949) 678-2218 (Direct)
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Problems & Solutions re Banking, Brokers, Lenders, Investors: In 2007, Mr. Rydstrom, Esq.has been published by Chairman Rangel of the House Ways and Means Committee for the 110th Congress of the United States on Solutions to the Economy, Predatory Lending, Defaults & Foreclosures. Mr. Rydstrom created new Suitability Disclosures (TID) and risk mitigation devices (SHILO and FMII, DMII, IMII, BMII) that resolve issues for all market participants, including the borrower. Mr. Rydstrom created non-cash substitutes or equivalent risk-pricing (ERP) mortagage insurance investment funds (investment devices tradeable on Wall Street) to pay for the enhanced risk of the subprime borrower without overloading the borrower with unaffordable monthly cash payments. Risk must be paid for or the risk price formula becomes corrupt. The question is, can it be paid for with non-cash equivalents? Will "Wall Street" step up and create such vehicles?
Sponsored Sites: www.procouncil.com
Congressional Paper: Visit: www.bankriskmitigation.com
LAW FIRM
WARNING: LIMITATIONS OF USE OF SITE: YOU MAY NOT RELY ON SITE INFORMATION, ARTICLES OR LINKS AS LEGAL, TAX OR FINANCIAL ADVICE. YOU MUST HIRE AN ATTORNEY TO ADVISE YOU AS TO YOUR UNIQUE FACTS AND CIRCUMSTANCES.
LEGAL NOTICE: This article is not legal, tax or financial advice, and you may not rely on it for same. This is a brief non exhaustive newsworthy article and may be deemed an advertisement from the State Bar. All Rights Reserved ©2007 Richard Rydstrom
IRS CIRCULAR 230 DISCLOSURE NOTICE: To ensure compliance with IRS requirements, we inform you that any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used by any taxpayer, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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