DALLAS, Aug. 30, 2012 /PRNewswire/ -- Homeward Residential, Inc., (Homeward) a nationwide mortgage lending and servicing company, announced it would begin offering a new, alternative home loan modification program, designed exclusively for Homeward customers who do not meet the requirements of the Federal Government's Making Home Affordable Modification program (HAMP) and other traditional loan modification programs. The new Homeward Alternative Modification Program will be available to eligible borrowers beginning September 4, 2012.
"We designed this program as part of our continuing efforts to help our borrowers remain in their homes," said Javid Jaberi, Executive Vice President- Servicing Operations, Homeward Residential. "With the combination of principal forgiveness, a lower interest rate and amortization term extension, those customers who previously did not qualify for other modification programs may have another option to stay in their homes."
To reduce the monthly payment to an affordable level and based on the borrowers' ability to pay, Homeward's Alternative Modification Program may offer one or more of:
- principal forgiveness (to be earned by the borrower in installments over three years subject to maintaining a good payment record) in an amount necessary to reduce a current LTV of 150% or higher to no less than 115% LTV,
- a reduction of the interest rate to as low as 2% for five years with a gradual step-up to market thereafter,
- an extended amortization term up to 480 months.
"We view this program as an additional safety net for borrowers that have limited options. As a result we have limited the required documentation to hardship letter and income verification," added Jaberi.
"We are offering this alternative modification program to help eligible borrowers achieve an affordable payment, and, as a result, eligibility for principal reduction and rate reduction will be determined on a case-by-case basis," explained Jaberi.
Homeward Residential is a nationwide integrated mortgage company with mortgage servicing and prime lending businesses. Homeward had a total servicing portfolio of more than 410,000 loans aggregating approximately $74 billion (as of June 30, 2012). Since commencing loan originations in late 2011, Homeward has funded over $3 billion of residential mortgage loans through its correspondent and direct lending channels. With headquarters in Dallas, Texas, Homeward has approximately 2,800 associates working each day toward the mission of helping families realize and preserve their dream of homeownership.
SOURCE Homeward Residential, Inc.