you may be eligible for a payment under the National Mortgage Settlement

If you lost your home to a foreclosure between January 1, 2008, and December 31, 2011 and your loan was serviced by Ally/GMAC, Bank of America, Citi, JP Morgan Chase, or Wells Fargo, you may be eligible for a payment under this settlement. Details about the eligibility requirements and the benefits are available at the national mortgage settlement website.

On September 17, 2012, the Tennessee Attorney General's Office and the National Mortgage Settlement Administrator will be sending a postcard to the last known address of eligible Tennessee consumers. This postcard, which can be viewed here, gives you notice that a claim form will be sent to you in the next month. The deadline to return the claim form is January 18, 2013.

If you did not receive a postcard or claim form but believe you should be eligible, please contact the National Mortgage Settlement Administrator at by telephone at 866-430-8358 (hearing impaired call 866-494-8281), Monday through Friday 7:00 a.m. – 7:00 p.m. Central Time or by email at Administrator@nationalmortgagesettlement.com. You can also find out more information about this foreclosure payment program by visiting the national mortgage settlement website. This claim form process is free, and you should not pay anyone to help you submit your claim form. If you have any questions about the claim form, please contact the National Mortgage Settlement Administrator. (link)

National Mortgage Settlement

Tennessee, along with 48 other Attorneys General and several federal agencies, reached an agreement with the nation's five largest servicers: Bank of America, Chase, Citi, GMAC/Ally Financial, and Wells Fargo. This national mortgage settlement provides relief to eligible homeowners such as loan modifications, refinance, forbearance, and short sales.

The settlement also sets out new servicing standards for the servicers to implement to improve communications with these servicers. For instance, the servicers must provide homeowners seeking loan modification assistance with a single point of contact regarding their situations. For more information about the settlement, please visit the national mortgage settlement website.

HUD Secretary Donovan: housing counseling works.

As every member of the HUD family knows, over the last three years we've come a long way in pushing back against the foreclosure crisis.

Foreclosure notices have been cut in half since President Obama took office - and nearly 6 million families have received mortgage modifications that have helped them stay in their homes.

I'm proud of the progress we've been able to make so far for those families. And I know that it would not have been possible without the dedication and expertise of housing counselors we fund in communities across the country.

Over the last three years, HUD-approved housing counselors have assisted 8 million families - one reason last month, the Obama Administration honored our nation's housing counselors in Los Angeles as part of the White House Champions of Change initiative.

And the results these men and women have achieved is undeniable. Indeed, a recent study found that 9-in-10 families who received foreclosure counseling from HUD-approved counselors continued to live in their homes 18 months later.

As impressive as those results are, we shouldn't be surprised. Distressed homeowners are nearly twice as likely to receive a modification on their mortgage if they are working with a housing counselor. And as the Urban Institute recently demonstrated, borrowers in foreclosure were 70 percent more likely to get up to date on payments if they received counseling.

Quite simply, housing counseling works.

With our extraordinary record of success, like many of you, I was disappointed when Congress eliminated funding for HUD's housing counseling grants in Fiscal Year 2011. But we didn't sit on our hands - instead, we built a case that HUD-funded housing counseling is a critical tool in our work to not only fight foreclosures, but support the recovery of our housing market more broadly.

Indeed, while the National Foreclosure Mitigation Counseling funds administered by our partners at NeighborWorks America are essential to our ability to assist homeowners in acute distress, HUD funds support the entire range of counseling and training necessary to ensure people make good, responsible choices that work for families in their communities - whether it's buying or renting, improving financial literacy, protecting families' rights against discrimination, or even preventing homelessness.

That's the case we made to Congress - and because we did, last month HUD was able to announce more than $42 million in housing counseling grants to 468 organizations in communities across the country that prevent foreclosures and help families find decent housing.

I'm proud we were able to partially restore our housing counseling funding. But I'm even prouder that we were able to cut the time it took to get these funds on the street by nearly 70 percent compared to 2010. And I expect that progress to continue once Congress approves our plan to establish the Office of Housing Counseling within HUD.

Even still, we know the housing market is still fragile, and that homeowners need all the help they can get. That's why the $2.6 billion provided to states as part of the recent $25 billion mortgage servicing settlement with the five largest servicers is so important. These dollars can be used for foreclosure prevention efforts that include housing counseling - and already, we've seen state attorneys general from both parties commit to using these funds to help homeowners. Indeed, while needs and requirements vary from state to state, at meetings with stakeholders and attorneys general around the country, I am encouraging our state attorneys general to direct settlement funds towards helping homeowners.

At a time when our economy is growing and our housing market is showing signs of strength, we know there is no better way of accelerating that progress than speeding help to homeowners. That's what housing counseling is about - and ensuring it helps as many families as possible, in as many communities as possible, is our shared challenge in the months ahead.

Call me. I can help you save your home. No charge for my services. 

Rod Williams
Senior Housing Counselor
Woodbine Community Organization

Work phone #: 615-850-3453
FAX: 615-833-9727
web site: Woodbinecommunity.org

Hardest Hit Fund saves home of Phyllis Qualls-Brooks

by Marcus Washington, News Channel 5


NASHVILLE, Tenn. - In a huge settlement against major banks, Tennessee stands to get $141 million  to help save thousands of homes from foreclosure.

Phyllis Qualls-Brooks walks the path many Tennesseans have traveled in this rocky economic downturn.
"Because of budget cuts my position was eliminated," said Qualls-Brooks.

Without a job she could not pay her mortgage, so she turned to a program she heard about through the Tennessee Housing Development Agency, THDA, called the "Hardest Hit Fund."
"I finished the application process; I was approved. That day was a wonderful day in my life," said Qualls-Brooks. (link)

I was Phyllis Qualls-Brooks housing counselor and helped her get qualified for the Hardest Hit Fund. Call me, I may be able to help you. There is no charge for my service.

Rod Williams
Senior Housing Counselor
Woodbine Community Organization

Work phone #: 615-850-3453
FAX: 615-833-9727
web site: Woodbinecommunity.org

Most TN homebuyers won't get a share of mortgage settlement

While Tennessee consumers stand to get about $146 million from a $25 billion settlement announced Thursday between the government and the nation’s top five mortgage-loan servicers, the benefits at street level may be limited.

Restrictions on the payouts will leave out almost all but the biggest loans on the fanciest houses, critics say.
Loans that are owned by the two government-controlled mortgage giants — known as Fannie Mae and Freddie Mac — are not covered by the the biggest portions of the agreement, the Tennessee Attorney General’s Office confirmed.


“That excludes the majority of mortgages in Tennessee,” said Jeff Hill, senior counsel in the Consumer Protection Division of the attorney general’s office.


Two main provisions of the national deal — allowing some homeowners to get loan modifications to lower their mortgages if they owe more than the property is worth or to refinance at lower rates — apply only to mortgages not backed by Fannie Mae or Freddie Mac. Mortgage professionals say most loans that remain covered are so-called jumbo loans or mortgages of at least $417,000 typically used in Middle Tennessee for homes in high-end neighborhoods.(link)

What is the Full Story about Helen Bailey's Pending Foreclosure?

Occupy Nashville has come to the assistance of 78-year-old Helen Bailey trying to prevent Chase Bank from foreclosing on her home. The story has gained national attention. Over 40,000 people have signed an on-line petition protesting the pending foreclosure including notable civil rights activist Cornel West.

This is a sad story. No one wants to see a 78 year old women be put out on the streets. However, before we jump to the conclusion that Chase should just write off $9000 in debt and let Ms Bailey stay in her home, pause and think about this situation.

What is the full story? 
The newspaper article says Ms Bailey has lived in the home for 28 years. There are some details that may not be relevant, but they very well may be. I don’t think we are getting the full story. There were two recent quit claim deeds filed on the property where other parties gave up an ownership interest in the property. I would be curious why there were two quit claims filed on the property. One quit claim was from Meriel Bailey dated 5/9/2011. The original warranty deed dated April 1999 transferred the property to Kimberly F. Bailey, Helen Bailey, and Meriel Fulton. Also the newspaper says her two daughters recently moved out of the property. Were the parties giving a quit claim her daughters? Did someone give up their ownership interest in the property so Ms Bailey could qualify for a reverse mortgage? Is Ms Bailey the only person on her mortgage? If other parties are on the mortgage they are still responsible for this debt. When one gives up an ownership interest in a property, they do not escape their obligation to pay the debt. I don’t know the facts. I am only asking questions but I think these questions need to be asked. (For property information see here and here.) 

Can Chase forgive $9000?
Ms Bailey is trying to get a reverse mortgage and the reverse mortgage is $9,000 short of the amount needed to pay off the existing mortgage. Occupy is asking Chase to take a short pay-off of $9000. While I do not know that Chase cannot do that, it may very well be that they cannot. Mortgage companies often cannot just write off a debt. When a mortgage company makes a loan, the loan is bundled and sold with similar type loans. The investor in these securitised debt instruments could be Fannie Mae or Freddie Mac or any of about 4000 other investors. Chase is no longer the owner of the debt. The debt instruments which secure the bundled mortgages often contain language that prohibits writing down any of the principle. So even if Chase wanted to write off $9000 they may be prohibited from doing so.


If Chase could write down the debt would it be good policy?
If Chase does a write off of debt for one person so they may get a reverse mortgage then others will have a similar expectation. What is the limit on how much debt a mortgage company should write off in order to accommodate someone in getting a reverse mortgage? Believe me, people will figure out how to make the system work for them. If it becomes Chase policy to write down debt in order for a party to get a reverse mortgage one may see situations in which people purposely modify their circumstances in order to qualify for such a write down. Wives may quit claim their interest in the property to their husband in order to let an older husband get a reverse mortgage and then they may expect the mortgage company to just forgive any shortage necessary to get the reverse mortgage. All of this money that is being written off is someone's money.  Part of it may be the tax payers money and contribute to the $14 trillion deficit.  If you own a share in a mutual fund in an IRA, you may experience a loss in your retirement account when an investor writes off a debt. There are consequences to debt forgiveness programs.

If Chase does write down the debt, can indeed Ms. Bailey get a Reverse Mortgage?
Reverse mortgages are not as automatic as they once were. Reverse mortgage companies have been having a problem with borrowers who would get a reverse mortgage and then still not be able to keep up the home, keep it insured, and pay the taxes. The newspaper story says Ms Bailey only has $700 a month income. In considering Ms. Bailey for a reverse mortgage, the reverse mortgage company would have to be assured that she is financially able to provide for home upkeep, taxes and insurance and still have money to live. I am not so sure she can qualify for a reverse mortgage. Does she have a conditional approval from a reverse mortgage lender?


Why did the daughters abandon their mother?
The Tennessean report says, “She fell behind on her mortgage in April after her two daughters moved out, leaving her with a mortgage just under $1,000 to pay alone.” Why did her two daughters move out? If everything was OK prior to the two daughters moving out, do the two daughters not have the obligation to help their mother? Are either or both of the daughters on the mortgage note? Can the two daughters raise the $9000 shortage? Are the two daughters not more responsible for their mother’s well-being than Chase? What is the story?


Is keeping this home in Ms Bailey’s best interest?
The newspaper story says, “She receives less than $700 a month in Social Security.” Think about that. Even if Chase writes off the $9000 and Ms Bailey is able to get a reverse mortgage, can she stay in her house on $700 a month? The home is a 4-bedroom, three-bath, 2720 square foot house. That is a lot of house to heat and maintain.  If she is only $9000 short on getting a reverse mortgage then my best wild guess is that she owes about $128,000 on the home and it is worth about $176,000. (See value estimates click here.) It is probably in Ms Bailey’s best interest to sell the home and downsize.


Why not let Occupy pay the $9000 shortage?
If 40,000 people think Chase should forgive the $9000 in order for Ms Bailey to stay in her home, then do the math: $9000/40,000= 22.5 cents each. If each of the 40,000 people who signed the petition would send Ms Bailey a quarter her problem would be solved. Maybe Cornel West could send a dollar.

New Help for Homeowners

Tennessee is participating in a joint state-federal mortgage servicing agreement with the nation’s five largest mortgage servicers: Bank of America, Chase, Citi, GMAC/Ally Financial, and Wells Fargo.

A servicer is the company to which the borrower makes his monthly mortgage payment. Borrowers should contact their servicer directly to see if they are eligible for relief under the settlement.

• Bank of America: 877-488-7814 
• J.P. Morgan Chase: 866-372-6901 
• Citi: 866-272-4749 
• GMAC/Ally Financial: 800-766-4622 
• Wells Fargo: 800-288-3212 

Tennessee borrowers who are having problems with their mortgages regardless of their servicer are encouraged to contact a free foreclosure prevention counselor for assistance. For a list of counselors or more information about housing assistance programs, please go to www.KeepMyTNHome.org or you may call me directly, Rod Williams 615-850-3453

More information about this new mortgage servicing agreement will be posted as it becomes available.