California Home Mortgage

The Mortgage Bankers Association (MBA) has proposed a new tool for the Home Affordable Modification Program (HAMP) to specifically address the problems of unemployed borrowers. The Unemployed Borrower Bridge to HAMP Modification was laid out by MBA President John A. Courson in a letter to Treasury Secretary Timothy F. Geithner and proposes up to nine months of forbearance for unemployed owner-occupants before they are considered for a HAMP loan restructuring . In addition to forbearance, MBA's proposal calls for establishing a Low Cost Advancing Vehicle (LCAV) within Treasury to supply reasonable funds at a fixed rate to participating mortgage servicers to cover advances during the forbearance period. It also suggests a risk sharing mechanism that would encourage stakeholders to take the…(read more)