Irvine, CA (PRWEB) April ten, 2009
Government programs to assist homeowners do not function. So says Rick Arvielo, president of New American Funding, a completely delegated FHA lender that works distressed borrowers by way of effective create-down negotiations and loan modification activities. Borrowers have inundated the firm with requests for the Hope for Homeowners item given that Congress’s creation of the system in October 2008.

“The government’s want to give financing to borrowers in distress or even the appetite of investors to personal those loans mean really tiny unless each and every group or organization in the process is prepared to participate. 1 missing step will derail the entire strategy,” Arvielo says. “The major banks that retail loan centers, independent brokers and smaller sized interim banks rely on as a required step in the funding process do not have any want to fund and personal the responsibility of collecting payments from borrowers that are clearly in distress.”

Even even though a borrower’s “loan” quantity is ultimately guaranteed by Fannie, Freddie or FHA, the responsibility for the payment collections falls squarely on these main banks. Due to current increasing default prices, the banks merely do not want the added workload, threat and upfront price associated with borrowers that have displayed a pattern of not paying their mortgage, regardless of the explanation, Arvielo says.

Can you blame them?

Arvielo says he was quite frustrated when Hope for Homeowners was introduced. New American Funding was anxiously anticipating a windfall of company opportunity when the suggestions had been initial released, but when Arvielo referred to as his contacts at all of the big institutional lenders — on which all mortgage banks rely to sell loans — he was met with zero interest in cooperating with the system.

“Out of frustration, I went toe-to-toe with 1 of the significant investors at the Mortgage Bankers meeting in San Francisco, exactly where I even brought up the fact that they had just received billions in TARP income and weren’t going to use any of it for the Hope for Property owners plan when this gentleman stated anything to me that stopped me in my tracks,” Arvielo says. “He stated, ‘If we would agree to buy these loans from you, where you are on the hook for the borrowers’ 1st four payments, the standard timeframe for a mortgage bank, or you would have to acquire the loan backwhat would you do?’ Admittedly, I am no longer an advocate for the program.”

Arvielo says the subsequent time money and time is spent making a plan to help homeowners, the government wants to apply a small discovery to the systemics of truly originating and funding loans. The government may well also do nicely to get the major banks to “sign off” on the plan and agree to some level of assistance, Arvielo says.

“The Hope for Property owners plan should have included a ‘First payment default’ guarantee and funds earmarked for the servicing of these loans. Then, it may have had a possibility,” Arvielo says.

For more details on New American Funding or president Rick Arvielo’s position on the Hope for Home owners plan, pay a visit to http://www.newamericandirect.com.

About New American Funding
New American Funding is a HUD authorized FHA direct lender. The firm staffs an expert group of loan specialists that can assist home owners get out of an existing adjustable rate mortgage and into an cost-effective 30-year government insured loan. In addition, New American Funding staffs a complete group of loan modification specialists to assist property owners in saving their houses from foreclosure.

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