The Loan Modification Forum

Campbell, California Loan Modification Company Shut Down

2009-12-29T11:51:00.001-08:00

The Department of Real Estate is finally taking a tough stance on loan modification companies that have popped up over the last couple years like a bad rash. Please read the Silicon Valley Business Journal article on this new closure. One major regulation that was passed: no up front fees may be collected by a loan mod company from a consumer. This hopefully will eliminate the companies that just pocketed the $3,000+ fees and then did no work. The opposite of this and the unintended affect is: loan mod companies will no longer exist! - and the home owner will only have a few non-profit companies to rely on or battle their banks by themselves. Neither is a good solution. Pendulum - please swing somewhere in the middle!

Advance Fees for Loan Modification Now Illegal in California

2009-10-23T11:30:00.000-07:00

Governor Schwarzenegger signed a bill making the collection of advance fees for loan modifications illegal in the State of California as of October 11, 2009. For the full press release please go to the following link at the Department of Real Estate.

Loan Modification or Short Sale?

2009-10-22T12:46:00.000-07:00

With loan mods having little success, some home owners are having better success with short selling their homes. The statistics are ugly for the amount of loan mods actually offered to home owners, even with the government pressure to do so. Approximately 25% of applications are granted a loan mod. Some 50% of those are accepted by the borrowers and a good 50% of those default immediately. Yes - you should try and see what the bank offers. Make the right decision, take a loan mod that will work for the long term and not just a temporary fix. The other solution is a short sale - and banks have been giving higher approvals on short sales than on loan mods. This having to do with the tax breaks given to banks for this process compared to little tax benefit on a loan mod.

Short Sale - Foreclosure or Stick It Out?

2009-09-23T12:20:00.001-07:00

The American psyche is to pay your debts on time and be good responsible financial citizens. A very good method of operation for sure.

There is also room for discussion when financial situations aren't reasonable to continue making payments on a home. I just saw a simple scenario which can be applied to many homeowners today.

A home was bought for $500,000 with 10% down payment 3 years ago. The home is now worth 35% less. If you continue making payments on this home and the home appreciates 7% per year (a hugely hopeful percentage) it will take 7 years to get to a break even equity position.

Your home payments are also significantly higher that what a rental payment would be.

The alternative would be to sell through a short sale and then re-enter the market 3 years from now.

That strategy - while not ideal or easy by any means - will give the new homeowner $130,000 in equity at the end of the same 7 years!

What do you think?

Loan Modification - Wachovia Bank's new streamlined loan modification & short sale process

2009-07-14T14:30:00.000-07:00

Wachovia is taking a leading step to fix their looming bad loan portfolio. They are giving short sale replies within two weeks of receiving a very simple application. Also, the short sale approval process that they have in place is an industry leading best practice. From making an offer on a home with a Wachovia first loan, I am seeing close of escrows in 45 days which includes the 5-7 business day turn arounds on short sale decisions. If you have a Wachovia loan, talk to me - there are solutions!

Few Loan Modifications Actually Cut Principal

2009-04-03T22:47:00.000-07:00

Very good article by Alan Zibel:

By Alan Zibel
Associated Press
Posted: 04/03/2009 02:25:45 PM PDT
Updated: 04/03/2009 04:37:53 PM PDT

WASHINGTON — Though lenders are boosting their attempts to curb record-high home foreclosures, fewer than half of loan modifications made at the end of last year actually reduced borrowers' payments by more than 10 percent, data released Friday show.

The report, based on an analysis of nearly 35 million loans worth more than $6 trillion, was published by the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision. It provides the most detailed and broad analysis to date of efforts to stem the foreclosure crisis, which President Barack Obama is trying to combat with a $75 billion plan to promote loan modifications.

The report helps explain why many loans are falling back into default after being modified. Many borrowers and consumer groups contend that the modifications offered by the lending industry aren't very generous, despite more than a year of public prodding from regulators.

For instance, nearly one in four loan modifications in the fourth quarter actually resulted in increased monthly payments. That situation can happen when lenders add fees or past-due interest to a loan and spread those payments out over the 30- or 40-year period.

Perhaps unsurprisingly, the report found that loans were far less likely to fall back into default if a borrower's monthly payment is reduced by a healthy amount.

Nine months after modification, about 26 percent of loans in which payments had dropped by 10 percent or more had fallen back into default. That compares with about half of loans in which the payment was unchanged or increased.

"This new data shows that, in the current stressful environment, modification strategies that result in unchanged or increased mortgage payments run the risk of unacceptably high re-default rates," Comptroller of the Currency John Dugan said in a statement.

But regulators said they saw a positive trend in the data, collected from mortgage companies including Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc.

Traditionally, lenders have seen loan workouts as a way to get a borrower back on track after a temporary disruption in income. Now, with the economy sinking fast and foreclosures soaring, they are increasingly coming around to the idea to that more permanent changes are needed.

Among loan modifications made in the October-December quarter, about 37 percent resulted in a drop in payments of more than 10 percent, compared with about one-fourth in the first nine months of the year. Regulators saw that growth as a positive sign.

"The trend toward lowering payments to make home mortgages more affordable is moving in the right direction," John Bowman, acting director of the Office of Thrift Supervision, said in a prepared statement.

The Obama administration is aiming to help up to 9 million borrowers stay in their homes through refinanced mortgages or modified loans. Still, the faltering economy, driven down by the collapse of the housing bubble, is causing the housing crisis to spread.

Among the loans surveyed in the report, just over 10 percent were delinquent or in foreclosure, compared with 7 percent at the end of September, the report said. Delinquencies are increasing the most among prime loans made to borrowers with strong credit, it said.

A broader study of the mortgage market last month found a higher percentage of problem loans.

The Mortgage Bankers Association reported that nearly 12 percent of all Americans with a mortgage — a record 5.4 million homeowners — were at least one month late or in foreclosure at the end of last year. That's up from 10 percent at the end of the third quarter, and from 8 percent at the end of 2007.

The trade group's study includes more than 45 million loans, 10 million more than the government report.

Loan Modification - Home Loan Preservation National Convention

2009-04-02T05:23:00.000-07:00

I am on a very early flight to Las Vegas this morning to attend the national convention for Home Loan Preservation. Slated to present are the attorneys who are processing loan modifications for HLP. They are geared up to transact over 1,000,000 loan modifications in 2009. One of the hot topics is the recent Department of Real Estate guidelines that just came down in the last few weeks. These guidelines closed many loan modification companies who were illegally practicing. HLP has been working directly with the DRE to make sure their methods of operation are in strict compliance. I will post updates as I hear what they have to say.

Citibank to Offer Loan Modifications - Affect on Credit on Last Line

2009-03-18T14:19:00.000-07:00

By RUTH SIMON - Wall Street Journal - November 11, 2008

In an aggressive move targeting the root cause of the global financial crisis, Citigroup Inc. announced Tuesday that it is offering to modify the terms of as much as $20 billion in mortgages for borrowers who are current on their loan payments but at risk of falling behind.

The push by the New York company's CitiMortgage unit marks the latest effort by a financial institution to help ailing homeowners, which also can help lenders reduce loan losses. Citigroup's program includes subprime borrowers and those with good credit who took out prime loans, a sign the bank sees mortgage delinquencies and foreclosures are spreading.

The real problem in the U.S. now is increasing unemployment," said CitiMortgage Chief Executive Sanjiv Das. "We are finding that people across the board need help."

The company ultimately expects to reach 500,000 customers whose mortgages it owns. Roughly 130,000 of those borrowers are likely to see a reduction in their monthly loan payments, CitiMortgage said.

CitiMortgage is calling borrowers primarily in parts of the U.S. where the economy is weak and offering to modify their mortgages if they are facing financial difficulty. Borrowers who ask for help can get their loan reworked if their mortgage-related payments exceed 40% of their income. CitiMortgage may lower that threshold over the coming months, Mr. Das said.

Modifications include lowering the interest rate, extending the term of the loan and, as a last resort, reducing the amount of the debt. CitiMortgage has been testing the program for about three months and loan payments are being reduced by about 40% on average.

As the federal government pours taxpayer-funded capital into distressed financial institutions, banks have come under enormous political pressure to slow foreclosures and help stabilize the housing market, which many economists believe is essential for an economic recovery.

But such efforts are fraught with complications. Banks want to make sure, for example, that loan-modification programs don't encourage borrowers who can afford to pay their mortgages to default just to get better terms.

Other banks that have announced loan-modification efforts include J.P. Morgan Chase & Co. and Bank of America Corp. The Federal Deposit Insurance Corp. has been reaching out to financially strapped borrowers whose mortgages are serviced by IndyMac Bancorp. The Pasadena, Calif., company's banking operations were taken over by the federal government in July.

Such moves will help keep some borrowers in their homes but won't be enough to stem the rising tide of foreclosures, said Mark Zandi, chief economist of Moody's Economy.com. "The foreclosure crisis is now much too large to be sufficiently addressed by mortgage servicers and owners," he said. "The federal government will need to come forward with a very large and comprehensive foreclosure-mitigation plan."

Nationwide, 8.5 million homeowners are expected to default on their mortgages between 2008 and 2010, according to Moody's Economy.com, with some 5.2 million of them expected to lose their homes.

The actions taken so far by Citigroup and other institutions are limited because lenders feel they have the greatest discretion to modify loans that they own. It is much more difficult to restructure mortgages bundled and packaged into securities that now are owned by investors who often have divergent interests. These types of mortgages account for the majority of those issued in recent years.

CitiMortgage owns 1.5 million mortgages totaling $175 billion and services another five million loans totaling $600 billion for investors. It is currently in discussions with investors about applying the new program to loans the company services but doesn't own. Some 4.6% of the mortgages owned by Citigroup were at least 90 days past due at the end of the third quarter.

CitiMortgage also is halting foreclosures for about 16,000 borrowers who are behind on their loan payments but are working with the company on a loan modification. About 10,000 of those borrowers live in their homes and are likely to get their mortgage terms reworked, while about 6,000 are investors, according to the company.

While the lender's program is nationwide, it will focus on areas in six states -- Arizona, California, Florida, Indiana, Michigan and Ohio -- where unemployment rates are higher than the national average and home prices are falling sharply.

CitiMortgage plans to reach out to all mortgage holders in the targeted areas, rather than wait to be contacted, because many struggling homeowners don't know what to do and are reluctant to contact their mortgage company for fear that their credit score will drop, Mr. Das said.

If a loan is modified before it becomes delinquent, it will be counted as current so won't affect the borrower's credit rating, according to bank officials.

Loan Modification - Loan Changes May Not Hurt Your Credit - Article in Arizona Republic

2009-03-15T20:03:00.000-07:00

by Russ Wiles - Mar. 8, 2009 12:00 AM
The Arizona Republic

Now that the Treasury Department has fleshed out more details on its mortgage-modification effort, it raises the question: Will homeowners who seek to change the terms of their loans get penalized on their credit scores?

They could, but it's also possible a modification could improve matters.

Credit scores reflect the information compiled by credit bureaus in consumer-credit reports, as reported by lenders. Scores obviously affect your access to loans and the interest rates you pay, but also are factored in for other things, such as the availability and cost of insurance. Hence the wisdom of not hurting your score.
With a loan modification, the credit-scoring impact will depend on how lenders report activity to the bureaus, and that could vary, said Barry Paperno, a manager at Fair Isaac Corp., which developed FICO scores.

Anything hinting of a loan not being paid on time or as agreed could hurt. It's also possible that a modified loan could be reported as a new loan, which could cause a slight score decrease, he said.

If you're delinquent at the time of applying for a mortgage modification, your lender likely will report any late or missing payments as demerits. But it would do so even if you didn't apply to change the terms of your mortgage.

"The modification itself shouldn't do any damage," said Ben Woolsey, director of marketing and consumer research at creditcards.com.

Another issue reflects loan modifications that specifically involve a principal reduction. Under the Obama plan, lenders first will be asked to cut interest rates to help lower monthly payments for borrowers. Then they might need to extend the length of the loan. After that, some might agree to reduce the principal.

"If you write down the principal, that could be a negative if considered a debt settlement," said Mike Sullivan, director of education at debt-counseling firm Take Charge America in Phoenix.

Then again, a principal reduction could make a huge difference in helping you retain your home.

"If you avoid foreclosure, that's very good (for credit scoring)," Woolsey said.

Actually, the Treasury doesn't require modification applicants to be delinquent.

"My suspicion is that if you continue to make payments, a modification won't affect your score and could help by allowing you to stay current on payments," said Ethan Ewing, president of bills.com.

Credit scores thus are a factor to consider if you apply for a loan modification, but not the main one.

"If you're in that bad of shape (to seek a modification), I'm not sure if your credit score should be your primary concern," Sullivan said.

• Fair Isaac recently tweaked its FICO credit scores in ways that could help some people and hurt others. The changes were analyzed by bills.com.

The changes aim to "help lenders better gauge actual risk by better differentiating good customers who have made one mistake from people who have multiple delinquent accounts," Ewing said.

One positive is that small debts below $100 for things like unpaid parking tickets or other minor bills won't count as heavily as before. Even one serious issue, such as a vehicle repossession, won't factor as much if other accounts are current, Ewing said.

Among negatives, Ewing said consumers now could be hurt a bit more if they close accounts that they opened fairly recently or use a high percentage of available credit.

The basic rules for good credit remain unchanged. They include paying bills on time, using a mix of credit and keeping balances low.

• Will more credit-card companies offer incentives in hopes of encouraging risky customers to pay off balances and close their accounts?

American Express might have started a trend last month with an appeal to certain customers with high balances and little activity. Those who agree to pay off their balances and close their accounts by April will get a $300 prepaid gift card.

"I can definitely see other credit-card issuers who are being bitten by a rotting portion of their portfolio pulling this one out of their bag o' tricks," wrote Bruce Cundiff at Javelin Strategy & Research.

Forensic Loan Audits for Loan Modifications

2009-03-14T14:09:00.000-07:00

Forensic Loan Audits

Mistakes in Adjustable Rate Mortgage (ARM) loans are very frequent. The difference in overpayments can add up to thousands of dollars over the lifetime of your mortgage. Mortgage audits can correct ARM errors while bringing your loan into compliance and getting you a mortgage refund.

Home Loan Preservation services can inspect and correct the terms of your Adjustable Rate Mortgage and bring it into compliance, saving you time and money. Here are just a few examples of common mistakes in ARM loans:

1) Rounding an equation incorrectly, such as rounding up instead of rounding to the nearest 1/8 of 1%.......a fairly common mistake.
2) Selecting the wrong index, incorrect type of index or index value.
3) Incorrect monthly payment factor, despite having a correct payment rate.
4) Correct index selection, but math mistakes leading to incorrect rate.
5) An incorrect loan balance.
6) Data input errors, mistyped entries, faulty computer software or an ambiguously written loan note.
7) The loan was sold or transferred to a different company.
8) A rider, handwritten changes or other irregularities exist in the note.
9) Very complex calculations are needed, using an unusual index or interest rate.
10) Your loan balance has not decreased significantly.
11) The original loan was made by a loan institution that has been dissolved or merged with another company.

Have your loan reviewed for a loan modification. If you think you are the victim of predatory lending, then you probably are. We provide the help you need.

We provide you with a forensic Mortgage Loan Audit Service. Our specialized service allows borrowers to get the help they need to get examinations of pre-close or post-close loan documents for Federal and State specific financing guidelines. These violations include the Real Estate Settlement Procedures Act (RESPA), High Rate / High Fee Loans (HOEPA/Section 32 Mortgages), Truth and Lending Act (TILA), State Consumer Credit Regulations, Secondary Market Criteria and many other State Specific Regulations.

The fact of the matter is that most closed loan transactions during the years of 2000-2006 were performed with legal violations. Only a small fraction of loans were closed with the borrowers’ best interest in mind. The majority of loans have significant Federal and State violations. These mortgage finance violations carry very harsh financial penalties for the lender and can result in legal consequences to the lender. Lenders are now forced to modify a borrowers’ current loan. Even the most well-implemented compliance program is not going to prevent mortgage violations. Underwriting staff make violations in their mortgage finance procedures throughout the loan process.

The only way to ensure that your loan contains violations is to obtain a Forensic Mortgage Loan Audit. If you obtained a high cost loan or if your loan has adjusted or is about to adjust, your best defense is to get a loan modification. If you can’t afford your payments due to an increased payment or loss of income, inquire about a Forensic Mortgage Loan Audit.

Loan Modification - Fannie Mae Loan Mod Regulations Loosened

2009-03-12T12:34:00.000-07:00

By Al Yoon

NEW YORK, Dec 8 (Reuters) - Fannie Mae, the largest provider of funding for U.S. home mortgages, on Monday said it has established new guidelines to help speed modifications on home loans even before a borrower goes into default.

Fannie Mae (FNM.P) said its "early workout program" will allow mortgage servicers to negotiate a loan modification if a borrower is still making payments, but a default is foreseen. Foreclosure prevention efforts were previously only available after a delinquency has occurred, it said.

Mortgage servicing companies now also have the right to remove loans from mortgage-backed securities after just one month of delinquency for the purpose of a modification, it said.

Servicers in general have had to wait for at least four months of delinquent payments to strip loans from MBS, which must be done before a modification can be completed.

Fannie Mae and Freddie Mac, under guidance from their regulator, have recently stepped up efforts to modify, or permanently change, mortgage contracts to easier terms as a way to halt record foreclosures that have put housing in a downward spiral.

Lawmakers have also increased pressure on modifications by servicers, who must answer to bond investors that could sometimes make out better if a foreclosure is completed.

Fannie Mae added it would allow the doubling of maximum forbearance and repayment plan periods for most loans. Typical modifications may include lowering interest rates and reductions to principal.

"These changes to our servicing policies are intended to remove administrative obstacles so that Fannie Mae borrowers can get the help they need and avoid foreclosure," Herb Allison, Fannie Mae's chief executive officer, said in a statement.

Fannie Mae and Freddie Mac were seized in September by the government due to concern that mortgage losses were depleting capital needed by the companies to support the housing market with loan purchases and guarantees.

To curb losses, Fannie Mae had policies in place that tried to keep loans in MBS, since it often had to recognize losses once the mortgage is removed.

Fannie Mae and Freddie Mac own or guarantee nearly half of all U.S. residential mortgages. (Editing by Gary Crosse)

Mortgage 2nd Wave

2009-03-12T07:52:00.000-07:00

What's Possible with Home Loan Modificatins?

2009-03-11T22:51:00.000-07:00

So what's possible with getting a Loan Modification?

Rate Reduction.
Term Extension (some extensions are going to 40 and 50 year terms. This is quite common in Japan and other countries).
Principal Balance Shifts and Principal Balance Reductions (not a lenders favorite thing to do but it does make sense sometimes).
Adjustable Rates Converted to Fixed Rates.
Incorporation of Late Payments into Principal Balances. There's not enough time here to capture all the possibilities.

Anyone can submit for a loan modification now. It used to be that you had to be at least a month behind in your payments, but that is no longer the case. This sounds horrible, but I'll say it anyway. The worse your situation is, the better off you are for a Loan Mod. The speed in which your Modification is handled is measured by the degree of your particular hardship. At the same time, it's not a stressful process at all. They can collect the facts in about 15 minutes over the phone and let you know where you stand immediately.

Who needs a Loan Mod? Here are criteria. Anyone with almost any kind of hardship. If you are upside down (the property value is less than your loan amount), that's a hardship. Adjustable Interest Rates. High Interest Rates. Neg. Am Loans. Monthly Deficits. Negative Equity. Balloon Loans.
General Hardships. Can't Refinance. Loss of Income. Divorce. Medical Bills. Incarceration. And more. You get the idea. And when you're in a Loan Modification process, you do not have to make your monthly payments. The lawyers mentioned that people are afraid. I guess that's true. At least you're getting good information and I hope it's helpful.

Notes from Loan Modification Informational Meetings

2009-03-11T22:27:00.000-07:00

Here's some more details from my meetings. I'm just looking at my notes so I'm not trying to write a masterpiece. I apologize ahead of time for grammatical errors.

BANKS DO NOT WANT YOUR HOUSE!

Why? Because properties are "upside down". What does that mean? They lent you a million dollars and it's only appraised at $700,000.00. It's $300,000.00 upside down. If you wanted to refinance the million, you would have to give the bank $300,000.00 before they could even consider refinancing. It's not just that the credit markets are frozen.

There's way more to it then that. The lawyers mentioned something interesting. This situation is way out of the property owners control. It's no longer a matter of pride or good credit. Families have to do what they have to do to survive. Again, the bank does not want your house. They want you to look for a loan modification.

Next point. It has to be a legal process. The lenders DO NOT want to deal directly with the client. What's evolving here is a legal process. For contractual obligations to hold up in a court of law, there must be attorneys.

Lenders are starting to find this out and no matter what a lender tells you now, you have to exercise EXTREME caution. The industry is in the process of creating a legal framework for this process and I can tell you something right now. If someone has a Loan Mod. without attorney signatures, it's going to be tossed out as Null and Void in the next few months. Be careful. For the group of attornies that I am recommending, please go to my portal. Thanks.

The Loan Modification Process

2009-03-11T22:23:00.001-07:00

The Loan Modification Process is easy and simple. It is not the painful process of refinance.
Can be done quickly over the phone (15 minutes). Information is entered into a software program. 1st page is one's general contact information (1 minute). The 2nd page is loan balance, monthly payment, and general lender information (about 5 minutes). The 3rd page is the financial worksheet. Monthly bills and income (about 10 minutes).

Then we get an instant debt to income ratio. In a perfect world, the attorneys are looking for 110 to 120. But they have negotiated situations up to 200.

At this point, we hit a send button and you get an application within 5 minutes in your box (no one has exchanged any money. That very simple process is reviewed in the application. If they cannot get you a loan modification, it costs nothing. No up front fees of any kind). Download application, fill it out, and fax to assigned attorneys.

You will be in direct contact with an attorney. They negotiate with the lenders (this is important to understand. No matter what you hear or see on the news, lenders do not want to help you out directly). After the attorneys get the application, they will contact you directly.

You can talk to them as much as you want and you get a file number where you can go online and check the status of your file 24/7. It's a 5 to 8 week process and we have a network of 2000 attorneys in all 50 states. Please email or call with more questions. Or go to my website and see the whole, very clear process.

Home Loan Modification Criteria

2009-03-11T22:17:00.000-07:00

These are turbulent financial times, and homeowners are being hit especially hard by recent economic crises. If you are struggling to make your loan payments or worry about foreclosure, your best option may be a loan modification.
The essential requirement behind qualifying for a loan modification is financial hardship. Here are some good examples of loan-specific hardships.

(a) Those who are a few months behind on their payments.
(b) Those with negative amortization loans (the payment is lower than the interest rate, so the balance owed actually grows).
(c) Those with ARM loans that are about to adjust or have very recently adjusted.
(d) Those who are upside down on their loans (they owe more than the home is worth). Additionally, personal financial hardships are taken into account. These can include the following:

(a) Reduced income or hours.
(b) Divorce or separation.
(c) Excessive medical bills or back taxes.
(d) Failed businesses or loss of employment.

Banks and lenders do not want to foreclose. It's a long, expensive process and they always lose money. They are very open to modifying loans-provided they are given a professional, realistic proposal package.

Homeowners simply don't have the resources and knowledge to put this together. However, our trained and qualified consultants are loan modification experts. Your only task is to provide accurate and complete information. They become your advocate with banks and lenders, helping create new loan terms and long-term financial solutions. We can help in all 50 states. For more information on how to get started with your loan modification, please send see my website.

What is Home Loan Modification?

2009-03-11T21:34:00.000-07:00

I'm going to tell you exactly what "Home Loan Modification" is and who qualifies for it.

"Home Loan Modification" is also referred to as a "Loss Mitigation Program."

It is the process of renegotiating one's mortgage with their current lender. The definition of "loss mitigation" to the lender is to minimize their loss from a defaulting loan. Loss Mitigation is NOT based on credit or equity. It is solely based on the ability of the homeowner to afford some type of reasonable payment moving forward. A homeowner must exhibit one and/or a combination of the following qualities in order to be considered for loss mitigation by their lender.

1) Inability to afford their mortgage payment recently or currently. Most lenders will not consider the homeowner for loss mitigation unless they are behind in their payments OR they have an adjustable rate that is due to adjust within the next 90 to 120 days. The further behind the homeowner is, the higher the priority is with the lender.

2) A legitimate reason for falling behind on mortgage payments, known as HARDSHIP. We must be able to show that they have recovered or are recovering from the hardship or that the homeowner can afford to make a lower payment on a consistent basis. Legitimate HARDSHIP reasons include the following:

a) Increased expenses or decreased income.
b) Rate or payment increase.
c) Death in family, divorce, illness, incarceration and many other case by case situations.
d) Lenders WILL NOT accept a HARDSHIP that the homeowner says they were tricked by a mortgage broker or any reason where the homeowner points the finger at the lender.

I will follow up with more information.