6 Lenders Recently Approved For Obama's Federal Home Affordable and Loan Modification Plan

Published: 11th September 2009
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Just recently the U.S. Treasury Department has approved six new lenders to its Home Affordable loan modification program. Under the terms of this agreement's loan modification rules, these six banks and lending institutions may now process applications for loan modifications. They may now participate in the subsidy program offered by the federal government and get the incentive payments that both lenders and homeowners are eligible for. Having been approved, these organizations will now be looking for qualified homeowners for whom they can modify a loan. Check to see if your lender is on the approved list of institutions that can offer modifications under this plan.



The Obama administration is trying to add any lending banks that wish to participate in its new program. The government, which is offering almost $9 billion in incentive payments to both banks and homeowners who successfully negotiate a loan modification, is hoping that most lenders will participate in its program. Every qualified loan modification means the lending institution receives an upfront payment. Homeowners who are able to keep their modified payments up to date will receive $1,000 a year for up to five years as a bonus. This Home Affordable plan will give successful applicants an interest rate as low as 2% for up to 40 years. The first six lenders have been approved and they are:



1. Saxon Mortgage

2. Wells Fargo Services -- Wells Fargo and Wachovia

3. Citimortgage -- Citibank mortgages

4. Chase -- J.P. Morgan Chase, EMC., and Washington Mutual

5. Select Portfolio Mortgage

6. GMAC



There are many large banks that offer mortgages that have not yet been approved to offer this plan. Bank of America, which owns Countrywide Bank and controls 20% of American home mortgage loans, has not yet been approved but is currently undergoing the approval process. It is thought that they will be able to start offering loan modifications through the Home Affordable Plan any time now. Mortgage holders who are thinking of applying for a modification should start gathering information, getting their paperwork in order, and begin filling in their applications so they will be ready to move forward when Bank of America is approved.



Anther company that will soon be ready to get final approval is Ocwen Financial Corp. which has already started taking applications from homeowners seeking loan modifications under the Home Affordable Plan. Again, borrowers interested in applying should start getting ready now so things will move faster when they are approved.



If you bank has not yet been approved to offer Home Affordable Plan home loan modifications, keep checking with them and in the meantime, get your paperwork ready so once they do get approved, you will not experience any delay. This is the relief homeowners need and have been seeking. Now is the right time to take the steps needed to complete your loan modification application so you will have the best possible chances for getting approved.



For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

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