Minnesota Mortgage Settlement Funds Help Homeowners: Home Destination

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The Office Of Mortgage Settlement Oversight announced a Second Progress Report on how states are allocating and spending their National Mortgage Settlement funds and the Consumer Financial Protection Bureau announced actions to halt two alleged mortgage loan modification scams. Home Destination, a Minneapolis Certified Distressed Property Expert and professional Realtor with RE/MAX Results, helps responsible Minnesota homeowners facing foreclosure scams or the short sale process and explains Minnesota's progress report.

Minnesota Spends National Mortgage Settlement Funds Correctly Under Gov. Mark Dayton

Minnesota Spends National Mortgage Settlement Funds Correctly Under Gov. Mark Dayton

The relief the banks have reported is encouraging. But it is important to remember that no obligations will be met until I have reviewed, confirmed and
credited them. I look forward to conducting that work in the coming months. ~ Monitor Joseph Smith

According to the Office of Mortgage Settlement Oversight (OMSO), 588 Minnesota homeowners have been approved or offered National Mortgage Settlement funds for first lien modifications. 2012 has been a year of servicers implementation of more than 300 standards. According to the National Mortgage Settlement's FAQ page, the attorneys general's negotiating committee acknowledged the banks must "accomplish a massive undertaking" to put all the servicing standards into practice as ordered under the agreement.

"Minnesota legislator's have continued to take positions on housing and commit to strong principles of allocating the National Mortgage Settlement funds as designated. We are seeing responsible homeowners who wrongfully experienced foreclosure gain from the National Mortgage Settlement funds allocated to Minnesota." says Jenna Thuening, owner of Home Destination.

The Consumer Financial Protection Bureau (CFPB) announced actions to halt two alleged mortgage loan modification scams on December 11, 2012. The CFPB believes atrocious scams ripped-off thousands of struggling homeowners across the country. In total, these operations took in more than $10 million by wrongly charging consumers for services that falsely promised to prevent foreclosures or renegotiate distressed home mortgages. “We are taking on schemes that prey on consumers who are struggling to pay their mortgages or facing foreclosure,” said CFPB Director Richard Cordray. “We are especially concerned with those who misrepresent government programs or websites to divert distressed homeowners from needed assistance.”

State Consumer Relief Information Minnesota, Program to Date:

CONSUMER RELIEF - PROCESS

1st Lien Modification Trials Offered / Approved - Aggregate amount of relief/ benefit for all servicers is $54,285,897. The average amount of relief / benefit is $92,323 for 588 borrowers. This is explained in the OSMO report as "1st Lien Modification Trials Offered/Approved represents all first lien mortgages where firm modification offers were made to the borrower".

1st Lien Modification Trials Started - Aggregate amount of relief/ benefit for all servicers is $44,981,106. The average amount of relief / benefit is $$88,895 for 506 Minnesota borrowers. This means that "16 1st Lien Modification Trials Started represents all first lien mortgages for which the first payment in a trial modification was made. Trial may have been Offered/Approved in current or prior quarter. Appendix."

Refinance Solicitations / Offers / Approvals - for an average loan balance of $182,111 for 2,611 Minnesota borrowers. OSMO says that refinance Solicitations/Offers/Approvals represents the first lien mortgages considered for refinancing where loan to value exceeds 80% and would not qualify for Servicer’s generally available refinancing program as of 9/30/11.

Refinances Completed - for an average loan balance of $182,111 for 2,611 Minnesota borrowers. OSMO says that refinance Solicitations/Offers/Approvals represents the first lien mortgages considered for refinancing where loan to value exceeds 80% and would not qualify for Servicer’s generally available refinancing program as of 9/30/11.

Minnesota Makes Tough Decisions Needed To Help Homeowners Stay In Their Homes

According to Minnesota Public Radio, Governor Dayton said yesterday about the state budget, "We’re going to make tough decisions, there will be unpopular decisions, there will be hard decisions, but that’s what we’re going to do." In the same manner, Minnesota has been a lead state in making wise financial decisions around housing, and using funds allocated by the National Mortgage Settlement to educate and help homeowner stay in their homes.

Minnesota's process for spending funds, ensuring these funds to go correctly to wronged homeowners, will "complete prudent measures, doing the right thing", continued Minnesota Public Radio reporting. "We don't know what is going to happen on a federal level with the fiscal cliff that we are looking at," Hann added, yet reiterated an intent to not overburden the economy and believes that we should be able to find ourselves in a position of fiscal surplus.

"It is absolutely unacceptable of self-interest con artists to take advantage of Minnesota distressed homeowners looking for help from the Home Affordable Modification Program or mortgage settlement funds. We are thankful that Minnesota legislators, the OMSO, and the CFPB are dedicated to protecting homeowners. Home Destination will continue to educate homeowners about mortgage modifications, the housing recovery, and current housing news from our government," says Thuening.

For homeowners who seek to better understand their housing options and desire to make sure they stay current with their mortgage payments, Home Destination offers a mortgage worksheet and extensive resource library. Call Home Destination at 612-396-7832 if you are needing help to determine your best options if facing a foreclosure or short sale.

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Jenna Thuening
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