In response to federal regulators encouraging lenders and servicers to participate in the Federal Housing Administration's (FHA's) HOPE for Homeowners program (H4H), Wolters Kluwer Financial Services announced today it has begun to develop a comprehensive suite of solutions to help financial institutions comply with the program's requirements.
The H4H program was created by Congress to help borrowers at risk of default and foreclosure refinance into more affordable and sustainable loans. For borrowers who refinance under H4H, lenders are required to "write down" the mortgage to the Department of Housing and Urban Development (HUD)-provided maximum loan-to-value ratio based upon the home's new appraised value. In many instances, lenders will determine that such a reduction in principal allows them to avoid a costly foreclosure, while helping borrowers stay in their homes with an FHA-backed mortgage.
Wolters Kluwer Financial Services says it is developing the documents necessary for lenders and servicers to quickly comply with the H4H program's new consumer disclosures and closing package requirements. The documents will be available in electronic or print formats and through the company's document preparation platform. The documents are expected to be available by the end of 2008.
Financial institutions can also register for a free roundtable webinar Wolters Kluwer Financial Services will conduct on Wednesday, Jan. 7, 2009 that explains the differences between loan modifications and the H4H program, H4H eligibility and requirements, and operational considerations for implementing an H4H program. Speakers will include Jordan Brown, principal and chief executive officer, MarketWise Advisors, LLC; Jason Marx, vice president and general manager of Mortgage for Wolters Kluwer Financial Services; Malinda Edwards, compliance consultant with the company and Susan McKinnon, manager of Mortgage & Compliance with the company.
"Lenders and servicers have trusted Wolters Kluwer Financial Services, through its VMP Mortgage Solutions and PCi brands for industry leading compliance for decades," said Jason Marx, general manager, Mortgage, Wolters Kluwer Financial Services. "By drawing upon our experience and strong regulatory expertise, we'll work with lenders and servicers to make the H4H refinance process faster and easier through our leading compliance documents, borrower disclosures and secure delivery solutions. That will allow them to provide relief to borrowers more quickly so they can stay in their homes and help them retain more of their revenue as well."