It is with pride and gratitude to the people of Central Virginia that NACA announces its newest office opening soon in Richmond. We are proud to play a part in the revitalization of historic Richmond and contribute to the city’s growth through making affordable home ownership a reality for everyone! Special thanks to #NBC12 for their coverage to help document this special moment in NACA history! http://www.nbc12.com/story/25196529/naca-opening-in-richmond-continuing-help-for-homebuyers
Good morning everyone, and thank you for visiting the NACA Forums!
As some of you (if not most) are aware, we have been experiencing a few technical issues with new users signing up, users receiving their new or changed passwords, and notices/updates being sent to you from the Forums. I’m happy to say now that the NACA IT Department has finally (with the help of our service providers, thank you) resolved those issues and are currently monitoring the Forums site for any additional issues.
If you have recently signed up, or you cannot remember your password for the Forums, please click on the “Lost Password” link on the left in the sign in box.
I appreciate everyone’s patience while we were working on resolving the problems. Thank you.
Great solutions coming from our #AmericanDreamTour event in #Ontario! Anthony Tillman is interviewed by KABC-TV, KCAL-9, and KCBS-TV after Bank of America permanently reduced his interest rate to 3% and lowered his payment by $400/mo. Event continues today through Monday at the Ontario Convention Center and ALL SERVICES ARE FREE.
Here is a detailed list of documents needed for a mortgage modification:
Section 1- Required Documents for All Borrowers, Co-Borrowers and Household Contributors
|Most recent 2 years Tax Returns- Signed and dated. This includes personal and business tax returns if self-employed.|
|Most recent Two (2) Months Bank Statements for all Accounts- All pages even if blank|
|Personal Identification (picture ID or current driver’s license) and Current Utility Bill showing proof of occupancy|
|Mortgage Statement- Most recent available|
|Homeowner Association (HOA/Condo/Coop) Fee Statement or if n/a, write a letter stating that you do not have a HOA|
|Insurance Declaration Page showing yearly premium & coverage on the home, flood insurance statement (if applicable) and proof of any other required insurance for the home. FYI- Most Condo/Coop insurance is covered by the HOA/Maintenance Fee.|
|Property Tax Statement (s) for city and county, if applicable, showing amount due each year (Taxes included in the Maintenance Fee for Coops)|
Section 2 – Required Documentation Based on Income Type
|Paystubs||Last 30 days Paystubs showing YTD earnings|
|Contribution||Non-Borrower Contribution and Authorization Form- to be completed by all Contributors. Contributors must also provide proof of income, complete form 4506T AND provide the applicable items from Section 1 above. Borrower must provide two (2) months current bank statements showing contribution income is being deposited.|
|Rental||Current Lease agreement and 2 months current bank statements showing rental income is being deposited.|
|Self-Employed||Most recent 6-month or YTD Profit & Loss Statement; and last 6 months bank statements with business deposits and business expenses identified and categorized, most recent Federal Income Tax Return (form 1040 with all schedules attached, and Business Tax Return: form 1065, 1120-S or 1120, whichever is applicable.)|
|Social Security||Most recent year’s benefits award letter, last 2 months bank statements (showing money is being direct deposited) or copy of last 2 months cancelled checks if money is not direct deposited|
|Pension||Most recent year’s benefits award letter, last 2 months bank statements (showing money is being direct deposited) or copy of last 2 months cancelled checks if money is not direct deposited|
|Child Support||Court document or divorce decree showing required payment amount, last 2 months bank statements or cancelled checks proving receipt of income. Use of child support income is optional. If included, borrowers must provide the required documentation.|
|Alimony||Court document showing required payment amount, last 2 months bank statements or copy of last 2 months cancelled checks if money is not being deposited|
|Disability||Most recent year’s benefits award letter, last 2 months bank statements showing income direct deposited or copy of 2 months of cancelled checks if money is not being deposited|
|Unemployment||Current award letter or unemployment statement showing amount of benefits and how long benefits will last|
|Retirement||Award letter showing entitlement to income and last 2 months bank statements (show money is being direct deposited) or copy of last 2 months cancelled checks|
Section 3 – Other Documents- may be needed depending upon individual circumstance
|Notice of Sale Date or Intent to Foreclosure|
|Bankruptcy – Attorney Permission Letter required when in active bankruptcy. The letter must include: borrower’s name, property address, loan number, BK case #, and must state that your Mortgage Company has permission to work directly with you in regards to modifying the mortgage. Borrower must provide the Bankruptcy Discharge Letter when once the bankruptcy has been discharged.|
|Death Certificate – May be needed if one of original borrowers is deceased|
|Executor of Estate – May be needed if original mortgager is deceased|
|Quit Claim Deed – Is needed when one borrower on the note no longer resides in the property and has given up their interest in the property. Divorce Decree is needed if ex-spouse was on the mortgage.|
|Authorization to Escrow (required in some states, especially CA)|
|Lien releases or subordination agreement – needed if liens show on the title report (2nd mortgage, IRS lien, judgments from creditors.|
Section 4 – Documents to be completed as part of your Counseling Session
|Form 4506T, signed and dated|
|Form 710 for Fannie Mae and Freddie Mac-owned loans, RMA for all Other Loan types, Hardship Affidavit for FHA loans|
|Authorization Form with property address, city, state and zip written on each page. Borrower must also initial each page.|
|Hardship Explanation and Affidavit|
From the New York Times, February 26, 2014:
In many ways, the New York Times article demonstrates why NACA’s claim that “The NACA Standard should be the National Standard” is more than just a slogan when it comes to lending. During the housing bubble and its aftermath, the mortgage industry performed a nearly complete about face and went from a feast to famine mentality.
Prior to the Great Recession, lenders would give virtually anyone a mortgage loan regardless of their present financial status or ability to repay, and no safeguards were in place to ensure that the loan was genuinely affordable for the borrower. This resulted in millions of loans with predatory terms that were set up for failure from the very beginning. Lenders took advantage of the eager homebuyers’ naiveté and willingness to trust the “professional” on the other side of the desk to put them into a loan that would supposedly give them their opportunity to realize their piece of the American Dream. After the bubble burst, those same borrowers, even if their own financial picture had not changed with the advent of the Great Recession, were turned away cold.
During the same period, the NACA Purchase Program remained consistent in its underwriting policies and practices. The results demonstrated without any doubt that NACA’s program does not support sub-prime lending, but in fact eliminates the need for it, by educating and coaching its members toward qualifying as and then becoming prime borrowers. Using unwavering guidelines for counseling its members, NACA has remained consistent in the flow of its lending before, during and after the housing bubble instead of the flood-then-drought turmoil the lenders created for themselves. NACA’s consistency in its standards opened the door for tens of thousands of Americans who would otherwise fall into subprime traps or be denied homeownership completely.
Perhaps more importantly the collapse of the housing bubble actually demonstrated the stability of the NACA program and the reliability of low to middle income homeowners when they are given a fair and genuinely affordable home loan. The same study by Promontory Financial Group referred to in the article also pointed out that while post bubble delinquency and foreclosure rates were skyrocketing, the volume of past due NACA loans actually DECREASED, even though it already was less than one-third of the national average.
The simple, undeniable fact is that the NACA Purchase Program proves beyond any doubt that common sense full-document underwriting standards and not over-restrictive government regulation such as the CFPB’s Qualified Mortgage Rules reduce the risk of default and create stable loans. Such standards not only create a stable expansion of home ownership but are profitable for lenders as well.
Thank you to the New York Times for providing a window for the nation to see how NACA’s Purchase Program has shown that not only could the housing bubble and the Great Recession could have been avoided completely, but how the average hard-working American is far more reliable than financial institutions have given them credit for when given the proper education and guidance.
Our only suggestion to the Times is that our objective is not to revive “the hopes of subprime borrowers”, but to demonstrate that subprime lending is unnecessary when borrowers, regardless of income level or credit history, enter the mortgage marketplace with the knowledge and focus needed to become responsible homeowners.
As the NACA family continues our efforts to make responsible and affordable home ownership a reality for everyone, we also are shocked and in mourning today over the loss of one of our own.
Ms. Enid Talbert was part of the National Counseling Center family since September 30th, 2009. She will be remembered as the “mother” of the National Counseling Center, always feeding and taking care of others. Many of the staff truly saw her as a mother figure and she always greeted everyone with a warm smile. Her sudden passing has many of us in a state of disbelief.
A sweet and wonderful woman has gone to be with her Creator.
There are hundreds of Americans who are safe and secure in their homes tonight because of her compassion and care for her fellow man. Enid Talbert accomplished what many of us only dream of: She truly left the world a better place because of her presence in it. Not only our members, but her friends, family and especially her NACA family are all enriched for having had her in our lives, and we have indeed lost one of the most beloved members of our family.
The following NACA offices will either have a delayed opening or will be closed today due to severe weather as follows:
(These offices will attempt to open no later than 10am local time.)
Any missed appointments will be rescheduled at the first opportunity. We apologize for any inconvenience.
NEW #AmericanDreamTour DATES ADDED:
OAKLAND – Mar 20-24 – Oakland Marriott City Center
LOS ANGELES – Mar 27-31 – Millennium Biltmore Hotel
ONTARIO – Apr 3-7 – Ontario Convention Center
HOUSTON – Apr 11-15 – George R Brown Convention Center
MIAMI – May 29-Jun 2 – Miami Beach Convention Center
NEW YORK – Jun 20-24 – Marriott at the Brooklyn Bridge
WASHINGTON – Jun 26-30 – Walter E Washington Convention Center
INFORMATION AND REGISTRATION AVAILABLE NOW AT WWW.NACA.COM
The New York Times published an excellent article this morning on NACA and how our Purchase Program has worked before, during and after the mortgage crisis!
The severe weather affecting the Southeast will no doubt have an effect on numerous NACA offices today. Only a tiny handful of people have been able to make it into the National Counseling Center today, meaning it will be impossible to take inbound calls. Our #AmericanDreamTour event in Memphis will be open as scheduled. We will continue to update the situation here as information becomes available.