Chase Bank recently announced that from Jan -July 2010, it has assisted approximately 900,000 homeowners interested in modifying their home loan. What's bright about this announcement is that Chase is in effect doing something to address the three major complaints that have plagued both Hamp (the Federal "Home Affordable Mortgage Program) as well as the whole banking and loan modification industry. Here are the three major pitfalls and what Chase is doing about them.
Problem One. The loan modification process confuses most homeowners.. The majority of homeowners throughout the United States originally purchased their home through a realtor or mortgage broker who held their hand throughout the buying process and guided them. To help bring a homeowner up to speed to do a loan modification, Chase now assigns a consultant to each buyer that is working with Chase; this consultant walks the buyer through the modification process and is their traditional contact with Chase from start to finish.
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Problem Two. Banks commonly lose documentation and ask homeowners to resend documents. Most homeowners who have encountered financial strangeness find it difficult to send the significant documentation to a lender and hold a job at the same time. What makes things worse, some homeowners learn that after sneaking off at lunch to fax the financials from a Kinko's, that the documents previously sent were whether lost, incorrect or never received by the financial institution. The other day, for example, a person at a bank notified me that an application had been rejected because it was missing a zipcode on the address. She told me that resubmitting the literal, document should be an easy task, not knowing how precarious the current job store is and how difficult some clubs make it for their employees to do personal tasks while on the job. To make things easier for homeowners, Chase has established a centralized location for document collection and imaging, development it easier to impart a customer's file and reducing the need for borrowers to resend documents.
Problem Three. Loan modifications take too long. Most homeowners have been promised that their modification will be beloved after development three monthly trial payments only to learn that after development seven or eight trial payments they are no closer to gaining approval than when they first started. To help speed things up, Chase has hired 8,000 new prestige counselors to help perfect the loan modification assessment within 30 days of receiving borrower's completed application package.
By expanding their team to sustain customers, Chase can now weed through their applicants more effectively. They can impart better and help those fortunate adequate to qualify and gawk the homeowners who are not eligible for a modification but who might want to pursue a short sale or other foreclosure stoppage option. Still the statistics for loan modification approval from Chase are not encouraging. From Jan - July of 2010, only 27% of the modification applicants offered for the Chase Hamp schedule had gained approval, and 38% of applicants through Chase Bank's own loan modification schedule had been approved. But at least it's a start in the right direction!
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