Refinancing

The mortgage companies that agreed to the National Mortgage Settlement have informed the California Monitor that they have finished contacting homeowners who are eligible for the Settlement’s refinancing program. If you have not heard from your bank and you think you meet the criteria below, you can call your bank to ask about the program or contact us.  To be eligible for refinancing you must meet the following requirements:

Loan Serviced and Owned by the Same Bank – A mortgage servicer communicates with borrowers and collects payment. Your loan’s owner ultimately receives the payments on your mortgage.  To qualify for the Settlement refinance program, your servicer must also own your loan. You can contact your servicer to find out who owns your loan.  Or, get more information on how to find out who owns your loan.

Underwater – You must owe more on your first mortgage than your home is worth.

Current – You must be current on your mortgage and have no missed payments in the last 12 months.

Minimum Interest Rate – Your current interest rate must be greater than or equal to 5.25%.

Maximum Unpaid Balance – You cannot owe more than certain amounts depending on the type of property. The maximums are:

One unit – $729,750
Two units $934,200
Three units – $1,129,250
Four Units – $1,403,400

Loan Originated Prior to January 1, 2009.

For Bank of America Homeowners: FICO Score greater than 680 at the time of solicitation.

Exclusions: You will not qualify for refinancing under the Settlement if:

  • You have a FHA/VA loan.
  • Your home is a manufactured home.
  • You have been in bankruptcy in the last two years.
  • You have been in foreclosure in the last two years.
  • You have received a mortgage modification in the last two years.