EMC Has Signed A Contract With The US Government Agreeing To Perform Modifications
EMC is one of many Residential Mortgage Servicers committed to the Home Affordable Modification program through a formal Participation Agreement with the United States of America. The Participation Agreement can be found here.
As a recipient of TARP funds, and pursuant to the Participation Agreements, EMC is subject to the U.S. Treasury’s modification program guidelines for the Making Home Affordable Program. Said guidelines, promulgated on March 4, 2009 clearly require "[A]ny foreclosure action…be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure options fail, the foreclosure action may be resumed.”
The Servicer Participation Agreement also requires that EMC review the eligibility of any borrower who asks to be considered for the Making Home Affordable Program. The plan requires, in pertinent part, the following steps:
- Request the monthly gross income of the mortgagee
- Capitalize the arrearage
- Target a front-end DTI (debt-to-income) of 31%
- Reduce the interest rate to a minimum of 2% reach the DTI target.
- Extend the term of the loan up to 40 years to reach the DTI
- Forbear principal to reach the DTI
As a result, if you have been wrongfully denied a loan modification, Howard Law can represent you as we have been successful at obtaining many loan modifications for borrowers who have tried unsuccessfully on their own. If EMC does not respond favorably to our negotiations, we can seek an order from the Court that your foreclosure sale should be postponed indefinitely until EMC determines your eligibility for the Making Home Affordable Program.