Obama Loan Modification Monitoring - Protect Yourself From Fraud - Part 8 of 10

To fully understand how the Obama Loan Modification program works you must understand how the program will be monitored

Documents: Servicers are required to keep records of important documents for the purposes of verification and compliance reviews, and may include, but aren't limited to, qualification and eligibility of the debtor, criteria of underwriting, and incentive payments. It is mandatory for every debtor to complete a hardship affidavit, which is also another required document for verification and compliance reviews.

Measures Taken Against Fraud: Fraud detection and prevention methods, like the requirements of documentation and auditing, shall be described in the servicers and Plan guidelines in the agreement with Freddie Mac and Fannie Mae regarding the financial Agency. The Treasury will announce any additional measures of fraud protection.

If there is reasonable evidence that the debtor has given any falsified or misleading information or has otherwise committed fraud in regards to the Plan, the servicers and lender/investor do not have to modify the loan. Servicers should have reasonable processes in place to identify fraud.

Collection of Data: Servicers are mandated to gather and send debtor and property data for the purpose of making sure the Plan is being co0mplied with and to measure how effective the Plan is. Elements of data can include data that is needed to do an underwriting analysis, terms of modification, and waterfall analysis and modification of loan. Also to be included are profiles of the debtor and level of property information. Detailed help with data requirements will be given separately.

Legal and Accounting: The guidelines of the Plan should not be made to veto, override, or change in any way lender management servicers' responsibility of the preparation of financial statements and regulatory reports abiding by all the applicable and generally accepted principles of accounting.

Obama Loan Modification Features - What to Remember When Applying - Part 9 of 10

Do You Qualify and How To Apply:

To see if you qualify and learn how to apply for Obama Loan Modification Program you can visit:

http://www.obama-loanmodification.com

By Frank Stevenson

Which provides you with valuable resources including:
- Top 10 most frequently asked questions about the program
- Up to date guidelines on if you qualify
- Insider tips
- Free sample hardship letter

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