26th Annual Bankruptcy Symposium December 6, 2013 MAKING THE MORTGAGE LOSS MITIGATION PROCESS WORK FOR YOU

Presented by: Judge Thomas P. Agresti James A. Prostko, Esq. Scott E. Schuster, Esq. Holly C. Thurman, Esq. John F. Kroto, Esq. Igor Roitburg, Esq. *With special guest Michael R. Rhodes, Esq.

MAKING THE MORTGAGE LOSS MITIGATION PROCESS WORK FOR YOU PROGRAM GOAL: De-mystify how LMP works. Answer basic questions to assure a mortgage modification for the residential debtor. Help parties to obtain the maximum amount of mortgage mods possible.

Websites with information on the HAMP and non-HAMP loan modification programs and documents required ◦use the "For Partner" tab to get to Understanding Program Guidelines and the "Making Home Affordable Program Handbook for Servicers" ◦This is a free consumer online tool to assist homeowners in conducting a net present value evaluation of their mortgages for the HAMP program. homeloanhelp.bankofamerica.com/en/home-affordable-modification.html expect expect troublepayment troublepayment 3

ISSUES IN THE LMP PROCESS Reasons for possible objection by the creditor to the debtor's request for loss mitigation: Failure to follow the minimum monthly payment formula set forth in Rule The debtors were recently reviewed for loan modification and denied. Problem loan modifications: Loan must be brought current in order to modify. The debtor inherited the property. The debtor is not the owner of the property. The debtor is not on the loan.

LMP APPLICATION PROCESS – BEST PRACTICES Section 1 - Borrower Information Section 2 — Hardship Affidavit Section 3 – Property and Expenses Section 4 — Combined Income and Expense of Borrower/Co-Borrower Section 5 – Documentation Form 4506T

LOAN MODIFICATION APPROVAL Points that will be Considered Motions to Approve Loan Modifications Substance of the Motion to Approve Loan Modification (Chart)(Chart) ◦Comparison Factors ◦Other Factors ◦Summary of Negotiations ◦Debtor Acknowledgement

LMP – FORM AND SUBSTANCE Local Forms 39 – 45 (plus 46 online) Servicer Transfer Form Order Interim Mortgage Modification Final Report – Online Fillable Form ◦Accuracy is imperative ◦Used for data collection ◦Future of the Form – 2 Step Know your dates

LMP – APPROACHING THE COURT Status Conference vs. Order to Show Cause ◦How is the process going? ◦How much time do you have? How much do you need? ◦“Good Faith” W.PA.LBR (e)  LMP participants shall negotiate in good faith. A party failing to participate in good faith may be subject to sanctions.

WHAT CAN YOUR PORTAL DO FOR YOU Default Mitigation Management (DMM) Common issues docUmods –