According to ADP, 84,000 jobs were cut in December.
The drop, the smallest since March 2008, was larger than forecast and compares with a revised 145,000 decline the prior month, data from ADP Employer Services showed today. ADP figures overstated the Labor Department’s estimate of private payroll losses by 85,000 per month on average in the six months to November after today’s revisions.

Figures from the Labor Department show firings have slowed as the world’s largest economy began to recover from the worst recession since the 1930s. Economists surveyed by Bloomberg News anticipate the government’s report Jan. 8 will indicate job losses came to an end last month after two years of declines that eliminated 7.2 million workers from payrolls.

“Given that this employment series has been weaker than private payrolls for most of 2009, the report is unlikely to change expectations for payrolls” in two days, John Ryding, chief economist at RDQ Economics in New York, said in a note to clients.

Stock-index futures trimmed earlier losses following the report. The contract on the Standard & Poor’s 500 Index was down 0.1 percent to 1,131.2 at 8:45 a.m. in New York.

Exceeds Forecast

The ADP figures were forecast to show a decline of 75,000 jobs after a previously reported 169,000 November decline, according to the median estimate of 31 economists surveyed by Bloomberg survey.

ADP includes only private employment and doesn’t take into account hiring by government agencies. Macroeconomic Advisers LLC in St. Louis produces the report jointly with ADP.

Another report today showed employers last month announced the fewest job cuts since the recession began in December 2007 as the economic recovery encouraged companies to retain staff. Planned firings fell 73 percent in December to 45,094 from 166,348 during the same month the prior year, Chicago-based placement firm Challenger, Gray & Christmas Inc. said.

The Labor Department’s report in two days is also forecast to show the unemployment rate climbed to 10.1 percent in December from 10 percent the prior month, according to the survey median.

The number of jobs lost since the recession began in December 2007 is the biggest in the post-World War II era.

Services Gain

Today’s ADP report showed a decrease of 96,000 workers in goods-producing industries including manufacturers and construction companies. Service providers added 12,000 workers.

Employment in construction fell by 52,000, the 35th straight monthly drop, while financial firms decreased jobs by 12,000, ADP said, the 25th consecutive decline for the industry.

Companies employing more than 499 workers shrank their workforce by 34,000 jobs. Medium-sized businesses, with 50 to 499 employees, eliminated 25,000 jobs and small companies decreased payrolls by 25,000, ADP said.

The ADP report is based on data from about 360,000 businesses with about 22 million workers on payrolls. ADP began keeping records in January 2001 and started publishing its numbers in 2006.

Source: Bloomberg

President Obama modification program helps 100,000 borrowers 

By Javier Zelaya
Jan 15, 2010  

Los Angeles, CA (Corporate Asset Management, LLC) -- With expectations for millions of foreclosures, lenders have approved more than 100,000 troubled mortgages for homeowners participating in an Obama administration mortgage-assistance program from trial three-month plans into permanent, more affordable loans, the Treasury Department said Friday.

So far, 66,000 borrowers have accepted the offer under the program, known as the Home Affordable Modification Program, or HAMP, according to a Treasury report.

"Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Phyllis Caldwell, Treasury's Homeownership Preservation Office director.

That number is up from the program's December data, which showed that only 31,382 troubled mortgages converted from trial three-month plans into permanent programs. Specifically, 112,521 permanent modifications have been approved by loan servicers.

As part of the program, roughly 850,000 homeowners have their median monthly payment reduced by more than $500 a month.

According to the Treasury report, 902,620 trial three-month modifications have started since the program's inception, up from 759,058 last month. Also, 1.2 million modification offers have been extended to borrowers by the end of December, up from roughly 1 million offers in November.

Meanwhile, roughly 8 million to 13 million foreclosures are expected to take place over the next five years, according to the Congressional Oversight Panel for the $700 billion bank-bailout program.

A number of the major banks made major strides in making trial modifications permanent. Bank of America Corp. (BAC, Trade ) experienced a major improvement. It approved 3,183 permanent modifications by the end of December, up from 98 at the end of November. In addition, the company started 206,775 trial modifications, the report said, up from 158,462 in the previous period.

Citigroup Inc. (C, Trade ) approved 4,999 permanent modifications by the end of December, up from 271 in the previous period, according to the report. Citigroup started 119,097 three-month modifications under the plan by the end of December -- up from 103,478 in November.

Through the end of December, J.P. Morgan Chase & Co. (JPM, Trade ) had 7,139 trial modifications made permanent, up from 4,302 at the end of November. It had 156,359 three-month trial modifications started under the program as of the end of December, up from 143,027 started under the program at the end of November.

Wells Fargo & Co. (WFC, Trade ) has 126,413 trial modifications started, up from 104,808 trial modifications at the end of November and 6,423 permanent, up from 3,537 permanent modifications using the program in November.

As part of the program, mortgage servicers receive an up-front payment of $1,000 for each successful modification after completion of the trial period, and "pay for success" fees of up to $1,000 per year for three years, as long as the borrower remains current. Servicers that fail to meet their obligations could have incentive payments withheld.

Lenders also have provided thousands of modifications outside of the Obama program.

However, Henry Sommer, director at the National Association of Consumer Bankruptcy Attorneys in Philadelphia said that those modifications are generally less beneficial to the homeowner than modifications under the White House program. He added that he worries homeowners eligible for the HAMP program are being steered into less-favorable private modifications set up by lenders.

This was a great article published by CAMREO a corporate asset management company. Lenders have been doing more to help troubled home owners stay in their homes, but remember they are still overwhelmed. Your persitence and drive can make the difference on weather or not you get your modification approved and ultimately keep your home. Keep fighting, and please call us for any assistance along the way.

The following is an article that was written about our Do It Yourself Loan Modification Station, and the direct impact we have on peoplese lives. We are glad that we can be part of the right solution for so many of you, and want to thank you for your trust in our system. You can find this article at Earth Times or by following this link to the article. http://www.earthtimes.org/articles/show/a-do-it-yourself-loan,1117730.shtml .  



Mortgage Solutions helps bring Christmas cheer to elderly homeowners when they needed it the most! Mortgage Solutions helps all homeowners understand how a loan modification works and how they can do it for themselves.

SPRING HILL, FL, January 13, 2010 
-- Painful stories about homeowners losing their homes continue to haunt many American neighborhoods. Luckily, there have been a few who have received help in various forms, and these people managed to save their homes and continue living in them. One of the easiest and best ways to save one's home and continue living in your home is getting a Loan Modification approved by your bank.

However, this is not a piece of cake, or no homeowner behind on their mortgage payments would worry about foreclosure. This though, is something that can be taken care of as long as you know what to do, and do it right. Here's a great real life example.

The Perrini's had been living in their home for over 18 years before trouble struck. After having spent most of their adult lives in caring for their children, they found themselves riddled in debt, and in their sixties. To make matters worse, they found out that Mrs. Perrini was suffering from a life threatening illness.

With their mortgage payments to Wells Fargo getting to a point where it started to become a burden, they decided to take some action in the form of approaching their bank (Wells Fargo) for a loan modification program. While they did try getting help from attorneys and loan modification companies, to the Perrini's, was just plain unaffordable. They tried to go at it alone, but with the process being as complex as it is they found their initial several requests were denied.

This is when they decided to use Mortgage Solutions' Do it yourself Loan Modification. This package gave them information that guided them in what they needed to do in order to maximize the chances of their application being approved. Four months after they first bought the package, a message from the management at Wells Fargo informed them that their loan modification application had been approved.

The Christmas Cheer? This news reached them on Christmas Eve! This, the Perrini's said, was their very own "Christmas miracle." You can also see what other users of this system have to say about a Do It Yourself Loan Modification Package from Mortgage Solutions.

Steve Fingerman Vice President of Mortgage Solutions said "it is moments such as these that we work towards, and people should know that they have the option to save their homes through loan modification programs." He also added that "Home owners in financial trouble should know that using the services of companies and attorneys who charge steep fees is not the only option, especially when one has the option to do all the relevant paperwork professionally on one's own for a very nominal cost."

Mortgage Solutions' Do it yourself Loan Modification system takes you through the process in a step by step manner, taking important aspects like addressing your debt to income ratio, etc. Since incomplete or flawed documentation is a big factor when it comes to loan modification applications being rejected, this is also an aspect that this DIY Loan Modification system addresses. The other important thing that the system does is give a consumer the same type of legal documents that are being used by the Loan Modification Companies and Attorney's without the steep fees. More information about how this package can help you can be found check out Mortgage Solutions Loan Modification package.

Mortgage Solutions is a licensed Correspondent Lender based in Florida. The company was founded in 2004, when the homeowners crisis was at its peak, and has continued to help homeowners ever since. Their aim, according to the management, "is to try and get every loan modification application approved so that no homeowner who is willing to make an effort has to lose his/her home."

Mortgage Solutions Can Help You With A Do It Yourself Loan Modification By Preparing You A Perfect Bank Ready Loan Modification Package.

A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.

Question 1: In utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?

Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Question 2: May a mortgagee perform an interior inspection of the property if they have concerns about property condition?

Answer: Yes, per Mortgagee Letter 2000-05, page 20, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the mortgagor's continued ability to support the modified mortgage payment.

Question 3: Can a mortgagee include late charges in the Loan Modification?

Answer: Mortgagee Letter 2008-21 states that accrued late charges should be waived by the mortgagee at the time of the Loan Modification.

Question 4: When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?

Answer: HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

Question 5: Is there a new basis interest rate which mortgagees may assess when completing a Loan Modification?

Answer: Yes, Mortgagee Letter 2008-21 states that the new basis interest rate is 200 points above the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of 10 years.

Question 6: Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?

Answer: If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.

Question 7: Are mortgagees required to perform an escrow analysis when completing a Loan Modification?

Answer: Yes, mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.

Question 8: Is the mortgagor eligible for the upfront premium refund at payoff of a modified loan?

Answer: It depends upon when the closing date occurred. For assets closed:

After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,

On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or

On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.

Question 9: Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?

Answer: Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.

The Mortgage Insurance that you paid on your FHA mortgage is an important feature of your HUD Insured loan. Please keep in mind that with a FHA mortgage the Mortgage Insurance Premium that you paid can be used with your lender to pay back any arrearages on your mortgage and help bring your loan current. If you have a HUD insured loan please make sure you bring the PMI into your negotiation process with your Bank. Do not expect your Bank to volunteer this information, sometimes the things that are in your best interest may conflict with the interest of your Bank. In these cases you must educate yourself as much as possible about all of the options you have available through the recent legislatures and governing bodies. We hope that you find the information we provide usefull and hope that it will help you save your home and get you the most effective Loan Modification possible. Please feel free to contact us if you have any other questions regarding HUD, Loan Modification, or any other Mortgage related questions.