Question by caliman316: does any one know what “investor restriction” means?
I called bank of america to inquire about the make home affordable plan. I am a responsible home borrower and pay my mortgage on time, and I don’t have PMI. According to them I have a good history paying on time, but I’m ineligible because of investor restriction and they don’t know what that means and told me to call fannie mae. I did calll them but they said because of the amount of calls they get, it will take awhile to respond back. Any insight would be appreciated.
Best answer:
Answer by financegal27
The “Make Home Affordable Plan” is only available to borrowers who are either past due on their mortgage and/or are current but the value of the home is actually less than the amount you owe.
It doesn’t sound like Fannie Mae is the actual servicer of your loan. First thing you need to find out who actually services your loan.
Investor Restriction refers to the actual investor that owns your loan. When you take out a mortgage you go through a bank, but once the loan is complete the bank sells it through a process called “securitization”, and it becomes part of a Mortgage Backed Security that trades in the bond market. Whoever purchases the MBS that contains your bond is now the investor. Generally, there is a contract between the servicer and the investor that states what kind of actions
the servicer is allowed to take. There is some flexibility but at the end of the day the investor has control over what loans in the security do. If the investor feels that the act is not in their best interest they can restrict the action.
If Bank of America tells you that the loan is investor restricted it means the investor and servicer of your loan have not signed a contract to participate in the “Make Home Affordable Program”. You can find more in depth information at the link provided below.
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