Question by caliman316: what does investor restriction mean?
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
I got this answer a few hours ago which was very informative according to the reply i had to find out who services my loan. I make my mortgage payments to bank of america which i assume is the one servicing my loan and is backed by fannie mae/freddie mac. If I bank of america is not servicing my loan then why am i making payments to them? If I call bank of america would they actually tell me who is servicing my loan or will they just say it’s them so they won’t disclose who it actually is? I appreciate your responses
Best answer:
Answer by financegal27
If you make your payments to BofA then your servicer is likely Bank of America, if they aren’t servicing the loan then they definitely can tell you who is and it should be included on your statement. They are required by law to tell you this information, see the link below for more info:
http://www.hud.gov/offices/hsg/sfh/res/rightsmtgesrvcr.cfm
Bank of America should be able to tell you who owns the loan as well the website for the program does state that only loans owned by Fannie Mae or Freddie Mac are eligible for home affordable refinancing, it does not sound like that’s the case here and its probably why you don’t qualify because you are looking to refinance and you aren’t passed due so you don’t qualify for the modification program which is a little more flexible. You can check to see if your loan is owned by Fannie or Feddie here:
http://www.makinghomeaffordable.gov/loan_lookup.html
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