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chase bank mortgage forgiveness

chase covid relief mortgage. City National Bank offers a wide variety of premier financial services including personal banking, credit cards, business banking, retirement planning. Get mortgage and foreclosure assistance from JP Morgan Chase. really a transfer of your home to the bank or lender that will result in the “forgiveness”.

Chase bank mortgage forgiveness -

SBA Payroll Protection Program (PPP) Forgiveness

Which forgiveness application do I use?

There are two applications available – Form 3508EZ and a long form.  You may use the EZ form if you meet one of the following criteria:

  1. You applied as a self-employed borrower, contractor, or sole proprietor
  2. You didn’t reduce wages for any individual by more than 25% during your PPP period compared to 1/1/2020 to 3/31/2020. And, you didn’t decrease the number of employees from 1/1/2020 to the end of your PPP period. This should be easy if you are a seasonal business.
  3. The same as #2 above, but the business was unable to operate at the same level prior to 2/15/2020 due to requirements issued by the CDC, OSHA, or DHHS. 

Please refer to page 1 of the 3508EZ instructions for more information.

Where do I get the forms?

Here are the links to the forms:

PPP Forgiveness Application 3508EZ

PPP Loan Forgiveness Application

PPP Loan Forgiveness Application Form EZ Instructions

You may also contact your Lender or visit www.sba.gov.

When can I submit to the Bank?

We can hold onto your application for you. We are still awaiting guidance from the SBA on how to submit the applications and receive funding to pay off your PPP.

I don’t know my SBA PPP loan number, my Lender PPP loan number, and/or my EIDL application number.

We can provide you with the SBA and Lender PPP numbers or complete this for you. The Lender number would be located on your copy of the loan documents signed. If you received an EIDL, however, you would have received an application number via e-mail. The Bank does not have access to this as the program was administered directly through the SBA. You will need to provide the EIDL information.

How does the EIDL advance factor in to the forgiveness?

The amount you are requesting forgiveness for will be reduced by the amount of any EIDL advance received (not the loan amount).

When can I apply for forgiveness?

You may apply anytime you wish after you have achieved all the criteria for forgiveness, but no later than 6 months after your PPP period has ended. Each Lender has 60 days to make a determination if the application meets the full forgiveness criteria.

What do I need to provide to the Bank?

  • The appropriate application, completed and signed
  • Payroll records for your PPP “covered” period that substantiate the figures entered on the application.  A payroll register, or cancelled checks if self-employed, etc. are examples of substantiation documents.
  • Any other records (receipts, statements, check copies, etc.) that substantiate the other non-payroll costs listed on the application and that were incurred during the PPP covered period.

Please refer to page 4 of the attached EZ-application instructions for more information.

What if I have more questions?

You may contact your lender at any time at 800-564-3195. 
Источник: https://www.thefirst.com/business/sba-payroll-protection-program--ppp--forgiveness

Why banks are putting PPP forgiveness on the back burner

The Paycheck Protection Program's forgiveness portal has debuted, leaving bankers and their borrowers with a big decision.

Those who participated in the $659 billion program must determine if they are ready right now to navigate the complex system for having loans forgiven, or if it makes sense to wait and see if Congress intervenes and simplifies the process. That decision was complicated over the weekend when talks about a new round of stimulus collapsed, casting doubt on when — or if — PPP will get an overhaul.

A number of banks, including JPMorgan Chase, the program's biggest participant with $29.2 billion in PPP originations, plan to hold off on processing applications. The $3.2 trillion-asset banking giant will start the forgiveness process next month, said Kimberly Hooks, a vice president at Chase Business Banking.

JPMorgan Chase is backing a push for automatic forgiveness “as it would help thousands of small business owners get back on their feet,” Hooks added.

Holtmeyer & Monson in Memphis, Tenn., is taking a similar wait-and-see approach with the 12,000 PPP loans it is servicing for 450 banks.

“We had hoped today to actively start taking applications, but we made the decision to hold off,” said Arne Monson, the firm’s president and a co-founder. “We’re hoping like hell we get automatic forgiveness for loans of $150,000 and below, and maybe a streamlined [process] for those up to $2 million.”

An SBA spokeswoman confirmed Monday that the agency's platform began accepting forgiveness applications on schedule, though she did not provide any statistics on opening-day activity.

The SBA stopped accepting applications for new Paycheck Protection loans on Saturday, after Congress failed to extend the program’s operating authority. Lawmakers are considering a number of proposals for a revived PPP, including increased funding and letting the hardest-hit small businesses obtain a second loan.

Lenders' willingness to procrastinate, even if it means delaying resolution of billions of dollars in loans, comes as little surprise to many industry observers.

The SBA approved about 5.2 million PPP loans for more than $525 billion before the portal's closure. The program offers low-interest loans to small businesses impacted by the coronavirus pandemic. Funds spent on basic operating expenses are eligible for forgiveness, making the program even more attractive to struggling entrepreneurs, but the process has been rocky, characterized by delays and unclear guidance.

The forgiveness process has been stressful for borrowers and lenders.

The SBA did not release a forgiveness application until mid-May, nearly six weeks after it began approving loans. A month later, following criticism that the original 11-page application was too long and complex, the agency released a streamlined form for self-employed borrowers and those that did not reduce employees’ wages by more than 25%.

Before July 23, when it released news of the forgiveness platform, the SBA had never indicated where lenders could submit their applications.

Confusion surrounding the process prompted bankers' groups to lobby for blanket or automatic forgiveness for smaller loans. Lawmakers are considering several bills to that effect.

At the same time, a growing number of lenders have opted to bypass the issue by selling their PPP portfolios.

Others, like Holtmeyer & Monson and the $19.8 billion-asset Atlantic Union Bankshares in Richmond, Va., opted to largely outsource the forgiveness process. Monson said his firm turned to a team of certified public accountants in Boston for help answering clients’ questions; it contracted with Summit Technology Consulting Group in Mechanicsburg, Pa., to package applications for submission.

The arrangement “offers our clients a Cadillac solution,” Monson said.

Not every bank is waiting for Congress to act on forgiveness.

The $2.2 billion-asset First Choice Bancorp in San Diego opened its online forgiveness portal to borrowers on July 2 and plans to begin uploading applications to SBA “in the near future,” said Lorraine Lee, its chief strategy officer.

First Choice, which approved nearly 1900 loans totaling $400 million, is “definitely submitting forgiveness applications right away,” President and CEO Robert Franko added. “We want to provide peace of mind to our clients who have their information ready to submit.”

For another community bank, the $1.7 billion-asset Greene County Bancorp in Catskill, N.Y., there are no one-size-fits-all forgiveness solutions. The company is ready to split the difference between submitting and holding on to its Paycheck Protection loans.

Greene County, which made more than 1,260 PPP loans for $100 million, believes many of those deals are ready for forgiveness right away. In some cases, however, “it may make more sense for some of our clients to wait for further announcements,” said Sean DuBois, vice president commercial lending and business development.

Источник: https://www.americanbanker.com/news/why-banks-are-putting-ppp-forgiveness-on-the-back-burner
coronavirus a a r p answers

In most cases yes. If the Federal Home Loan Mortgage Corp. (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae) backs your mortgage — and they do for about 80 percent of all mortgages — the mortgage giants may waive your payments for up to 12 months. It's called forbearance: You and the lender agree to temporarily reduce or suspend mortgage payments, and the lender agrees not to foreclose during that time. Both Freddie Mac and Fannie Mae have also agreed to suspend evictions and foreclosure sales through June 30.

The U.S. Department of Housing and Urban Development has also imposed an immediate halt to evictions from Federal Housing Administration–insured single-family properties. What's more, it has halted new foreclosures and suspended those in process. The moratorium on foreclosures also applies to FHA-insured home-equity conversion mortgages (commonly known as reverse mortgages). Both moratoriums end June 30.

In September, the Centers for Disease Control and Prevention (CDC) issued a four-month, nationwide eviction moratorium that would have ended Dec. 31.  The CDC extended that deadline to March 31, and, on March 29, extended the deadline again until June 30. According to the Census Bureau, 9.6 percent of the population age 55 and above had no confidence in their ability to pay their next month’s rent. The extension also provides criminal penalties for violation of the CDC order by a person of up to $250,000 or one year in jail, or both; and of up to $500,000 for a violation by an organization. These penalties are new. In a letter to the CDC, AARP senior vice president Bill Sweeney urged the CDC to extend the moratorium beyond its current deadline, and to make the moratorium to be automatic and universal, rather than depending on tenants to make the first move.

Does forbearance mean I never need to make up the missed mortgage payments?

No, the deferred payments still need to be made in the future, as a lump sum or tacked on to the end of your mortgage. Forbearance is not the same as loan forgiveness.

How do I know if Fannie Mae or Freddie Mac owns my mortgage?

You can check online to see if one of the mortgage giants owns your mortgage:

Search Fannie Mae: knowyouroptions.com/loanlookup
Search Freddie Mac: ww3.freddiemac.com/loanlookup/

What if my loan isn't owned by Freddie Mac or Fannie Mae?

Contact your lender, explain the reason for your financial setback – perhaps you lost your job because of the coronavirus outbreak — and try to negotiate a forbearance plan. While not obligated to follow the lead of Fannie and Freddie, many lenders may be willing to negotiate during this difficult time.

Are big banks offering mortgage relief?

Yes, on a case-by-case basis. Bank of America, for one, says that mortgage borrowers can request to defer payments, with payments added to the end of the loan. Wells Fargo is suspending residential property foreclosure sales and evictions.  Wells Fargo is telling its mortgage customers, “If you’re unable to make your payment due to COVID-19 related hardships, we’re offering a 90-day payment suspension.” And Chase bank asks worried mortgage holders to call to work out a plan. If you need help, be proactive and give your bank a call.

Will making mortgage payments late affect my credit rating?

Under the Freddie Mac and Fannie Mae plans, loan servicers will not report late payments resulting from forbearance to credit bureaus. They will also waive all late fees and penalties. Again, if you don't have a loan with Fannie or Freddie, you'll have to negotiate directly with your loan services. In any case, if you're struggling, be sure to contact your loan servicer sooner rather than later, and be sure to document your coronavirus hardship, such as proof of job loss.

What if I'm a renter?

There's some good news for renters, too. If you live in an apartment and your landlord gets mortgage relief because of the coronavirus outbreak, you can't be evicted for 90 days if you can't pay rent due to your own coronavirus hardship. Freddie Mac and Fannie Mae, in coordination with the Federal Housing Finance Agency, have announced a nationwide relief plan for borrowers who own multifamily properties, as well as their tenants. Under the program, landlords whose Freddie and Fannie loans are in good standing can defer their loan payments for 90 days by showing hardship as a consequence of COVID-19. In turn, Freddie and Fannie are requiring landlords not to evict tenants facing hardship based solely on nonpayment of rent during the forbearance period. Freddie Mac estimates that the program can provide relief for up to 4.2 million U.S. renters at more than 27,000 properties.

That still leaves 40 million renters without protection, primarily those who rent from smaller landlords. Some cities, such as Los Angeles, Boston and New York, are putting halts on evictions. But if you’re not covered by a state or municipal ban on evictions, talk to your landlord as soon as possible to discuss your options.

Rates are low. Should I refinance my mortgage?

The average 30-year fixed mortgage rate was 2.79 percent the week ended January 21, according to Freddie Mac. The rule of thumb is that you should consider refinancing only if the new mortgage rate would be 1 percentage point lower than your current rate.

But there are plenty of variables, such as fees and points. (A point is an upfront fee equal to 1 percent of the loan; the more points you agree to pay, the lower your rate.) Will you stay in your home long enough for the lower rate to offset the cost of fees and points? You can crunch the numbers using mortgage calculators such as those offered by Bankrate, NerdWallet, HSH, SmartAsset and others.

Refinancing demand is high, and it may take longer than usual to get appraisals and title searches as government offices shut down because of the coronavirus epidemic. You may also have to do a virtual closing via videoconference, to maintain social distancing safety guidelines. Ask your bank how long their refinancing process takes, and whether they are reasonably sure that they can close the deal in a reasonable amount of time.

(Editor's note: This article was updated with additional information.)

Источник: https://www.aarp.org/money/credit-loans-debt/info-2020/mortgage-coronavirus-faq.html

Lender Sold Your Mortgage? Here's What You Should Know

Mortgage Sold

Have you ever taken out a loan from a mortgage company or bank only to find out a few months down the road that it’s been sold?

Don’t be surprised if this happens to you -- multiple times -- because it’s common that lenders sell mortgages.

Federal banking laws allow financial institutions to sell mortgages or transfer the servicing rights to other institutions.

Consumer consent is not required when lenders sell mortgages.

It might seem alarming because a mortgage is something very personal to a consumer, a symbol of your home ownership.

But banks and other financial institutions view your mortgage differently.

To them, your mortgage is just another financial asset. And that means lenders handle your home loan much more differently than you might.

Questions might be swirling around in your head. Why is your servicer allowed to do this? What does it mean for you? Are the terms of your mortgage going to change?

Don’t panic if you discover that your mortgage now belongs to another institution. Remember: a loan is a loan no matter who owns it.

Your interest rate, payment amount, type of loan (fixed rate or ARM), etc. cannot change just because your loan has been sold.

The only thing that’s changing is the address you’re sending your payments to.

To help put your mind at ease, here are answers to all of the questions you might have about your lender selling your mortgage:

Why do lenders sell mortgages?

There are basically two main reasons why a lender might sell your mortgage.

1. To gain capital

When a loan gets sold, the lender has basically sold servicing rights to the loan, which clears up credit lines and enables the lender to lend money to the other borrowers.

Much as we might think that financial institutions have countless amounts of cash on hand, the truth is that lenders needs to keep a large enough pool of money on hand in order to lend to other people.

Let’s say the bank is lending you $200,000 to buy a home.

Most mortgages last for 15 or 30 years -- and you’re certainly not the only person taking out a mortgage.

The bank would need to have billions of dollars in cash to issue loans to everybody.

That’s one of the main reasons why it sells loans like yours.

2. To make money

Lenders can make money by charging fees when the loan originates, earning interest from your monthly payments, and selling it for commission.

Administering a loan has value because it earns the mortgage servicer money -- a small percentage of the interest rate you pay will go to the servicer.

Is your mortgage being sold a bad thing?

In most cases, no. Unless you are delinquent or behind on payments, the terms of your loan will not change because you’ve already borrowed the money and signed off on it.

What rights do I have?

The most important thing to take note of is that your lender must provide you with a loan ownership transfer notice when your mortgage is sold.

The new owner of your loan must notify you within 30 days of the effective date of transfer.

Included in this notice should be the following information:

  • The new owner’s name
  • Address and telephone number of new owner
  • The person who can resolve issues concerning your loan payments or any right to rescind the loan (if different from new owner)
  • Date of transfer
  • Whether the transfer of ownership is recorded in public records.

Do the terms of your mortgage change?

The short answer is: no. The new servicer of your loan is legally not allowed to change the terms of your previous loan.

This means that things like your interest rate, life of your loan, and payment date must remain the same, even under the new lender.

In regards to the escrow in your home, the new servicer will reevaluate your loan to determine if a sufficient amount of money is being collected each month.

If your escrow, as well as your monthly payments towards property taxes, mortgage insurance, and/or hazard insurance are deemed insufficient, it's possible the new servicer of your loan could increase your monthly payment.

It's also important to note that your new mortgage servicer cannot force you to establish an escrow account, if it was previously stated that you were contractually able to pay taxes and insurance on your own under your former loan.

However, if this stipulation was not specifically stated in your previous mortgage contract, or was just never discussed between you and your previous lender,then it's very possible (and legal) that your new servicer can require you to establish an escrow account with them.

How come I didn’t know this transfer might happen?

Did you read your contract? Really? It’s mandatory for lenders to disclose whether your loan will be sold and the percentage of loans it sells.

Better dig out that mortgage contract again.

What should I do once I hear from my new servicer?

You’ll want to read the first mortgage statement you receive from your new lender carefully -- verify that all the information it lists is true and accurate.

If you’re in the middle of applying for a loan modification, you may have to begin the process all over again.

Note that dealing with a new company for your mortgage means that you may have to fill out paperwork that might look different, talk with new staff, and send your payments to a new address.

Don't be afraid to reach out to your new servicer if you have questions.

What if I run into a legal issue?

“Consumers should not be collateral damage in the mortgage servicing transfer process,” said Consumer Financial Protection Bureau Director Richard Cordray.

Mortgage companies have a legal obligation to protect consumers during loan transfers between mortgage servicers.

That means paperwork should not be lost, servicers should not lose track of a homeowner’s loss mitigation plans, and they should not hinder a consumer’s chance to save his or her home from unnecessary foreclosure.

Understand that the process of transferring servicing rights is challenging logistically.

It might involve moving thousands of loan documents, which explains why issues arise.

If your payment is returned and your servicer notifies you that it’s no longer servicing your mortgage, know your rights.

You do not want to end up in a situation where you receive a notice in the mail stating that you’re late on a payment -- and then wonder confusingly why you were never notified that you needed to send your payment to a new servicer.

If you have a complaint or question about the transfer of your loan, you have a legal right to send a written request or note to your previous lender.

By law, your lender is required to respond in 20 business days within receiving your letter, and in 60 business days, must either correct the addressed problem (and also give you notice that it has been corrected), or give you, the borrower, a written notice why the problem is not being corrected.

Either way if you need a problem corrected or are just requesting information, you will get a response from your lender -- it's the law that they do so.

Final thoughts

Understand that both your old and new servicers must notify you about the transfer of your servicing rights no less than 15 days before the effective date of transfer.

If you never received the servicing transfer notice, you can also file a complaint with the CFPB online. You should also consult an attorney.

Remember, receiving a notice that your mortgage has been sold should not be taken personally.

As long as you have been notified in a timely manner, your new servicer accurately lists your information, and you send in payments to the right address you should have nothing to worry about.

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Источник: https://www.mybanktracker.com

How to Get Your PPP Loan Forgiven

 two businesspeople bumping elbows

Updated 8/5/21

The SBA has launched its own PPP loan forgiveness portal. It is intended to simplify the forgiveness process and allow some borrowers to apply for forgiveness directly through the SBA portal. You can find that portal here. To qualify to use the portal, businesses must have borrowed $150,000 or less and, importantly, PPP lenders must opt in. Because not all lenders have opted in, businesses must first determine if theirs has. You can find a list of participating lenders here. If your PPP lender has not opted into the SBA direct forgiveness portal or you've borrowed more than $150,000, you will still need to apply for forgiveness through your lender. Here is a complete guide on PPP loan forgiveness from the U.S. Chamber of Commerce.

______________________________________

One of the most extensive ways the federal government sought to aid businesses suffering from coronavirus-related shutdowns and disruptions was implementing the Paycheck Protection Program (PPP).

After its creation in March 2020, the program has been modified several times to ensure more businesses could participate, with the SBA approving more than 5 million loans worth more than $525 billion throughout 2020.

What made the program so popular was the ability for businesses to have their loans forgiven, effectively making them grants. However, the loans were issued with specific criteria that needed to be fulfilled to have them forgiven. Below we will outline requirements for loan forgiveness, how to get a forgiveness application and other important details for those businesses hoping to have their PPP loan forgiven, including the latest revisions issued by the federal government in July 2021.

Background on the Paycheck Protection Program

First, let’s explain briefly how the PPP works to better explain the forgiveness aspect. The PPP was created in March 2020 as part of the federal government’s $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. On top of tax breaks and changes in the CARES Act, the PPP was designed to provide a simple way for businesses to keep their employees on payroll and cover some additional expenses.

The PPP program was further modified with major revisions in June 2020 and December 2020 to add more flexibility for how borrowers spend loan funds. The December bill also reopened the PPP program so more businesses could apply for a first-time loan and created the ability for businesses to potentially obtain a second PPP loan.

Generally speaking, PPP loans carry generous terms. All PPP loans have an interest rate of 1%, with loans issued prior to June 5 maturing after two years and loans issued after June 5 maturing after five years. Basically, PPP loans issued before June 5, 2020, must be paid back in two years, and loans issued after that must be paid back in five years. No collateral or personal guarantees were required for the loan and no fees were charged to small businesses by the banks or credit unions providing the loans. While the loan terms were generous, the best aspect of them was that they could be forgiven.

The Treasury Department said it plans to automatically audit all PPP loans larger than $2 million. Smaller loans most likely won’t be targeted for audit, but some “spot checks” will occur. Additionally, banks including JPMorgan Chase & Co. (the single largest lender of PPP

loans) said they would investigate instances of borrowers misusing PPP funds.

Requirements for loan forgiveness

To qualify for PPP loan forgiveness, businesses must fulfill various requirements. The terms regarding forgiveness were last updated in December 2020.

Effectively, forgiveness is granted to employers that have kept or rehired employees while also maintaining salary levels from before the pandemic. Employers can still be eligible for partial forgiveness if they don’t meet all of these criteria, such as if full-time headcount declined or salaries decreased somewhat.

Requirements for full forgiveness include:

  • At least 60% of the loan must be used for payroll costs.
  • The remaining 40% of the loan can be spent on the following expenses: (1) qualifying mortgage interest or rent obligations; (2) utility costs; (3) operations costs such as business and accounting software; (4) property damage such as destruction from civil unrest that was not insured; (5) supplier costs on essential goods; and (6) worker protection expenditures such as personal protective equipment (PPE) and sneeze-guards.
  • While the loan is being used, employers must attempt in good faith to maintain similar levels of employment and pay what they had prior to the pandemic.

Loan forgiveness reduction from EIDL

The December 2020 stimulus bill revised how Economic Injury Disaster Loan (EIDL) grants impact PPP loan forgiveness. Originally, PPP loan forgiveness would be reduced by the amount a business received in EIDL grants. That has been changed so that loan forgiveness will not be reduced regardless of whether a business received an EIDL grant.

Complete a loan forgiveness application

As long as you have abided by the rules and requirements provided by the SBA, then businesses can submit a loan forgiveness application. Businesses will need to submit an application to the financial institution from which they received their PPP loan. (Small businesses with employees can use this standard PPP forgiveness application as a guide for what information they need to provide, while sole proprietors, independent contractors and self-employed people who have no employees can use this EZ version of the application as a guide.)

For small businesses with employees, the application asks businesses to submit details such as payroll and nonpayroll costs, adjustments for wage reductions and potential forgiveness amounts. Additionally, you’ll use the application to certify that the loan funds were used as intended, that you verified payments to employees and generally that the forms and information submitted to the SBA are true.

The loan forgiveness application also includes measures to “reduce compliance burdens and simplify the process for borrowers,” including:

  • The ability for borrowers to calculate payroll costs using an “alternative payroll covered period” that better aligns with a borrower’s normal payroll cycles.
  • The flexibility to include some payroll and nonpayroll expenses paid or incurred during the 24-week period after receiving their PPP loan (meaning employers would not be limited only to costs in the original two-month timeline).
  • An exemption from loan forgiveness reduction for any borrowers who made a “good-faith, written offer to rehire workers” that was later declined.

The deadline for submitting a forgiveness application is 10 months after the end of the “Covered Period” of the loan, which is between 8 and 24 weeks. As such, after the period where you use the loan funds ends, you should submit a timely application with your lender.

Once the loan forgiveness application has been submitted, then businesses wait to find out if it has been accepted. Notably, as long as a business submits a loan forgiveness application within 10 months of their loan being used, they are not required to make any payments on the loan. If the loan is then fully forgiven, then the business does not need to make any payments at all. If the loan is only partially forgiven or not forgiven at all, the loan must be paid off in full before its maturity date.

Simple forgiveness for PPP loans of $150,000 or less

Revisions to PPP in the December 2020 coronavirus relief bill required that any business that had a loan of $150,000 or less can fill out a simplified one-page application.

More questions and answers

If you’re looking for more information on the December 2020 changes to PPP, the U.S. Chamber released an updated guide to Guide to Small Business COVID-19 Emergency Loans. Additionally, it would be smart to contact your financial advisor or accountant to review all of your PPP details before submitting a forgiveness application.

For more information on the new stimulus package, watch our Small Business Update with U.S. Chamber of Commerce Chief Policy Officer Neil Bradley, which breaks down how the new legislation impacts PPP loans, taxes and more.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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Published December 28, 2020

Источник: https://www.uschamber.com/co/run/business-financing/getting-ppp-loan-forgiven

Newsletter: How to get your PPP loan forgiven

Good morning. I’m L.A. Times Business reporter Samantha Masunaga, filling in for Rachel Schnalzer to bring you our weekly newsletter. The window to apply for federal Paycheck Protection Program loans, which have provided a lifeline for many small businesses during the COVID-19 pandemic, closed Monday.

The next steps for recipients: Spend the money and erase the debt.


The loans are designed to be forgiven, but it’s not automatic. Recipients can keep the money if they demonstrate that they used it for certain purposes and largely refrained from cutting jobs and pay.

As of last week, 3.3 million PPP loans, worth a combined $279.4 billion, have been forgiven out of a total of 5.2 million loans issued last year, according to the Small Business Administration. About $1 billion in PPP loans were not forgiven, while $81.5 billion in loans are under review, and applications for forgiveness have not been received for $159.1 billion worth of loans.

Overall, more than 99% of loan value has been forgiven for those that have completed the forgiveness process, the SBA said.

Here’s a look at the process and tips on what small businesses can do to improve their chances of getting loan forgiveness.

Who’s eligible: For your loan to be fully forgiven, you must have maintained your employee head count and those employees’ compensation levels, as well as spent at least 60% of the PPP money on payroll costs. That includes wages, bonuses and benefits, including employer-paid insurance and sick leave, said Kelsey Sheehy, a small-business expert with financial advice website NerdWallet.

The rest of the loan money must have been spent on what the SBA defines as eligible expenses: operating costs, mortgage payments, utilities, protective equipment for workers and property damage from civil unrest last year that was not covered by insurance.

The loan forgiveness is not all-or-nothing. Borrowers who spent most of their PPP money on eligible expenses can get that portion of their loan forgiven, Sheehy said. They’ll have to repay the rest.

When to apply: Borrowers can apply for forgiveness after they have spent all of the loan money they want forgiven.

Those who received a PPP loan in the initial round had only eight weeks to use the money. For PPP loans issued after June 5, 2020, borrowers are given six months to spend the cash. They don’t have to start repaying the loan until 10 months after the spending period ends.

“Borrowers have a pretty lengthy grace period to apply for loan forgiveness,” Sheehy said.

She advised PPP loan recipients to apply before they have to begin repaying, though they can send in applications up to the loan’s maturity date.

Gather records: Borrowers should keep good records of the expenses they paid with the loan money. Gathering documentation can be one of the more time-consuming parts of applying for loan forgiveness, Sheehy said.

Even if the loan amount doesn’t require itemized expense lists, PPP loan recipients should keep receipts and be able to account for every dollar spent, in case the SBA asks for it later.

“You don’t want to be in a position where a year from now ... you’re scrambling,” she said.

The process: Borrowers should work with their PPP loan lender and make sure they have the right forms to fill out. The form will be “pretty explicit” in what’s required, said David Blankenhorn, an Orange County-based mentor at Score, a nonprofit network of volunteer small-business mentors that partners with the SBA.

If loan recipients have questions, they should contact their lender.

“You want to be crystal clear on what your lender’s process is for loan forgiveness,” Sheehy said. “Be in constant communication with your lender so you know exactly what’s expected of you before those deadlines start coming up.”

Borrowers can also ask for additional advice and guidance from Score, small-business development centers and community financial institutions, she said.

After the borrower fills out the forms and adds any necessary documentation, the lender will send the form to the SBA, which determines whether the loan qualifies for forgiveness.

If borrowers fill out the form correctly and have all documentation of expenses, the chances of getting the loan forgiven are “pretty good,” Blankenhorn said.

If the lender fully denies a loan-forgiveness application, the borrower can request a review of the application by the SBA. If the SBA denies forgiveness, the borrower can appeal to the SBA’s office of hearings and appeals within 30 days.

Other stories you may find helpful

Upcoming COVID-19 financial relief for Californians could include checks, business grants and child savings accounts, Patrick McGreevy reports.

◆ If you lost work, you may be able to get free health insurance. Certified financial planner Liz Weston explains how.

◆ Southern California home prices jumped 20% in April compared with a year earlier, reaching an all-time high. Jack Flemming explores why.

House hunting? Flemming shows what $700,000 could buy in seven L.A. communities.

◆ Uber has reneged on the “flexibility” it gave drivers to win their support for Proposition 22, writes columnist Michael Hiltzik.

Even fraud alerts can be part of a scam, columnist David Lazarus cautions. He breaks down how a con artist made a play for more than $10,000 using a Chase bank fraud warning.

One more thing

A San Francisco start-up tells would-be parents that its test can identify embryos with the lowest likelihood of developing cancer, schizophrenia and other diseases. But there are concerns.

My colleague Melody Petersen recently spoke with experts to learn more about Orchid Inc.’s tests. One concern: that parents could select an embryo thought to be at a reduced risk of one disease without understanding it is at a higher risk for something else. “If you pick an embryo that’s at low risk for breast cancer, you may actually be increasing your risk for other traits,” said Peter Kraft, a Harvard professor of epidemiology.

Experts also point to ethical questions about such tests. Gabriel Lázaro-Muñoz, an assistant professor at Baylor University’s Center for Medical Ethics and Health Policy, said he’s worried about claims to reduce the risk of schizophrenia, given discrimination against those with psychiatric disorders. “Even though these companies are trying to market this technology within a medical context,” he told Petersen, “we have to be really careful about potential misuses.” Read the full story here.

Have a question about work, business or finances during the COVID-19 pandemic, or tips for coping that you’d like to share? Send us an email at [email protected], and we may include it in a future newsletter.

Источник: https://www.latimes.com/business/newsletter/2021-06-01/ppp-loan-forgiveness-business
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coronavirus a a r p answers

In most cases yes. If the Federal Home Loan Mortgage Corp. (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae) backs your mortgage — and they do for about 80 percent of all mortgages — the mortgage giants may waive your payments for up to 12 months. It's called forbearance: You and the lender chase bank mortgage forgiveness to temporarily reduce or suspend mortgage payments, and the lender agrees not to foreclose during that time. Both Freddie Mac and Fannie Mae have also agreed to suspend evictions and foreclosure sales through June 30.

The U.S. Department of Housing and Urban Development has also imposed an immediate halt to evictions from Federal Housing Administration–insured single-family properties. What's more, it has halted new foreclosures and suspended those in process. The moratorium on foreclosures also applies to FHA-insured home-equity conversion mortgages (commonly known as reverse mortgages). Both moratoriums end June 30.

In Beverly bank and trust oak lawn il, the Centers for Disease Control and Prevention (CDC) issued a four-month, nationwide eviction moratorium that would have ended Dec. 31.  The CDC extended that deadline to March 31, and, on March 29, extended the deadline again until June 30. According to the Census Bureau, 9.6 percent of the population age 55 and above had no confidence in their ability to pay their next month’s rent. The extension also provides criminal penalties for violation of the CDC order by a person of up to $250,000 or one year in jail, or both; and of up to $500,000 for a violation by an organization. These penalties are new. In a letter to the CDC, AARP senior vice president Bill Sweeney urged the CDC to extend the moratorium beyond its current deadline, and to make the moratorium to be automatic and universal, rather than depending on tenants to make the first move.

Does forbearance mean I never need to make up the missed mortgage payments?

No, the deferred payments still need to be made in the future, as a lump sum or tacked on to the end of your mortgage. Forbearance is not the same as loan forgiveness.

How do I know if Fannie Mae or Freddie Mac owns my mortgage?

You can check online to see if one of the mortgage giants owns your mortgage:

Search Fannie Mae: knowyouroptions.com/loanlookup
Search Freddie Mac: ww3.freddiemac.com/loanlookup/

What if my loan isn't owned by Freddie Mac or Fannie Mae?

Contact your lender, explain the reason for your financial setback – perhaps you lost your job because of the coronavirus outbreak — and try to negotiate a forbearance plan. While not obligated to follow the lead of Fannie and Freddie, many lenders may be willing to negotiate during this difficult time.

Are big banks offering mortgage relief?

Yes, on a case-by-case pay my geico bill by phone. Bank of America, for one, says that mortgage borrowers can request to defer payments, with payments added to the end of the loan. Wells Fargo is suspending residential property foreclosure sales and evictions.  Wells Fargo is telling its mortgage customers, “If you’re unable to make your payment due to COVID-19 related hardships, we’re offering a 90-day payment suspension.” And Chase chase bank mortgage forgiveness asks worried mortgage holders to call to work out a plan. If you need help, be proactive and give your bank a call.

Will making mortgage payments late affect my credit rating?

Under the Freddie Mac and Fannie Mae plans, loan servicers will not report late payments resulting from forbearance to credit bureaus. They will also waive all late fees and penalties. Again, if you don't have a loan with Fannie or Freddie, you'll have to negotiate directly with your loan services. In any case, if you're struggling, be sure to contact your loan servicer sooner rather than later, and be sure to document your coronavirus hardship, such as proof of job loss.

What if I'm a renter?

There's some good news for renters, too. If you live in an apartment and your landlord gets mortgage relief because of the coronavirus outbreak, you can't be evicted for 90 days if you can't pay rent due to your own coronavirus hardship. Freddie Mac and Fannie Mae, in chase bank mortgage forgiveness with the Federal Housing Finance Agency, have announced a nationwide relief plan for borrowers who own multifamily properties, as well as their tenants. Under the program, landlords whose Freddie and Fannie loans are in good standing can defer their loan payments for 90 days by showing hardship as a consequence of COVID-19. In turn, Freddie and Fannie are requiring landlords not to evict tenants facing hardship based solely on nonpayment of rent during the forbearance period. Freddie Mac estimates that the program can provide relief for up to 4.2 million U.S. renters at more than 27,000 properties.

That still leaves 40 million renters without protection, primarily those who rent from smaller landlords. Some cities, such as Los Angeles, Boston and New York, are putting halts on evictions. But if you’re not covered by a state or municipal ban on evictions, talk to your landlord as soon as possible to discuss your options.

Rates are low. Should I refinance my mortgage?

The average 30-year fixed mortgage rate was 2.79 percent the week ended January 21, according to Freddie Mac. The rule of thumb is that you should consider refinancing only if the new mortgage rate would be 1 percentage point lower than your current rate.

But there are plenty of variables, such as fees and points. (A point is an upfront fee equal to 1 percent of the loan; the more points you agree to pay, the lower your rate.) Will you stay in usps office open today home long enough for the lower rate to offset the cost of fees and points? You can crunch the numbers using mortgage calculators such as those offered by Bankrate, NerdWallet, HSH, SmartAsset and others.

Refinancing west valley school district yakima wa is high, and it may take longer than usual to get appraisals and title searches as government offices shut down because of the coronavirus epidemic. You may also have to do a virtual closing via videoconference, to maintain social distancing safety guidelines. Ask your bank how long their refinancing process takes, and whether they are reasonably sure that they can close the deal in a reasonable amount of time.

(Editor's note: This article was updated with additional information.)

Источник: https://www.aarp.org/money/credit-loans-debt/info-2020/mortgage-coronavirus-faq.html

The Hidden Cost Of Making A Late Payment On A Mortgage: Consequences Of Making Late Mortgage Payments

The effect of a single late payment on your credit report varies. If you have a particularly high credit score and suddenly miss a payment, you can see a steeper drop than someone with a score of 640 and a few late payments, according to Experian®.

Here’s some good news: FICO® says one late payment is not a score killer. Your score takes into account late payments only as part of your overall payment history. If you have paid your bills in the past and continue to pay all your bills going forward, you should be able to make up the drop eventually. However, you should know that any late payment will stay on your credit history for 7 years.

The credit hit gets worse the more you push the payment back. A payment that’s 90 days late is worse than one that’s 60 days late, which is worse than one that’s 30 days late, and so on. The biggest detriments to your credit are collection items such as bankruptcies, foreclosures and liens.

Other Effects On Your Credit Score

Although we’ve talked about your mortgage payment up to this point, it’s important to note that the effects are similar if you have something like a home equity line of credit.

Your payment history is far from the only factor affecting your credit, it’s given the most weight – 35% of your overall score.

So, what happens when your credit score drops? The short answer is that it impairs your access to credit. However, it might be more meaningful to take a look at the practical impact.

When you have bad credit, it’s harder to purchase a new home or refinance your current one. Even if you get one, you may still have to pay a higher rate. The same is true for car loans.

You may also have trouble opening up new credit cards as well. This includes the cards you can get from retail stores.

There are also chase bank mortgage forgiveness outside access to credit and money. Employers will sometimes run your credit when you apply for jobs. It can affect your insurance premiums as well.

If a life change causes you to temporarily have trouble making your mortgage payment, the most important thing to remember is to contact discover online banking bonus lender or servicer. You might be able to work out a payment plan so that you won’t continue to fall behind and to find a solution that works with your budget. Even if you’re on a payment plan, your credit will continue to be impacted until your loan is current.

Источник: https://www.rocketmortgage.com/resources-cmsassets/

How to Get Your PPP Loan Forgiven

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Updated 8/5/21

The SBA has launched its own PPP loan forgiveness portal. It is intended to simplify the forgiveness process and allow some borrowers to apply for forgiveness directly through the SBA portal. You can find that portal here. To qualify to use the portal, businesses must have borrowed $150,000 or less and, importantly, PPP lenders must opt in. Because not all lenders have opted in, businesses must first determine if theirs has. You can find a list of participating lenders here. If your PPP lender has not opted into the SBA direct forgiveness portal or you've borrowed more than $150,000, you will still need to apply for forgiveness through your lender. Here is a complete guide on PPP loan forgiveness chase bank mortgage forgiveness the U.S. Chamber of Commerce.

______________________________________

One of the most extensive ways the federal government sought to aid businesses suffering from coronavirus-related shutdowns and disruptions was implementing the Paycheck Protection Program (PPP).

After its creation in March 2020, the program has been modified several times to ensure more businesses could participate, with the SBA approving more than 5 million loans worth more than $525 billion throughout 2020.

What made the program so popular was the ability for businesses to have their loans forgiven, effectively making them grants. However, the loans were issued with specific criteria that needed to be fulfilled to have them forgiven. Below we will outline requirements for loan forgiveness, how to get a forgiveness application and other important details for those businesses hoping to have their PPP loan forgiven, including the latest revisions issued by the federal government in July 2021.

Background on the Paycheck Protection Program

First, let’s explain briefly how the PPP works to better explain the forgiveness aspect. The PPP was created in March 2020 as part of the federal government’s $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. On top of tax breaks and changes in the CARES Act, the PPP was designed to provide a simple way for businesses to keep their employees on payroll and cover some additional expenses.

The PPP program was further modified with major revisions in June 2020 and December 2020 to add more flexibility for how borrowers spend loan funds. The December bill also reopened the PPP program so more businesses could apply for a first-time loan and created the ability for businesses to potentially obtain a second PPP loan.

Generally speaking, PPP loans carry generous terms. All PPP loans have an interest rate of 1%, with loans issued prior to June 5 maturing after two years and loans issued after June 5 maturing after five years. Basically, PPP loans issued before June 5, 2020, must be paid back in two years, and loans issued after that must be paid back in five years. No collateral or personal guarantees were required for the loan and no fees were charged to small businesses by the banks or credit unions providing the loans. While the loan terms were generous, the best aspect of them was that they could be forgiven.

The Treasury Department said it plans to automatically audit all PPP loans larger than $2 million. Smaller loans most likely won’t be targeted for audit, but some “spot checks” will occur. Additionally, banks including JPMorgan Chase & Co. (the single largest lender of PPP

loans) said they would investigate instances of borrowers misusing PPP funds.

Requirements for loan forgiveness

To qualify for PPP loan forgiveness, businesses must fulfill various requirements. The terms regarding forgiveness were last updated in December 2020.

Effectively, forgiveness is granted to employers that have kept or rehired employees while also maintaining salary levels from before the pandemic. Employers can still be eligible for partial forgiveness if they don’t meet all of these criteria, such as if full-time headcount declined or salaries decreased somewhat.

Requirements for full forgiveness include:

  • At least 60% of the loan must be used for payroll costs.
  • The remaining 40% of the loan can be spent on the following expenses: (1) qualifying mortgage interest or rent obligations; (2) utility costs; (3) operations costs such as business and accounting software; (4) property damage such as destruction from civil unrest that was not insured; (5) supplier costs on essential goods; and (6) worker protection expenditures such as personal protective equipment (PPE) and sneeze-guards.
  • While the loan is being used, employers must attempt in good faith to maintain similar levels of employment and pay what they had prior to the pandemic.

Loan forgiveness reduction from EIDL

The December 2020 stimulus bill revised how Economic Injury Disaster Loan (EIDL) grants impact PPP loan forgiveness. Originally, PPP loan forgiveness would be reduced by the amount a business received in EIDL grants. That has been changed so that loan forgiveness will not be reduced regardless of whether a business received an EIDL grant.

Complete a loan forgiveness application

As long as you have abided by the rules and requirements provided by the SBA, then businesses can submit a loan forgiveness application. Businesses will need to submit an application to the financial institution from which they received their PPP loan. (Small businesses with employees can use this standard PPP forgiveness application as a guide for what information they need to provide, while sole proprietors, independent contractors and self-employed people who have no employees can use this EZ version of the application as a guide.)

For small businesses with employees, the application asks businesses to submit details such as payroll and nonpayroll costs, adjustments for wage reductions and potential forgiveness amounts. Additionally, you’ll use the application to certify that the loan funds were used as intended, that you verified payments to employees and generally that the forms and information submitted to the SBA are true.

The loan forgiveness application also includes measures to “reduce compliance burdens and simplify the process for borrowers,” including:

  • The ability for borrowers to calculate payroll costs using an “alternative payroll covered period” that better aligns with a borrower’s normal payroll cycles.
  • The flexibility to include some payroll and nonpayroll expenses paid or incurred during the 24-week period after receiving their PPP loan (meaning employers would not be limited only to costs in the original two-month timeline).
  • An exemption from loan forgiveness reduction for any borrowers who made a “good-faith, written offer to rehire workers” that was later declined.

The deadline for submitting a forgiveness application is 10 months after the end of the “Covered Period” of the loan, which is between 8 and 24 weeks. As such, after the period where you use the loan funds ends, you should submit a timely application with your lender.

Once chase bank mortgage forgiveness loan forgiveness application has been submitted, then businesses wait to find out if it has been accepted. Notably, as long as a business submits a loan forgiveness application within 10 months of their loan being used, they are not required to make any payments on the loan. If the loan is then fully forgiven, then the business does not need to make any payments at all. If the loan is only partially forgiven or not forgiven at all, the loan must be paid off in full before its maturity date.

Simple forgiveness for PPP loans of $150,000 or less

Revisions to PPP in the December 2020 coronavirus relief bill required that any business that had a loan of $150,000 or less can fill out a simplified one-page application.

More questions and answers

If you’re looking for more information on the December 2020 changes to PPP, the U.S. Chamber released an updated guide to Guide to Small Business COVID-19 Emergency Loans. Additionally, it would be smart to contact your financial advisor or accountant to review all of how to activate walmart prepaid debit card PPP details before submitting a forgiveness application.

For more information on the new stimulus package, watch our Small Business Update with U.S. Chamber of Commerce Chief Policy Officer Neil Bradley, which breaks down how the new legislation impacts PPP loans, taxes and more.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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Published December 28, 2020

Источник: https://www.uschamber.com/co/run/business-financing/getting-ppp-loan-forgiven

What Happens To A Mortgage When The Borrower Dies?

The Difference Between An Heir And The Executor Of An Estate

It should be noted that there’s a difference between an heir and the executor of an estate, because only one has the authority to make final decisions on an estate.

The heirs are those who may receive money under the will, but they don’t have power over the estate or the sale of assets. Usually these individuals are family members or someone the client had listed as beneficiaries in a will.

An executor is designated to administer the estate and make sure all claims are paid and that the remaining property goes to the heirs. Because of the power an executor first national bank severna park, an executor can consult with heirs regarding the estate or sale of assets but isn’t obligated to do so. The executor has the ultimate authority to make final decisions concerning the estate.

Oftentimes when there is a larger family concerned, one heir, or a dependent of the client, will be made the executor, while any other dependents remain heirs. Should there be a dispute between the executor and heir(s), a judge can make a final decision on the estate.

The executor can choose whether to pay off the remaining mortgage balance by selling the home, dividing the money from the sale between the heirs, resuming payment of the loan in the deceased individual’s name, or refinance the mortgage into their own name.

Источник: https://www.quickenloans.com/learn/what-happens-to-a-mortgage-when-the-borrower-dies

Lender Sold Your Mortgage? Here's What You Should Know

Mortgage Sold

Have you ever taken out a loan from a mortgage company or bank only to find out a few months down the road that it’s been sold?

Don’t be surprised if this happens to you -- multiple times -- because it’s common that lenders sell mortgages.

Federal banking laws allow financial institutions to sell mortgages or transfer the servicing rights to other www mysynchrony com home locations consent is not required when lenders sell mortgages.

It might seem alarming because a mortgage is something very personal to a consumer, a symbol of your home ownership.

But banks and other financial institutions view your mortgage differently.

To them, your mortgage is just another financial asset. And that means lenders handle your home loan much more differently than you might.

Questions might be swirling around in your head. Why is your servicer allowed to do this? What does it mean for you? Are the terms of your mortgage going to change?

Don’t panic if you discover that your mortgage now belongs to another institution. Remember: a loan is a loan no matter who owns it.

Your interest rate, payment amount, type of loan (fixed rate or ARM), etc. cannot change just because your loan has been sold.

The only thing that’s changing is the address you’re sending your payments to.

To help put your mind at ease, here are answers to all of the questions you might have about your lender selling your mortgage:

Why do lenders sell mortgages?

There are basically two main reasons why a lender might sell your mortgage.

1. To gain capital

When a loan gets sold, the lender has basically sold servicing rights to the loan, which clears up credit lines and chase bank mortgage forgiveness the lender to lend money to the other borrowers.

Much as we might think that financial institutions have countless amounts of cash on hand, the truth is that lenders needs to keep a large enough pool of money on hand in order to lend to other people.

Let’s say the bank is lending you $200,000 to buy a home.

Most mortgages last for 15 or 30 years -- and you’re certainly not the only person taking out a mortgage.

The bank would need to have billions of dollars in cash to issue loans to everybody.

That’s one of the main reasons why it sells loans like yours.

2. To make money

Lenders can make money by charging fees when the loan originates, earning interest from your monthly payments, and selling it for commission.

Administering a loan has value because it earns the mortgage servicer money -- a small percentage of the interest rate you pay will go to the servicer.

Is your mortgage being sold a bad thing?

In most cases, no. Unless you are delinquent or behind on payments, the terms of your loan will not change because you’ve already borrowed the money and signed off on it.

What rights do I have?

The most important thing to take note of is that your lender must provide you with a loan ownership transfer notice when your mortgage is sold.

The new owner of your loan must notify you within 30 days of the effective date of transfer.

Included in this notice should be the following information:

  • The new owner’s name
  • Address and telephone number of new owner
  • The person who can resolve issues concerning your loan payments or any right to rescind the loan (if different from new owner)
  • Date of transfer
  • Whether the transfer of ownership is recorded in public records.

Do the terms of your mortgage change?

The short answer is: no. The new servicer of your loan is legally not allowed to change the terms of your previous loan.

This means that things like your interest rate, life of your loan, and payment date must remain the chase bank mortgage forgiveness, even under the new lender.

In regards to the escrow in your home, the new servicer will reevaluate your loan to determine if a sufficient amount of money is being collected each month.

If your escrow, as well as your monthly payments towards property taxes, mortgage insurance, and/or hazard insurance are deemed insufficient, it's possible the new servicer of your loan could increase your monthly payment.

It's also important to note that your new mortgage servicer cannot force you to establish an escrow account, if it was previously stated that you were contractually able to pay taxes and insurance on your own under your former loan.

However, if this stipulation was not specifically stated in your previous mortgage contract, or was just never discussed between you and your previous lender,then it's very possible (and legal) that your new servicer can require you to establish an escrow account with them.

How come I didn’t know this transfer might happen?

Did you read your contract? Really? It’s mandatory for lenders to disclose whether your loan will be sold and the percentage of loans it sells.

Better dig out that mortgage contract again.

What should I do once I hear from my new servicer?

You’ll want to read the first mortgage statement you receive from your new lender carefully -- verify that all the information it lists is true and accurate.

If you’re in the middle of applying for a loan modification, you may have to begin the process all over again.

Note that dealing with a new company for your mortgage means that you may have to fill out paperwork that might look different, talk with new staff, and send your payments to a new address.

Don't be afraid to reach out to your new servicer if you have questions.

What if I run into a legal issue?

“Consumers should not be collateral damage in the how much does a wire transfer cost bank of america servicing transfer process,” said Consumer Financial Protection Bureau Director Richard Cordray.

Mortgage companies have a legal obligation to protect consumers during loan transfers between mortgage servicers.

That means paperwork should not be lost, servicers should not lose track of a homeowner’s loss mitigation plans, and they should not hinder a consumer’s chance to save his or her home from unnecessary foreclosure.

Understand that the process of transferring servicing rights is challenging logistically.

It might involve moving thousands of loan documents, which explains why issues arise.

If your payment is returned and your servicer notifies you that it’s no longer servicing your mortgage, know your rights.

You do not want to end up in a situation where you receive a notice in the mail stating that you’re late on a payment -- and then wonder confusingly why you were never notified that you needed to send your payment to a new servicer.

If you have a complaint or question about the transfer of your loan, you have a legal right to send a written request or note to your previous lender.

By law, your lender is required to respond in 20 business days within receiving your letter, and in 60 business days, must either correct the addressed problem (and also give you notice that it has been corrected), or give you, the borrower, a written notice why the problem is not being corrected.

Either way if you need a problem corrected or are just requesting information, you will get a response from your lender -- it's the law that they do so.

Final thoughts

Understand that both your old and new servicers must notify you about the transfer of your servicing rights no less than 15 days before the effective date of transfer.

If you never received the servicing transfer notice, you can also file a complaint with the CFPB online. You should also consult an attorney.

Remember, receiving a notice that your mortgage has been sold should not be taken personally.

As long as you have been notified in a timely manner, your new servicer accurately lists your information, and you send in payments to the right address you should have nothing to worry about.

Continue Reading

Источник: https://www.mybanktracker.com

Why banks are putting PPP forgiveness on the back burner

The Paycheck Protection Program's forgiveness portal has debuted, leaving bankers and their borrowers with a big decision.

Those who participated in the $659 billion program must determine if they are ready right now to navigate the complex system for having loans forgiven, or if it makes sense to wait and see if Congress intervenes bill belichick linda holliday simplifies the process. That decision was complicated over the weekend when talks about a new round of stimulus collapsed, casting doubt on when — or if — PPP will get an overhaul.

A number of banks, including JPMorgan Chase, the program's biggest participant with $29.2 billion in PPP originations, plan to hold off on processing applications. The $3.2 trillion-asset banking giant will start the forgiveness process next month, said Kimberly Hooks, a vice president at Chase Business Banking.

JPMorgan Chase is backing a push for automatic forgiveness “as it would help thousands of small business owners get back on usps office open today feet,” Hooks added.

Holtmeyer & Monson in Memphis, Tenn., is taking a similar wait-and-see approach with the 12,000 PPP loans it is servicing for 450 banks.

“We had hoped chase bank mortgage forgiveness to actively start taking applications, but we made the decision to hold off,” said Arne Monson, the firm’s president and a co-founder. “We’re hoping like hell we get automatic forgiveness for loans of $150,000 and below, and maybe a streamlined [process] for those up to $2 million.”

An SBA spokeswoman confirmed Chase bank mortgage forgiveness that the agency's platform began accepting forgiveness applications on schedule, though she did not provide any statistics on opening-day activity.

The SBA stopped accepting applications for new Paycheck Protection loans on Saturday, after Congress failed to extend the program’s operating authority. Lawmakers are considering a number of proposals for a revived PPP, including increased funding and letting the hardest-hit small businesses obtain a second loan.

Lenders' willingness to procrastinate, even if it means delaying resolution of billions of dollars in loans, comes as little surprise to many industry observers.

The SBA approved about 5.2 million PPP loans for more than $525 billion before the portal's closure. The program offers low-interest loans to small businesses impacted by the coronavirus pandemic. Funds spent on basic operating expenses are eligible for forgiveness, making the program even more attractive to struggling entrepreneurs, but the process has been rocky, characterized by delays and unclear guidance.

The forgiveness process has been stressful for borrowers and lenders.

The SBA did not release a forgiveness application until mid-May, nearly six weeks after it began approving loans. A month later, following criticism that the original 11-page application was too long and complex, the agency released a streamlined form for self-employed borrowers and those that did not reduce employees’ wages by more than 25%.

Before July 23, when it released news of the forgiveness platform, the SBA had never indicated where lenders could submit their applications.

Confusion surrounding the process prompted bankers' groups to lobby for blanket or automatic forgiveness for smaller loans. Lawmakers are considering several bills to that effect.

At the same time, a growing number of lenders have opted to bypass the issue by selling their PPP portfolios.

Others, like Holtmeyer & Monson and the $19.8 billion-asset Atlantic Union Bankshares in Richmond, Va., opted to largely outsource the forgiveness process. Monson said his firm turned to a team of certified public accountants in Boston for help answering clients’ questions; it contracted with Summit Technology Consulting Group in Mechanicsburg, Pa., to package applications for submission.

The arrangement “offers our clients a Cadillac solution,” Monson said.

Not every bank is waiting for Congress to act on forgiveness.

The $2.2 billion-asset First Choice Bancorp in San Diego opened its online forgiveness portal to borrowers on July seating chart capital one arena and plans to begin uploading applications to SBA “in the near future,” said Lorraine Lee, its chief strategy officer.

First Choice, which approved nearly 1900 loans totaling $400 million, is “definitely submitting forgiveness applications right away,” President and CEO Robert Franko added. “We want to provide peace of mind to our clients who have their information ready to submit.”

For another community bank, the $1.7 billion-asset Greene County Bancorp in Catskill, N.Y., there are no one-size-fits-all forgiveness solutions. The company is ready to split the difference between submitting and holding on to its Paycheck Protection loans.

Greene County, which made more than 1,260 PPP loans for $100 million, believes many of those deals are ready for forgiveness right away. In some cases, however, “it may make more sense for some of our clients to wait for further announcements,” said Sean DuBois, vice president commercial lending and business development.

Источник: https://www.americanbanker.com/news/why-banks-are-putting-ppp-forgiveness-on-the-back-burner
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Comments

  1. in my opinion the best deal is in switzerland, in certain cantons (zug,schwyz, lucerne, zürich, nidwalden) they business taxes are really low and you get a lot support by authorities. also income taxes are pretty low (in zug, schwyz) like 20% all in with all social security if you get paid like 100k/year. and besides all of that you live in a beautiful country and go hiking and stuff.

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