Mortgage Payment Options for COVID-19 Hardships

These are the options for you

1. Refinance
2. Cash-out Refinance
3. Forbearance
4. Payment Deferral Programs
5. Short-term Repayment Plan
6. Loan Modification
   1. Standard Loan Modification
   2. Streamlined/No Application Loan Modification

If you’re current on your mortgage, your options include: Option 1, 2, and 3

If you’re past due on your mortgage, your options include: Option 3, 4, 5, 6

KEEP IN MIND

• No Forgiveness
• Home point is responsible for collecting your payments, managing escrow accounts for property taxes and insurance, communicating loan information,
• If your loan was insured or guaranteed by the FHA, VA or USDA, they also have guidelines for payment options.

• Replace your existing mortgage with a new loan to take advantage of improved loan terms.
• Best if you have a steady source of income and can continue to make your payments but want to lower your monthly payments.
• Need to work with loan officer
• Required:
  • New application
  • Must be current on your existing mortgage account
  • Steady source of Income

Benefit	Drawback
May lower your interest rate Changes the terms of your loan May change the loan type Normally a combination of the above will lower your monthly payment	Increases the time it takes to pay off your home Typically requires closing costs Could take up to three months to complete May lower your credit score

• Replace your existing mortgage with a new loan TERM.
• New loan term PAYOFF the old/existing loan.
• You receive a check for a cash out amount.
• Proceed with the new payment plan
• Best if you have a steady source of income, have current equity in your home, and want cash to pay extra expenses or medical bills.
• Required:
  • New application
  • Must be current on your existing mortgage account
  • Steady source of Income
  • Must have equity in your property

Benefit	Drawback
Provides cash at closing that can help with unexpected expenses May lower your interest rate Changes the term of your loan May change the type of loan	May increase your monthly payment Increases the time it takes to pay off your home Typically requires closing costs Could take up to three months to complete Increases total debt which may lower your credit score

It provides the ability for you to reduce your monthly payments or pay nothing at all for a specific period of time.

• While the total amount of missed payments becomes due at the end of the plan;

Please note that during the term of your plan, you will continue to receive billing statements

and other legally required notices.

Forbearance is right for people who are experiencing a short-term hardship that has impacted their ability to make the monthly mortgage payment.

Your account must not be in foreclosure or bankruptcy

When the forbearance plan is over, all missed payments will be due in full or you will need to work with loan officer to obtain a repayment plan or other relief option

A forbearance is an agreement that allows you to either

• make a reduced mortgage payment or
• no mortgage payment at all for a in full at that time,

The CARES Act allows for two forbearance periods, each of up to 180-days

Customers may also be eligible for two additional 90-day Forbearance periods depending on the owner, guarantor or insurer of the loan.

Benefit	Drawbacks
Offers instant, temporary payment relief; No late fees; No negative credit reporting during the forbearance period The terms of your mortgage do not change	Forbearance is not forgiveness, therefore you must either work with loan officer to identify other relief options or make up all missed payments at the end of the forbearance period

Deferrals or other similar programs are for borrowers who have resolved a temporary hardship and resumed their monthly contractual payments but cannot afford either a full reinstatement or repayment plan to bring the loan current.

A deferral will take your past due principal and interest payments and bundle them into a non- interest-bearing account and make them due whenever you pay off the loan.

Similar programs will extend your loan term for the number of payments that are owed. The plans typically available may require you to be no more than two months past due on your mortgage.

What you need to know:

Investors decide whether to offer these programs. Fannie Mae® and Freddie Mac® have both announced payment deferment programs that will be available in the near future. Each program has their own requirements, and neither are available prior to July 1, 2020. Other investors may offer similar types of programs in response to the COVID-19 situation, so your options may change over time

What are my options?

The availability of this option, and similar ones, depends on your loan type. If you don’t know your loan type, you can contact us via phone at 1-844-576-5333, and we will provide that information and more on what options might be available.

A repayment plan is an agreement that enables you to temporarily pay a higher monthly mortgage payment to catch up on past due payments over a short time period.

How it works

• You must contact a loan officer or loan payment specialist to request a short-term repayment plan.
• Loan officer will conduct an affordability determination to determine your ability to repay the missed payments.
• Once that review is complete, you will be sent a repayment plan agreement, which allows you to “catch up” by paying a little bit extra each month if you have fallen behind. You don’t need to submit additional financial information.

What are my options?

Home point offers up to six months for a short-term repayment plan.

BEST: If you are not behind more than 3 payments and can temporarily make higher payments to catch up.

What you need to know:

You must be behind on your mortgage payments;

Loan Officer will conduct an affordability determination;

Amount of payment cannot exceed 150% of your current mortgage payment; Must become current within six months or any specific months.

Benefit	Drawbacks
Spreads the amount owed across an extended time period Helps to establish a path to become current Your credit score will continue to improve as you make more payments throughout the plan	Higher monthly payments Your past due status will be reported to the credit reporting agencies during the plan Only available if you can become current in six months or less Total payment cannot exceed 150% of your current monthly payments

(Streamlined/No Application)

It offers you the ability to modify the terms of your original agreement to make it more affordable and to avoid foreclosure.

How it works

Speak with a payment specialist to request loan modification.

Depend on your situation you may not need to submit financial information to qualify.

If approved, the specialist will modify the terms of the loan to bring the account back to current status.

What are my options?

• The lender or investor of your mortgage will determine your loan modification plan or amount.

BEST

• If your hardship has ended and you can make modified monthly payments.

What you need to know:

• You must be past due on your mortgage payments to qualify;
• Your loan must be at least 12 months old;
• Your loan term may be extended up to forty years

Benefit	Drawbacks
May help reduce monthly payments Helps restore loan to current status Quick and minimal documentation required	May extend the time it takes to pay off your mortgage The unpaid principal balance of your loan will increase due to the capitalization of the unpaid past due amounts Terms are dictated by the investor

(Complete Application)

It is BEST if you are past due on your mortgage payments and do not qualify for a streamlined

or no application loan modification.

This option offers the ability to modify the terms of your original agreement to potentially make it more affordable and to avoid foreclosure.

How it works

Submit a completed Mortgage Assistance Applications to apply;

If approved, the specialist will modify the terms of the loan to bring the account back to current status.

What are my options?

• The lender or investor of your mortgage will determine your loan modification plan or amount.

What you need to know:

• In order to QUALIFY, You MUST demonstrate your hardship has ended and you can afford a modified monthly payments;
• You must be past due on your mortgage payments to qualify;
• Your loan must be at least 12 months old;
• Your loan term may be extended up to forty years

Benefit	Drawbacks
May reduce monthly payment Restores credit reporting to current	May extend the time it takes to pay off your mortgage The unpaid principal balance of your loan will increase due to the capitalization of the unpaid past due amounts Terms are dictated by the investor

Get Started

• To talk about options with payment specialist: 1-800-686-2404
• Refinance or Cash-Out Refinance – Call Loan Officer at 1-866-586-0619 and start the process at www.apply.homepoint.com
• To setup Forbearance
  • Login into your account: www.my.hpfc.com
  • Click the “Impacted by COVID-19?” button under your property;
  • Fill out the short Form
  • You may also call at 1-800-686-2404