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July 11, 2009
Reworking Second Mortgages
Under the Home Affordable Modification Plan (HAMP), banks may begin working with Treasury to refinance second mortgages, including home equity loans, into a government-subsidized program. This part of the HAMP could get up and running in August.
Texas lawyers will be wondering how this will work with the complicated Texas Home Equity Loan provisions embedded in the Texas Constitution which carry the possibility that a lender can have a lien on the homestead invalidated for failure to comply.
Reuters reports that JP Morgan, Wells Fargo, Bank of America, and Citigroup own $450 Billion in second mortgage loans. Link to story: http://www.bloomberg.com/apps/news?pid=20601087&sid=a5_CLxsTSQ14
(ag) July 11, 2009, in Home Equity Lending, Economy
July 11, 2009 in Economy, Home Equity Lending | Permalink
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