Paramount Equity Mortgage under heavy scrutiny #mortgage #refinancing #calculator


#paramount mortgage

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Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.


Patching Leaking Metal Water Pipes #leaking #pipes #under #sink


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Patching Leaking Metal Water Pipes

Stop water leaks with metal pipe patches.

A patch is a temporary solution to a problem and immediately stops metal pipe leaks. Patching a leak gives you time to save money to hire a plumber to come in and replace the leaking pipe. The temporary fix gives you time to purchase the parts needed to replace the pipe without having to worrying about water damage to your home. Patch small pin leaks with a pipe repair clamp and larger holes with plumber’s epoxy.

Prepare to Patch

1

Turn off the water supply to the leaking pipe at the shutoff valve. Shutoff valves are commonly located on sink water pipes and at water pipe branch fittings. Run all the faucets in the home that are located above the leaking pipe to eliminate the remaining water from the pipes.

2

Wipe off the leaking area of the pipe with a clean rag. If you see any rust or lime scale on the exterior of the pipe, scrub it off with steel wool.

3

Inspect the leaking area. If a pipe joint is leaking, tighten the joint fitting with an adjustable wrench until it is hand tight. Turn the fitting of the pipe joint one-quarter turn to tighten it enough to re-form the seal.

Water Pipe Tape

1

Roughen a 4-inch area on the surface of the pipe around the leaking area with a coarse file rasp. If the area is a large crack or fissure, plug the hole in the pipe with pipe bonding putty. Put on latex or plastic gloves. Take a small ball of the pipe bonding putty and press it between the palms of your hands to form a disc. Center the putty disc over the hole and lightly press it onto the pipe. Use your thumb or forefinger to smooth the putty edges onto the pipe and make a seal. Let the putty sit for 30 minutes.

2

Fill a bucket with water. Put on latex or plastic gloves. Fully immerse the pipe repair tape and squeeze it three times over a period of 20 seconds to moisten it and activate the epoxy compound in the tape.

3

Center the pipe repair tape over the leak on the pipe. Begin to wrap it around the pipe, from the bottom end of the pipe repair tape roll. Hold the end of the repair tape down against the pipe and pull firmly as you wrap the tape around it. Wrap the entire roll around the pipe. Add another roll as needed to create a 1/2-inch-thick layer of the repair tape on the pipe. Press down and smooth out the end of the roll down onto the wrapped tape.

4

Dip your gloved hands into the water bucket to wet them, then press the epoxy resin that foamed up out of the tape down into the wrapped tape.

Water Pipe Epoxy

1

Tear off a piece of plumber’s epoxy that is the same size as the leaking area of the pipe. Knead the epoxy in your hands to mix the putty into one uniform color and make it pliable.

2

Place the epoxy on the pipe centered over the hole or leaking area and gently press it down.

3

Smooth out the edges of the epoxy onto the pipe surface. Wait for the epoxy to cure according to the curing time listed on the packaging.

Pipe Patch Kit

1

Smooth the surface of the hole on the pipe with a file.

2

Cut a 1-inch square of neoprene or rubber patch for pinhole leaks with scissors. For large holes or fissures, cut a patch the size of the hole or fissure in the pipe plus 1 inch on all sides.

3

Center the patch over the leaking area on the pipe. Attach the patch with hose clamps. Tighten the set-screws of the hose clamps with a screwdriver to hold the patch in place. Alternately, if you’re using a repair clamp, center the rubber-gasket side of the clamp over the leaking area of the pipe. Tighten the set-screws on the clamp with a screwdriver to make a watertight seal with the rubber gasket.

Things You Will Need

  • Clean rag
  • Steel wool
  • Adjustable wrench
  • Coarse file rasp
  • Bucket
  • Latex or plastic gloves
  • Pipe repair bonding putty
  • Pipe repair tape
  • Plumber’s epoxy
  • File
  • Scissors
  • Neoprene or rubber pipe patch
  • Pipe repair clamp

Tip

  • Pipe patches that are suitable for drinking water lines will clearly state on the packaging that they’re safe to use on lines that carry potable water. Potable water is drinking water that you can put into a pot to use for cooking.

Warnings

  • Some metal pipe patches may contain chemicals that can contaminate your drinking water and cause health problems. Only use patches graded for use on potable water lines or drinking water supply lines. These are the metal pipes that lead to any sink or faucet in your home.
  • Patches are temporary solutions to a leaking pipe problem. If the leaking area isn’t replaced by a plumber, it will eventually rupture. In some cases, this can flood your home with water and cause water damage that is expensive to repair.

About the Author

Alexis Rohlin is a professional writer for various websites. She has produced works for Red Anvil Publishing and was one of the top 10 finalists in the 2007 Midnight Hour Short Story Contest for OnceWritten.com. Rohlin holds a Bachelor of Fine Arts in English from Madonna University.

Photo Credits

  • Brand X Pictures/Brand X Pictures/Getty Images
  • How to Fix a Water Leak in a Pipe With JB Weld or Plumber’s Epoxy Putty
  • How to Use Epoxy Putty to Stop a Sink Pipe Leak
  • How to Fix a Split Galvanized Metal Pipe
  • How to Repair a Hole in a Steel Drainpipe Under the Sink

Paramount Equity Mortgage under heavy scrutiny #mortgage #rates #houston


#paramount mortgage

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Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.


New Hampshire DUI – DWI Laws – Enforcement #new #hampshire #dui, #new #hampshire #dwi, #new


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DUI DWI in New Hampshire

Driving while intoxicated (DWI) is a serious traffic violation. The New Hampshire Department of Safety (DOS), Division of Motor Vehicles (DMV), and all law enforcement stress the problem by issuing severe consequences for DWI.

The tests used to assess your DWI condition may be different but the consequences and disciplinary procedures are the same.

Your blood alcohol content (BAC) is important to consider, as well as how you feel and when you decide to drive. Some people will tell you they don’t drive if they have had just one drink. Alcohol is a substance that affects everyone differently; but you can be sure that we all suffer when it comes to our reaction time, alertness, and defensive driving skills.

Being convicted for DWI in New Hampshire doesn’t mean you’ll never have a driver’s license again. Like all traffic violations the DMV Point System plays a role in what happens to your license. Other factors relating to your arrest will influence your case as well as your driving record.

DWI Defined

When you are stopped by a police officer or state trooper, they will tell you why they pulled you over. If you are being assessed for DWI (either roadside or back at the police station) they will offer you the sobriety tests, which include:

  • Breathalyzer
  • Blood test
  • Urine test
  • Balance tests

When you accepted a New Hampshire driver’s license you became subject to implied consent. This concept means that you already agree to take the sobriety tests. But don’t worry, you still have the right to refuse the tests, even under the implied consent rule―you’ll just automatically lose your license for 180 days.

Assuming you’ve taken and failed the sobriety tests, the officer will use the results to charge you with DWI. If your BAC is over 0.08% then you have surpassed the legal limit for driving. However, if your BAC is under 0.08% the officer can still arrest you for DWI if he or she believes your driving skills are influenced. The officer might think your driving skills are affected if you are:

  • Driving too slow or too fast
  • Running over the curb
  • Straddling lanes
  • Passing improperly
  • Starting with a jerk

The rules for commercial drivers are more aggressive because the responsibility and risk when driving a big rig are usually greater than a regular Class D car, truck, or SUV. You should be very familiar with the FMCSA Rules regarding alcohol and commercial drivers.

As a commercial driver you can expect any trooper, DOT official, or police officer to be very upset if you have any alcohol in your blood. In fact, if you have a BAC of 0.04% or over you will be charged with a traffic violation.

Though you have to be 21 years old to purchase or transport alcohol, some drivers are arrested for DWI who are not over 21 years old. The BAC rule for drivers under 21 years old is not 0.08% but 0.02%.

Driving under the influence of drugs may not be as easily detected because there is no alcohol to be measured on your breath. However, the urine or blood test can be used to detect drug levels.

When you think about drugs and driving you need to consider over the counter medications or prescribed drugs that might influence your driving skills. Some cold medications, antidepressants, and other drugs will make you sleepy and decrease your reaction times.

Be conscious of what you are taking and make sure to read the warnings. Many drugs can hamper your safe driving habits; don’t just think of illegal substances like marijuana or cocaine.

License Suspension, Fines, and Consequences

While the courts have their own penalties for driving under the influence or while intoxicated, the DMV also has penalties. Any penalties by the court will be in addition to penalties by the DMV. Penalties will vary depending on whether you are convicted by a court.

The Division of Motor Vehicles penalties may include:

Administrative Penalties

DWI1st and 2nd offense

  • Driver’s license revocation: 90 days to 2 years.
  • SR 22 filing for 3 years.
  • Driver’s license reinstatement fee: $100 (youth operator license $50)
  • 2nd offense may require a Impaired Driver Care Management Programs (IDCMP)*
  • 2nd offense registration may be revoked.
  • Installation of an ignition interlock device.

Driving under the Influence of Drugs 1st and 2nd offense

  • Driver’s license revocation: 90 days to 2 years.
  • SR 22 filing for 3 years.
  • Driver’s license reinstatement fee: $100 (youth operator license $50)
  • 2nd offense may require a Impaired Driver Care Management Programs (IDCMP)*
  • 2nd offense registration may be revoked.
  • Installation of an ignition interlock device.

Transporting Alcoholic Beverages 1st and 2nd offense

  • Driver’s license revocation:
    • 60 days.(1st offense)
    • 1 year (2nd and subsequent offense)
  • SR 22 filing for 3 years.
  • Driver’s license reinstatement fee: $100 (youth operator license $50)
  • 2nd offense may require a Impaired Driver Care Management Programs (IDCMP) *
  • 2nd offense your registration may be revoked.
  • Installation of an ignition interlock device.

*Administrative penalties are in addition to any finding or punishment by the courts for a guilty charge of DWI. If sentenced to attend an Impaired Driver Care Management Programs (IDCMP); you will be responsible for all fees associated with the program.

Subsequent offenses mean even higher penalties by the courts and the DMV.

Appeals and Hearings

You always have the right to a hearing from the Bureau of Hearings. Applying for an appeal is a process that takes some time and because the Vehicle Code can be complicated you may want to hire an attorney. There are many good lawyers who specialize in DWI cases.

Drivers License Reinstatement

After the suspension period has passed, you’ve met all the requirements by the courts and for auto insurance and alcohol treatment, you can apply for reinstatement of your license.

The reinstatement procedure is the same as other DMV Point System violations; unless, of course, you are classified as a Habitual Offender. The Bureau of Financial Responsibility will help you get your through the reinstatement process.

Related Products and Services

DMV.org Insurance Finder


Under 50s Car Insurance – Get a Quote #looking #for #car #insurance #for #under #50s?


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Under 50s Car Insurance

Under 50’s Breakdown Cover Terms and Conditions

1. This offer applies to new Post Office Money Car Insurance customers only, purchasing a car insurance policy and who are aged 49 years or under at the time of the purchase of the policy. Customers who are renewing an existing policy, amending the details of the current policy or who have held a Post Office Money Car Insurance policy within 14 days prior to the start date of their new Post Office Money Car Insurance policy are not eligible for this offer.

2. The policy must be purchased directly with Post Office Money. This offer is not available via price comparison websites. Policies purchased directly with Post Office Money using a quote reference obtained from a comparison website will not be eligible for this offer.

3. This offer is not open to existing Post Office Money Car Insurance customers who are renewing an existing policy or changing the details of their current policy.

4. The included Breakdown cover offer (Roadside and Recovery vehicle based) is attached to the car insurance policy and will end if and when the car insurance policy ends. The included Breakdown cover offer is only available during the first year that you insure with Post Office Money Car Insurance.

5. There is no cash alternative. In the event that the policy ends, no refund will be due in respect of the Breakdown cover.

6. The Breakdown cover is provided by RAC Motoring Services. For full Terms Conditions of the Roadside and Recovery product, please see policy wording.

7. The included Breakdown cover cannot be transferred to any other policy.

8. The cost to upgrade to include At Home cover is 20 for one year. The cost to upgrade to include At Home and Onward Travel cover is 40 for one year.

9. At renewal of the main car insurance policy, the full cost of your RAC Breakdown product will be added to your renewal offer, unless you notify us otherwise.

10. We reserve the right to vary, withdraw or extend the offer at any time.

11. This offer is subject to underwriting criteria. Policy terms and conditions apply and will be provided within the documentation when a policy is taken out.

12. This offer is not available in conjunction with any other offer.

Call charges

0330 0345: Calls to 03 numbers will cost no more than calling a standard geographic number starting with 01 or 02 from your fixed line or mobile and may be included in your call package dependent on your service provider. Calls may be monitored or recorded for training and compliance purposes.

Corporate website

*This search box uses a service supplied by Google called Google Site Search. By using this search box you confirm that you accept, and agree to comply, with Google s Terms and Conditions, Privacy Policy and Cookies Policy. Please read these terms carefully before you start to use the search box. If you do not agree to Google s terms, you must not use the search box. Post Office Limited accepts no liability in respect of how Google uses your information when you use Google Site Search.

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Who Gets Mortgage Help Under Obama s Plan? #mortgage #types


#obama mortgage plan

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Who Gets Mortgage Help Under Obama’s Plan?

By: BankingMyWay.com Staff

by M. Gwertzman, BankingMyWay

President Obama unveiled his $275 billion plan to provide mortgage relief to homeowners yesterday, but there are still many details to be announced. The full plan – called the Homeowner Affordability and Stability Plan – will be released on March 4th, but until then, homeowners who think they might benefit should examine their own finances and situation to make sure they meet the eligibility guidelines.

The two main thrusts of the program are to help homeowners modify mortgages that they cannot presently keep on top of, and to help those who are unable to refinance their mortgages because the value of their home has dropped. The plan aims to help out close to 9 million homeowners.

It’s important to note that the plan doesn’t help everyone who’s been affected by the housing mess. Speculators or investors stuck with houses they can’t sell are out of the picture; only homeowners who commit to staying in their homes will benefit.

BankingMyWay has a few tips for what homeowners should do now if they want to take advantage of the plan. Here is some more basic information about the plan and its parameters.

I’d like to refinance my mortgage: If your mortgage is owned or guaranteed by Fannie Mae (Stock Quote: FNM ) or Freddie Mac (Stock Quote: FRE ), you may able to refinance into a 30 or 15 year fixed-rate mortgage. To be eligible, your mortgage must not exceed 105% of the current market value of the property. The current price of a property will be determined once the refinance application process is underway. According to the White House, to be eligible, you must have “sufficient income to make the new payment and an acceptable mortgage payment history.” The criteria will be specified on March 4th.

Refinancing may help lower your monthly payments, but it won’t reduce the amount of money you owe. The plan aims to help homeowners refinance into a stable loan with a fixed, affordable payment. Over the life of that loan, that translates into less interest paid on the mortgage. The idea is to make a refinance available to homeowners presently “underwater” on their mortgage .

I’d like to modify my loan: Under the plan, lenders are given incentives to modify existing loans so that borrowers are better able to meet their obligations. The goal is to assist homeowners already behind on mortgage payments, or who may be facing imminent default.

To be eligible:
• You must live in your house as a primary residency
• Your monthly payment must exceeds 31% of your monthly gross income
• Your loan can’t exceed Fannie Mae or Freddie Mac loan limits (typically $417,000, but higher in some areas)

The government is providing substantial incentives to both the lenders who modify loans and borrowers who keep up with their monthly payments. Borrowers can get up to $5,000 applied against the balance of their debt if they stay current for five years. Modifying a loan under the plan is also free – so borrowers should watch out for any organizations offering fee-based assistance with loan modifications.

Last week, Citibank (Stock Quote: C ) and Bank of America (Stock Quote: BAC ) announced a moratorium on foreclosure sales, which will extend until the eligibility guidelines are announced. So from now until March 4th, when the plan kicks in, homeowners who feel they are eligible for a refinance or modification should collect all their pertinent financial information: pay stubs, tax returns, other debt and loan payments (credit cards, student loans), and any other relevant documents.

There’s plenty of information on the web from the White House and Treasury as well.


Principal Reduction Alternative Under the Home Affordable Modification Program #getting #a #mortgage


#hamp mortgage

#

Like – Click this link to Add this page to your bookmarks Share – Click this link to Share this page through email or social media Print – Click this link to Print this page

Principal Reduction Alternative Under the Home Affordable Modification Program

Background

To help distressed homeowners lower their monthly mortgage payments, the U.S. Departments of the Treasury and of Housing and Urban Development established the Home Affordable Modification Program SM (HAMP SM ) for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac.

Under HAMP, a participating loan servicer must consider a sequence of modification steps for each eligible homeowner’s mortgage loan until the loan’s monthly payment is reduced to 31 percent of the homeowner’s verified monthly gross (pre-tax) income. Sometimes, a change in the mortgage loan’s interest rate is sufficient to reach the 31–percent target. Sometimes additional modification steps of term extension or forbearance are necessary as well. See the Home Affordable Modification Program (HAMP) page on the MakingHomeAffordable.gov website.

(For mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, eligible homeowners may be offered modifications under related programs also called “HAMP.” Because these related programs do not contain the principal reduction provision that these FAQs address, these FAQs use the term “HAMP” to refer only to the program for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac.)

Since the last quarter of 2010, if a mortgage loan is being considered for a HAMP modification and if the ratio of the amount owed to the value of the home is greater than 115 percent, then the servicer must consider whether a Principal Reduction Alternative SM (PRA) principal reduction should be effected as one part of the HAMP modification. See the Principal Reduction Alternative (PRA) page on the MakingHomeAffordable.gov website.

For HAMP modifications that include a PRA principal reduction, the unpaid principal balance of the modified loan is divided into an interest-bearing principal amount and a non-interest-bearing PRA Forbearance Amount. If the homeowner then achieves a payment history that is sufficiently timely over a three-year period, the entire PRA Forbearance Amount is eventually reduced to zero.

In connection with every HAMP modification of a loan that is not owned or guaranteed by Fannie Mae or Freddie Mac, to encourage participation in HAMP, the government provides incentives to the investor (that is, the holder of the loan), to the homeowner, and to the servicer. If a HAMP modification of such a mortgage loan includes a PRA principal reduction, the government makes additional incentive payments over three years to the investor. (These additional incentives are called “PRA investor incentive payments.”) The size of the PRA investor incentive payments depends not only on the amount of principal reduced but also on the loan-to-value ratio and the loan’s payment history before the HAMP modification. The PRA investor incentive payments range from 6% to 21% of the principal amount reduced.

For information on tax issues related to the Principal Reduction Alternative, see the questions and answers below.

Questions and Answers on Tax Issues Related to the Principal Reduction Alternative

Q1: If the government makes a PRA investor incentive payment to the holder of the mortgage loan, how is that payment analyzed for federal income tax purposes?

A1: The PRA investor incentive payment to the holder is treated as a payment on the loan by the government on behalf of the homeowner.

Q2: Does a homeowner have income as a result of the government’s having paid some of the homeowner’s mortgage loan by making a PRA investor incentive payment to the holder of the loan?

A2: No. This payment by the government on behalf of the homeowner is excludible from the homeowner’s income under the general welfare exclusion. Excluding this amount from the homeowner’s gross income is consistent with the treatment of Pay-for-Performance Success Payments, which are addressed in Revenue Ruling 2009–19.

Q3: In a HAMP modification that includes a PRA principal reduction, the holder of the loan reduces the PRA Forbearance Amount by more than the PRA investor incentive payments (which are treated as payments on the loan on behalf of the homeowner). What federal income tax consequences for the homeowner result from that additional reduction by the holder?

A3: To the extent that the reduction in the PRA Forbearance Amount is more than the PRA investor incentive payments, the reduction is from the discharge of indebtedness. The full amount of this discharge of indebtedness is reported to the IRS and the homeowner on Form 1099–C, Cancellation of Debt, regardless of whether the homeowner may exclude any, or all, of it from gross income. See Questions 4 and 5 below for discussion of some exclusions that may apply.

Q4: Does the exclusion for qualified principal residence indebtedness apply to amounts discharged under a PRA principal reduction?

A4: The exclusion for qualified principal residence indebtedness may apply to a discharge of indebtedness under a PRA principal reduction if the amount discharged meets the criteria for qualified principal residence indebtedness. Under current law, this exclusion does not apply to discharges that occur after Dec. 31, 2013. For further discussion of the qualified principal residence exclusion, see the questions and answers on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation page. (No longer available)

Q5: Does the insolvency exclusion apply to amounts discharged under a PRA principal reduction?

A5: The insolvency exclusion may apply to a discharge of indebtedness under a PRA principal reduction to the extent that the taxpayer is insolvent when the discharge occurs. For further discussion of the insolvency exclusion, see page 4 of Publication 4681. Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals).

Page Last Reviewed or Updated: 13-Oct-2015


Paramount Equity Mortgage under heavy scrutiny #business #mortgage


#paramount mortgage

#

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.


Paramount Equity Mortgage under heavy scrutiny #nova #home #loans


#paramount mortgage

#

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.


Paramount Equity Mortgage under heavy scrutiny #mortgage #life #insurance


#paramount mortgage

#

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.

Paramount Equity Mortgage under heavy scrutiny

Washington state intends to revoke the company s license, and Oregon will investigate its advertising

Thursday, July 24, 2008

The Oregonian Staff

Washington mortgage regulators announced Wednesday they intend to revoke the license of Paramount Equity Mortgage, a Roseville, Calif. firm that has blanketed Northwest radio stations with commercials promising cheap and easy mortgages.

Oregon mortgage officials are also looking into Paramount’s advertising.

The Washington Department of Finance accused Paramount of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rates, failing to make required disclosures and making state and federally required disclosures in a deceptive manner. The department said it will fine Paramount $500,000.

“Paramount failed to make proper disclosures in almost every loan we reviewed,” said Deb Bortner, director of consumer services for the finance department.

In addition, the state had a problem with Paramount’s claim that it would pay to have its customers’ homes appraised. Paramount covered the cost of an appraisal and then charged its clients a series of fees, Washington officials claimed.

Paramount officials denied any wrongdoing.

“We believe these allegations are completely unjustified, and we look forward to defending ourselves against all charges,” the company said in a written statement.

If Paramount and Washington regulators can’t negotiate a settlement, the charges will be heard by an administrative law judge.

Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

Among the individuals named in the Washington action is Hayden “Hayes” Barnard, Paramount’s president, co-owner and spokesman in the company’s ubiquitous commercials.

Oregon regulators are also looking into Paramount but are restricting their probe to the company’s ads. Oregon has not launched a formal investigation into the company’s operations, though it has received seven consumer complaints and several questions about its advertising, said Lisa Morawski, spokeswoman for the Oregon Department of Consumer and Business Services.

The Oregon department’s mortgage division adopted new rules in May aimed at preventing “bait-and-switch” and other misleading advertising.