- Posted December 13, 2012 by
Fair Oaks Ranch, Texas
This iReport is part of an assignment:
Why the Government's Making Homes Affordable Failed
The formula Bank of America and several other banks are using to calculate Home Loan Modification interest rate under Making Homes Affordable Program is abusive and discriminatory. Their policies do not match the intent of the MHAP at all.
It is discriminatory because there is no justification for the different rates of interest placed on the loan repayment schedule.
It discriminates against anyone who is entitled to a home tax exemption of any kind, implying those individuals can afford a higher interest rate just because they don’t have property taxes or reduced taxes. Many of those not encumbered with property taxes are elderly or disabled veterans or both and to charge them a higher interest rate based on that one aspect is discriminatory.
It also discriminates against anyone who resides in a different state, county, or city whose real estate tax and home owner insurance are less than their neighbors and benefits those who’s real estate taxes and home owner insurance are greater than their neighbors, implying those individuals can afford a higher or lower interest rate just because they have reduced property taxes and homeowner insurance or greater property taxes and homeowner insurance.
When I applied for Bank of America's Making Homes Affordable Program in 2010, Bank of America Discriminated against me by taking my Texas Home Tax Exemption of $403.08 and putting it in their pocket in the form of higher interest than I would qualify for if I were not a disabled veteran. I have filed a complaint with The Office of Fair Housing Enforcement, U.S. Department of Housing and Urban Development (HUD) CASE Number 06-11-0855-8 on June 21, 2011.
The problem is in the formula being used by Bank of America, Chase, Citi Bank, and Wells Fargo Bank which has caused thousands of disabled veterans to either pay a higher interest on their home loan because they are disabled or loose their home to foreclosure. All in direct violation of their civil rights under the Fair Housing Act.
The monthly schedule formula being used by these banks is:
31% of Gross Income = (Principal + Interest) + (Tax + Insurance + HOA).
Therefore, the (Principal + Interest) = 31% of Gross Income - (Tax +Insurance +HOA)
As a disabled Veteran with 100% Home Tax Exemption, my numbers are:
(Principal + Interest) = $2,066.84 - ($0.00 + $174..00 +$5.00)
(Principal + Interest) = $1,887.84
If I were not a Disabled Veteran them my numbers are:
(Principal + Interest) = $2,066.84 - ($403.08 + $174.00 +$5.00)
(Principal + Interest) = $1,484.76
If I were not a disabled Veteran my Mortgage Interest Rate, as calculated by Making Homes Affordable Program would be 2.857%.
However, because I am a Disabled Veteran my Mortgage Interest Rate increases to 5.00% under Bank of America’s Making Homes Affordable program.
I have a suit filed in Texas in the 288 Judicial District Court for Bexar County, Texas # 2012CI16814 to defend myself against Bank of America's illegal foreclosure on my home.
Here is the simple math burden of proof of the formula:
$10 = $15 - $5
$11 = $15 - $4
The $10 & $11 are the Principal + Interest of a loan with a fixed principal amount. In other words, the Principal does not change, only the Interest.
What this means is for every $1.00 less a homeowner pays for their Home Tax, Insurance and Homeowner Association Fees each month than the person who pays the absolute most, will pay $1.00 more in Interest each month.
I believe HUD has collected date on the number of illegal home foreclosures in America by Bank of America and other banks who use the MHAP/HAMP.
I do not believe that date includes the number of homes wrongly rejected because they "overqualified" for assistance under the terms of MHAP/HAMP.
I believe that number is in the millions of homes and the biggest SCAM in the conscience of our history.
U.S. Dept of Housing and Urban Development
Fort Worth Regional Office, Region VI
Office of Fair Housing
801 Cherry Street, Unit #45, Ste. 2500
Fort Worth Texas, 76102
HUD AMENDED COMPLAINT 06-11-0855-8 dated June 21, 2011.