3/8/2011 2:02 PM (PST)

Eva, what is the company charging for this report?

REST Report stands for Real Estate Services and Technology, and this is the name of a company that has created a product that imitates the U.S. Treasury Department’s algorithms and guidelines that lenders and servicers are supposed to use when determining Home Affordable Modification Program (HAMP) eligibility.

I can't speak from experience about this product, but it and similar products are being pitched directly to homeowners through a large network of affiliates and attorneys and others as a tool to self educate and prepare for a loan modification application to their lender.

The actual mathematical model that the banks and servicers use for HAMP eligibility is not available to the public. It's determined by the Treasury Department but loan servicers that participate in the HAMP program are required to modify loans if the borrower's situation is a positive "NVP". But that's not keeping servicers from declining HAMP applications, unfortunately, and they've got their secret formula to hide behind.

Products like the REST Report try to meet the need of homeowners to prepare and defend against loan mod declines. Servicers don't have to explain their calculations and they certainly don't want to because their interests are at odds with those of the homeowner, regardless of what the government's policy is.