Magazine article Mortgage Banking

GMAC Launches Responsible Homeowner Reward Pilot for Veterans

Magazine article Mortgage Banking

GMAC Launches Responsible Homeowner Reward Pilot for Veterans

Article excerpt

Fort Washington, Pennsylvania-based GMAC Mortgage LLC announced on Oct. 6 it was going to offer to a select group of military borrowers with a current mortgage guaranteed under the Department of Veterans Affairs (VA) home loan program the Responsible Homeowner (RH) Reward [R] program. The pilot program will offer to a select group of VA borrowers who are current but have seen a significant decline in their equity a chance to regain a portion oi lost equity in exchange for continued timely mortgage payments.

GMAC is partnering with Loan Value Group LLC, Rumson, New Jer sey; to offer the pilot program to more than 4,000 military borrowers and their families who have obtained a streamlined refinance mortgage guaranteed by VA, according to GMAC.

The mortgage company said that the program is designed to encourage homeowners to avoid default and potential foreclosure by offering a cash reward if the borrower meets specific payment milestones. Repayment incen tives are created without changing the terms of the original mortgage note, or requiring added documentation or disclosures from the participating homeowner.

For a fixed period of time following enrollment in the program, an additional reward is credited to the homeowner's RH Reward account for each month he or she makes a payment on time. …

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