HMH came to me following a financial hardship. He faced high payments on his Bank of America serviced loan, with a rate of 5.625. The investor is Fannie Mae.

HMH is self-employed as a taxi driver. He also owns a rental house in Brooklyn, which breaks even or makes a small profit. He also owns a taxi in Brooklyn,  and it has a mortgage against it. The rent on the taxi is roughly the amount of the mortgage payments.

These self-employed situations are always a challenge.

The result was satisfactory. HMH got a 2.0% rate with a 40-year amortization. There was no principal reduction first because Fannie Mae does not give principal reductions (although it sometimes gives principal forbearance) and second because his house is worth approximately what he owes on it.

See HMH’s modification here.

The client was pleased.