Answer NPV stands for net present value, a calculation which indicates how much an investment, such as a bond or a mortgage, is worth today. If investors are faced with multiple choices for investments, they generally prefer the investment with the higher calculated NPV. When deciding whether to modify a mortgage, investors will choose the option with the higher NPV, either the mortgage modified or left "as is." For the HAMP program, servicers compare the NPV of the mortgage with a HAMP modification to that of the mortgage left "as is." If the NPV with the modification is higher than, or within a specified range of, the NPV of the mortgage without the HAMP modification, HAMP servicers are required to provide the HAMP modification for eligible mortgages (subject to investor restrictions.)
Need more information about NPV?
Please remember that the result of your mortgage’s NPV evaluation is one of several factors that determine whether you qualify for a HAMP modification. For more information, review Eligibility Criteria available on the Making Home Affordable web site. Also, for more information about investors’ restrictions and participation in HAMP, please see FAQ below "What should I do if my mortgage servicer tells me that the investor is not participating in the Making Home Affordable Program?"
Call Roger at 949-365-6585
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