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10 NO MATTER THE DIRECTION YOU TAKE WITH JMA, THE DESTINATION IS ALWAYS RESOLUTION Offering customized campaigns targeted to our clients needs designed to connect mortgage servicers, banks and investors with delinquent borrowers. » HUD Face-To-Face » Skip Trace / Verifi ed Phone Number » Borrower Contact » Warm Transfer » Loss Mitigation Process Management » End-to-End Modifi cation Campaigns » Mobile Notary Service » Call Center » Private Label » Field Visits » Specialty Door Knock Campaigns Contact us today to see how we can build a custom campaign, to facilitate more direct calls back to your offi ce. JM ADJUSTMENT SERVICES, LLC 844.562.7378 | Info@JMAdjustment.com | JMAdjustment.com BORROWER CONTACT MISSING DOC REVIEW LOSS MITIGATION PROCESS MANAGEMENT MOBILE NOTARY MANY HELOC BORROWS IN FOR SHOCK AS 10-YEAR DRAW PERIOD CREEPS UP From now until 2018, many Home Equity Lines of Credit (HELOCs) borrowed during the housing bubble years of 2005 to 2008 will reach their 10-year end of draw period—and many of the borrowers will not be prepared for the payment shock they will be facing, according to a recent survey from TD Bank. e bank's HELOC Reset Measure, which surveyed approximately 800 U.S. homeowners with HELOCs, found that nearly one-quarter (23 percent) of HELOC borrowers did not have a plan in place to handle increased payments once they reach their end of draw periods. e housing boom saw unprecedented numbers of HELOCs as homeowners looked for convenient ways to borrow in the midst of soaring home prices for major expenses such as college tuition, home improvements, and medical bills. "Many HELOCs allow borrowers to draw for 10 years and make interest- only payments," said Mike Kinane, SVP, Home Equity, TD Bank. "When this draw period ends, borrowers are required to pay principal and interest, which may increase their monthly payments. It's important that HELOC borrowers plan ahead and review their contract to determine the best course of action based on their current and future financial situations." e survey found that many HELOC borrowers were unaware of the HELOC reset date despite communication from lenders. More than half of respondents (53 percent) who borrowed HELOCs between 2005 and 2008 said they were unaware of how the reset will affect their payments. Only 19 percent of survey respondents were aware that a HELOC reset meant that their payments will increase. Not only that, but misconceptions existed around the end of draw period—more than one-third (34 percent) of borrowers polled said they believe their payments will be reduced after a HELOC reset. Not all borrowers with HELOCs were unprepared, however. More than one-quarter of survey respondents said they plan to refinance their HELOC into another loan, and nearly 70 percent of those borrowers said they plan to seek advice from their lenders. At 2.6 percent, the seriously delinquent rate is at the lowest level since August 2007. Source: CoreLogic STAT INSIGHT 2.6