making home affordable · 2018-05-01 · june 2012 | making home affordable. ... atlanta, ga....

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Making Home AffordableWorking Together to Help Homeowners

June 2012 | Making Home Affordable

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MHA Offers Solutions

MHA and

related

programs work

together to

help

homeowners

avoid

foreclosure.


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MHA Provides Relief to Struggling Homeowners

More than a

1.1 million

homeowners

helped.

*Does not include MHA’s Home Affordable Refinance Program (HARP).

Source: Making Home Affordable ProgramPerformance Report Through March 2012

MHA Foreclosure Avoidance Programs Homeowners

Helped

Home Affordable Modification Program

(HAMP)

993,522

Second Lien Modification Program (2MP) 76,218

Treasury FHA‐HAMP and (USDA’s) RD‐HAMP 6,131

Unemployment Program (UP) Forbearance

Plans

20,402

Home Affordable Foreclosure Alternatives

(HAFA)

40,252

Total 1,136,525*


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There’s Still Work to Do

While we see

signs of

recovery,

families and

communities

continue to

struggle with

foreclosure.


Source: RealtyTrac

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MHA Enhancements Help More Homeowners

Enhancements

designed to

provide relief

to more

homeowners

and to

accelerate

housing market

recovery.


http://www.youtube.com/watch?v=skUPj1UcbMw&list=UUK2KVTgrk6njEIMfC9GWAlg&index=1&feature=plcp

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When the

weight of

homeownership

becomes too

great, there are

still options to

avoid

foreclosure.

HAFA Offers Transition from Homeownership

• Home Affordable Foreclosure Alternatives

(HAFA) includes short sale and deed‐in‐lieu of

foreclosure (DIL). • Think HAFA when:Mortgage has become unaffordable, and

homeowner needs a way out.Homeowner doesn’t qualify for modification.Modification doesn’t work out.Homeowner has moved and needs to sell.


Path back to homeownership generally shorter from short sale than from foreclosure.

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• Extending opportunities for short sales and DILs – HAFA – through Dec. 31, 2013.

• Additional homeowners may now be eligible:Removing all occupancy requirements.Payment to subordinate mortgage lien holder

increasing from $6,000 to $8,500.• Relocation assistance ($3,000) now provided to

homeowner or occupant.• If requested by homeowner, full contractual

payment may be made to remain current.

HAFA Expanding to Help More Homeowners

Enhancements

expand

eligibility and

benefit more

families.


AvailableSummer 2012

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HAFA Sets New Standards

HAFA is setting

new standards

for short sales

in a difficult

market.

• HAFA features standardized process time

frames and documentation.• Short sale terms can be pre‐approved.• Commission for real estate professionals is set.• Pre‐established subordinate lien cap

encourages cooperation.• HAFA provides financial incentives for

homeowners, investors, and servicers.• Homeowner incurs no out‐of‐pocket expenses.• Homeowner must be released from personal

liability for mortgage debt.


9

HAFA Eligibility Basics


Criteria Guideline

Servicer,

Investor,

Insurer

Guidance applies to MHA‐participating servicers of mortgages not owned, guaranteed, or insured

by Fannie Mae, Freddie Mac, FHA, VA, or USDA.

Origination The mortgage loan is a first lien originated on or before January 1, 2009.

Unpaid

Principal

Balance Limits

The unpaid principal mortgage balance, prior to capitalization, must be less than: • $729,750 for a one‐unit property • $934,200 for a two‐unit property • $1,129,250 for a three‐unit property• $1,403,400 for a four‐unit property

Delinquency The mortgage loan is delinquent or default is reasonably foreseeable.

Property

Condition The property securing the mortgage loan has not been condemned.

Financial

Hardship The borrower must be able to document a financial hardship.

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HAFA Eligibility Scenarios – Service Members


• To be eligible for HAFA, borrower must

demonstrate financial hardship.• HAFA takes into account the challenges a PCS

order creates for service member.• Service member can cite PCS order as basis for

financial hardship:Regardless of whether income decreased.As long as the service member does not have

sufficient liquid assets to make mortgage

payments.

HAFA

recognizes PCS

as “financial

hardship.”

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Industry Resources

Resources are

in place to help.• Trusted Advisors can escalate cases to the HAMP

Solution Center: [email protected]

or

(866)939‐4469.

• FannieMae.com, (800)7Fannie,

KnowYourOptions.com,

[email protected].

• FreddieMac.com, (800)Freddie and select option 2.

• For assistance with FHA loans, contact the FHA

National Servicing Center at (877)622‐8525 or

HUD.gov/offices/hsg/sfh/nsc/nschome.cfm.

• For assistance with VA loans, call (877)827‐3702 or

visit HomeLoans.va.gov.

• For help with USDA RHS loans, contact the Centralized

Servicing Center at (800)414‐1226.June 2012 | Making Home Affordable

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Access HAFA Tools

Visit

HMPadmin.com

for HAFA

information and

tools.


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Register for MHA Training

Webinars are

conducted

regularly on

MHA program

fundamentals,

resources, and

more. Register

today

at

HMPadmin.com.


14

Escalate Difficult‐to‐Resolve Cases

Trusted

advisors

escalate cases

to [email protected].

Follow up by

phone to866‐939‐4469.


15

Includes

program

updates,

outreach

events,

homeowner

resources, plus

learning and

partnership

opportunities•8,000+ recipients.

Subscribe to the MHA eNewsletter


16

Visit MHAStorefront.com

Order MHA

brochures and

posters. Have

them shipped

to you at no

cost.•334,000+ brochures and posters shipped.•1,100+ users.


17June 2012 | Making Home Affordable

We’re in

Atlanta for the

fourth time for

our 71st

event.

Help for Homeowners –

Atlanta, Ga.

MHAMHA--HAFAHAFA

Atlanta, GAAtlanta, GA

June 1, 2012 June 1, 2012

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Introduction

Bonnie BoardsVice President and National Manager, Chase

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Chase Liquidations

HAFA Program

Chase List Assist Department

How Can You Help Us

Chase Liquidation Webpage

Chase Liquidation Resources

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Chase List Assist program was designed to proactively reach out to customers who have properties

listed for sale to assist through the marketing process and collect all required documentation prior to

the offer in an effort to expedite approval.

Establishing a dedicated team to work closely with real estate agents on offers and property

evaluations.

Evaluating every homeowner for the HAFA program upon entering our list assist

department.

Proactively reaching out to homeowners who have listed their property.

Working to gather the required documents, provide guidance on property value, and assist

during the marketing period.

List Assist agents will also take incoming calls from real estate professionals and

homeowners to provide status updates throughout the marketing process.

The List Assist agents will explain to the borrower their options and liquidation progress

until an offer is received.

Once an offer is received the file will be assigned to a negotiator to complete the

transaction.

Through our List Assist team, we have enhanced our short sale efforts and streamlined the process

by:

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Chase List Assist Department

Submit all required documentation as soon as possible:

If an offer is not received on the property, provide an executed

listing agreement and MLS listing history.

If offer has been received, provide all information discussed previously

Help the homeowners in negotiations with junior lien holders.

Make sure all required signatures are on the relevant documents.

Set reasonable expectations on timelines and valuations (normally within 10 days of the

request.)

Ensure that the proposed transaction is at “Arm’s Length.”

Make every effort to ensure title and escrow are scheduled to close within the approved

timeframe.

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How Can You Help Us?

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Liquidation Webpage

Chase Borrowers can be referred to the following:

Toll‐free number: 1‐866‐233‐5320

Access the Chase Short Sale website On‐line at

https://www.chase.com/shortsale

Locate more information on the Chase HAFA programhttps://www.chase.com/HAFA

Locate a Chase Homeownership Center On‐line at

https://www.chase.com/HomeownershipCenter

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Short Sale Fax Line: 1-866-220-4130

Liquidation Resources

https://www.chase.com/shortsale

https://www.chase.com/HAFA



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Partnering To Increase Response Time:

•Local Single Point of Contact

•Pre-Determined List Price on non-GSE loans, Fannie Mae and Freddie Mac Loans

•Confirmation of Complete Short Sale Packet

•Direct Liaison to Short Sale Negotiator

Liquidations Volumes•Liquidations Volumes

• Receive an average of 4,000 Liquidation Referrals

• Approx 1,350 closings per month

• Approx 10,000 Liquidations transactions active

• Average savings through a short sale over REO Severity is 21-24%

•HAFA Closed 1,904 HAFA Short Sales program to date

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0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

Novem

ber

Decem

ber

Janu

ary

Februa

ry

March

April

Referrals

Closings

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GMAC On-Line Resources:

•https://www.gmacmortgage.com/resources/HAFA .html

• https://www.gmacmortgage.com/pdfs/HAFA- Eligibility-Matrix.pdf

• www.equator.com

• [email protected]

https://www.gmacmortgage.com/resources/HAFA.html

https://www.gmacmortgage.com/resources/HAFA.html

https://www.gmacmortgage.com/pdfs/HAFA-Eligibility-Matrix.pdf

https://www.gmacmortgage.com/pdfs/HAFA-Eligibility-Matrix.pdf

http://www.equator.com/

http://[email protected]/

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Atlanta Local Resource:

GMAC Representative Contact Information

• Carita Bowers

• Email: [email protected]

• Office #: 678-855-7067

• Cell #: 404-227-1220

• Fax: 866-794-3526

Short Sales A Guide to Working with Wells Fargo

From a rate of 7.8% (Q1 2009), residential delinquency rates continued to rise to a high of 11.3% (Q2 2010). During the last 6 months of 2010 rates declined to a low 10.0% (Q4 2010). Q1 2011 reflected an upward trend to 10.2% - Q2 2011 rose to 10.6%. For Q3 it dropped back to 10.2%. Rate dropped to 9.86% - Q1 2012. This is all due to very little material improvement in new jobs or the current level of unemployment –

Potential for Acceleration – Short Sale Activity

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Short Sale as an Excellent Alternative to Foreclosure

Customer BenefitsAlternative to foreclosure with planned & graceful exit, Wells Fargo or Investor pays closing costs and incentives in certain cases, credit report reflects “Settled for Less than Owed.”

Buyer BenefitsUsually home is in better condition than buying a foreclosed property.

Wells Fargo BenefitsAverage of 10% savings over REO, reduced losses and corporate advances, eliminates non- performing asset.

Junior Lien Holder Benefits Higher debt payment resulting from short sale versus foreclosure transaction.

Community BenefitsOccupied and maintained properties, stabilizing neighborhoods, preventing vandalism and other crime.

A Short Sale is a solution that allows the customer to sell the home for less than total amount owed. When all home retention solutions have been reviewed and exhausted, we immediately begin working with the borrower to determine if a short sale or deed-in-lieu can be accomplished. A Short Sale Benefits Everyone…

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Why is each Short Sale

process so different?

20%

11%69%

20% of the loans serviced by Wells Fargo are also owned by Wells Fargo:

• A portion is also Wells Fargo Home Equity and Wells Fargo Financial.

69% of the loans serviced by Wells Fargo are owned/ guaranteed by Fannie Mae*, Freddie Mac*, and Ginnie Mae:

• FNMA and FHLMC buy loans up to a “conventional loan limit” now $417,000 in most markets.

• GNMA buys FHA and VA- insured loans, which provide mortgage funding for homeowners with little cash to put down or U.S. Veterans.

11% of the loans serviced by Wells Fargo are owned by private investors.

• Private investors include pension funds, investment houses, banks, and insurance companies.

• Includes “America’s Servicing Company,” or ASC loans, which are loans that Wells Fargo did not originate or underwrite, and which were serviced under the ASC name. We only maintain the servicing rights to these loans, we are not the end investor.

* Fannie Mae = FNMA, Freddie Mac = FHLMC, Ginnie Mae = GNMA

Wells Fargo Loan Servicing By Investor Ownership

(as of 4th Quarter 2011)1

1 Includes all residential mortgage loans serviced within Wells Fargo (WFHM, WFF, HE) and Wachovia (including PaP)

Wells Fargo is primarily a Lender and a Servicer, with 80% of the loans serviced by Wells Fargo, owned by outside investors.

Wells Fargo’s Loan Servicing by Investor Type

Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

353535

Wells Fargo services 10 different portfolios and all 10 were processing short sales different.

Process Re-Engineering project for all operation sites will allow alignment between sites and investors and best practices.

This best practice should create a more transparent process flow and a better experience for all involved.

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Wells Fargo – Changing the Short Sale Process from Reactive to

Proactive….

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Field Short Sale Program

Wells Fargo Home Mortgage desires to provide local real estate agents with personalized service and information related to its short sale process.

Local Short Sale Managers are in high risk markets to develop relationships with local REALTORS to improve the customer experience and increase the closing ratio.

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Wells Fargo Proactive vs. Reactive Short Sales… (cont)

Get us involved early in the process

Notify Wells Fargo Home Mortgage (or the appropriate servicing lender) as soon as the listing contract is signed

This allows us to complete the property valuation and borrower financial evaluation prior to receiving the offer. This significantly reduces the short sale decision time on a submitted offer.

Streamlining process through Equator

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Leveraging technology through Equator Create your free account today

Step 1: Go to www.equator.com--

Enter your email address in the “Create an Acct” section

Step 2: Select the account type—

Choose the “Agent” option

Step 3: Follow the steps—

Enter all information requested

Step 4: Submit your registration—

Then you’ll receive an email with a link to activate your account

Equator support team: (310)469-9167

http://www.equator.com/

Realtor Hotline for Loan Servicing Default Liquidations Escalations

1-877-841-5301

7AM – 10PM CST Mon – Fri

Questions?

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Information to Help You and Your Clients in the Short Sale Process

Understanding Short Sales

Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation

Understanding Short Sales

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• Three Key Steps for Real Estate Agents

11Engage Homeowners Early• Find out if the homeowner owes more than the home’s fair market value.• Discuss short sale opportunities during initial conversations with the homeowner.

– If the homeowner would like to better understand their options or initiate the short sale themselves, encourage them to call Customer Care at 1.866.880.1232.

• Explain the short sale process and how it can help avoid foreclosure.

22Contact Bank of America Before the Home Is Listed• Initiate the short sale in Equator – even if you don’t yet have an offer.

– The homeowner may be required to contact Customer Care to discuss participation in one of our pre-offer programs, such as HAFA. If the homeowner isn’t eligible for a pre-offer program, then next action is to market the home, obtain an offer and initiate new short sale in Equator.

33Complete Required Tasks on Time• Make sure all tasks are completed as soon as possible in Equator. • Provide necessary documents as soon as possible to keep the process moving

forward.• Communicate with your short sale specialist via Equator to reduce delays.


Short Sale Overview

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You get a huge timeline benefit by completing steps in advance of your offer.

Initiating before offer…

Initiating after offer…

InitiationInitiation Borrower Outreach Borrower Outreach

Document Collection Document Collection ValuationValuation MarketingMarketing Offer

Analysis Offer

Analysis ClosingClosing

Decision in 10

Days!*

Program EligibilityReview

Collect Homeowner Documents

Determine Home

Value & Sign

Program Agreement

List Home For Sale

Submit Offer

InitiationInitiation Borrower Outreach Borrower Outreach

Document Collection Document Collection ValuationValuation Offer

Analysis Offer

Analysis ClosingClosing

Negotiate Offer,

Submit to Investor,

Renegotiate

Determine Home Value

HAFA Interest?

Collect Documents

* HAFA only. For other pre-offer programs, the time may vary.


Short Sale Tips

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• Getting Answers to Short Sale Questions

11Your short sale specialist• Send a message via Equator by selecting the negotiator (or closing officer)

in the "To" field and providing details of your issue. • You should receive a response within two business days.

If there's been no answer after that time, you can contact...

22The short sale team lead• Send a message via Equator to explain your issue. You can select the team lead

from the drop-down menu in the "To" field when composing an Equator message. • Allow two business days for a response.

If you still do not have an answer, you can call...

33Short Sale Customer Care• Call 1.866.880.1232 to explain your issue.

• Short Sale Customer Care is available Monday – Friday 8 a.m. to 10 p.m., and Saturday 9 a.m. - 5:30 p.m. Eastern.

If you have an urgent request, such as a foreclosure sale date within 48 hours, please call Customer Care at any point in the process.


bankofamerica.com/realestateagent

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Bank of America’s Agent Resource Center• Important news and updates about the short sale process

and enhancements • Online subscriptions

to keep you informed via email updates

• Free webinar replays• Education library of

important documents, including tips to a successful short sale

• Events • Important links • Contact information

Summary of the Short Sale Process for Real Estate Agents

June 2012

Kamara McMullenAVP – Short Sale Outreach

Georgia Short Sale Pipeline

FNMAFHLMCHeldFHAVAPrivate

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HAFA & Citi Held

– Relocation incentive.1

1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.

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HAFA & Citi Held


– Forgiveness of the deficiency.


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HAFA & Citi Held



– Foreclosure hold or foreclosure sale postponement, if applicable.2


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HAFA & Citi Held




– Fast decisions – Within 10 business days once an offer is submitted.3


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HAFA & Citi Held




– Fast decisions – Within 10 business days once an offer is submitted.3

– Suggested list price is determined prior to listing the home.


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Getting Started

1. Initiate Short Sale with CitiMortgage

Homeowners Assistance Team (HAT) at (866)-272-4749.

• Account number.• Borrower Social Security Number (SSN).• Borrower(s) first and last name.• Letter of Authorization (LOA).• Borrowers Financials.

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Getting Started

2. Qualify the Borrower

Homeowner Support Specialist Hotline (HOSS)

(855) 843-2549

Fixed 1st & 2nd Lien Fax: 866-940-8125Email: [email protected]

Home Equity Line of Credit Fax: 866-989-1356Email: [email protected]

OneMainFinancial or CitiFinancial* Fax: 800-925-6751Email: [email protected]

mailto:[email protected]



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Short Sale Hotline #

1-866-520-5499

www.homeownersupport.com

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57June 2012 | Making Home Affordable

Discussion/Questions

U.S. Department of the TreasuryHomeownership Preservation Office

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