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October 2013 | Making Home Affordable

Making Home AffordableWorking Together to Help Homeowners

2October 2013 | Making Home Affordable

You will be able to print today’s presentation and listen to the Encore Replay this evening from HMPadmin.com

Learning Center > Trusted Advisors > Presentations >Short Sale Workshop & Webinars

10/29: Short Sale Workshop –

Philadelphia, PA

Follow us on Twitter!! @MHA4Partners


88 events put

over 75,000

homeowners

face‐to‐face

with housing

counselors

and

servicers.

Event partnership with HOPE Now and HUD ensure events of high quality.

Outreach Events for Homeowners


We’re in

Philadelphia, PA

for our 89th

event.

Learn more at MakingHomeAffordable.gov

Help for Homeowners Event


MHA and

related

programs work

together to

help

homeowners

avoid

foreclosure.

MHA Offers SolutionsHistorically

Low

Mortgage

Interest Rates

Breathing

Room for

Unemployed

More

Affordable

Payments

Help When You

Owe More Than

the Home is

Worth

Transition

from Home

Ownership AVOIDING

FORECLOSURE


MHA Provides Relief to Struggling Homeowners

Nearly 1.8

million actions

taken to help

homeowners.

*Does not include 2.74 million Home Affordable Refinance Program (HARP) refinances through June 2013. Source: Making Home Affordable Program

Performance Report Through August 2013

MHA Foreclosure Avoidance ProgramsHomeowner

Assistance

Actions

MHA First Lien Permanent Modifications Started

(HAMP)

1,423,728

Second Lien Modification Program (2MP) 117,481

Home Affordable Foreclosure Alternatives (HAFA) 214,619

Unemployment Program (UP) Forbearance Plans 35,104

Total 1,790,932


There’s Still Work to Do

While we see

signs of

recovery, many

families and

communities

continue to

struggle with

foreclosure.

Source: RealtyTrac


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.


HAFA Offers Benefits

HAFA

continues to

set the

standard for

short sales in a

difficult

market.

• HAFA available for principal residence, rental property, and vacant property (not

condemned).• HAFA features standardized time frames.• Short sale terms can be pre‐approved.• Commission for real estate professionals is set.• Homeowner must be released from personal

liability for mortgage debt.• Relocation assistance ($3,000) may be provided

to homeowner or tenant.• Cap on subordinate lien payoff amounts

increased from $6,000 to $8,500.• Foreclosure not to be completed during review.


Financial Hardship Eligibility for Service Members

• 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.”


Industry Resources

Resources are

in place to help.Mortgage‐Help Resources

HAMP Solution

Center

• (866) 939‐4469• [email protected]

Fannie Mae• (800) 7Fannie• KnowYourOptions.com• [email protected]

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

FHA LoansFHA National

Servicing Center

• (877) 622‐8525• HUD.gov/offices/hsg/sfh/nsc/nschome.cfm

USDA RHS LoansCentralized

Servicing Center

• (800) 414‐1226

VA Loans • (877) 827‐3702• HomeLoans.va.gov


HMPadmin.com

HMPadmin.com

• MHA Program

Guidance

• Online

Learning

• Resources

• Newsletters


HMPadmin.com

| HAFA

HAFA Overview

provides

important

details on

required

homeowner

and servicer

forms.


HMPadmin.com

| Learning Center

Upcoming

Webinars for

Trusted

Advisors

HAMP A to Z for Trusted AdvisorsNovember 4, 2013 | 2:00 ‐

3:30 p.m. ET

Second Lien Modification Program (2MP) for

Trusted AdvisorsNovember 7, 2013 | 1:30 ‐

2:30 p.m. ET

USA Cares Overview for Trusted AdvisorsNovember 13, 2013 | 2:00 ‐

3:30 p.m. ET

Unemployment Program (UP) for Trusted AdvisorsNovember 14, 2013 | 3:00 ‐

4:00 p.m. ET

Case Escalations for Trusted AdvisorsNovember 19, 2013 | 3:00 ‐

4:00 p.m. ET


MHA.gov•Participating

mortgage

companies

•Eligibility tools

•HOPE Hotline

•New landing pages

in additional

languages

MakingHomeAffordable.gov


MHAStorefront.com

Order MHA

brochures and

posters. Have

them shipped

to you at no

cost.

17October 2013 | Making Home Affordable17

Chase by the Numbers through August 2013

*Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA** Includes modifications, forbearance, short sales, repayment plans, term extensions, and deeds-in- lieu/settlements

National Philadelphia, PA*

7.2 million Mortgages Serviced for Chase or Other 132,417

573,540 Modifications Completed 9,919

274,379 Short Sales Completed since 1/09 1,973

1,044,313 Foreclosures Prevented** at Chase Since 1/09 15,941

18





7.2 millionMortgages Serviced for Chase or

Other

132,417



1,044,313Foreclosures Prevented** at

Chase Since 1/09

15,941

19






Other

132,417




Chase Since 1/09

15,941

20






Other

132,417




Chase Since 1/09

15,941

21






Other

132,417




Chase Since 1/09

15,941

22






Other

132,417




Chase Since 1/09

15,941

23






Other

132,417




Chase Since 1/09

15,941

24

“All About Short Sales” A guide to working with Wells

Fargo

Christopher Reichert

Northeast Short Sales Manager

Real Estate Owned & Short Sales Division

Wells Fargo Home Mortgage

October 29, 2013 Philadelphia PA

262626

Strategic partnership – Wells Fargo and our REALTOR® partners

Wells Fargo’s primary concern and obligation is to our customers and investors. Our goal is to exhaust all efforts to help customers remain in their homes through various workout options.

Once home retention efforts are no longer an option, Wells Fargo continues to work diligently to provide an alternative to foreclosure through a short sale. Our last resort is to foreclose.

272727

Strategic partnership – Wells Fargo and our REALTOR® partners

Currently we have over 700 dedicated Short Sale team members and Four Short Sale Service Centers located across the country.

Our partnership with experienced real estate brokers and their agents, familiar with the management of distressed real estate, is key to our success and commitment to quality service. Our REALTOR® resources’ expertise helps us to deliver timely solutions to assist customers, minimize losses to investors, and help to rebuild and stabilize our communities.

282828

Wells Fargo is a SERVICER as well as a LENDER.

82% of the loans we service are owned by outside investors

69% are owned/guaranteed by FannieMae, FreddieMac, or Ginnie Mae

13% are owned by Private Investors

18% of the loans we service – we also own

Wells Fargo Short Sales

292929

There are a number of decision makers involved in most short sales – the more parties involved, the more complex the process becomes. All parties must be aligned and in agreement before the home can be sold, i.e., investors, second lien holders, and mortgage insurance companies.

Wells Fargo Short Sales

Most importantly, this is not a typical buy-sell transaction – this is a DEBT SETTLEMENT transaction.

Short Sale Process Flow

30

1. Verify Authorized 3rd Party2. Verify Listing Agreement3. Order Valuation

1. Determine eligibility for full HAFA review

1. Document collection

1. Negotiate offer2. Approve offer (when offers

meets investor guidelines)

1. Collects Jr Lien SS Approval2. Follows up on file for closing

date3. Obtain Final HUD document

1. Obtain funding via wire transfer2. Complete transaction

All submitted short sales are reviewed for HAFA Eligibility

If the file is not eligible for HAFA, then it will be considered for a Proprietary Short Sale

Short Sale Common Obstacles

31

Real estate agent is working a short sale without engaging the homeowner – Seller must be willing

Lack of Buyer Scrutiny

“Low ball” offers being submitted – mostly investor buyers

Minimum Net Sales Proceeds does not meet the investor guidelines

Excessive seller concessions and costs that reduce Minimum Net Sales Proceeds

Waiting until the last minute to work on Junior liens and judgments that need to be settled

Required documents are missing or not signed and dated properly

Unrealistic timeline expectations

Mortgage Insurance company has required a promissory note

2nd Lien holder not willing to accept payoff amount

Getting started – three options

32

Option 1: Equator®

Web-based platform for real estate agents – www.equator.com

Option 2: Phone/Fax - Traditional

Call loss mitigation (866)903-1053

Fax loss mitigation (866)969-0103

Option 3: Short Sale Field Team

Localized sales team in high-priority markets (i.e., CA, FL, AZ, NV)

Face-to-face support for real estate agents

Wells-owned portfolio

http://www.equator.com/

Wells Fargo Online Agent Resource Center

33

New robust online agent content launched September 14th

Provides short sale educational materials, downloadable information and other resources www.wellsfargo.com/shortsaleagent

http://www.wellsfargo.com/shortsaleagent

34

Realtor Hotline for Loan Servicing Default Liquidations Escalations

1-877-841-5301

7AM – 10PM CST Mon – Fri

Questions?

October 2013

Kamara McMullen – AVP Short Sales

Key Items For Citi

2013

Streamline Programs

Listing Guidance Team

Faster Timelines – 30 Day Decisions

1% Realtor incentive To Close in 30 Days

Hudson & Marshall Auction

36

Process Overview

37

Eligibility & Initiation

Qualify the Borrower

Determine FMV

Market the Property

Submit Offer & Req’d Docs

Investor Decision

Closing

Getting Started

Marketing & Selling

Closing the Deal

Getting Started

Determine Short

Sale Eligibility

38

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.

39

Qualify Borrower

40

Initiate Short Sale

Without Offer

With Offer

HAFA ARASS

Held

FHA ATP

HAFA RASS

Traditional

GSE List Guidance

Getting Started

Assign a Single Point of Contact and collect documents:

Homeowner Support Specialist Hotline (HOSS) (855) 843‐2549

41

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]

Getting Started

Standard Short Sale Documents Required:

Letter of Authorization

Two recent paystubs

Two recent bank statements

Two years tax returns

401K Statements/Investments

Profit and Loss (Self employed)

Unemployment benefits

Expenses

Hardship letter

Estimated HUD1

Purchase Contract

Dodd Frank Certification

Arm’s Length Affidavit

42

Manage Account at: www.citimortgage.com

Getting Started

Streamlined Short Sale Documents Required:

Letter of Authorization

Estimated HUD1

Purchase Contract

Dodd Frank Certification

Arm’s Length Affidavit

43

90+ days delinquent and FICO < 620

Getting Started

3.

Determine Fair

Market Value

44

Getting Started

3.

Determine Fair

Market Value

45

Value Disputes:

Send in three comps (sold and listed)

Send in supporting documents

Engineers report

Repair bid (no cosmetic)

New information we may have missed

FNMA: Submit docs to

www.homepathforshortsales.com

Hint: See if buyer will use Citi financing

Marketing & Selling

5. Submit offer, HUD1,

Addendums, etc

46

Closing the Deal

6. Investor Decision

Come to an agreement on

the terms of the offer and

determine the closing date.

47

Closing the Deal

7.

Closing

48

Key Numbers

RECOVERY: (800) 824‐9907

INITIATE: Homeowners Assistance Team (HAT) at (866)‐272‐

4749

SPOC: Homeowner Support Specialist Hotline (HOSS)

(855) 843‐2549

ESCALATE: Short Sale Hotline 1‐866‐520‐5499

49

Understanding Short SalesInformation to Help You and

Your Clients in the Short Sale Process

October 2013

Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2013 Bank of America Corporation

Three Key Steps for Real Estate Professionals

51

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/Agent 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/Agent Care to discuss participation in one of our preapproved price short sales, such as HAFA. If the homeowner isn’t eligible for a preapproved price short sale, the 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

52

You get a huge timeline benefit by

completing steps in advance of your offer.


Short Sale Tips

53

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/Agent Care• Call 1.866.880.1232 to explain your issue.

If you have an urgent request, such as a foreclosure sale date within 48 hours, please call

Customer/Agent Care at any point in the process.


How can I learn more about short sales?

54

•

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

Short Sale Agent Resource Center

bankofamerica.com/shortsaleagent


https://agentresources.bankofamerica.com/ShortSale

Screenshots are the exclusive property of Equator, LLC and used herein under limited license for Bank of America training purposes only. Any distribution, reproduction, derivative, description

or account

of the screenshots is expressly prohibited without the express written consent of Equator, LLC. © 2013 Equator, LLC. All rights reserved. Not intended or authorized for consumer distribution.

Bank of America, N.A., Member FDIC. Equal Housing Lender.

© 2013 Bank of America Corporation.


Discussion/Questions

U.S. Department of the Treasury

Homeownership Preservation Office

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