Making Home Affordable - hmpadmin.com · December 2012 | Making Home Affordable 3. MHA Provides...

December 2012 | Making Home Affordable

Making Home AffordableWorking Together to Help Homeowners

2December 2012 | Making Home Affordable

MHA Offers Solutions

MHA and

related

programs work

together to

help

homeowners

avoid

foreclosure.


MHA Provides Relief to Struggling Homeowners

Nearly 1.3

million actions

taken to help

homeowners.

*Does not include 1.5 million Home Affordable Refinance Program (HARP) refinances through July 2012.

Source: Making Home Affordable ProgramPerformance Report Through September 2012

MHA Foreclosure Avoidance ProgramsHomeowner

Assistance

Actions

Home Affordable Modification Program (HAMP) 1,090,596

Second Lien Modification Program (2MP) 96,922

Home Affordable Foreclosure Alternatives (HAFA) 75,423

Unemployment Program (UP) Forbearance Plans 27,031

Treasury FHA‐HAMP and RD‐HAMP 9,100

Total *1,299,072


There’s Still Work to Do

While we see

signs of

recovery,

families and

communities

continue to

struggle with

foreclosure.

Source: RealtyTrac


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


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.


HAFA is Streamlining Documentation

New HAFA

guidance

makes use of

certain

documents

optional.

EffectiveFeb. 1, but servicers may implement immediately.

• Request for Mortgage Assistance (RMA) Form,

which includes Hardship Affidavit and Dodd‐

Frank Certification, most comprehensive.• No income documents required except as

required by investor guidelines.

HAFA‐specific documents SSA, DIL Agreement,

RASS, Alt RASS now optional or replaced.

Servicer must provide HAFA terms in writing.


HAFA Servicers to Provide Timely Decisions

Generally, servicer to decision homeowner’s

request within 30 calendar days.• Servicer to respond in writing with one of the

following:

Confirmation of HAFA eligibility and terms of

HAFA short sale or DIL.

Notice of ineligibility and either terms of

proprietary options, or non‐approval of any

short sale or DIL.

Confirmation of receipt (within 10 days), copy

of the Hardship Affidavit, description of

evaluation process, and timeline for decision.

New HAFA

guidance

shortens

servicer

response time.

EffectiveFeb. 1, but servicers may implement immediately.


HAFA Further Defining Hardship

• Homeowners must demonstrate hardship for

HAFA eligibility:

Reduced income

Increased expenses

Excessive debt

Insufficient cash reserves

“Predetermined Hardship”

= 90+ days

delinquent plus FICO score <620.

New HAFA

guidance

defines

“predetermine

d hardship.”

EffectiveFeb. 1, butservicers may implement immediately.


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.

• 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.


Learn More About MHA

Visit

HMPadmin.com

for official

guidance,

learning

opportunities,

newsletters,

and more.


Access HAFA Tools

Visit

HMPadmin.com

for HAFA

information and

tools.


Escalate Difficult‐to‐Resolve Cases

Trusted

advisors

escalate cases

to [email protected].

Follow up by

phone to866‐939‐4469.


Register for MHA Training

Webinars are

conducted

regularly on

MHA program

fundamentals,

resources, and

more. Register

today

at

HMPadmin.com.


Includes

program

updates,

outreach

events,

homeowner

resources, plus

learning and

partnership

opportunities.

Subscribe to the MHA eNewsletter


Visit MHAStorefront.com

Order MHA

brochures and

posters. Have

them shipped

to you at no

cost.


New! Explore Resources for Military

More flexible

eligibility

provisions are

designed to

assist our

nation’s service

members and

their families.


New! Resources in Spanish

New! MHA.gov

in Spanish!


Help for Homeowners –

Ontario, CA

We’re in

Ontario, CA for

our 80th

event.

22

Foreclosure Alternatives Foreclosure Alternatives

December 4, 2012 December 4, 2012

Introduction

Eric MorenoVice President Foreclosure AlternativesChase

23

24

Chase Liquidations

Chase List Management Department

How Can You Help Us

Chase Liquidation Webpage

Chase Liquidation Resources

Chase List Management 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 management

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 Management agents will also take incoming calls from real estate professionals and

homeowners to provide status updates throughout the marketing process.

The List Management 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 Management team, we have enhanced our short sale efforts and

streamlined the process by:

25

Chase List Management Department

26

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.

How Can You Help Us?

27

Liquidation Webpage

28

Access the Chase Short Sale website On‐line at

https://www.chase.com/shortsale

Locate more information on the Chase HAFA program

https://www.chase.com/HAFA

Locate a Chase Homeownership Center On‐line at

https://www.chase.com/MyHome

Short Sale Hotline: 1‐866‐233‐5320

Liquidation Resources

Short Sale Fax Line: 1‐866‐220‐4130

https://www.chase.com/shortsale

https://www.chase.com/HAFA

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

Abel Fregoso, Jr

Vice President

National Field Short Sale Manager

Live Workshop and Webinar for Real Estate Professionals

December 4th in Ontario, CA

303030

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 alternatives to foreclosure through short sales or deeds-in-lieu of foreclosure. Our last resort is to foreclose.

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.

These are unprecedented times in our industry, and now more than ever it is critical that we work together as leaders in driving options and results to help in the recovery of a strong housing market.

Our REALTOR® resources help us by providing their:–Familiarity with local market trends and community goals

–Established relationships with the real estate community

– Expert knowledge in short sale and REO liquidations

–Strong customer service and communication skills

Overview

31

What is a short sale?

A workout option that allows the homeowner to sell the property for less than the total amount owed.

It is not your traditional real estate transaction and timeframes may take longer depending on the participants involved.

A short sale is a settlement of debt.

Acceptable short sale hardships

Examples of historically acceptable hardships

– Death of primary or secondary wage earner

– Illness/ injury (Long-term disability)

– Forced job transfer

– Unforeseen increase in living expenses

– Loss of employment/ significant income reduction

– Divorce

– Mortgage payment increase

– Disaster (natural or man-made)

– Business failure

32

333333

Short sale as an excellent alternative to foreclosure

Customer benefits

–Alternative to foreclosure with planned and graceful exit, Wells Fargo or investor pays closing costs and incentives in certain cases

–May be eligible for debt relief under the IRS code until end of December of 2012

–No deficiency recovery in some states such as California

Buyer benefits

–Usually home is in better condition than buying a foreclosed property

Junior lien holder benefits

–Higher debt payment resulting from short sale versus foreclosure transaction

–ILM (Industry Lien Match) program

Community benefits

–Occupied and maintained properties

–Stabilizing neighborhoods

–Keeping properties occupied clearly reduces the potential that properties will be vandalized or become havens for criminal activity

A short sale is an option that allows the customer to sell the home for less than total amount owed. When all home retention options have been reviewed and exhausted, we immediately begin working with the borrower to determine if a short sale can be accomplished. A short sale benefits everyone.

Getting started – three options

34

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/

35

Inland Empire Field Short Sale Manager

Wells Fargo Home Mortgage

Field Short Sale Manager

Amelia Castro

(714)904-2615

[email protected]

35

mailto:[email protected]

Standard required documents – short sale application

From Homeowner

– Hardship Letter: signed and dated within 60 days of the short sale approval, explaining why they are unable to pay the mortgage

– Financial Worksheet: financial worksheet listing all monthly expenses signed and dated within the last 60 days

– Proof of Income: paystubs (2 most recent) and tax returns (last 2 years) signed and dated by the homeowner

– Authorized Third Party Letter: letter that authorizes a third party (homeowner's real estate agent) to access information on the account

From the Authorized Third Party (Homeowner’s real estate agent)– Fully Executed Listing Agreement– Estimated HUD-1

36

Note: Less documentation is needed for Wells-owned portfolio

Short sales options for our customers

HAFA Short Sales– HAFA: Home Affordable Foreclosure Alternative– Allows eligible customers to receive a short sale agreement

prior to listing their property– Financial incentives available

• $3,000 to customer at closing

• $1,500 to servicer after closing

• $8,500 or up to 10%, whichever is less, to Jr. lien holders

Proprietary Short Sale– Available to customers who do not want or do not qualify

for HAFA– Short sale request is considered once the customer has an

offer– Possible financial incentives– 6% to 10% maximum is set to pay Jr. lien holders

37

Wells Fargo short sale path – six steps

38

Note: If not eligible, then file will be considered for proprietary short sale

All short sale files are reviewed for HAFA eligibility (except FHA & VA)

Wells Fargo Online Agent Resource Center

39

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

40

Realtor Hotline for Loan Servicing Default Liquidations Escalations

1-877-841-5301

– 7AM – 10PM CST Mon – Fri

Questions?

December 2012

Kamara

McMullen – AVP Short [email protected]

Short Sale Inventory

42

3

Short Sale Benefits

Relocation incentive.1

43

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

Short Sale Benefits


Forgiveness of the deficiency.

44


Short Sale Benefits



Foreclosure hold or foreclosure sale postponement, if

applicable.2

45


Short Sale Benefits



Foreclosure hold or foreclosure sale postponement, if

applicable.2

Fast decisions –

Within 10 business days once an offer is

submitted.3

46


Process Overview

47

Eligibility & Initiation

Qualify the Borrower

Determine FMV

Market the Property

Submit Offer & Req’d Docs

Investor Decisioning

Closing

Getting Started

Marketing & Selling

Closing the Deal

Getting Started

Determine Short

Sale Eligibility

48

Getting Started

Determine Short

Sale Eligibility

49

Getting Started

Determine Short

Sale Eligibility

50

Getting Started

Determine Short

Sale Eligibility

51

Getting Started

Determine Short

Sale Eligibility

52

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.

53

Getting Started

2.

Qualify the Borrower

Homeowner Support Specialist Hotline (HOSS)

(855) 843‐2549

54

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

2. Qualify the

Borrower

55

Getting Started

3.

Determine Fair

Market Value

56

Marketing & Selling

4. Market the

property

57

Marketing & Selling

5. Submit offer,

HUD1,

Addendums, etc

58

Closing the Deal

6. Investor Decision

Come to an agreement

on the terms of the offer

and determine the

closing date.

59

Closing the Deal

7.

Closing

60

www.homeownersupport.com

61

www.homeownersupport.com

62

Key Numbers [email protected]

Short Sale Hotline 1‐866‐520‐5499

Homeowners Assistance Team (HAT) at (866)‐272‐4749

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

Fixed 1st

& 2nd

Lien Fax: 866‐940‐8125

Email: [email protected]

Home Equity Line of Credit Fax: 866‐989‐1356


OneMainFinancial

or CitiFinancial* Fax:

800‐925‐6751


63




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

Understanding Short Sales

Understanding Short Sales

65

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

66

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

67

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.

How can I learn more about short sales?

Short Sale Agent Resource Centerbankofamerica.com/shortsaleagent

• 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

68


Discussion/Questions

U.S. Department of the TreasuryHomeownership Preservation Office

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