HAFA Experiences for Upcoming Panel

Hello All,

Very excited to report that I have been asked to sit on a panel with representatives from Fannie, Freddie and the Dept. of Treasury in October during the American Land Title Assn. Annual Convention in Charleston.  The panel is entitled "Foreclosure Alternatives:  The US Treasury Dept.'s HAFA Program" (Panel Description); and the audience will be title agency owners and managers from throughout the country.

I anticipate some nuts and bolts information from the GSE and Treasury reps; but I want to make sure that I bring to the audience some real world, in the trenches experience and guidance - something they can take home with them to help their clients' businesses.  As I compile our experiences and note how these guidelines have been implemented by the various servicers, I am eager to hear about your experiences.  Ultimately, the audience at this panel will get far more out of learning from our experience than they will from a recitation of the guidelines that are readily available online.

Thanks in advance for sharing!

Chris

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Permalink Reply by Wendy Rulnick on September 21, 2011 at 10:26am
Congratulations, Chris! 
Permalink Reply by Chris Black on September 21, 2011 at 10:38am

Thanks, Wendy.  I'm looking forward to it very much!

I got to present at the 2010 Convention in San Diego last year on short sale orchestration in the title agency context.  I guess I kept enough people awake that they invited me back!  Looking forward to what the other members here have to add and to bringing back to the forum what I learn from my fellow panelists.

CB 

Permalink Reply by joe beauchamp on September 22, 2011 at 8:13am

Just a couple of sticky things - so at least you know.  FNMA dropped HAFA with short sale, according to BOA - I have such a letter from a client.  No, you won't find it on BOA's or FNMA's sites - for some reason our tax dollars to go bailed out agencies which like to keep things secret.  So, why is it that fed FNMA refuses to use fed program HAFA?

Also, controversies about BOA selling $500MM of servicing rights for 400,000 accounts to FNMA - as Fortune Mag says, if it is to move the accounts, why does it take a fed agency to be in the middle?  One of the 2 or so companies which got a look at the portfolio before the non-auction occurred and FNMA snapped them up suggested maybe 25% to 35% are bad accounts - BOA suggested 15%.  Basically, it looks like a $500MM bailout from FNMA to BOA for the taxpayer to eat.  At the same time, FNMA has its hand out for another $5.1BB fed bailout.

This latter issue is in keeping with seeming lack of concern at FNMA for bad decisions about short sales at BOA and no policing.  Also, the very few times I have tried to get FNMA to look at short sale problems, I got nonsense, basically "I don't care" answers, if any from FNMA - no responsibility.  So, personally, this all looks consistent - FNMA employees are gov't people with nice benefits and no cares or responsibilities except where to retire or vacation - Yep, I would more then truly love to see things which prove this conclusion wrong - I just can't do so with my experiences and what I read in the news.

Minor, annoying issue - FNMA insists that BOA is not allowed to say to agents that FNMA is the investor.  Just to be annoying?  We all probably just look it up on their website.  Also, it certainly does go against the truth in lending law in spirit, although with the paper hassle that they create, FNMA can say that they are legal.  But why?  Can't they cooperate with agents, Americans, homeowners?  I'm naive to political ways, there could be a "good" reason for secrecy in these things, maybe?  Beyond me.. ;-)

So, keep your eyes open - hopefully, you'll see stuff which explains the above and can report back - I would certainly feel a lot better!  Good luck with the conference - bring back some hotel postcards!

Permalink Reply by Chris Black on September 22, 2011 at 8:32am

Thanks, Joe.  You'll be getting a postcard for sure!

Can you email me a copy of the letter you mentioned?  chrisblack at wingedfoottitle dot com.

Thanks!

Chris

Permalink Reply by Barbara Thomas on September 22, 2011 at 1:57pm
Hi Chris.  I would be happy to share my experiences regarding HAFA.  They have mostly been bad.  One success (Aurora Loan Servicing) and one hopefully-soon-to-be success (SPS 1st and SLS 2nd).  Let me know what you would like me to provide.
Permalink Reply by Becky Martin on September 23, 2011 at 2:17pm
I have not had good experiences either, SO SLOW, AMS for BOA "loses documents" you have to re fax repeatedly.  Underwriting is SO SLOW.  I have 4 files pending for months with HAFA now
Permalink Reply by Chris Black on September 26, 2011 at 2:22am

Thanks, Barbara.  I am looking for real-life challenges we are facing in the processing of these deals.  I think we would all agree that the guidelines are great.  What we know, though, is that the goal of the guidelines is not being realized as often or as easily as it should be.

Thanks for your input.

Chris

Permalink Reply by Jackie Thompson on September 25, 2011 at 4:41am

Just closed a HAFA short sale Friday with Chase.  We went under contract on 6/7/2011 and closed 9/23/2011.  The negotiator at Chase was hard to reach at first.  After I contacted his supervisor he became easy to reach.  This short sale would not cover the seller's attorney which turned out okay because the seller was able to cover that cost.  They were very particular on the HUD.  For example, the husband was deceased but his name and the wife's name had to be listed as receiving the $3,000 relocation fee.  Wording had to be exact.   

Permalink Reply by Chris Black on September 26, 2011 at 2:18am

Thanks, Jackie.  This is exactly the kind of information I'm trying to compile.

Thanks!

Chris

Permalink Reply by Kristin Johnsen on September 26, 2011 at 2:02am

I have to admit that HAFA would be a great program for homeowners if the program worked. I have worked over a 100 files this year and have only successfully closed two HAFA transactions. My hopes that they can streamline the program and have more successful short sale transactions. In doing so lessen the time frame to qualify, you wait 3 months for them to run you through the program all along waiting with a willing buyer and then they deny you and you have to start all over from the beginning and hope and pray that buyer is still sticking around. Also the servicing companies(AMS and LRC) are hard to get a hold of and keep the file after denial or cancellation. I have to constantly call in and ask them to move the file back and they advise it will take 24-48hrs before the file is returned but yet it never seems to happen we end up waiting around when we could be actively working on accomplishing the short sale. Please share my concerns with your panel.

Thank you

Kristin Johnsen

Permalink Reply by Chris Black on September 26, 2011 at 2:19am

Thank you, Kristin.  I will absolutely share this.  Hopefully all of the experiences here and those in our office (which have been not unlike yours, by the way) will help effect some change.

Best,

Chris

Permalink Reply by joe beauchamp on September 28, 2011 at 2:44am

I see others with similar mentions.  Here are a couple of things. I have 1 BOA/AMS account looking for the adjustment of listing price, we have lost 50 to 60 days of this HAFA program and getting no response (claimed esclations at AMS, but as we should all know, these are just emails to someone at BOA) and keep getting "our calculator is broken".  So, at 120 days, they kick it out after screwing this person into the ground?  I didn't even get a reply from John Ciresi when I sent in the usual complaint form to him..??

I have yet to actually get a "graduate" of the HAFA w/o offer program.  Usually, the seller has had enough, might just wander away or, submit to BOA barrage of "do a deed-in-lieu" mail (so, I think, why does BOA want that - oh, because it prolongs the account with BOA while it goes to REO as opposed to maximizing the payback to the investor with a short sale and cutting payment to BOA).  I don't know what it even looks like when you get to day 120..??

Also, almost always at BOA, HAFA counters are absurd - however, for maybe 9 months now, almost all BOA counters have been absurd.  Something is going on there.  In HAFA, since I know BOA dumps on the sub companies and those companies do whatever BOA says, and I have had confirmation from negotiators at those companies, there is pressure to make $$, no leeway to negotiate or make a good deal happen and almost every time I get the absurd HAFA counter, the negotiator will say that if we don't like it, go do a regular short sale.  I assume this is a kiss-off but it looks like saying "we illegally bump of the counter for HAFA short sale to pay for your concessions so you might get the deal done where we don't have to pay extra for HAFA."  Right?

A BOA employed negotiator sometimes does his job and tries to work out a deal.  A HAFA 2 steps removed from BOA employee has no leeway to do the right thing and there is the BOA "do what I say" to the sub company and the "you better bring in the $$" from that company to its negotiator because BOA does plenty of "it is their fault" and "do what I say (regardless of legality) or be fired" and these companies don't like being fired.

In our place, plenty of HAFA deals go through - just not at BOA.  BOA is in horrible need of Ex-Lax and I cannot tell if the huge HAFA delays and horrible counters are due to BOA "inefficiencies" or making more money off of tons of emails (I've heard that is why each little step takes an email from LRC/etc to BOA is that BOA gets paid per request??) or BOA's clear but unstated posture to destroy every short sale possible, therefore, certainly every HAFA one, too.

I cannot separate some of the BOA stuff from some of the HAFA stuff here - maybe with these examples, in your discussions, you can make some sense out of all of this?

What I see is BOA is paid to "manage" accounts, not settle them.  The best refute that I get when discussing my opinion that BOA does not want short sales is "Oh, I don't believe that."  Not exactly fact filled.  I believe that BOA would be happiest to fire all SS people and go to foreclosure - except for P.R., and save $$.  They appear to be pretending to go along with the fed HAFA program while demanding absurd counters, etc. to really kill them.  Please, show me what I misinterpreted.  I would love to feel that they (or the freeloading "investor" biggie FNMA) feels some responsibility to their boss or taxpayer or something.  Uh, please?  ;-)

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