HAFA Second Mortgages, Can you Force them to participate

I am working with a seller on a second mortgage and they are having trouble with the bank wanting to work with hafa,  It is a smaller bank and I am wondering do they have to cooperate with HAFA

 

Any guidance will be greatly appreciated...

 

Thanks

 

Todd Schroth

Views: 1017

▶ Reply to This

Replies to This Discussion

Permalink Reply by Smitty on April 10, 2012 at 1:27am

No second lien holders do not have to participate.   Starting June 1 second lien holders can be paid $8500 from the first.  The first lien holder has the OPTION to pay this now if they want.  Maybe that will help.

Good luck.

Permalink Reply by Kevin - Greenville, SC on April 10, 2012 at 4:15am

There is no legal obligation to do so.  However, many of the largest servicers have agreed informally to accept $6,000 as part of a HAFA transaction as long as the borrower has a verified hardship.

Laurie A. Maggiano
Director of Policy
Homeownership Preservation Office                                                          
Department of the Treasury                  

Permalink Reply by Keri Sweetland on April 10, 2012 at 8:11am

The thing to remember about these programs too is that just because a servicer participates does not mean that the investor on the loan participates. Simply put, just because BOA or Chase participate in the HAFA program does not mean that every BOA or Chase loan is qualified even if the seller meets all the basic HAFA requirements. The participating investors and servicers submit a supplemental directive annually to the government (don't ask me who specifically...you know...THOSE PEOPLE lol). Although we all have access to the standard HAFA directive and supplemental directive online, we do not get to see the actual investor's guidelines of participation. This is just a good point to know and remember so that your customers expectations are not set firm on a HAFA approval until you have a full approval letter in hand.

Permalink Reply by Kevin - Greenville, SC on April 10, 2012 at 8:48am

However, the % of HAMP applications that are denied due to investor not participating is very, very small in the 1% range.  Also, if a borrower is denied for investor not participating, they can escalate the case at one of our call centers.  Treasury will then review the investor to determine if the denial was legitimately caused by an investor that is not participating or who has restrictions that make it impossible to do the mod.  If we disagree with the servicer's assessment we overturn the denial.

Laurie A. Maggiano
Director of Policy
Homeownership Preservation Office                                                          
Department of the Treasury 

Permalink Reply by Kevin - Greenville, SC on April 10, 2012 at 8:48am

The same would apply to HAFA too.

Permalink Reply by Keri Sweetland on April 10, 2012 at 8:54am

Kevin, I would really like to understand that more!  I just had a case where someone was told by Chase they were approved, got all the way through the ALTRASS, it was sent for final approval and the investor who I was told was Wells Fargo does not participate in the HAFA program "on this loan".  Now, I do a lot of short sales so I know as a servicer that Wells Fargo as a rule is now consistently reviewing all files for HAFA as of a few months ago but even with corporate escalations with Chase I was not able to get beyond this.  This is an elderly woman on SSI-the kind of person the HAFA program was designed for-any help would be so greatly appreciated.  I strongly believe in what we do and really strive to know as much as possible.  Can you direct me to some additional resources or how to proceed?  THANK YOU for your response.

Permalink Reply by Kevin - Greenville, SC on April 10, 2012 at 10:17am

Use the following contact information to escalate the issue:
Investor Contact Information


Fannie Mae Loans

Phone: 1-800-7FANNIE [email protected]


Freddie Mac Loans
Phone: 1-800-FREDDIE [email protected]


Non-GSE Loans
HAMP Solution Center Phone: 1-866-939-4469 Fax: 1-240-699-3883 [email protected]

https://www.hmpadmin.com//portal/resources/escalation.jsp

Permalink Reply by Kevin - Greenville, SC on April 10, 2012 at 10:17am

Kevin, that is not true.  Wells Fargo participates in HAMP fully for loans that they own outright.  However, they service some loans in trust where they are named as the Trustee but in fact the loans are owned by others.  In some of those trusts, they are prohibited from some or all actions that are necessary for HAMP.


Laurie A. Maggiano
Director of Policy
Homeownership Preservation Office                                                          
Department of the Treasury                                 

Permalink Reply by Keri Sweetland on April 11, 2012 at 4:01am

OK thank you...so I will call to verify that they aren't working on this file.  THANK YOU very much for your help-glad we can all share info and resources to get through this to the other side! :)

 

Permalink Reply by Kevin - Greenville, SC on April 11, 2012 at 8:56am
Permalink Reply by Keri Sweetland on April 11, 2012 at 9:16am

KEVIN,  You are the best!  Thank you! :)

 

RSS

Members

© 2024   Created by Short Sale Superstars LLC.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************