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CFPB Regulation - Waterfall Process

Posted by Alexis Adams on October 11, 2017 at 11:03am in Short Sale Discussions

Hi all - I was advised by Ditech today (10/11/17) that any short sale that is currently under review with an INCOMPLETE or PARTIAL submission package (even outstanding document request) would be pulled from short sale on 10/15/17 and referred to loan modification review.

Has anyone heard this? I tried to get more info, but was advised that this appears to only apply to government loans but there was no additional information available. The particular loan that I was speaking with them about is a Freddie. It looks like they will be starting the old waterfall process where you have to be declined for a modification before starting up a short sale. An opt-out letter will not suffice, even if property is vacant and there is an offer.

Anyone heard anything similar?

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Replies

  • Smitty October 23, 2017 at 6:58am

    Ok glad to see others are running into this.  Anyone know where this RULE is posted on CFPB website?  Otherwise I'm about to scour site for an hour, but BOFA just told us this too.

  • Minna Reid October 18, 2017 at 2:25am

    I haven't heard this on any of my files...however the waterfall program is specific to FHA. As far as I know Fannie and Freddie have not made any changes to their SS guidelines.

  • Alexis Adams October 12, 2017 at 8:21am
    Update: got same information from BOA except they advised that this applies to ALL loans, not just govt.
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