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
**********************************
like buttons
Replies
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.
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
The same would apply to HAFA too.
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.
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
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! :)
http://www.nclc.org/images/pdf/foreclosure_mortgage/loan_mod/lmp_wh...
Use the following contact information to escalate the issue:
Investor Contact Information
Fannie Mae Loans
Phone: 1-800-7FANNIE resource_center@fanniemae.com
Freddie Mac Loans
Phone: 1-800-FREDDIE borrower_outreach@freddiemac.com
Non-GSE Loans
HAMP Solution Center Phone: 1-866-939-4469 Fax: 1-240-699-3883 escalations@hmpadmin.com
https://www.hmpadmin.com//portal/resources/escalation.jsp
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
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.