Replies to This Discussion

Permalink Reply by Angie Fraguas on October 25, 2017 at 10:17am

I was doing a short sale with Caliber Home loans and they told me no more short sales only DIL.

Permalink Reply by Tony Morales on October 25, 2017 at 10:26am

that's ridiculous   They cannot due a DIL if there are junior liens/mortgages.  And according to what I am reading, the new CFPB guidelines require lenders to offer ALL options to avoid foreclosure.  Can you get that in writing from them?  I would have your seller call and challenge them

Permalink Reply by Smitty on October 26, 2017 at 9:34am

Tony, do you have a copy of the new CFPB guidelines? I would love to read that, as BOA just told us the same thing but when we pressed to get a copy of the new rules we were told NO.  A lender offering a DIL IS unfortunately an alternative to foreclosure. They make the homeowner negotiate the second mortgage and allow a payment.  It really stinks.  That would suck if Caliber only did that now, but to be honest, my last 2 Caliber sales didn't get approved.  I was told the investor wanted a price that was double market value and because we couldnt' get it, they would only offer the DIL.

Permalink Reply by Tony Morales on October 26, 2017 at 10:27am

CFPB rule 1024.41 (c)  it does not specifically state that servicer must require a borrower to apply for modification prior to doing a short sale. It does state that servicer may offer all loss mitigations options.

here is reply from B of A manager:

Hi Tony. Per our direction the bank has updated our process in response to CFPB updates. I’m not in a position to interpret the individual regulations but I can say that our process now requires a borrower to go through a retention review and be provided a decision in order to move to a short sale review.

I have also spoken to Wells Fargo  and they are not requiring modification review prior to short sale

Permalink Reply by Angie Fraguas on October 30, 2017 at 7:19am

Below was her response. The short sale approval letter expired 10-27 and she sent this 10-25. : 

Angie Fraguas, Jennifer Fabi

I regret to inform you that Short sale is no longer an option. Borrower/Seller can apply for DIL, see below LMA application.

Permalink Reply by Tony Morales on October 30, 2017 at 8:14am

I am wondering if their policy is related to the new CFPB guidelines.   from my understanding is that they must offer home retention option to the borrower. You may want to ask them

Permalink Reply by Minna Reid on October 31, 2017 at 3:24am

Could anyone share a link to these new CFPB guidelines?

Permalink Reply by Tony Morales on October 31, 2017 at 5:57am

there are 901 pages of the new guidelines   here are 2 pages that I feel are applicable

Attachments:

• CFPB 2 pages.pdf, 104 KB

Permalink Reply by Minna Reid on October 31, 2017 at 8:00am

Cool thanks....I can see how that could be "open to interpretation"...sigh...