Old Republic Insured Credit Services
Interesting situation. Have M&I as the second on a short sale under contract. M&I has not given us anything to work with but I can post all of the details on an M&I discussion. They finally told us yesterday (after refusing in prior conversations) that Old Republic is in charge of the 2nd. The M&I negotiator is telling us the insurance company is the investor. We think it's just an insurance policy...but who knows these days?
Anyway, I was researching and found ORICSs Loss Mitigation Guide. Here is what they are asking for:
** Loan must not be over 180 days past due
** Net recovery should be at least 15% of the full payoff balance of the insured loan
** If purchase price is greater than or equal to $275k with 2 realtors, suggested total commission allowed is 4%.
** If purchase price is less than $275k with 2 realtors, suggested total commission allowed is 5% of the purchase price.
** One realtor, suggested commission allowed is 2.5% of the purchase price.
The seller should sign a deficiency agreement prior to closing, acknowledging "legal responsibility for the full remaining balance"
Soooooo......are they really going to insist on 15% of the remaining balance on the loan, even if the BPO clearly shows that in a foreclosure, there is going to be nothing left over because the first lienholder can not even get their full payoff? Where is the "business sense" in all of this?
Anyway, I was researching and found ORICSs Loss Mitigation Guide. Here is what they are asking for:
** Loan must not be over 180 days past due
** Net recovery should be at least 15% of the full payoff balance of the insured loan
** If purchase price is greater than or equal to $275k with 2 realtors, suggested total commission allowed is 4%.
** If purchase price is less than $275k with 2 realtors, suggested total commission allowed is 5% of the purchase price.
** One realtor, suggested commission allowed is 2.5% of the purchase price.
The seller should sign a deficiency agreement prior to closing, acknowledging "legal responsibility for the full remaining balance"
Soooooo......are they really going to insist on 15% of the remaining balance on the loan, even if the BPO clearly shows that in a foreclosure, there is going to be nothing left over because the first lienholder can not even get their full payoff? Where is the "business sense" in all of this?
Replies to This Discussion
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Permalink Reply by Wendy Rulnick on
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Love the 4% over 275K with two Realtors, they are PSYCHO!! or 2.5% with ONE??? Plus deficiency for full balance? Right, what IS the point!!!??
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Permalink Reply by Mori Langshaw Sr on
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This can't happen as the the guidelines for a Fannie Mae backed loan still upholds the commission. Correct?
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Permalink Reply by Stephanie Lim on
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That I don't know. I know that Fannie Mae can not make it a condition...but the question is...can a third party? This particular loan is not a Fannie or Freddie for the 1st, and it is the 2nd lienholder who is creating the trouble and saying ORIC is the investor.
Mori Langshaw Sr said:This can't happen as the the guidelines for a Fannie Mae backed loan still upholds the commission. Correct? -
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Permalink Reply by Vedika Hemrajani on
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I have a first loan owned by Freddie Mac and am being told by the investor on the second loan with BOA s Old Republic. Same thing. They are are demandind 15% payoff on the second and are cutting realtor commission ( 2 realtors) down to 4%. Originally they gave us 2 counters agreeing to the higher commission and third round of negotiating they finally tell me this is owned by Old Republic. Does Old Repblic ever make exceptions or is this really a rule with them? Anyone have any experience with this?
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Permalink Reply by Anna Boyd on
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Old Republic Insurance Services is the PMI company and handling the second. 4 months ago they were willing to sign off for $5k. Now we have new buyer (our 6th with Bank of America) and they are demanding $15,000! $7500 cash and $7500 promissory note. According to BAC negotatior they don't care where the cash comes from.
I asked him why it jumped from $5k to $15k. He said Old Republic guidelines are that if seller credit score is over 584 and second loan amount is over $58k, they want $15k or they'll decline the file. They said if second loan amount goes over $70k, then they will want even more.
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