Call to Action! Mustering the Troops! Read this article http://www.airforcehomebuyer.info/articles/HUD_ML_2013-23_LetterToTheOIG.htm then send an eMail, THIS WEEKEND, to HUD OIG General David A Montoya at hotline@hudoig.gov
You can down load “An Open Letter To HUD Inspector (WORD FORMAT) at this link http://www.sendspace.com/pro/11er6a.
You can also download a PDF copy of ML 2013-23) at this link http://www.sendspace.com/pro/kc0j2q. Pay particular attention to the last line of Page 7 and the first two lines of Page 8. It is extremely important that ALL short sale specialists send an eMail to the Inspector General at HUD and urge him to remove the provision that bans 'Limited Disclosed Dual Agency' in Mortgagee Letter 2013-23. Servicers, across the nation are preparing to implement ML 2013-23 on 1 October 2013.
AND NOW SOME INTERESTING TRIVIA:
There are still thousands of underwater mortgage all around the country and yes… even here in the Phoenix Valley.
Lori & I have ‘mortgage delinquency’ lists pulled every 90 days. When we compile ONLY FHA loans, In just five cities, among only five banks who service FHA loans in the west valley, there are over 5,000 homeowners who are delinquent on their mortgages (30, 60 or 90 days). There are thousands more that are already into the foreclosure process.
In the west valley, there are over 20,000 homeowners who are delinquent on their mortgages among FHA, VA, USDA, IDA Bonds, GSE and Non-GSE Conventional loans. However FHA loans are quickly becoming the lion’s share of these delinquencies.
If we consider that Arizona has begun to heal from the ‘housing meltdown’ faster than any other state in the country, then it is logical to conjecture that these numbers are only exasperated in other parts of the country.
We cannot let this provision of ML 2013-23 take root. We must get it reversed.
One last point… and I know that I’m singing to the musicians…
Short Sale Listing Agents have the best chance of keeping a buyer in play when the buyer also working with the listing agent of the FHA PFS. Short Sale Listing Agents, who have successfully closed, a respectable number of short sales, and particularly FHA PFS transactions know the ‘lay of the land’, thus can do a better job of calming the squirrels that whirl around in the stomach of the short sale buyer.
And… while the ‘root confidence’ of what a buyer is willing to pay and what a seller is willing to accept will always be ‘sacrosanct’, concerns over inadvertently slipping up with other ‘confidential’ information is a bit less likely because in this type of a transaction… sellers, as well as buyers, are dissected, examined, vetted and nearly stripped naked by the servicing bank. There are virtually no ‘secrets’ that are not disclosed by one side or the other. If one or the other side does not want to ‘fess up’ to the servicing bank, then they are kicked to the side, by the servicing bank, and the servicing bank moves on to the next project.
In any event… I know we’ll all keep the pressure on HUD. I am pretty confident that we’ll pull this off.
Very Respectfully
G-II Varrato II
RET USAF 820th CES RED Horse, REALTOR®
Director Community Outreach (Veterans Association of Real Estate Professionals) VAREP
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That is great news! Sheesh....considering the fact that they do a FULL APPRAISAL and have their own guidelines as to the percentage and amount that is an acceptable net to them, you would think that they could care less as to which agent/agency brings them the amount that they are asking for. Good Work !!!
Can we get a link to this memo?
HUD DUAL AGENCY BAN PER ML 2013-23 WILL NOT BE IMPLEMENTED
Great new for the team and consumers! The HUD FHA ban on brokerage dual agency in short transactions WILL NOT be implemented on October 1, 2013. We have fielded many questions from our agents regarding this issue so please distribute this information sooner versus later. As always, we are the source of industry news!
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TO: NAR L-Team
Regional Vice-Presidents
State and Local Association Executives
state and Local Association Government Affairs Directors
FROM: NAR Government Affairs
RE: HUD Policy on Dual Agency Agreements
DATE: 23 September 2013
As reported earlier this week, NAR Government Affairs informed you that on October 1st HUD would be implementing a new policy that would have prevented dual agency agreements in FHA pre-foreclosure transactions.
NAR has been working with HUD closely to modify the policy. This afternoon HUD reported to NAR that they will reissue the July Mortgagee Letter and remove all dual agency language (Part Three of the PFS Participation Requirements).
The result is that the dual agency policy will not be implemented on October 1, 2013 allowing NAR to continue the dialog with agency officials on a formal solution.
HUD announced the policy change in response to fraud and abuse detected by the HUD Inspector General in the pre-foreclosure sales process.
The letters sent to HUD by our State and Local Association Presidents highlighted NAR’s concerns about the policy and the disruptive effect its implementation would have on communities across the nation.
***MEMO IS FORWARDED FROM TRUSTED SOURCES AT AAR and CAR
Very Respectfully,
G-II Varrato II
RET USAF 820th CES RED Horse, REALTOR®
Director Community Outreach (Veterans Association of Real Estate Professionals) VAREP
I made both the NAR and the South Carolina Association of Realtor aware of this shortly after the issuance of this ML. Neither cared.