Last week, C.A.R. leadership met with federal housing regulators and California’s Congressional Delegation in Washington, D.C., to discuss the Federal Housing Finance Agency’s (FHFA) bulk sale REO pilot program.
Leadership expressed C.A.R.’s strong opposition to the pilot program given the low inventory of homes for sale across California. According to C.A.R. statistics and discussions with California REALTORS®, the state is facing a shortage of available housing, and the lack of inventory has forced many buyers to face multiple offers across the state.
Although the pilot program calls for Los Angeles and Riverside counties to be included, federal regulators have stated they do not believe that properties that would sell for a higher price through the current REO broker network should be included in the bulk sales program.
Because many REO listings are selling for near or above listing price with multiple bids, C.A.R. hopes the FHFA will refrain from implementing the pilot program in California.
CNN Money
On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders. California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general’s office.
Making sense of the story
- The deal settles potential state charges about allegations of improper foreclosures based on robo-signing, seizures made without proper paperwork.
- The settlement sets up a federal monitor to oversee the process and try to prevent the challenges that tripped up many homeowners seeking help in earlier programs designed to address the housing crisis.
- Most of the relief will go to those who are underwater on their homes. That relief will come over the course of the next three years, with banks having incentives to provide most of the relief in the next 12 months.
- At least $17 billion will go to reducing the principal owed by homeowners who are underwater and behind on their mortgages.
- Up to 750,000 other underwater homeowners who are current on their mortgages will be able to refinance their current loans at lower rates. They will not receive a reduction in principal, but with mortgage rates near record lows, they could receive substantial savings on their monthly payments.
- Approximately $1.5 billion will go to homeowners who had their homes foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011, and who meet other criteria. They will receive up to $2,000 each.
- The five mortgage servicers that are parties to the settlement include Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial (formerly GMAC).
Read the full story
http://money.cnn.com/2012/02/09/news/economy/mortgage_settlement/index.htm?hpt=hp_t1
San Diego Union-Tribune
The number of loan servicers taking part in a state mortgage-aid program continues to grow roughly one year after its launch. The Keep Your Home California program now has 55 participating mortgage servicers, up from 21 in June.
Read the full story
http://utsandiego.com/news/2012/jan/10/more-lenders-added-calif-mortgage-aid-program/
The California Dept. of Real Estate recently issued the following practical advice to prevent consumers from falling victim to a scam:
- Never pay an upfront fee for loan modification services. Such fees are illegal.
- Watch out for promises of guaranteed success. No one can promise that a loan modification will be successful.
- Ask questions, get referrals from people you know and trust, and always remember the following: If it seems too good to be true, it probably is not true.
- Contact a HUD-approved counseling agency that can provide loan modification services for free.
- If you have been a victim of a loan modification scam, report it to the DRE, the FTC and the Attorney General.
Beginning Dec. 7, Fannie Mae will launch the HomePath Online Offers Program to collect offers and manage the offer-submission process on properties listed on HomePath.com. Agents and brokers representing buyers are now required to submit offers exclusively on HomePath.com. All properties listed in California and Florida are eligible on the designated launch date.
The HomePath Online Offers Program is designed to ease and create transparency during the offer submission process with the following features:
An easy to use, self-service offer submission system that can be assessed through HomePath.com
A transparent offer process that keeps Selling Agents informed of the status of their clients’ offers on HomePath properties listed on HomePath.com
Improved communication between the Selling Agent and the Listing Agent regarding offers on HomePath properties listed on HomePath.com
http://www.homepath.com/offerQuestion.html
