The allowance of broker price opinions in the administration's Home Affordable Foreclosure Alternatives (HAFA) program has created a major controversy. As DSNews.com previously reported, four appraisal organizations recently wrote a letter to Treasury Secretary Timothy Geithner, voicing concerns over the use of BPOs for short sales under HAFA. In response to this opposition, Vicki Cox Golder, president of the National Association of Realtors (NAR), wrote her own letter, supporting HAFA and its allowance of BPOs.
Wells Fargo said Wednesday that it has agreed to participate in the administration's Second Lien Modification Program (2MP). Wells is only the second major servicer to sign on to the junior lien component since it was introduced nearly a year ago. Under 2MP, when a borrower's first lien is modified under HAMP and the second lien servicer is a 2MP participant, that servicer must offer either to modify the second lien or to accept a lump sum payment from Treasury in exchange for fully extinguishing the second lien.
New loans made by the nine U.S. banks with the largest unsettled government bailouts declined 35 percent from December to January, according to federal data released this week. The Treasury's monthly lending survey of the top Troubled Asset Relief Program (TARP) recipients with funds outstanding shows that the nine banks in the upper echelon originated approximately $36 billion in new loans during the first month of this year - the smallest total since last October.
HOPE NOW says its members completed 99,499 proprietary loan modifications in January, almost double that of the 50,364 permanent mods finalized under the Home Affordable Modification Program (HAMP) industry-wide during the same month. Although HOPE NOW is seeing substantial success with non-HAMP modifications, the organization is also taking a lead in helping servicers collect borrowers' documents at its localized outreach events, in order to speed the process of converting trial HAMP mods to permanent status.
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