I watched a fantastic webcast of a House committee meeting where several bank and servicing company CEOs testified about their performance on HAMP loan modifications and other foreclosure prevention programs, including short sales. The entire webcast is about 2 hours but it's worth watching. I have to admit these Congressional House members knew what they are talking about and actually understand how horrible the process of working with these banks and servicing companies is for both homeowners and Realtors. They also tried to find answers on how to improve the pathetic HAMP program and come up with a streamlined process. I was impressed by their questions and the fact they really pressed the CEOs for answers beyond the PR crap they were trying to dish out.
The Witnesses testifying include:
Mr. Sanjiv Das
Chief Executive Officer
Ms. Barbara J. Desoer
Bank of America Home Loans
Mr. David Friedman
President and CEO
American Home Mortgage Servicing, Inc.
Mr. Michael J. Heid
Co-President, Wells Fargo Home Mortgage
Wells Fargo & Co.
Mr. David Lowman
Chief Executive Officer
Chase Home Finance, Inc.
Mr. Edward J. Pinto
Here are a few of comments made:
Wells Fargo--Process a short sale in 5-15 days and a loan mod in 5 days. Also, they suspend the foreclosure process while a loan mod or short sale is in the system.
BofA--40% of the people they give mods to, miss payments. They do not suspend the foreclosure process when a loan mod or short sale is in the system but they will not actually send a home to trustee sale during this time.
Citi--Typical loan mod takes 3 months for the trial payment period and 1 month to give permenant mod. They suspend foreclosure during the process.
Chase--Typical loan mod takes 7 1/2 months. The CEO actually told the Congressmen to call the 800 number if they have constituents with problems! He said Chase has two checks prior to sending a home to foreclosure and they will not send it to sale if a borrower is in the system set up for assistance.
American Home Mortgage Servicing--They do not suspend the foreclosure process when a loan mod or short sale is in the system but they will not actually send a home to trustee sale during this time.
All of the CEOs admitted that HAMP is very narrow and many people do not qualify. When they don't qualify for HAMP, they try to get them into another program but in this current economic environment that there should be more emphasis on short sales and deed-in-lieu.