partnerfirst: Default Industry Update (for the last 14 days) - 06/07/11 11:50 AM
By: PartnerFirst
Things have been a little quiet in the default world for the last few weeks. However, there were some interesting stories and developments that you may find interesting.  I'll give you the Cliff's Notes version...
Imminent Default Regulations for Short Sales
Fannie Mae issued a notice to their servicers detailing changes on how they should determine "imminent default" for short sales and DIL's.  In a nutshell, they are now required to use the same method as is used for determining imminent default with a HAMP modification application.  The borrower cannot have more than $25,000 in cash reserves, and must have … (0 comments)

partnerfirst: Short sales increase drastically nationwide! REO’s continue to fall… - 05/09/11 12:13 PM
Need more reason to stay connected to what is going on at PartnerFirst?  This very recent report confirms the inevitable!
Short sales rose from 17% of all sales in Feb to 19.6% of all sales in March and continue to outpace REO’s. This is good news for Realtors and homeowners and I take it as an indicator of a couple positive trends.
 1. Buyers are more willing than ever to consider short sales as options for them to purchase
 2. Realtors, on both sides of the transaction, are becoming more informed about short sales and less afraid of the problems that … (0 comments)

partnerfirst: GSE's align on delinquency management...finally! - 05/09/11 11:45 AM
By: Jacob Swodeck - PartnerFirst, Director of Education
So, if you’re wondering what is happening at the highest levels in the mortgage servicing world, here it is! The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to align their guidelines for servicing delinquent mortgages they own or guarantee.  According to the FHFA, this framework will create uniform servicing requirements, as well as monetary incentives for servicers that perform well and penalties for servicers that do not.
The directive requires the two government-sponsored enterprises to align servicing requirements in four areas: borrower contact, delinquency management practices, loan modifications and foreclosure … (0 comments)

partnerfirst: NEW - HAFA Approval Timeline (Cheat Sheet) - 04/11/11 10:06 AM
The U.S. Treasury Department has released updates to the policy guidelines for the Home Affordable Foreclosure Alternatives (HAFA) Program:
 New HAFA Approval Timeline Reference Guide (CLICK HERE):

partnerfirst: New HAFA Changes Widen Loopholes for Servicers - 04/08/11 11:26 AM
By: Jacob Swodeck, PartnerFirst - Director of Education
Well, this morning was one of those mornings when you know something isn't right.  
My coffee didn't taste right.  My neck hurt from sleeping wrong.  And, to top it off -HAFA changed...again! Supplemental Directive 10-18 from December 28, 2010 was an encouraging sign for us Realtors and for struggling homeowners.  The HAFA program seemed to have gotten just the improvements it needed to make a dent in this national foreclosure crisis.  Swifter timelines (30 calender days) for servicers to approve or reject HAFA short sales was a big step in the right … (1 comments)

partnerfirst: New Guidance for HAFA Short Sales - Issued by Treasury Department - 04/08/11 07:12 AM

New Guidance for HAFA Short Sales - Issued by Treasury Department. A PartnerFirst quick reference guide will be made available soon.
Also, our HAFA Specialist Certification will contain a revised supplemental which will be made available free of charge to ALL who earned the HSC Certification previously. Stay tuned!

partnerfirst: Ehhh, who really cares... - 04/06/11 10:16 AM
By: Jacob Swodeck, PartnerFirst - Director of Education
So what is new in the default servicing world?  The Treasury will start to publish a scorecard of the servicers HAMP performance soon, the House voted by a large majority to end Obama's HAMP program altogether Tuesday evening, the shadow inventory is dropping slightly (but still very little non-GSE REO inventory), Wells Fargo is now on the Equator platform, Bank of America launched a revitalized cooperative (HAFA-like) short sale program, and Fannie Mae is participating in the game changing top-down / lender initiated short sale initiative with default servicing giant ServiceLink.

partnerfirst: Happy Birthday HAFA - 1 Year Old Today! - 04/05/11 12:27 PM
By: Jacob Swodeck, PartnerFirst - Director of Education

I just celebrated my son's one-year birthday late last year.  The party, the presents, the excitement-it was lots of fun!  And there are always those well-intentioned people who asked questions like,  "Is he walking yet, or saying words yet?"  A one year birthday seems to bring about a desire to measure the stature or progress of a thing.  Interestingly enough, HAFA turns one year old today (The Treasury's version).  So, let us ask the questions about its progress, and stature.  Is HAFA up and walking yet?  Or is it still a cute … (1 comments)

partnerfirst: At last - lender-initiated short sales! - 03/30/11 11:06 AM

For agents who have struggled to find viable short sale listings— and then struggled to get the attention of lenders—the latest news from the field is welcome indeed. 
At last, proactive mortgage servicers are initiating the process of approaching delinquent borrowers with the short sale option, and then connecting them with qualified agents to make it happen.  The results: real leads, resulting in real listings. That’s the news from agents on the ground who are following up on PartnerFirst’s Fannie Mae Short Sale Initiative.
In that campaign, homeowners are approached by mortgage servicer outreach representatives who present the various options … (3 comments)

partnerfirst: Foreclosure Moratorium Facts (real time) - 10/15/10 04:23 AM
No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide. What does this mean for the short sale market? Will this delay help short sales or contribute to the already increasing mentality of distressed borrowers to simply wait it out before reaching out to their servicer or a real estate agent for help? While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have. (sourced from N.A.R. - … (1 comments)

partnerfirst: The Truth about Wells Fargo and Wachovia Foreclosures - 10/08/10 04:29 AM
Hi All, As you know, I have been tracking the rumors about Wells Fargo's new policy of not extending short sale approvals and no t postponing foreclosure any more. I sent an email to a default executive at Wells Fargo in response to this article by (link: and received this statement which I think you should find very helpful. Statement from Well Fargo: Jacob, Regardless what the media is saying, the below statement comes from our communications department: Wells Fargo recently issued communications around our short sales that clearly created confusion in the marketplace. We apologize for these misunderstandings … (8 comments)

partnerfirst: National Wells Fargo Short Sale Update - 09/24/10 04:13 AM
Today I had the privilege of attending a local Wells Fargo short sale seminar in my area (Rancho Cucamonga, CA). The presenter was Abel Fregoso, who is the Regional Vice President of REO and Short Sales for Wells Fargo. He has 25+ years in the mortgage industry and is a pleasure to listen to. I will post my actual notes, and then I'll expound towards the end of the post. My notes:Wells Fargo short sale meeting 9/23/10 Wells Fargo services 9 million loan customers (2nd to BofA) 22% are portfolio assets including Wachovia loans (or owned by Wells Fargo) Therefore, 78% … (5 comments)

partnerfirst: Bank of America's New and Improved Short Sale Approval Letter - 09/13/10 04:15 AM
Can it be? Bank of America has a new approval letter? Actually, it is only a change in verbiage. But, this change is monumental and noteworthy. In the past, BofA reserved their right to pursue the borrower/s for the deficiency when applicable. That language scared off many homeowners and real estate professionals. BofA's stance was that they needed to reserve the right to collect on the deficiency in the event of fraud, false information, or misrepresentation. Fair enough. But is that the best way to convey that message in a sue-happy society where everyone is watching their backs? Homeowners feared being … (4 comments)

partnerfirst: Old Republic Mortgage Insurance not Participating in HAFA - 09/07/10 05:18 AM
Let the games begin! The HAFA rejection monster has reared his ugly head. In this email thread, one of our PSC's has shared an email thread where a second mortgage serviced by BofA with MI has rejected the HAFA short sale requirements and sited that they are not participating in general with HAFA. Se thread below: Subject: Equator - Message Alert: HAFALRC Removed; MI (Old Republic) NON-PARTICIPATION Message Inserted (08/31/2010 10:14 AM) On: 3167 CHATWIN AVE, LONG BEACH CA. ORICS does not participate in the short portion of HAFA. I will just decline this as 6% or $6k will not be … (0 comments)

partnerfirst: LPS readies launch of short sale broker/agent network - 08/27/10 07:18 AM
LPS readies launch of short sale broker/agent network
* by Kerry Curry * 2:45 PM August 26, 2010
A Lender Processing Services (LPS) division will go live with its new short sale broker/agent network within 60 to 90 days, company officials told REO Insider. The network is designed to help servicers respond to the increasing volume of short sales, LPS said.
LPS Asset Management Solutions, a division of LPS, began discussing the creation of the network in January as the Home Affordable Foreclosure Alternatives (HAFA) program was getting ready to roll out, said Danielle Washburn, assistant vice president marketing for … (2 comments)

partnerfirst: NAREB Forms Strategic Partnerships to Serve Minority Communities - 08/23/10 12:01 PM


partnerfirst: Freddie Mac HAFA Too Exclusive? - 08/20/10 05:18 AM
As we all should know by now, Fannie and Freddie (GSE) HAFA guidelines were released on June 1st, 2010 and the program launched on August 1st. I haven't personally done a GSE HAFA short sale yet but I have made myself very familiar with the 22 pages of guidelines. There are many distinguishing qualities when compared to the Treasury's version of HAFA, but one has jumped off the page and smacked me in the face. Freddie Mac's HAFA states: Servicers must consider HAMP eligible borrowers for HAFA within 30 calender days after the borrower: 1. Is determined by the servicer they … (1 comments)

partnerfirst: Top Mortgage Default Industry Executive Bill Breeden Announced as Chief Development Officer of... - 08/19/10 06:39 AM
PartnerFirst LLC, announced today that Bill Breeden has been added as a new Principal and Chief Development Officer. PartnerFirst CEO, Mark Comer, says, "We are honored and excited that a default professional of Bill's caliber has joined PartnerFirst. His background and knowledge are unrivaled in the industry." Bill will be helping stakeholders build an effective short sale management and disposition strategy, using the PartnerFirst panel of trained and certified real estate agents. Prior to joining PartnerFirst, Bill was SVP at ServiceLink and AssetLink, LP (both Fidelity National Financial Companies), as well as COO and CFO at Moss Codilis, Stawiarski, Morris, Schneider … (0 comments)

partnerfirst: Default Market Update (you may want to sit for this one) - 08/16/10 10:26 AM
Hey Fellow PSC's, As I sit in front of my computer screen, I am challenged with the task of writing a "value add" blog about the short sale space. Most things I want to write about are negative, depressing, and non-productive. So, as a compromise, here is a quick glimpse of what is going on TODAY. (since statistically we are scanners, not readers in our present day anyway) Default Market Update (highlights) * Est. 7 million homeowners in default (FYI, that is a lot) * Wells (portfolio loans) and Wachovia not postponing foreclosure...EVER! * Fannie and Freddie HAFA disqualifies homeowners that … (0 comments)

partnerfirst: Wachovia Pulls the Trigger on Foreclosures - 08/16/10 10:25 AM
Greetings PSC's, I have some alarming news to report. I cannot reveal my source, however they are VERY reputable. Wachovia (formerly Golden West and World Savings) has been the sweetheart of the short sale space in the past 15-18 months. Diana Stauffer of Wachovia created the "Fast Track" short sale program in early 2009 in order to quickly work through their less than attractive "pick-a-pay" loan portfolio. Homeowners were given $3,000 to $5,000 as an incentive to cooperate, real estate agents received 7-8% commission, deficiency rights were waived, they put local, approachable human representatives (short sale managers) in hard hit areas, … (1 comments)