It is no secret that Fannie Mae and Freddie Mac are tightening the reins on delinquent borrowers. What is looks like to me is Fannie is now going WAY out of their way to “find errors” and “mistakes” so they can can shove the foreclosure back on the originating bank and not have the loss belong to them. FNMA has a long history of when making loads of money any profits belong to them (for their ultra-bright management) and the stockholders. When they lose money – well yes, that’s on the taxpayers.
Now industry giant, Wells Fargo had the following sent out:
Subject: !!!URGENT!!! New Procedures Regarding Extension and F/C Sale Dates
If you are receiving this email, I currently am working on your short sale file or have worked on your file in the past few months. PLEASE READ THIS WHOLE EMAIL AND FORWARD TO ANY PARTIES WHO MAY BE WORKING ON A SHORT SALE FOR WELLS FARGO.
Due to recent industry changes, we at Wells Fargo will no longer be granting any extensions for short sale close dates or postponing foreclosure/trustee sale dates. If you were issued an extension letter dated 9/14 or earlier, those extension letters will be honored, but no further extensions will be granted. Files must close by expiration date on the original approval letter or they will be removed. If your approval expires 9/15 or 9/16, you will have 48 hours to get me the final HUD for approval and close.
Please let me know if you have any questions! Thank you!
***Please include the loan # and borrower’s name with all correspondence***
(¸.·´ (¸.·´ * You
Loan Adjustor Specialist
Wells Owned/Private Liquidation
Wells Fargo Home Mortgage | 1 Home Campus | MAC X2409-01F
Des Moines, IA 50328
Nice. They trained the public to see how long they could stay in the house rent-free and now to “fix things” are simply not going to do any further extensions. Yes, this is coming from FNMA (which is 80% of Wells’ loan portfolio) but 20% is theirs – and they will follow lock step in line with Fannie. All the while chanting, “We don’t want foreclosures”. No, they don’t “want them” but will not act in accordance with “not wanting them”.
Wachovia was first, now Wells. In less than 30 days you will see an announcement from B of A saying the same thing. It will be the new standard. They are trying to quickly “retrain the public” on how long they can stay in the house (now 7 months max) without paying. Not a word from Wells about Fannie and what should be occurring.
A year ago I would have said that Well’s was one of the very best banks to do a short sale with and currently they are among the absolute worst. Almost like they took lessons from how Bank of America was running their loss mitigation division six months to a year ago. Not now. B of A has made HUGE improvements and Wells has gone the other way. Why can’t we get a short sale done before foreclosure? Is it the buyer who is tardy with paperwork? Is it the seller who won’t get papers back to us in a timely manner? Nope. It commonly currently takes Wells over 60 days to get back to us.
From where I sit, Fannie’s claim that they want to stop foreclosures and support neighborhoods rings kind of hollow.
Most of us usually judge individuals and companies by how they act. Not by what they say. At least not for long.