Bank Of America Making Helpful Short Sale Changes
Brian Gubernick exhausted most of yesterday distressed about OCWEN and their short sale policy. So, today, we did not want you to think that Brian is always irritated and we’ve invited him to share some optimistic moments from a recent speaking engagement that he attended with feature speaker Matt Verson, a big head at Bank of America.
THere were several lessons to be learned from Matt Verson. It looks that he is not such a terrible guy. He was extremely candid about Bank of America problems. He talked without restraint about what they have been doing incorrect and what they are trying to do to fix those troubles. Mr. Vernon says that they have just about 1500 people working short sales and they hope to bring that figure up to 3000 in the near future. He also pointed out that they want to reduce response time from roughly 90 days to 60 days.
He also pointed out that their processes are effective, but often times they are limited by what they can do because of the investors involved.
Possibly the most crucial portion of the speech was about deficiencies. All Bank of AMerica approval letters declare “we reserve the right to pursue deficiency balance unless prohibited by law.” Mr. Vernon has now stated that in the near future, Bank of America will waive all deficiency rights on short sales. The vital portion of this statement is that Bank of America is still constrained to a specific degree by their investors.
There has been reference of a Bank of America approval letter with a Fannie Mae investor and it did not have the deficiency phrase. So, given that Fannie Mae and Freddie Mac are the investors on thousands of loans, this is a pleasant sign.
In summation, our hats go off to the staff at Bank of America for getting things going in the right direction.
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