Archive for July, 2009

Partner First Short Sale Agent Network’s Pre-Foreclosure Specialist Designation


Pre- Foreclosure Specialist Certification Logo

Pre- Foreclosure Specialist Certification Logo


Today is the second day of training for my newest designation; the Pre-foreclosure Specialist Certification class, (PSC) is an interactive, two-day “Short Sale Mastery Workshop” held at regional locations.

Contact me today for Sacramento Foreclosure Advice from a Certified Pre-foreclosure Specialist!

Home loan delinquency rates in the United States have now surpassed 10 percent, Lender

The course is offered by PartnerFirst, a Nationwide Certified Short Sale Agent Network, whose intensive two day training Taught by Scott Thompson, founder and CEO of Mortgage Resolution, (which is now owned by Fidelity National Title) and Jacob Swodeck, Director Of Education for partner first.

This course will get me yet another designation in the loss mitigation, home retention area and bring even more insight to the challenges we as an industry face in helping homeowners. I know it will add to my negotiation skills and provide me with more timely perspective from the lenders point of view, when it comes to loss mitigation.  For more information about how PartnerFirst PSC Realtors can help homeowners please follow this link.  

Here’s a look at the management team and the individuals who were instrumental in putting the curriculum together for the PSC designation. 

Contact me today for Sacramento Foreclosure Advice from a Certified Pre-foreclosure Specialist!

Home loan delinquency rates in the United States have now surpassed 10 percent, Lender

Management Team  

MarcMark Comer, Co-Founder and President, PartnerFirst. With more than 19 years of experience achieving high levels of leadership success within the mortgage and real estate industries, Mark co-founded PartnerFirst with a vision to connect homeowners, vendors, mortgage servicers and real estate brokers together through the PartnerFirst Real Estate Network. Mark is a graduate of the University of Southern California with an emphasis in Real Estate Development and Finance.

 M.LeetMichael Leet, Co-Founder, Executive Vice president and Chief Operating Officer, PartnerFirst. With more than 19 years of experience achieving high levels of success within the mortgage industry, Michael is in charge of all financial and operations management for PartnerFirst and its sister companies National Mortgage Consumer Counseling, and United American Funding. Michael is a graduate of the University of Southern California in Business with an emphasis in Real Estate.

 Son.NguyenSon Nguyen, Co-Founder, Senior Vice President, Program Director of the Homeowner Outreach Assistance Program and Minority Outreach Initiative, PartnerFirst. With more than 12 years of achieving high levels of leadership success within the real estate, title and escrow industries, Son is in charge of developing the Homeowner Outreach Program (HOA) focusing on the Minority Outreach Relations initiative (MOR). A proud U.S. Navy veteran, Son is a graduate of the University of Florida with a degree in Public Relations and Masters in Organizational Management.

 P.CarlonePriscilla Carlone, Vice President of Default Services Technology, PartnerFirst. With more than 27 years of experience in non-performing mortgages servicing, Priscilla is considered an expert in loan loss mitigation technology and servicing practices. Her award-winning career with Fannie Mae for the past 20 years has yielded multiple loss mitigation initiatives including integral system technology and innovative servicing processes and efficiencies.


Jacob SwodeckJacob Swodeck, Director Of Education, PartnerFirst. Jacob is an active agent who has been in the pre-foreclosure trenches for over 10 years. He began his real estate career as a manager of one of the largest short sale processing centers on the west coast. With a training that runs deep with experience and volume in short sales, Jacob has acquired the knowledge necessary to be considered one of the top short sale experts in his respective field. Between himself and his past business partner, they estimate to have closed nearly 1,000 short sales together including the 1990’s when Jacob began. Jacob has also trained thousands of real estate professionals to “recession proof” their careers in his full day short sale mastery university seminars nationwide.

If you are falling behind on your mortgage payments you have many Pre-Foreclosure options to choose from: Contact a Pre-Foreclosure Specialist today to discuss which option is best for you.  Don’t wait till it’s to late, let us show you how to minimize your financial loss and limit the damage to your credit history.

Contact me today for Sacramento Foreclosure Advice from a Certified Pre-foreclosure Specialist!

Home loan delinquency rates in the United States have now surpassed 10 percent, Lender

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Federal Loan Modifications Projections Overstated… HAMP Struggles

Loan Modification Projections Were Based on Faulty Projections

It seems thatma lot of the good news about  loan modifications lately have been not based on real numbers, but on assumptions made by the Obama Administration and the Treasury Department… the Home Affordable Modification Program is just getting off the ground and is struggling to get rolling.

According to a story I sawtoday in DSNews:

The Obama administration’s plan to modify unsustainable mortgages could fall short of its goal, according to a report released last week by congressional investigators at the Government Accountability Office (GAO).

The watchdog agency said the administration’s projections of helping three to four million homeowners lower their monthly payments through the Home Affordable Modification Program (HAMP) “may be overstated” because of assumptions based on uncertainties within the mortgage market and the state of the economy.

HAMP was launched in March. As of this week, 34 mortgage companies have signed up to participate and about 180,000 borrowers are enrolled in three-month trial modifications. The Treasury Department estimates that about 65 percent of borrowers at least two months behind on their mortgage payments will sign up for a federal modification, but the GAO says the actual rate of participation is more likely to be about 50 percent.

Additionally, GAO said servicer participation in HAMP has not yet reached the 90 percent coverage rate projected by Treasury, and borrowers cannot participate unless their servicers do. The report also stated that not all homeowners offered a loan modification will remain current on their modified mortgages—further reducing the number of homeowners that may avoid foreclosure through the program.

Lastly, the GAO said, Treasury did not provide detailed information and documentation essential to adequately support its assumptions, making it difficult to assess the reliability of the Department’s estimates and may hinder efforts to evaluate how well the program is meeting its objectives.

In its report, GAO recommended the Treasury Department:

1) Consider methods for monitoring compliance with and the effectiveness of its counseling requirement.

2) Reevaluate the basis and design for the Home Price Decline subprogram announced in May.

3) Regularly update assumptions and projections underlying the estimated number of borrowers likely to be helped.

4) Staff vacant positions within the Treasury’s Homeownership Preservation Office, and evaluate its staffing levels and competencies.

5) Finalize a comprehensive system of internal control over HAMP and the $75 billion to fund the program.

6) Systematically assess servicer’s capacity to meet HAMP’s requirements during their admission to the program.

The Treasury said it will consider GAO’s recommendations as it moves forward. In response to the agency’s report, Herbert Allison, Treasury’s assistant secretary for financial stability, acknowledged that the Department faces challenges in accurately estimating how many homeowners the program will reach. He said the government intends to update estimates of HAMP’s cost and participation projections.

Foreclosure and delinquency rates have reached their highest levels in 30 years. And the GAO’s report comes amid concerns that servicers are not meeting all requests from HAMP-eligible borrowers and do not have the capacity to handle unprecedented numbers of distressed homeowners seeking assistance. Some have also suggested that lenders may be violating the rules of the program.

Diane Thompson of the National Consumer Law Centertestified before the Senate Banking Committee earlier this month that several mortgage servicers participating in HAMP are demanding payments from homeowners before reviewing their cases, denying help to homeowners not already in default, initiating foreclosure proceedings before completing mod reviews, and providing customers with false information.

Sen. Christopher Dodd(D-Connecticut) has asked regulators to look into accusations that mortgage companies are obstructing efforts to keep people in their homes. In a letter to Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan, Dodd said, if true, “abuses of this kind threaten to undermine the effectiveness of the HAMP program and deny the relief on which so many Americans are depending for their financial stability.”

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Is The Wave Of Foreclosures Finally Coming? Looks More Like A Ripple…

Foreclsoure Auction at Courthouse Steps

Sacramento County Foreclosure sales (or Trustee Sales) had been on the increase in the past several weeks; but now, the numbers of homes sold at foreclosure auctions at the county courthouse, (yes they really do auction them off at the Sacramento County Municipal and Superior Courts steps; 720 9TH ST in Sacramento) have been dereasing gradually. reports that over the last twelve weeks the numbers of homes sold per week at Sacramento Trustee Sales have been from a low in the middle of May of 118 homes sold per week, to a high of 229 the last week of June, and now just 65 the second week of July.

The numbers have been bouncing around, but the trend was a slowly increasing number per week in May and June, but now it looks like they have really slowed again. There have only been 313 Total in the first three weeks of July! I am sure that this has to do with the california foreclosure moratoriums that were put in place and all the pressure on lenders and servicers to do loan modifications

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Real Estate Connect San Francisco 2009…

Palace Hotel

Why would 1500 world class real estate, technology, lending, title and financial services leaders come together twice a year?

I don’t know, but I aim to find out!

Real Estate Connect San Francisco 2009 happens Aug 5, – Aug 7, at the Palace Hotel in San Francisco. The Palace is a really cool place with lots of great history… My wife and I will be there for our first time.

For over 12 years, Inman News has been presenting bi-annually, its Real Estate Connect conferences in San Francisco and New York City.  It seems like just yesterday I talked to Jim Cronin; The Real Estate Tomato (notice the contest) where he was speaking in New York at the last conference… six months ago!

Why would I want to go? Because I’m gonna learn something and it’s gonna be free! Read these contest rules and then come back and read my fifty words!

Why I want to go to Real Estate Connect San Francisco in August is simple: I love to learn, and anything to help me become a better agent, maybe motivate me to a higher level of commitment to blog, to learn more about new tools, trends, and cutting edge knowledge!

OK, so I’ve counted that four times, and three times, I got fifty words, once was forty nine, so I’m gonna hope it’s fifty, ‘cuz I would really love to go spend some time with my wife in the City and hang out with Jim Cronin!

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Treasury, FDIC and Federal Reserve Finally Announce Details for “Legacy” Sale

What a fiasco…

After months of delays, re-scheduling and indecision, the FDIC, The Federal Reserve and The Treasury Department are finally coming out with a plan for them, as a whole, to partner with the private sector and purchase at-risk, toxic, non-performing loans and the securities they make up. These assets (or liabilities) are still on banks’ books and remain at the heart of the global financial crisis. Even after months of delays, (they were going to have the first auction in March!) it will still be one to three more months before the program becomes operational.

What is amazing to me is how, even with the Obama administrations talk of increased transparency in all government affairs, honest price reporting in the markets and such; we, as the general public, (otherwise known as taxpayers) will never know what they actually sold for. The Treasury Department will provide quarterly reports, but they  do not plan on disclosing the price that was paid for them; whether the assets are selling for 10 cents on the dollar of their face value, 30 cents, or any other price.

Sounds like the nine funds that were approved, out of over 100 that made application, have a license to steal these loans.

At least they are getting closer to getting something done to get them off the books of the banks, FDIC has already taken over twice as many banks in the first six months of 2009 as it did the entire year of 2008 and are ramping up to increase the pace of takeovers… so they better do something to start putting humpty Dumpty back together.

Read More here


CONTACT: Treasury Public Affairs (202) 622-2960


Legacy Asset Program


The Financial Stability Plan, announced in February, outlined a framework to bring capital into the financial system and address the problem of legacy real estate-related assets.

On March 23, 2009, the Treasury Department, the Federal Reserve, and the FDIC announced the detailed designs for the Legacy Loan and Legacy Securities Programs. Since that announcement, we have been working jointly to put in place the operational structure for these programs, including setting guidelines to ensure that the taxpayer is adequately protected, addressing compensation matters, setting program participation limits, and establishing stringent conflict of interest rules and procedures. Recently released rules are detailed separately in the Summary of Conflicts of Interest Rules and Ethical Guidelines pdf icon.

Today, the Treasury Department, the Federal Reserve, and the FDIC are pleased to describe the continued progress on implementing these programs including Treasury’s launch of the Legacy Securities Public-Private Investment Program.

Financial market conditions have improved since the early part of this year, and many financial institutions have raised substantial amounts of capital as a buffer against weaker than expected economic conditions.  While utilization of legacy asset programs will depend on how actual economic and financial market conditions evolve, the programs are capable of being quickly expanded if these conditions deteriorate.  Thus, while the programs will initially be modest in size, we are prepared to expand the amount of resources committed to these programs. 

Legacy Securities Program

The Legacy Securities program is designed to support market functioning and facilitate price discovery in the asset-backed securities markets, allowing banks and other financial institutions to re-deploy capital and extend new credit to households and businesses. Improved market function and increased price discovery should serve to reinforce the progress made by U.S. financial institutions in raising private capital in the wake of the Supervisory Capital Assessment Program (SCAP) completed in May 2009.

The Legacy Securities Program consists of two related parts, each of which is designed to draw private capital into these markets. 

Legacy Securities Public-Private Investment Program (“PPIP”)

Under this program, Treasury will invest up to $30 billion of equity and debt in PPIFs established with private sector fund managers and private investors for the purpose of purchasing legacy securities.  Thus, Legacy Securities PPIP allows the Treasury to partner with leading investment management firms in a way that increases the flow of private capital into these markets while maintaining equity “upside” for US taxpayers.

Initially, the Legacy Securities PPIP will participate in the market for commercial mortgage-backed securities and non-agency residential mortgage-backed securities.  To qualify, for purchase by a Legacy Securities PPIP, these securities must have been issued prior to 2009 and have originally been rated AAA — or an equivalent rating by two or more nationally recognized statistical rating organizations — without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets (“Eligible Assets”).  

Following a comprehensive two-month application evaluation and selection process, during which over 100 unique applications to participate in Legacy Securities PPIP were received,  Treasury has pre-qualified the following firms (in alphabetical order) to participate as fund managers in the initial round of the program:

Treasury evaluated these applications according to established criteria, including: (i) demonstrated capacity to raise at least $500 million of private capital; (ii) demonstrated experience investing in Eligible Assets, including through performance track records; (iii) a minimum of $10 billion (market value) of Eligible Assets under management; (iv) demonstrated operational capacity to manage the Legacy Securities PPIP funds in a manner consistent with Treasury’s stated Investment Objective while also protecting taxpayers; and (iv) headquartered in the United States.  To ensure robust participation by both small and large firms, these criteria were evaluated on a holistic basis and failure to meet any one criterion did not necessarily disqualify an application.

Each Legacy Securities PPIP fund manager will receive an equal allocation of capital from Treasury.  These Legacy Securities PPIP fund managers have also established meaningful partnership roles for small-, veteran-, minority-, and women-owned businesses. These roles include, among others, asset management, capital raising, broker-dealer, investment sourcing, research, advisory, cash management and fund administration services.  Collectively, the nine pre-qualified PPIP fund managers have established 10 unique relationships with leading small-, veteran-, minority-, and women-owned financial services businesses, located in five different states, pursuant to the Legacy Securities PPIP.  Moreover, as Treasury previously announced, small-, veteran-, minority-, and women-owned businesses will continue to have the opportunity to partner with selected fund managers following pre-qualification.  Set forth below is a list (in alphabetical order) of the established small-, veteran-, minority-, and women-owned businesses partnerships:

In addition to the evaluation of applications, Treasury has conducted legal, compliance and business due diligence on each pre-qualified Legacy Securities PPIP fund manager.  The due diligence process encompassed, among other things, in-person management presentations and limited partner reference calls.  Treasury has negotiated equity and debt term sheets (see attached link for the terms of Treasury’s equity and debt investments in the Legacy Securities PPIP funds) for each pre-qualified Legacy Securities PPIP fund manager.  Treasury will continue to negotiate final documentation with each pre-qualified fund manager with the expectation of announcing a first closing of a PPIF in early August.

Each pre-qualified Legacy Securities PPIP fund manager will have up to 12 weeks to raise at least $500 million of capital from private investors for the PPIF.  The equity capital raised from private investors will be matched by Treasury.  Each pre-qualified Legacy Securities PPIP fund manager will also invest a minimum of $20 million of firm capital into the PPIF.  Upon raising this private capital, pre-qualified Legacy Securities PPIP fund managers can begin purchasing Eligible Assets.  Treasury will also provide debt financing up to 100% of the total equity of the PPIF.  In addition, PPIFs will be able to obtain debt financing raised from private sources, and leverage through the Federal Reserve’s and Treasury’s Term Asset-Backed Securities Loan Facility (TALF), for those assets eligible for that program, subject to total leverage limits and covenants. 

Legacy Securities and the Term Asset-Backed Securities Loan Facility

On May 19, 2009, the Federal Reserve Board announced that, starting in July 2009, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (“legacy CMBS”) would become eligible collateral under the TALF. The Federal Reserve and the Treasury also continue to assess whether to expand TALF to include legacy residential mortgage-backed securities as an eligible asset class. 

The CMBS market, which has financed approximately 20 percent of outstanding commercial mortgages, including mortgages on offices and multi-family residential, retail and industrial properties, came to a standstill in mid-2008. The extension of eligible TALF collateral to include legacy CMBS is intended to promote price discovery and liquidity for legacy CMBS. The announcements about the acceptance of CMBS as TALF collateral are already having a notable impact on markets for eligible securities.

Legacy Loan Program

In order to help cleanse bank balance sheets of troubled legacy loans and reduce the overhang of uncertainty associated with these assets, the FDIC and Treasury designed the Legacy Loan Program alongside the Legacy Securities PPIP.

The Legacy Loan Program is intended to boost private demand for distressed assets and facilitate market-priced sales of troubled assets. The FDIC would provide oversight for the formation, funding, and operation of a number of vehicles that will purchase these assets from banks or directly from the FDIC. Private investors would invest equity capital and the FDIC will provide a guarantee for debt financing issued by these vehicles to fund asset purchases. The FDIC’s guarantee would be collateralized by the purchased assets.  The FDIC would receive a fee in return for its guarantee.

On March 26, 2009, the FDIC announced a comment period for the Legacy Loan Program, and has now incorporated this feedback into the design of the program. The FDIC has announced that it will test the funding mechanism contemplated by the LLP in a sale of receivership assets this summer. This funding mechanism draws upon concepts successfully employed by the Resolution Trust Corporation in the 1990s, which routinely assisted in the financing of asset sales through responsible use of leverage. The FDIC expects to solicit bids for this sale of receivership assets in July. The FDIC remains committed to building a successful Legacy Loan Program for open banks and will be prepared to offer it in the future as needed to cleanse bank balance sheets and bolster their ability to support the credit needs of the economy. In addition, the FDIC will continue to work on ways to increase the utilization of this program by open banks and investors.

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Sacramento One Of Fifteen Cities With 99% Chance of Lower Prices

Home pic 33

Mortgage Insurer PMI Group said in its quarterly Economic and Real Estate Trends (ERET) report (see US Market Risk Index ) that the Sacramento—Arden-Arcade—Roseville CA real estate market has a 99.9% chance of lower home prices through March 31, 2011. 

The 15 Real Estate Markets with the highest probability of lower prices in 2011 each have a 99 percent chance, PMI said. They include Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonville in Florida; Riverside, Los Angeles, Santa Ana, Sacramento and San Diego in California; Las Vegas; Phoenix; Providence, Rhode Island; and Detroit.

“The housing market has been hit by a demand shock of high unemployment and a supply shock of distressed foreclosure sales,” LaVaughn Henry, senior economist at PMI, the fourth- largest U.S. mortgage insurer, said in an interview.

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Mortgage Applications Decline, In Spite of Rate Drop

Picked this up this morning From DSNews and  I confirmed the information at…

According to Bankrate’s article:

The benchmark 30-year fixed-rate mortgage fell 10 basis points, to 5.7 percent, according to the national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.48 discount and origination points. One year ago, the mortgage index was 6.53 percent; four weeks ago, it was 5.65 percent

And DSNews:

Applications for home purchases and mortgage refinances both declined last week, despite a 10 basis point decline in interest rates, according to the Weekly Applications Survey issued by the Mortgage Bankers Association (MBA) on Wednesday.

For the week ending June 26, 2009, MBA reported that total mortgage application volume fell by 18.9 percent from one week earlier, and was down 7.4 percent compared with the same week last year.

MBA’s Purchase Index decreased 4.5 percent for the week, but the Refinance Index plummeted 30.0 percent. The Refinance Index is at its lowest level since November 2008. The refinance share of mortgage activity also dipped to 46.4 percent of total applications, down from 54.0 percent the previous week.

The decline in home loan petitions was pronounced, even though MBA reported average contract interest rates declined across the board last week.

The rate for 30-year fixed-rate mortgages (FRMs) averaged 5.34 percent, down from 5.44 percent one week earlier. Fifteen-year FRM rates came in at 4.81 percent, compared to 4.93 percent the week before. And the average rate for 1-year adjustable-rate mortgages (ARMs) decreased to 6.52 percent from 6.54 percent.

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Loan Modifications Way Up With A Dramatic Increase In Prime Borrowers Going Seriously Delinquent


Loan Modifications and workouts have More than doubled in the past year! But they are being driven by more prime borrowers going delinquent. It has always been clear to me that this would happen as soon as the ARM’s and Pick-A-Pay loans started resetting. These borrowers are high income, high credit score homeowners who are obviously more likely to contact their bank and try to stay in their home. So becouse of the Governments newest push to keep people in their homes and homeowners who want to stay, Modification numbers have more than doubled.  Instead of walking away and giving the banks no alternative to taking the property back, these Homeowners are working with servicers and are being more and more successful in finding alternatives to turning the property over to a new buyer.

Described by many homeowners as “the fight of their life”; a loan modification is no  easy task. Homeowners must work with loss mitigation personell who are new to the industry, mostly young and inexperienced who are working with brand new, unproven systems.

I did a search today on; pulling the numbers on homes in Sacramento County with an estimated value of over $450,000 that received Foreclosure Filings in the first three months of this year: 113

Same search for the second quarter of 2009:256  More than double!

It will be interesting to see if this trend continues and how many of these will actually sell as Shortsales or go back to the bank and how many are able to work out a modification.

According to an article today in the Washington Post;

The percentage of prime borrowers seriously delinquent on their mortgage rose 20.3 percent during the first quarter compared with the previous quarter. It was up 163.7 percent compared with the same quarter a year ago. In comparison, the percentage of subprime borrowers seriously delinquent rose only 1.5 percent during the first quarter. It was up 54.9 percent from the same period a year ago.

In a related article today in DSNews:

Loan modifications made by mortgage lenders and servicers spiked during the first quarter of the year, according to a report issued Tuesday by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS). The regulators said the trend toward more sustainable modifications with lower monthly payments continued, however delinquencies and foreclosures on first-lien mortgages also climbed.

The agencies’ report, based on data from loan servicing companies that manage 64 percent of all first-lien U.S. mortgages, shows that the number of loan modifications made by these institutions significantly increased during the first three months of the year. Servicers implemented 185,156 new loan modifications – up 55 percent from the previous quarter and 172 percent from the first quarter of 2008.

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