Fred Claus
Bank Of America Producing Encouraging Short Sale Changes
Brian Gubernick exhausted most of yesterday upset about OCWEN and their short sale plan. So, today, we did not want you to believe that Brian is forever heated and we’ve invited him to share some optimistic moments from a recent speaking engagement that he attended with feature lecturer Matt Verson, a big boss 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 very frank about Bank of America troubles. He talked without restraint about what they have been doing wrong and what they are attempting to do to fix those troubles. Mr. Vernon says that they have around 1500 people working short sales and they hope to bring that number up to 3000 in the near future. He also pointed out that they want to decrease response time from approximately 90 days to 60 days.
He also pointed out that their processes are working, but often times they are restricted by what they can do because of the investors involved.
Maybe the most crucial part 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 confirmed that in the near future, Bank of America will relinquish all deficiency privileges on short sales. The main part of this statement is that Bank of America is still restricted to a particular degree by their investors.
There has been mention 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 good sign.
In summary, our hats go off to the staff at Bank of America for getting things going in the correct direction.
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