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Making Home Affordable | February 2012

Short Sale WorkshopTampa, Florida – February 24, 2012

2Making Home Affordable | February 2012

Agenda

1 Opening Comments

3 J.P. Morgan Chase

4 GMAC

6 Bank of America

5 Wells Fargo

7 CitiMortgage

8 Discussion/Questions

2 U.S. Department of the Treasury

February 2012 | Making Home Affordable

Making Home AffordableWorking Together to Help Homeowners

4

MHA Offers Solutions

MHA and

related

programs work

together to

help

homeowners

avoid

foreclosure.


5February 2012 | Making Home Affordable

UP Homeowners Get Relief for 12+ Months

Source: Making Home Affordable ProgramPerformance Report Through December 2011

Through MHA’s

UP, monthly

mortgage

payments are

temporarily

reduced or

suspended.


HAMP Provides Relief to Struggling Homeowners

More than

930,000

modified their

mortgages

under HAMP.



Homeowners

in HAMP

permanent

modifications

realize real

savings.

HAMP Boosts Affordability for Homeowners



HAMP Modifications Are Sustainable

HAMP

permanent

modifications

are

outperforming

the industry.

Source: OCC and OTS Mortgage Metrics ReportThird Quarter 2011

9

When the

weight of

homeownership

becomes too

great, there are

still options to

avoid

foreclosure.

HAFA Offers Transition from Homeownership

Home Affordable Foreclosure Alternatives

(HAFA) includes short sale and deed‐in‐lieu of

foreclosure (DIL) when other options exhausted.

Think HAFA when:• Homeowner doesn’t qualify for a modification.• Homeowner’s modification doesn’t work out.• Homeowner has moved and needs to sell.• The mortgage has become unaffordable, andhomeowner needs a way out.


10

HAFA offers

advantages

over other

alternatives.

HAFA Advantages Ease the Transition

• Streamlined process no longer requires

verification of income.• Foreclosure cannot take place while

homeowner is being considered.• HAFA’s waiver of deficiency releases

homeowner from remaining mortgage debt.• Homeowner receives $3,000 in relocation

assistance.• Homeowner’s path back to homeownership

may be shorter than with foreclosure or short

sale with deficiency.


11

HAFA has

grown in scope

and influence

since inception.

HAFA Is Gaining Momentum



12

The Crisis Continues

Foreclosures

continue to

devastate

families and

communities

across the

country.


Source: RealtyTrac


MHA’s HAMP to Help More Homeowners

HAMP

enhancements

become

available as

early as June

2012.

• Extending modification

opportunities ‐

HAMP,

PRA, and 2MP ‐

through Dec. 31, 2013.

• Expanding HAMP eligibility to benefit:Homeowners who seem to have an

affordable 1st

mortgage, but are struggling

under weight of other debt.Homeowners who previously fell out

HAMP.Homeowners who rent, or intend to rent,

to tenants.

Don’t let borrowers wait! Get help now.


MHA’s HAFA to Help More Homeowners

HAFA

enhancements

effective

immediately

upon

publication.

• Extending opportunities for short sales and DILs – HAFA – through Dec. 31, 2013.

• Expanding HAFA eligibility to benefit more

homeowners:Occupancy requirements are being

removed, but only owner‐occupants

eligible for relocation assistance.

Coming Soon!


Find

information on

MHA programs

and

participating

mortgage

companies.

Understand MHA Options


Interactive Eligibility Tool

Updated

eligibility tool

offers needs‐

based options.

17November 2011 | Making Home Affordable

Instructional Videos Provide Guidance

Instructional

videos help

homeowners

navigate the

process.

18

MHAStorefront.com

Order free

brochures and

posters.



HAFA Tools

Visit

HMPadmin.com

for HAFA

information and

tools.


Resources for Trusted Advisors

Visit

HMPadmin.com

for training,

information,

and other

resources.

Resources for Counselors,

Real Estate Pros,

Congressional Offices, and

other Trusted Advisors•Presentations•Escalation process details•Webinar schedule


Trusted Advisors Escalate Tough Cases

Escalate cases

to [email protected] up by

phone to866‐939‐4469.


Discussion/Questions

Carol Lambert

U.S. Department of the TreasuryHomeownership Preservation Office

[email protected]

http://www.makinghomeaffordable.gov/learn-more/videos/Pages/default.aspx?vid=y7QrjafITuQ&

http://www.makinghomeaffordable.gov/learn-more/videos/Pages/default.aspx?vid=6n_nB-tJ6jo&

http://www.makinghomeaffordable.gov/learn-more/videos/Pages/default.aspx?vid=XbPaLHFHL7A&

MHAMHA--C HAFA ConventionC HAFA Convention--ChaseChase

February 2012 February 2012

23

Introduction

Pedro VillasmilAVP Chase Owned/Securitized Loss Mitigation , Chase

24

Chase Liquidations

HAFA Program

Short Sale Consideration

Short Sale Web Page

HAFA List Assist

HAFA Timeline

Benefits of a HAFA Short Sale

HAFA short sale buyer

How Can You Help Us

Chase Short Sale Resources

25

How does a customer qualify for a short

sale?

Provide hardship information and proof of

hardship.

Financial difficulties (loss of employment,

reduction in income, etc.)

The loan is delinquent or will be an

Imminent Default loan.

The borrower has been ordered by a

Bankruptcy Judge (through a court order) to

sell the property.

When is a short sale considered?

When the value of the property is less than the

outstanding balance of the loan.

When the customer is unable to make their

mortgage payments due to a hardship and all

other retention options have failed.

26

Chase Short Sale Consideration

27

Short Sale Webpage

The Short Sale website is easily accessed from the Chase Home page and provides the short sale

information packet and FAQ information about the Chase Short Sale process . The site can be

accessed through www.Chase.com/shortsale.

28

Short Sale Webpage

Chase List Assist program was designed to proactively reach out to customers who have properties

listed for sale to assist through the marketing process and collect all required documentation prior to

the offer in an effort to expedite approval.

Proactively reaching out to homeowners who have listed their property.

Working to gather the documents, provide guidance on property value and actively market the

home.

Establishing a dedicated team working closely with real estate agents on offers and valuations.

List Assist agents will also take incoming calls from agents and

Borrowers to provide

information and instant contact with a Liquidation agent.

The List Assist agents will explain to the borrower their options, review the short sale process

and request the needed documentation to move forward.

Through our List Assist team, we have enhanced our short sale efforts and streamlined the process by:

29

Chase List Assist Department

The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid

foreclosure and offers incentives to borrowers, servicers and investors who employ liquidation strategies

(short sale and deed‐in‐lieu) instead of pursuing foreclosure.

When an offer is received, the borrower will submit a Request for Approval of ShortSale (RASS), along with the required documentation to be approved within 3business days. The servicer will approve the sale, provided it will generate the

minimum required net proceeds and will comply with the terms given in the Short Sale Terms and Conditions Agreement.

If an offer to purchase a property is made before the servicer provides an SSA, theborrower will submit an Alternative RASS for the servicer’s consideration.

30

HAFA Program

Borrower must

contact Servicer &

accept HAFA

After Borrower responds

to the HAFA solicitation,

Servicer must complete

and send SSA to

borrower

SSA Marketing Period**

Borrower submits

offer to Servicer

along with the

completed RASS Servicer must

approve/deny

offer

Trigger –

Solicitation

14 days 45days 120 days 3 days 10 days

** Chase will not permit an extension after the 120 day SSA marketing period expires **

31

HAFA Short Sale Timing

HAFA uses borrower financial and hardship information previously

collected for consideration

of a HAMP loan modification.

Allows borrowers to receive pre‐approved short sales terms before listing the property.

Requires borrowers to be fully released from future liability for all mortgage debt (no cash

contribution, promissory note, or deficiency judgment is allowed).

Provides $3,000 for borrower relocation assistance and $1,500 for servicer to cover

administrative and processing fees.

Provides a $6,000 aggregate cap for subordinate mortgage lien holders.

Uses standard processes, documents and timelines.

32

Benefits of a HAFA Short Sale

Sales contract must be executed with all appropriate addenda.

Buyer(s) must provide pre‐approval or commitment letter on letterhead from a lender.

Short Sale must be an “Arm’s Length”

transaction.*

No agreements permitted between the Seller and the Buyer that the Seller will

remain in the property as a tenant or later obtain title or ownership of the property.

Purchaser may not sell the property within 90 days of closing.

** Servicers have the discretion to approve sales to non‐profit organizations with the stated purpose

that the property will be rented or resold to the borrower, so long as all other HAFA program

requirements are met.

33

HAFA Short Sale Buyer

Submit all required documentation as soon as possible:

If an offer is not received on the property, provide an executed

listing agreement and MLS listing history.

If offer has been received, provide all information discussed previously

Help the homeowners in negotiations with junior lien holders

Make sure all required signatures are on the relevant documents.

Set reasonable expectations on timelines and valuations (normally within 10 days of the

request.)

Ensure that the proposed transaction is at “Arm’s Length.”

Make every effort to ensure title and escrow are scheduled to close within the approved

timeframe.

34

How Can You Help Us?

Chase Borrowers can be referred to the following:

Toll‐free number: 1‐866‐233‐5320

Access the Chase Short Sale website On‐line at

https://www.chase.com/shortsale

Locate more information on the Chase HAFA program

https://www.chase.com/HAFA

Locate a Chase Homeownership Center On‐line at

https://www.chase.com/HomeownershipCenter

35

Short Sale Fax Line: 1-866-220-4130

Short Sale Resources

https://www.chase.com/shortsale





Questions

Partnering To Increase Response Time:

• Single Local Point of Contact

• Equator

• Pre-Determined List Price on non-GSE loans

• Confirmation of Complete Short Sale Packet

• Direct Liaison to Short Sale Negotiator

South Florida GMAC Contact Information

• Local Representative Contact Information

• Maria Sampedro

Email: [email protected]

(C) 305-389-1137

(F) 866-639-0832

• Equator:

equator.com or [email protected]

North Florida GMAC Contact Information

• Local Representative Contact Information:

• Tracey Erickson

Email: [email protected]

(C) 813-394-4876

(F) 866-502-9347

• Equator:

equator.com or [email protected]

•Q & A

WFHM Short Sale OverviewHugh Rowden Regional Servicing Director, SVP

February 2012

Short Sale / Deed in Lieu Overview

43

Wells Fargo’s primary concern and obligation is to our customers and investors. Our goal is to exhaust all efforts tohelp customers remain in their homes through various workout options.

Once home retention efforts are no longer an option, Wells Fargo continues to work diligently to provide alternatives to foreclosure through short sales or deeds-in-lieu of foreclosure. Our last resort is to foreclose.

A Short Sale is a solution that allows the customer to sell the home for less than the total amount owed. When all home retention solutions have been reviewed and exhausted, we immediately begin working with the borrower to determine if a short sale or deed-in-lieu can be accomplished.


44

A Short Sale Benefits Everyone… Customer Benefits

Alternative to foreclosure with planned & graceful exit, Wells Fargo or Investor pays closing costs and incentives in certain cases, credit report reflects “Settled for Less than Owed.”

Buyer BenefitsUsually home is in better condition than buying a foreclosed property. Wells Fargo or Investor pays some closing costs.

Investor Benefits Savings over REO, reduced losses and corporate advances, eliminates non-performing asset.

Junior Lien Holder Benefits Higher debt payment resulting from short sale versus foreclosure transaction.

Community BenefitsOccupied and maintained properties, stabilizing neighborhoods, preventing vandalism and other crime.


45

Portfolio DescriptionWells Fargo Owned (WO and Wachovia Mortgage)

Assets owned by WFHM, WF Bank, WF Corporate Trust Services, Wachovia Equity, WF Home Equity HAMP 1st liens, Wachovia PaP

Private Serviced for Others

Loans serviced for all private investors such as Citigroup, Bank of America, JP Morgan Chase, Goldman Sachs, Bear Stearns, etc.

America’s Servicing Company (ASC) Serviced for Others

Mortgage loans originated by other Lenders were packaged into securities and sold into the secondary market. Wells Fargo had no involvement in the origination or underwriting of the loans serviced by America's Servicing Company. America's Servicing Company is the generic label used to service these securities as another business venture.

Home Credit Solutions (HCS)Serviced for Others

Directors Acceptance Credit Corporation (DACC & DACC-2) Part of Norwest Mortgage's acquisition of Directors Mortgage Loan Corp in 1995

GSE – Freddie Mac and Fannie Mae Serviced for Others

WFHM originated mortgage loans were packaged into securities and sold to FHLMC or FNMA. WFHM retained the servicing. This portfolio also contains loans originated by other Lenders, and service acquired by WFHM.

VA Insured Loans insured by the Veteran’s Administration against balance sheet loss for the investor in the event of loan default. Serviced separately to ensure compliance to detailed federal requirements necessary for reimbursement of loss.

FHA Insured Loans insured by the Federal Housing Administration against balance sheet loss for the investor in the event of loan default. Serviced separately to ensure compliance to detailed federal requirements necessary for reimbursement of loss.


46

Process all Short Sales and Deed-in- Lieu of Foreclosure Requests

Communicate with the customer’s authorized agents

Partner with investors, Mortage Insurance Companies, and subordinate lien holders

Decision the offer by investor guidelines and credit policy

Facilitate receipt of sale proceeds compliant to demand statement; process receipt of proceeds

Mitigate Losses for Investors and Wells Fargo Home Mortgage

Focus on market value offers

Consider market conditions and foreclosure timelines to establish decisions

Generate savings over REO in terms of money and time

Settlement

Short Sale / Deed in Lieu Home Affordable Foreclosure Alternatives (HAFA)

47

HAFAInventory

Proprietary Short Sale

Inventory

Filter incoming workload using consistent metrics to control and direct the inventory

Consider HAFA first; proprietary Short Sales / Deed in Lieu second


All homeowners who attempt the short sale process begin with the HAFA program.

Incentives for files that qualify for the HAFA program include $3,000 at the closing table for the seller and $1500 for the servicer.

The HAFA process involves five phases: Filter, Processing, Negotiations, Closing and Settlement. The Filter Team evaluates each new file for automatic exclusions; the Processing Team collects documents required to determine whether or not the file qualifies for HAFA; the Negotiations Team determines HAFA eligibility and negotiates the offer; the Closing Team receives the Final HUD; and the Settlement Team closes and funds the file.

If the file does not qualify for HAFA, or if the seller requests to be removed from HAFA, then the next option is proprietary short sale.

48


49

HAFA Eligibility

Originated before January 1, 2009

Unpaid principal balance (UPB) < $729,750 (1), $934,200 (2), $1,129,250 (3), $1,403,400 (4)

Primary residence within the last 12 months

Foreclosure sale date is greater than 10 days

Investor and / or Mortgage Insurance Company must agree to participate in the HAFA program

If in imminent default, borrower must meet imminent default guidelines (see slide 8)

Second Liens must agree to 10% pay off up to $6,000

* If eligible for HAFA, the borrower may receive a $3,000 seller incentive

Short Sale / Deed in Lieu Imminent Default

50

To be eligibility for Imminent Default, the customer must have a housing-to-income ratio greater than 31% and meet all five of the following Imminent Default criteria:

1. Long Term Hardship: Customer must be facing a long term hardship, which is defined as a situation where it is determined they are having difficulty making their payments and that the duration of the hardship will be greater than twelve months.

2. Financial Hardship: Customer must have a verified financial hardship wherein the combination of the reduction in income and increase in housing expense (principal and interest only) must exceed 10% of current income.

3. Cash reserves less than the greater of $25,000 or six times PITIA.

4. Occupancy Status: Subject property must be the primary residence.

5. Maximum Loan to Value Ratio: The LTV ratio must exceed 80%.

Note: Imminent Default criteria differ for Fannie Mae and Freddie Mac accounts.

Short Sale / Deed in Lieu Common Obstacles

51

Buyer’s real estate agent is working a short sale without engaging the homeowner

“Low ball” offers due to the current market conditions

Valuation delays (i.e.; rural homes and interior access)

Junior liens and judgments that need to be settled

Minimum Net Sales Proceeds does not meet the investor guidelines

Excessive seller concessions and costs that reduce Minimum Net Sales Proceeds

Required documents are missing or not signed and dated properly

Mortgage Insurance company has required a promissory note

Unrealistic timeline expectations

Short Sale / Deed in Lieu Additional Information

52

A short sale approval is good for 30 – 60 days depending on the investor and the junior lien holder(s) who may require reduced commissions to offset their loss.

If the short sale closing does not occur by the date on the approval letter, the entire short sale package may need to be resubmitted with updated information or the approval process may need to start over.

Real estate agents are generally allowed up to 6% commission based on investor rules (Note: The percentage may vary by investor).

A short sale must be an “arms-length” transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends, co-workers or neighbors.

Questions?

53

Information to Help You and Your Clients in the Short Sale Process

Understanding Short Sales

Not intended nor authorized for consumer distribution. Bank of America: Proprietary. © 2011 Bank of America Corporation

Short Sale Overview

How the Process Works• Bank of America is the negotiator between the seller and the investor.• Many loans have multiple investors who must be satisfied.• We have 500+ investors, and each can set different policies.

55

Communication

Communication

Investors (Own the Loans)

1st lien investors

Mortgage insurer

2nd lien investors

Home equity loans

Real Estate Agent(Selling the Property)

Represents the distressed homeowner

Identifies and obtains the releases of all non-Bank of America liens

(Mortgage Servicer)

Services the distressed homeowner

Has an obligation to uphold investor requirements


Short Sale Overview

Two PathsHomeowners have two paths to successfully complete a short sale.

56

I do not have an offer to

purchase my homePath No. 1Path No. 1

I have an offer to

purchase my home

Path No. 2Path No. 2


Short Sale Overview

Initiating a Short Sale Before There’s an Offer Provides numerous benefits if the homeowner is eligible and qualifies for a pre-offer program.

Homeowner Benefits Process Benefits

• $ - Relocation assistance.• Deficiency may be waived.

– The mortgage debt may be settled through the program.

• Cash contributions or promissory notes may not be required.

• Foreclosure hold, if applicable (subject to specific conditions).

• Faster decisions – within 10 business days once an offer is submitted.

Agent Benefits

• Suggested list price is provided prior to marketing the home.

• Most elements of the short sale process are addressed upfront (including commission) rather than at the end.

Note: When the homeowner initiates a short sale before there’s an offer, all program options are explored.

57

I do not have an offer to

purchase my homePath No. 1Path No. 1


The Short Sale Process – a Detailed Look

58

Path No. 1: Initiating Without an OfferThe steps involved when you initiate a short sale before you have an offer.

Initiation 1. Initiate short sale and begin negotiating any 2nd liens not serviced by Bank of America.

Borrower Outreach 2. Upload the 3rd Party Authorization. Complete the Borrower Contact Information task.


The Short Sale Process – a Detailed Look

59

Path No. 1: Initiating Without an OfferThe steps involved when you initiate a short sale before you have an offer.

Initiation 1. Initiate short sale and begin negotiating any 2nd liens not serviced by Bank of America.

Borrower Outreach 2. Upload the 3rd Party Authorization. Complete the Borrower Contact Information task.

• Homeowner and agent will be notified.• Equator record will be closed. • Agent and homeowner should market the property. • Agent should initiate a new short sale in Equator

once there is an offer on the property.

What if the homeowner does not qualify?


Short Sale Overview

The Process Steps Are the Same in Both PathsBut you get a huge timeline benefit by completing steps in advance of your offer.

60

Path No. 1: Initiating before offer…

Path No. 2: Initiating after offer…

InitiationInitiation Borrower Outreach Borrower Outreach

Document Collection Document Collection ValuationValuation MarketingMarketing Offer

Analysis Offer

Analysis ClosingClosing

Decision in 10

Days!*

Program EligibilityReview

Collect Homeowner Documents

Determine Home Value

& Sign Program

Agreement

List Home For Sale

Submit Offer

InitiationInitiation Borrower Outreach Borrower Outreach

Document Collection Document Collection ValuationValuation Offer

Analysis Offer

Analysis ClosingClosing

Negotiate Offer,

Submit to Investor,

Renegotiate

Determine Home Value

HAFA Interest?

Collect Documents

* HAFA only. For other pre-offer programs, the time may vary.


Short Sale Overview

61

Path 1: Before There’s an Offer Path 2: After There’s an Offer

General Qualifications Each customers situation is considered separately by investors.

For HAFA program features including qualifications please refer to HAFA Education Guide.

Each customers situation is considered separately by investors.

Timeline for Decisions After Offer Is Received

HAFA - within 10 business days. For other pre-offer programs, the time may vary. 50 days on average.

Cash/Promissory Note HAFA – none. For other pre-offer programs, the investor/insurer may require. The investor/insurer may require.

Deficiency Pursued HAFA – none. For other pre-offer programs, the investor/insurer may require. The investor may retain the right .

Foreclosure Holds Auto hold once Short Sale Agreement is executed (subject to specific conditions) Vary by investor; require investor approval.

Suggested List Price Provided. Not provided.

Approval/ Closure Rates High after qualification. Low-medium.

Relocation Assistance HAFA – $3,000. For other pre-offer programs, the amount will vary. None.

Unrealized Short Sale Optional deed in lieu of foreclosure. Optional deed in lieu of foreclosure.


Short Sale Tips

Three Key Steps for Real Estate Agents

62

11Engage Homeowners Early• Find out if the homeowner owes more than the home’s fair market value.• Discuss short sale opportunities during initial conversations with the homeowner.

– If the homeowner would like to better understand their options or initiate the short sale themselves, encourage them to call Customer Care at 1.866.880.1232.

• Explain the short sale process and how it can help avoid foreclosure.

22Contact Bank of America Before the Home Is Listed• Initiate the short sale in Equator – even if you don’t yet have an offer.

– The homeowner may be required to contact Customer Care to discuss participation in one of our pre-offer programs, such as HAFA. If the homeowner isn’t eligible for a pre-offer program, then next action is to market the home, obtain an offer and initiate new short sale in Equator.

33Complete Required Tasks on Time• Make sure all tasks are completed as soon as possible in Equator. • Provide necessary documents as soon as possible to keep the process moving

forward.• Communicate with your short sale specialist via Equator to reduce delays.


Short Sale Tips

Getting Answers to Short Sale Questions

63

11Your short sale specialist• Send a message via Equator by selecting the negotiator (or closing officer)

in the "To" field and providing details of your issue. • You should receive a response within two business days.

If there's been no answer after that time, you can contact...

22The short sale team lead• Send a message via Equator to explain your issue. You can select the team lead

from the drop-down menu in the "To" field when composing an Equator message. • Allow two business days for a response.

If you still do not have an answer, you can call...

33Short Sale Customer Care• Call 1.866.880.1232 to explain your issue.

• Short Sale Customer Care is available Monday – Friday 8 a.m. to 10 p.m., and Saturday 9 a.m. - 5:30 p.m. Eastern.

If you have an urgent request, such as a foreclosure sale date within 48 hours, please call Customer Care at any point in the process.


bankofamerica.com/realestateagent

64

Bank of America’s Agent Resource Center• Important news and updates about the short sale process and

enhancements • Online subscriptions

to keep you informed via email updates

• Free webinar replays• Education library of

important documents, including tips to a successful short sale

• Events • Important links • Contact information


Questions?

65

CONFIDENTIAL

Short Sales in a Nutshell with CitiMortgage!

February 2012

CONFIDENTIAL67

Overview

• CitiMortgage is committed to providing our listing agents and our customers with a superior level of customer service and satisfaction.

CONFIDENTIAL68


There are several benefits in choosing a short sale in lieu of foreclosure.

– Relocation incentive.1

– Forgiveness of the deficiency.– Promissory notes or cash contributions may not be required.1

– Foreclosure hold or foreclosure sale postponement, if applicable.2

– Fast decisions – Within 5-10 business days once an offer is submitted.3

– Suggested list price is determined prior to listing the home.

1 Subject to approval2 Subject to specific conditions3 This timeline might increase if investor approval is required.

CONFIDENTIAL69


Eligibility & Initiation

Qualify the Borrower

Valuation of the Property Review & Execute

Short Sale Agreement

Market the Property

Submit Offer & Req’d Docs

Investor Decisioning

Closing

Getting Started

Preparing to Sell

Marketing & Selling

Closing the Deal

CONFIDENTIAL70


Determine Short Sale Eligibility & Initiate

If liquidation is the homeowner’s best option, initiate by contacting the Homeowners Assistance Team (HAT) at (866)-272-4749. Please have the following information available:

• Account number and property address.• Borrower Social Security Number (SSN).• Borrower(s) first and last name.• Letter of Authorization (LOA).*• Have the borrower’s financial information available.

A Short Sale Agreement (SSA) and RASS or ARASS will be required on all HAFA approved Short Sales.* LOA must be signed by all borrowers on the account and in the name of the person that the authorization is granted to.

CONFIDENTIAL71


Qualify the Borrower

• The borrower will be run through the Mortgage Assistance Tool (MAT) to determine eligibility for HAFA or a Traditional Short Sale. Please submit all documents* to:

Fixed 1st & 2nd Lien Fax: 866-940-8125Email: [email protected]

Home Equity Line of Credit Fax: 866-989-1356Email: [email protected]

OneMainFinancial or CitiFinancial** Fax: 800-925-6751Email: [email protected]

* Include the customers account number on every page that you fax to ensure accurate placement with the correct account.** Accounts beginning with 09-0155, 03-0141 or 20-0051

mailto:[email protected]



CONFIDENTIAL72


The documents required may include:

– Two most recent months bank statement.*– Two most recent pay stubs (or income/expense reports, if self-

employed).– IRS Form 4506-T.– Signed and dated Hardship letter.– Dodd-Frank Certification.

NOTE: Bank statements must include all pages even if they are blank so we can insure there isn’t missing data. Form 4506-T is required every borrower. Hardship letter must be signed by all borrowers. Dodd-Frank Certification should be signed by all borrowers.

CONFIDENTIAL73


Preparing to Sell:

• Once the customer has been run through the MAT, the account will be assigned to a Single Point of contact (SPOC).

– Follow up with the SPOC assigned to the loan within 72-hours to ensure all documents have been received by calling the Homeowners Support Specialist Hotline (HOSS) at (855)-843-2549.

– Work with the homeowner to identify all liens, mortgage and non-mortgage if applicable, and begin to obtain their approval to release their lien.

– Once all required documents have been received, the account will be assigned to a negotiator. Work with the assigned negotiator to determine a list price.

CONFIDENTIAL74


Marketing:– Work with the assigned short sale negotiator to determine the

home’s value. If there is a discrepancy, the negotiator will assist in reconciling the value dispute. You may be asked to provide comparables in the area.

– List and Market the Property for up to 120 days.– Contact the assigned negotiator via phone or email every two weeks

to give marketing feedback. Contact the negotiator via phone or email every 30 days to discuss the list price.

CONFIDENTIAL75


Closing:– Once approved, you will receive the Short Sale approval letter via secure email. You

will need to follow the instructions to create your own password. Keep that password in case a change in the approval letter needs to be made at a later date.

– Notify CitiMortgage via phone or email of any post-approval deal changes or closing delays. If there are any changes to the offer and/or the HUD-1 after the approval letter is issued, submit updated documents to the assigned negotiator as soon as possible.

– Provide weekly updates to the assigned negotiator via phone or email.– Provide the negotiator with the buyers underwriting approval once it has been

obtained via fax or email.– Give CitiMortgage 48-hours notice prior to closing by providing the assigned

negotiator the HUD-1 for approval via fax or email.– If the borrower qualifies for relocation incentive, this will need to be placed on the

HUD-1 as a credit to the borrower.

If there is not an offer received within the 120 day marketing period, the homeowner may be eligible for a Deed in Lieu of foreclosure per the Treasury guidelines.When communicating with Citi, please guard against the sending of critical customer information via email. There are methods of receiving secured emails that can be communicated when appropriate.


Thank You

Discussion/Questions

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