HAFA and its Detractors
Last week, HousingWire reported that—in the opinion of several vice presidents of major lending institutions—HAFA was fundamentally flawed because it requires borrowers to fail a HAMP Trial Period Plan before they can even be considered for HAFA. Bryan Bolton, senior VP of loss mitigation in the mortgage department over at Citigroup despaired, saying: “I think HAFA is nothing but a lot of press at the end of the day.” He also said that he thought that the program would be hampered (our pun) by the requirement that homeowners use a real estate professional to help them through the HAFA process. The average homeowner simply wouldn’t do it, he said.
If what he’s saying is true, then it’s a good thing we’ve been promoting HAFA education. The system is open for agents to contact homeowners—and that’s how CDPEs work. And with 10,000 people on our HAFA Decoded broadcast, we’re among the foremost HAFA educators in the industry.
Also in the same article, Robert Hunter, vice president of Amherst Securities, missed the point by stating that HAFA doesn’t work because it isn’t a solution that keeps people in their homes. True, if you go through the HAFA process, you will not be able to keep your home. However, if you go through the HAFA process, it’s because your other option was foreclosure—a fate much, much worse than being able to transition on to another living situation with $3,000 in your pocket and your credit score still standing.
We’re here to keep you educated, informed, and most of all, effective in this changing market.
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3 Comments
Miriam Quiñones, Cdpe,Crs,Gri
April 20th, 2010
Citibank’s VP Brian Bolton’s comment on HAFA that ” the program would be hampered (our pun) by the requirement that homeowners use a real estate professional to help them through the HAFA process” is ludicrous!
We all know banks have forever wanted to get into the business of selling real estate, notwithstanding the conflict of interest such a proposition constitutes and how detrimental that would be to the consumer.
Congress has not allowed this to happen in the past , but banks keep charging , even in the middle of the mortgage meltdown created by them. In Bolton’s comment, we can see this idea creeping back all over again. The mind boggles!
The one protection homeowners will have when going through HAFA or any other real estate transaction, is engaging a real estate professional, an independent licensed real estate agent, whose fiduciary obligation is towards the homeowner/client. The Treasury Directive for HAFA incorporated the requirement for the homeowner to list the property with a real estate professional with good reason.
Brenda Swigert
April 22nd, 2010
I agree with Miriam’s comments, specifically stating that “engaging a real estate professional… whose fiduciary obligation is towards the homeowner/clients is truly protection for the homeowner”.
Great information. So glad to have this information.
Brenda Swigert
Jack Mossman
April 26th, 2010
Let’s see …. Why would the banking institutions not be on the HAFA bandwagon? Could it be: (1) they would have to commit to doing something specific and definable, with time frames attached (2) they would have to be involved with a professional who is likely acting as a client advocate and not emotionally involved in the outcome (3) just talking about it without any action may cause folks to look for the hidden agenda.
I don’t have any more answers than anyone else with a cloudy crystal ball, but I do suspect that helping one person at a time actually move forward with their life has a far more beneficial effect that disappointing thousands who are asking for and not receiving help.
Bravo! CDPE for giving us focus, tools and the education to help some folks move into a better space in their lives. HAFA may not be the only answer, but it is one that appears to have the possibility of rekindling hope!