Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.
Wells Fargo Home Mortgage
Joe Ohayon
SVP, Community and Client Relations
Housing Counselors: The Inside Scoop on Working Effectively with Servicers
November 4, 2009
2
Industry Loans Outstanding
Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.
33
Delinquency and Foreclosure ProcessThe delinquency and workout process is not simple or linear. Customers
move in and out of stages over time.
Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.
4
Not all customers, even if their loan is modified, will be able to continue making payments on time. The key factors that drive re-default are:
Debt-to-income ratios (DTI above 38%/TDTI above 55%)
Post-modification monthly surplus below $300 or less than 10% of income
Post-modification payment increases
Stretched affordability coupled with no equity
As we identify options for our customers, we need to ensure they are sustainable over
the long-term.
Making Home Affordable is just one of the modification options available.
Priority of Actions to Achieve Objectives
HAMP
In-house modification program
Unique case-by-case modifications
Home sale assistance
Quality review for all cases before foreclosure sale
Finding Appropriate Sustainable Options
Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.
55
For customers delinquent or struggling to keep current on their mortgages
HAMP is a viable option for customers: Whose loan is owned by Fannie Mae, Freddie
Mac, some private investors, as well as our held-for-investment loans.
That have an owner-occupied property. With a mortgage debt-to-income ratio >31%. In addition, we implemented the FHA version
of HAMP in August.
For customers current on their mortgages
HARP is a viable option for customers: Whose loan is owned by Fannie Mae or
Freddie Mac. Whose property values have declined and
whose loan balance currently exceeds the value of their home, up to a loan-to-value of 125%.
Home Affordable Modification Program
Home Affordable Refinance Program
Making Home Affordable
Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.
How Can Counselors Help with HAMP?
Assist borrower with accurate completion/submission of financial package
Ensure alignment between verbal income and documented income
Payment reminders during trial period
Not available for all investors
Manage expectations
6
Helpful Tips to a Quick Decision
Signed Third Party Authorization
Complete package submission Proof of Income
Tax Returns
Hardship Letter
Bank Statements
Include loan numbers on all pages
Holistic Debt Counseling
Dedicated Housing Counselor Line: 866-480-5004
Patience but Persistent
7
You Play an Important Role!!
Let’s keep the dialogue going and continue working together on behalf of homeowners in the communities we serve.
8