BluefoxToday blog : Countrywide and NACA are now dating

That sounds interesting. you say it will be like NACA's standards, does that mean only borrowers with really high 10% plus loan rates will be able to qualify?

 Or will someone in default, who had a regular conforming loan be able to work something out to reinstate their loan with Countrywide more easily? 

 What happes if the borrower can't make it during the 6 month trial period?

 

 

 

Alan,

If you click on the link, there are more details on the arrangement.

I am currently in the NACA program and it is a great program. It provides an opportunity for homeownership to many who would otherwise remain lifetime renters. The mission of fighting predatory lending is also there main goal. A consumer who has been trapped by a "loan shark" and will inevitable be crushed by an unrelenting A.R.M that should have been illegal in the first place can work with the NACA program and may be saved. NACA is a non profit organization and relies on monies set asside by large banks to fund the loans.  NACA works with banks such as the one you mentioned. Only after the agree to set money aside to fund these loans. Many of these banks have previously participated in questionable loan practices have seen the error of there ways and now are doing the right thing. I applaud the NACA program and the good works they provide. I have and will continue to recommend the program to many of my clients and friends. It is a tough program to work through. It has many rules and regulations and many will not qualify. For those that do qualify and work through the program they are rewarded with an exceptional mortgage product with a payment they can afford to pay.

Dwight,

Thanks for bringing AR members more insight into how NACA works.

Wow, that is interesting stuff!  Do you feel that it's timely enough and they will be aggressive enough to really make a big difference?  I know that if they are able to help one person, it's worth the effort, but do you think it will make a sizable dent in the foreclosure numbers?  I also know that Countrywide originated 1 of evey 6 loans across the nation (that's the number I heard), so whatever they do will help.  I just feel they waited a long time to help.  On top of that, I've been working short sales successfully for a while now and in the last couple months, Countrywide has seemd to tighten down on their short sales.  I know also, that has to do with BPO agent valuations, but the logic behind not accepting an offers on short sales eludes me.  For example, I had a short sale where fair market was truly around $450k.  The BPO came in at $473k.  I had an offer at $401k.  I had the property on the market at $450 for 30 days and dropped to $425 for the last 30 days.  The best offer I got was $401k.  What makes them believe they will net more by taking it back as an REO?  Anyway, I got off onto a tangent, but I guess I don't truly believe they are working with the consumer's best interest in mind.  I think they are trying to subdue the negative publicity they are receiving.  I always try to be positive, but that's what I see.  If I'm out of line, please let me know.

Lowell,

Countrywide has been slow in workouts, but due to a lot pressure from many directions is finally getting with the program.

Country Wide has been on the NACA website for a long time now and it was not good press for them. In fact if you read the NACA participation program as a borrower you volunteer to assist in a few protest events a year. Maybe this had some bearing on the CW decision.

If that starts working will that start reducing the great investments in foreclosure homes?

Keith & Robin,

CW has obviously changed course to everyone's benefit in helping out borrowers in distress.

Ethan,

Probably to some degree.

Quicker workouts (loan modication) is not going to happy.  It is in the banks best interest to provide painfully slow remedies, all the while the interest-meter keeps running, one day, $30-$150 bucks at a time.  On a small scale, no big deal, but multiply that by 50,000 loans..."Can I get an AMEN!?!"

 

Rich,

They certainly have weighed different scenarios and that could be one they like to use.

I am planning a NACA process blog in VivaReal.com in a matter of 60 to 90 days with specific details about how to manage your NACA clients so that they get qualified and through the process with fewer problems.

So for now Join NACA Insight Group and when I compile the various topics about the process in May/June 2008, I'll send you an invitation.

Click Here to Stay In Touch with Eliud Gautier

Eliud,

That's great to put something like that together. Keep me posted.

Eliud,

That'll work.

Eliud,

Yes, VivaReal.us is still in development (it always will be) and our core concentration has been on getting listings to the site. The blogging platform in Spanish is up and running, but it does not have all the bells and whistles of AR, but we will be making improvements in the fourth quarter. Last month we generated over 300 home buyer leads in Spanish so it is in full effect.

Since your training for NACA is in English, I believe that AR is better place for it. I will keep you abreast of further developments on our end.

Mucha suerte!

 

Vey intersting story, Esko. It'll be worth keeping an eye on to see how this scenario evolves in the days to come. Perhaps a troubled lender is seeking redemption ? Has Mr.Mozillo left the confessional ?....:-) 

I feel it's only right for CW to do this, since they were a major part of the problem.  I'm just getting familiar with NACA and from what I've seen so far, I'm really impressed.

NACA is a great program. I am attending a class in October on the process of quialifying buyers. I have only been on the listing side. I had my reservations. I made phone calls inquiring about the program and how qualified the buyers are. It went through smoothly.

David,

Now that CW is in the ropes, it's trying make nice.

Jerry,

This improved relationship is to everyone's benefit.

Rick,

Excellent. Everybody likes to see it succeed.

Brian,

Good to see that you're moving right along.

Yeah, its exciting. If you haven't already, you should check it out and create your profile page here. It's free and we are growing at a steady pace and will be launching a multi-pronged marketing strategy leveraging the power of SEO, Online PR and affiliate marketing.

Brian,

I'll take a look.

The "Idea" of NACA is a great one, but it's people DEFINITELY fall short.  As for NACA hating outside agents, it it COMPLETELY true.  I had so much hope in NACA.  Finally, a housing organization with their heart in the right place.  I have worked very hard, attended NACA classes and seminars, read everything, currently have 27 people registered and keep in close contact with most all of them only to have cheap, opportunistic, greedy NACA agents try to steal my clients!  It is ridiculous!  NACA nationwide may be a wonderful organization but the people who represent it in Atlanta are lazy, rude, greedy, immoral and just plain out liars.

I really admired Bruce Marks and everything he has accomplished through NACA.  I hope that if he genuinely believes in what his proposed "NACA" is supposed to be.  Otherwise, the folks representing him in Atlanta make him look like a CROOK!

I hope you have a better team in your parts.

MAKE SURE YOU HAVE A BUYER BROKERAGE IN PLACE!  THEY WILL STEAL YOUR CLIENTS!

Wow, that is a lot to take in but I have to say the team in Philadelphia is getting its act together. My recommendation is for you to make sure your client is ready for NACA before you recommend them to NACA.

Have them check their credit online - www.AnnualCreditReport.com or find yourself a local credit counseling organization willing to work with your clients. Remember, even though the interest rate is not credit driven - credit history is still important.

Have your clients collect all the documents ahead of time - bank statements; pay stubs; work history; rental history; contact information for landlord(s) and employer(s); and prepare the monthly budget. And once your client - because remember - they are your clients - and you have an obligation to assure your potential sellers that YOUR client qualifies for a loan - then you register them to the NACA website.

Since you have attended the workshops you ought to know exactly what your clients need for the NACA loans.

As far as them stealing your clients - you have a legal right - if your clients have signed the "exclusive buyer's agreement" and if you were the one to register them on NACA website to report the other agent your local board of realtors and also demand your commission from the other real estate office. But that is a whole different matter.

Eliud Gautier

naca,

That's unfortunate that your experience has been less than satisfactory.

Eliud,

Thanks for bringing in more depth to the discussion.

Esko,

My pleasure - I appreciate you letting me comment on your site - the last time I did this I got my head chewed off by the blogger in charge. I am glad I could help out.

Eliud,

Any time. The more diverse discussion the better.

I recently did a loan signing for Country Wide/ Land America... I was told they had merged. What does this mean if Land America is filling chapter 11? Is Country Wide filing too?

Jenette,

Countrywide is now part of Bank of America, so it should be okay. Haven't heard of LandAmerica filing for any chapters.

I heard the same thing yesterday morning - about LandAmerica - since they were one of the largest supporters of National Association of Hispanic Real Estate Professionals.