Agencies Release White Paper on Future of Foreclosure Prevention

ABA Banking Journal | July 25, 2016     In a white paper released today, the Department of the Treasury, the Department of Housing and Urban Development and the Federal Housing Finance Agency outlined five principles to guide the creation of future foreclosure prevention programs. With many of the crisis-era homeowner assistance programs winding down at the end of 2016, the agencies said that accessibility, affordability, sustainability transparency and accountability should guide the development of new loss mitigation programs and encouraged investors and servicers to collaborate on developing and implementing new initiatives.

“With the retirement of [the Making Home Affordable program], the industry will shoulder more responsibility for assisting struggling homeowners through proprietary modifications and other loss mitigation programs,” the white paper said. “One of the important things we have learned from the crisis-era efforts is that a collaborative process results in better outcomes for all stakeholders. That lesson should not be forgotten as the industry takes a more prominent role in defining the future of loss mitigation.”  Read more here.

Why More Widowed Homeowners are Struggling to Prevent a Foreclosure

Los Angeles Times |  May 3, 2016      When Jesus Sequeira's wife, Yadira, died in 2008 from lung cancer, times soon grew tough.

Sequeira said his income plunged, leaving him unable to pay the mortgage on the couple's Canyon Country home when payments more than doubled a year later.

Sequeira hoped a loan modification might save him, but there was a glitch: Even though he was listed on the title, only his wife was on the mortgage note — a setup Sequeira said a Countrywide Financial employee suggested given her superior credit.

The arrangement, he said, turned efforts to secure a modification into a multiyear red-tape nightmare that may end in a trustee sale scheduled for May 11.  Read more here.