The Treasury Department has adopted, effective April 5, 2010, a new program to facilitate short sales for residential property owners. Prior to the new rules, homeowners who applied for short sales faced a long approval process, problems with second Mortgage Debt Relief Act 2010 holders, lost buyers due to delays or extra costs, and frequent problems. The new regulations are designed to address the perceived shortcomings by changing the rules for the participating lenders. In order to be eligible for the new Home Affordable Foreclosure Alternatives Program (HAFA), borrowers must first seek approval for a loan modification under the Home Affordable Modification Program (HAMP). Borrowers who are unable to obtain a loan modification, are unwilling to accept the terms of the proposed modification, or if after approval are unable to stay in the program are potentially eligible for short sale under the new guidelines.
Reportedly this latest mortgage unit will comprise of 55,000 workers and will also be managing the regular mortgages which by now constitute 12 million new mortgages. However, the bank has clearly stated that it is going to back off from the reverse mortgage market in order to give their full attention to the other vital fields.
Nevertheless, this does not imply that the workers will be left searching for other jobs in fact the employees working in that section will be adjusted to other fields and eventually be assigned new appointments. Ever since Bank of America taken over one f the renowned and biggest mortgage enterprises, Countrywide Financial Corporation back in 2008, it has been encountering issues of some sort or another.
Actually the company witnessed a crash during the mortgage meltdown and Bank of America consequently had to sort out a big mess consequently. For instance, the bank's Mortgage Debt Relief Act 2010 lost around $8.9 billion owing to the deadly loans bought from the Countrywide.
This eventually caused the Bank of America lose mortgage shares exponentially. The market witnessed a fall from 21.6% that it enjoyed earlier in 2010, down to 19.5% by the closing of the year and the bad news is that this percentage is going to decrease even more in this year. So keeping all this in view, the decision of establishing a new mortgage unit seems to be wise one.
Reportedly this latest mortgage unit will comprise of 55,000 workers and will also be managing the regular mortgages which by now constitute 12 million new mortgages. However, the bank has clearly stated that it is going to back off from the reverse mortgage market in order to give their full attention to the other vital fields.
Nevertheless, this does not imply that the workers will be left searching for other jobs in fact the employees working in that section will be adjusted to other fields and eventually be assigned new appointments. Ever since Bank of America taken over one f the renowned and biggest mortgage enterprises, Countrywide Financial Corporation back in 2008, it has been encountering issues of some sort or another.
Actually the company witnessed a crash during the mortgage meltdown and Bank of America consequently had to sort out a big mess consequently. For instance, the bank's Mortgage Debt Relief Act 2010 lost around $8.9 billion owing to the deadly loans bought from the Countrywide.
This eventually caused the Bank of America lose mortgage shares exponentially. The market witnessed a fall from 21.6% that it enjoyed earlier in 2010, down to 19.5% by the closing of the year and the bad news is that this percentage is going to decrease even more in this year. So keeping all this in view, the decision of establishing a new mortgage unit seems to be wise one.
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