Thursday, February 24, 2011

Fannie to reward the Servicers - WOW!!!

Yesterday Fannie Mae announced its new STAR program:  Follow the link and come to your own conclusion, but I see the word "Incentive." These incentives are not mentioned until the fourth paragraph in the press release. I do not want to prejudge until we learn more and I already requested clarification from FHFA, but I would want to know the following answers; 
  • What are the servicers promising to do different?
  • Do the servicers plan on making the investment for trained people?
  •  Do they intend on using new technology?
  • Are these incentives tied to HAMP guidelines and directives? (to me this is the big question)
  • Are the incentives over and above HAMPs current incentive program of $4,000 - if so does this mean they will be paid even if there is not a successful modification?  (I do not have a problem with that if the following is changed).
  • Is Fannie going to check on the servicer work product or will all underwriting still be left to the servicer?  If not HAMP’s FATAL FLAW still exists.

If this is Fannie Mae's only solution to fix this mess, then we can expect more of the same, except the servicer will make more taxpayer money. If we had the numbers for "This Egyptian Thing" we could be all over this today. We would be targeting Fannie Mae's press office and the relevant committee members. I do not want to pull the trigger until we have greater numbers. 

If anyone has contacts with media outlets you should sent the link to the reporter and title it "Fannie Mae to Reward Servicers after Failing with Taxpayer Money".   

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