|
Dear Members of the American Legal & Financial Network;
I want to take this opportunity to share some "Industry First Caliber News." The news involves actions taken by myself and a small group of industry leaders within our organization in response to a recent and very troublesome industry event which was precipitated by the Federal Housing Finance Agency's (hereinafter, "FHFA") Loan Servicing & Delinquency Management Alignment Initiative.
The facts leading up to and surrounding this event read like an epic heroic novel, but this battle took place here within our industry; a place where lies can breed fear, where loyalty is often tested and where sometimes, it can seem that all hope is lost. It is here, where a single person determined to take a stand. This story begins with such a person; Christopher M. Hill, Esq., President/CEO of Christopher M. Hill & Associates, P.S.C., who receives a new legal matter from one of his clients that contains a new document. This new document is identified as a Loss Mitigation Solicitation Letter, and a "Model Letter Form" is attached to the new referral.
By way of background, FHFA issued a directive to Fannie Mae and Freddie Mac that they require loan servicers to make use of a "Loss Mitigation Solicitation Letter." The directive required that the loan servicers require their attorneys to send this letter to the borrowers. At the time, the directive set forth that the use of the Loss Mitigation Solicitation Letter (hereinafter "Letter") would become mandatory October 1, 2011. The Servicers were supplied with a "Model Letter." This Model Letter, was sent out by loan servicers and their outsourcers with instructions to the attorneys that its use was "Mandatory."
Christopher recognized immediately that the language of the Model Letter was replete with violations of The Fair Debt Collection Practices Act ("FDCPA") and as such represented a danger to his clients and to himself. Christopher then reached out to both me and the members of the Boutique Law Firm Group within the ALFN. This communication prompted a series of telephone calls wherein we all agreed that the threat to the industry was so great, and the effort being promulgated so widespread, that we had to take swift and decisive action.
At this juncture, I reached out to the appropriate leaders within Fannie Mae and Freddie Mac. I briefly outlined our concerns and requested a conference call so we could discuss the details. On September 19 we hosted a call with representatives of Fannie Mae. The attorney members who led this call with me were Christopher M. Hill, Esq., Christopher M. Hill & Associates, P.S.C., Keith D. Weiner, Esq., Keith D. Weiner & Assoc. Co., L.P.A. and Matthew C. Abad, Esq., Blommer Peterman, S.C. On September 21 we hosted a conference call with representatives of Freddie Mac. The attorney members who lead this call with me were Matthew C. Abad, Esq., Blommer Peterman, S.C.; Keith D. Weiner, Esq., Keith D. Weiner & Assoc. Co., L.P.A. and Jon Engman, Esq., Fabrizio & Brook, P.C.
Both calls were arranged so that these members could voice their concerns and hear directly from representatives of Fannie Mae and Freddie Mac regarding same. While these calls were very productive from our perspective, we believed that there were many lingering concerns and some confusion regarding the Letter's usage and the ability to modify any elements contained within the Letter. We also determined that some additional clarity was necessary to help create a better industry understanding relative to the most circumspect approaches necessary to notifying consumers regarding their loss mitigation opportunities and complying with the various and sundry requirements under FDCPA.
As the situation was critical and the need for clarity was great, we elected to develop and present a series of two webinars. The first presentation was held on September 29th. Two hundred and eighty eight industry professionals registered for that presentation. The second presentation will take place on October 13th. The attorney members who developed the materials and discussed the issues on the first webinar were: Christopher M. Hill, Esq., President/CEO, Christopher M. Hill & Associates, P.S.C.; Elizabeth R. Wellborn, Esq., Attorney, Elizabeth R. Wellborn, P.A.; Keith D. Weiner, Esq., Attorney, Keith D. Weiner & Assoc. Co., L.P.A.; Michelle Garcia Gilbert, Esq., President/CEO, Gilbert Garcia Group, P.A. This same group of attorneys will be presenting on the October 13th webinar as well.
What is absolutely historic about this series of events is that the same evening of our call with Fannie Mae, Fannie Mae sent a privileged communication to the members of their designated attorney group. Then on September 28th, I was advised that both Freddie Mac and Fannie Mae intended to "pull" the sample template of the post-referral solicitation letter, and that they were in the process of obtaining final approval from the Federal Housing Finance Agency to do so. We conducted our first webinar on Thursday, October 29th. On Friday, October 30th Freddie Mac released the following bulletin: http://www.freddiemac.com/sell/guide/bulletins/pdf/bll1117.pdf
This bulletin addressed nearly all of the concerns we raised on our calls and within our webinar presentations. That same afternoon, I contacted Fannie Mae and asked if they had released any similar information. I was advised that they had not yet done so, but that a similar release would be forthcoming. As of today, it appears that Fannie Mae has sent a second privileged communication to the members of their designated attorney group.
Folks, I am 60 years "young", I have been in this industry since the late eighty's, and I have never witnessed any group take any such action that resulted in such a dramatic national policy turnaround involving such behemoth industry players, as we have done in the five days that make up the beginning and ending of these events. If you have ever asked yourself what the true value of this organization is, or if you can truly make a difference within this industry, we have just demonstrated that the answer to that question is a resounding YES! We truly are a force for good within our industry and we can, and do make a difference.
I wish to offer Christopher M. Hill a very special thank you on behalf of myself, and all the members of this organization for his courage and diligence in bringing this matter to the forefront as he did. I also wish to thank each of the attorneys listed herein-above for their courage and willingness to speak up against the odds, and potentially against their own business interests and make their concerns known. And finally, I wish to thank the members of the Boutique Firm Group within the organization and each and every one of our members for their efforts and support of this great organization as we work together to make this industry a better place for all stakeholders. Now, more than any other time, is the time for mortgage banking attorneys to stand shoulder to shoulder, working together to bring about the changes that our industry so desperately needs. Let's make 2012 our year.
Best regards,
William M. LeRoy, President & CEO
American Legal & Financial Network (ALFN)
Office: 480.471.9944
Facsimile: 480.471.9933
Mobile: 480.776.9444
E-Mail: wleroy@alfn.org |
Print to Page
Email to a Friend
