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Agents Face High Risks with Bank of America New Third Party Authorization

Bank of America is requiring a new third party authorization form (TPA) starting April 14th….

Today’s guest post features excerpts from attorney Ron Ballard’s recent article featured on his blog.

Read the original post here in its entirety:

Monday, April 2nd, 2012 at 11:06am

Agents Face High Risks with Bank of America New TPA

Posted by Ron Ballard

 

 

“BANA has created an exclusive, full-employment club for local real estate agents, brokers and attorneys to the exclusion of everyone else.”

  • Real estate agents (and attorneys) soon will be held legally responsible for reading the corporate mind of Bank of America. Fortunately for everyone else, they will not be allowed to even communicate with Bank of America, much less be required to read its mind. Unfortunately, all of this will further harm distressed borrowers and suffering neighborhoods by discouraging short sales and increasing foreclosures.This all results from a new “Third Party Authorization” form (TPA) which reportedly is mandatory on all Bank of America short sale files as of April 14, 2012.
  • The new TPA makes real estate agents, brokers and attorneys (the only people who will be allowed to communicate with BANA, more on that later) personally liable if they “knowingly misrepresent or omit to state, any material fact in order to induce the Borrower(s), BANA, the lender, the investor or the insurer to agree to the terms of a Short Sale that the Borrower(s),  BANA, the lender the investor of the insurer would not have agreed to had all material facts been known” [exact verbiage carefully transcribed to preserve grammatical and punctuation errors].
  • The new TPA requires the Designated Representative to represent that he/she is a licensed real estate agent, real estate broker or attorney (“Licensee”) in good standing in the state in which the Property is located and has all licenses, permits and authorizations to perform the duties undertaken by it.
  • Moreover, several important classes of people will be excluded. For example, borrowers who want their private financial information transmitted through their accountant or bookkeeper must now use an attorney or real estate agent instead. An elderly or disabled person cannot have a family member or caregiver help them communicate with BANA. A member of our armed services serving abroad cannot have a family member or friend authorized communicate for them.
  • Many States do not require short sale processors to be licensed, particularly if they are not being compensated. BANA overrules these State laws and policy making decisions.
  • BANA has created an exclusive, full-employment club for local real estate agents, brokers and attorneys to the exclusion of everyone else.
  • The reality of short sales is that the buyer is most often the most motivated person to get the deal closed. Many sellers are not making house payments, so why should they be in a rush to close the deal and have to move and start paying rent? In California, most will not be subject to a deficiency liability or cancellation of debt income taxes.
  • Yet, BANA excludes buyers from short sales communications unless they do so through an agent, broker or attorney. Since when is a person prohibited from communicating on their own behalf? All this does is inject additional people who might misstate information or omit facts they do not know when they are not the principal in a transaction.

Short Sale SpecialistThe Trademark Loss Mitigation team is a family owned business and includes a multi-state network of real estate agents, attorneys, title companies, short sale negotiators, credit repair providers, mortgage providers, inspectors and investors. Together, those professionals act as a NO COST short sale outsourcing solution for Realtors and Homeowners.

Jim McNinch, Certified Distressed Property Expert (CDPE);
Short sale agent, Short sale specialist
Jim@trademarklossmitigation.com
http://hosted.cdpe.com/trademark

http://www.trademarklossmitigation.com
832-330-4588

Comments (1)

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  1. Jim McNinch says:

    Kevin: Great point! Also, most states that require short sales be negotiated by either RE agents or attorneys like CA,AZ or MN also include mortgage and HUD approved consulting groups in their approved directives. We can only hope that someone challenges BANA’s new initiative.