|
Indy/Mac OneWest Internet Video
You may have received a video that was circulating recently on the internet alleging that FDIC's loss sharing agreement with OneWest, the successor to IndyMac Bank, disadvantages short sales. Below is the response from the National Association of REALTORS® (NAR) to this allegation, which is false.
FDIC Response to IndyMac/OneWest Internet Video
On Friday afternoon, NAR contacted the FDIC regarding the viral video circulating amongst the real estate community regarding the FDIC's loss sharing agreement with OneWest, the successor to IndyMac Bank. As many of you know, an earlier charge had been levied that the FDIC deal disadvantaged short sales. NAR contacted FDIC and they promptly debunked the charge. FDIC was equally quick to respond to NAR's request this time as well, issuing the statements below on Friday evening and taking strong exception to the charges in the video. Furthermore, FDIC Chair Sheila Bair personally called NAR CEO Dale Stinton on Friday to discuss the matter. We believe the strong statement should put to rest the charges levied in the video.
Press Release
FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank
February 12, 2010
FDIC Director of Public Affairs Andrew Gray said, "It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).
The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.
This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods."
Supplemental Facts about the Sale of Indymac F.S.B. to OneWest Bank
** IndyMac was competitively bid. After analysis, the acquisition by OneWest represented the least cost transaction to the Deposit Insurance Fund.
** OneWest not only acquired assets, but also assumed the liabilities of the insured deposits, Federal Home Loan Bank Advances, and amounts owed the FDIC
** OneWest has assumed a first loss position on a portfolio of qualifying loans where they take the first 20% of losses before any loss share payments are made. This is a first loss position of over $2.5 billion.
** The FDIC has yet to make a single loss share payment to OneWest.
** In its agreement with FDIC, OneWest is required to adhere to a loan modification protocol for single family loans that meets the approval of the FDIC. If the FDIC determines that OneWest is in violation of this agreement, then the FDIC can repudiate the loss share claims on the covered loans.
** FDIC has authorized OneWest to service single family loans under the Home Affordable Modification Program. It applies to all owner-occupied homes and requires OneWest to:
* follow HAMP procedures to develop affordable loan modification terms for the borrower
* determine whether the recovery on a modified loan is higher than the recovery from a short sale or foreclosure
* modify the loan using HAMP guidelines if the recovery of a modification is higher than the recovery of a short sale or foreclosure
* loss share coverage cannot be factored into any recovery calculation for loan modification, short sale or foreclosure.
* The FDIC monitors OneWest's compliance with their adherence to the FDIC Mortgage Loan Modification Program and OneWest's commitments under the asset sale agreement.
* Only 7% of loans OneWest services are owned by OneWest and covered under loss share. Other institutions own the remaining 93% of loans OneWest services. These loans are required to be serviced in accordance with the owner institutions' agreements with OneWest.
|
