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Irish explained the three-year rule was implemented based on the approximate time it might take for a former homeowner to build his credit again and become eligible for an FHA-insured loan after going through a short sale. While the idea of the program was based on HAFA guidelines, the option is available to everyone, as along as the lender agrees to the program. Irish says his company has received both HAFA and non-HAFA approval. According to the company���s Facebook page, Bank of America has approved its first SSLB program, and Irish says Wells Fargo has agreed to the program for its portfolio loans. In addition to helping struggling homeowners, National Short Sales also offers classes for real estate agents interested in learning the program and receiving SSLB certification. Irish said they first started offering classes in September 2012, and since then have trained more than 200 agents. While Irish says he is not aware of other programs out there offering what his company is, he was quick to emphasize homeowners shouldn���t be asked to pay upfront fees if they are trying to pursue a short sale with a lease-back option. Wells Fargo Reports 24% Increase in Net Profit in Q4 San Francisco-based Wells Fargo pulled in a record net profit of $5.1 billion in the final quarter of 2012, up 24 percent from the same period in 2011, according to the bank���s quarterly filings. Total profits for 2012 were $18.9 billion, up 19 percent from the year before. Revenue for the year increased 6 percent from 2011 to reach $86.1 billion. In the fourth quarter alone, revenue was $21.9 billion (up 7 percent year-over-year). Mortgage banking noninterest income was $3.1 billion for Q 4, up $261 million quarter-over-quarter. However, originations took a slight dive, dropping to $125 billion compared to $139 billion in the third quarter. The bank also revealed a dip in applications, which fell from $188 billion in Q 3 to $152 billion in Q 4. Refinances made up 72 percent of applications, unchanged from the third quarter. The quarter ended with an application pipeline of about $81 billion, down from $97 billion at the end of the third quarter. 82 While originations and applications slipped, net mortgage servicing rights (MSRs) results were $220 million, up from $142 million in the prior quarter. In the filing, the bank attributes the increase ���primarily to MSRs valuation adjustments made in the third quarter for increased servicing and foreclosure costs.��� The company���s residential mortgage servicing portfolio is an estimated $1.9 trillion. In addition, losses for mortgage loan repurchases dropped to $379 million from $462 million in Q 3. Wells Fargo held onto its one- to fourfamily conforming loans in the fourth quarter instead of selling them, foregoing about $340 million of fee revenue, according to the company���s filing. The bank also recorded a $644 million pretax charge to reserve for payment of a settlement with the Office of the Comptroller of the Currency and the Federal Reserve Board. Wells Fargo, along with nine other servicers, entered into an $8.5 billion agreement with the agencies in early January in order to end the Independent Foreclosure Review and repay consumers. Wells Fargo���s portion of the cash settlement���in proportion with its share of serviced loans in the population set aside for review���is $766 million. The bank also committed an additional $1.2 billion to foreclosure prevention actions. With this settlement, Wells Fargo will no longer take any more costs associated with the foreclosure reviews, which had recently approximated $125 million per quarter, the bank said. ���In addition to the benefit to our customers, we are very pleased to have put this legacy issue behind us and to have removed the future costs associated with independent foreclosure reviews,��� said bank chairman and CEO John Stumpf. THE LEADER IN DEFAULT SERVICING NEWS default servicing in print and online @ dsnews.com 10.2012 Historically shunned by creditors, short sales are becoming the resolution of choice as we make our way out of the crisis. anatomy of a fraudulent Short Sale houSing pain hitS the pollS Short and Simple As short sale activity increases, so does the potential for fraud, putting servicers in the precarious position of deciphering between swindles and legitimate flips. Recent study reveals a distinct link between foreclosure rates and voter turnout with default-heavy communities posting softer-thanaverage figures. Thanks to new rules aimed at easing the process and procedural steps servicers can take to avert roadblocks, short sales don���t have to be a long shot. STAT INSIGHT -65.65% Annual change in foreclosure sale notices in California from January 2012 to January 2013. Source: ForeclosureRadar Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com.