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I've chatted with a few of you about the new NAR Certification course in Loss Mitigation. I got mine today and here's the scoop. Not much. I'm tremendously glad that NAR is doing something to address the reo segment. Obviously it's not going away any time soon even if it does slow down and the banks do a 180 and start helping people modify. That being said though, this course doesn't merit much in the way of certification. (Shhhhh. don't tell anyone I said so since I will proudly display my certificate).

The biggest problem as I see it is the fact that it seems to be a 101 course and I think it would be much more effective if it were expanded and then done in two parts. My class had about 30 people and it was about evenly divided between those who were actively involved in REO and those who thought it might be a good thing to try. It is a good thing to try but the class that explains what cash for keys and trashout is should not be the same class that tries (not very well) to explain the intricacies of a short sale or a comparison of data upload platforms.

I'd really like to see a weightier Certification that a beginning/intermediate/advanced level would bring. I also think they focused on short sales too much and as we all know there are few hard fast rules for those. They made some very good points about liability though and emphasized why all the T's must be crossed and I's dotted. Who has taken this so far? What are your thoughts?

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Comment by CJ Oliver on August 19, 2009 at 9:18am
Dan, I agree with you totally that we will be seeing continued activity in this segment. It's hard to have any sympathy for the banks though. I got one Monday that the deed work showed a 2nd home loan for 7.5% with a change date MONTHLY and an interest cap at a mere 19.9%. That is not a typo. Wonder why the bank is trying to value it now. Hmmmmmmmm.....
Comment by Dan Waterman on August 19, 2009 at 8:52am
Hi Chris,

Congratulations on the new certification! I truly believe that loss mit is the way of the near future. Why do I think this? For a couple of reasons. First, we recently received a little intel from one of our asset management contacts and it's been confirmed that loss mit and short sale are being emphasized like never before in the AM industry. For those of you familiar with AM you know that this is unheard of...a proverbial fish out of water in this case.

Secondly, there have been executive decisions at the governmental level to initial loss mit at a higher level (this is also how the current administration is able to claim such positive stats and results while we're all looking around wondering how they can be so upbeat about foreclosure, job loss, and the economy). Unfortunately, loss mit has a very little known characteristic trait that will perpetuate the current housing dilemma - RE-DEFAULT. The re-default rate of these loan mods is upwards of 60% within the first 6 months sending them back into foreclosure...thus returning to asset management/REO.

Finally, we do have a loan modification and short sale expert as part of our coaching network. I went through the loan mod presentation by Lauren and it's amazing to say the least. I was inspired by her understanding of the law, the ethical aspect, the involvement of attorneys (loan mods MUST be done by an attorney-based firm otherwise you're putting the homeowner in a vulnerable position), and the exact marketing method that she employs. It's a true revenue generation machine while loan mod and loss mit are practically a requirement at the government level.

Again, congratulations! Keep making a difference!

Dan Waterman

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