Pam Marron Home Lending

About Pam

Pam Marron has been originating residential mortgages for 33 years!

I have originated FHA, VA, USDA and conventional loans in Florida for 33 years… and still love it! In today’s economic climate, it is necessary to not only qualify you as the buyer, but to also qualify the home you are looking at for a compatible fit to meet your family needs! Obtaining a mortgage loan in today’s market is not a simple task, and it is my committment to make this process as smooth as possible… so that you feel comfortable referring future friends and family to me!

I have unique experience helping consumers who have had a past short sale, deed in lieu or modification…. and who have this past mortgage credit coded as a foreclosure!

I live in Tampa Bay, Florida and experienced the bottom falling out of the housing market in 2006-2007. Though I had experienced downturns in the market, they were short and usually corrected themselves. This swing took on momentum, was unusually long, and many of us were wondering how the market sustained as long as it did. When the faucet turned off, we were left with massive home inventory where values had plummeted.

Underwater Home Value Off the Charts

In April of 2007, while helping an elderly couple with the newly launched FHA Secure which allowed for a refinance up to 115% of the value, to my horror, I found that the extra 15% equity came no where close to covering the loss of 60% equity in this clients’ home. I started investigating how far reaching this problem of dramatically reduced values was… local only? In other Florida counties, or other states? I went to a HUD meeting in Orlando and explained that the FHA Secure program at 115% was not nearly high enough to help, and many in the room of over 400 resounded the same.  Negative equity,  where more is owed on the mortgage  then the home is worth, was being experienced  at record  levels. It was not just Florida, and the problem was mammoth.

Discovered: Foreclosure Code Wrongly Applied to Short Sale Credit

Fast forward to 2009. Mortgage business had grinded to a dead stop as new regulations were put in place. Past short sellers were able to come back into the housing market after two years, so I started an effort to assist these past homeowners back into housing. That’s when it was discovered that  short sale credit was being coded as a foreclosure.  The problem was not  visually evident  on  a credit report. Instead, “Foreclosure” visibly showed up on the Fannie Mae Desktop Underwriting/Originating automated underwriting  system (AUS) findings  with the name of the  affected  lender, the  account number  and a “date reported”.  The foreclosure code  resulted in a new conventional mortgage  loan denial even  when the consumer  was eligible  for a new loan. at that time, the wait timeframe after a short sale was two years rather than the  seven year wait  time frame required after a foreclosure.

Root of Problem

Homeowners  were losing jobs or  taking pay cuts  and many  had to sell  homes that were valued at less than the mortgage owed.  these homeowners were tagged as ” underwater”  with negative equity.  The only way to work with the lender and sell  a negative equity home  was to do  a short sale that required  proof of the hardship  and  mortgage delinquency  as the primary proof. Imminent default,  where the homeowner was  not yet  delinquent  on their mortgage  but likely to go delinquent  because of   upcoming financial risk,  was available.  However,   a mortgage holder in imminent default where the mortgagor was still current was rarely approved. Lenders were  telling  consumers  who  applied  for a short sale  that they  would not be approved  until their mortgage was delinquent! In disbelief, I started  participating  on three way calls  with affected consumers and their lenders  and verified  that this was what  the lenders were telling  the consumers.

WHEN  the foreclosure code would affect  delinquent mortgage credit  became the predominant question.  it was soon realized  that  foreclosure code  appeared  when the consumer  was over  120 days late,  the common timeframe  also  applied to  foreclosure proceedings.  Mortgage denial cases  started trickling in  as  consumers who thought they were eligible  for a new conventional mortgage  were denied. These are the cases  that  allowed an investigation  of the foreclosure code problem,  allowing a comparison  of AUS findings for  conventional,  FHA ,  VA  and USDA  mortgages  within both the Fannie Mae  and Freddie Mac  automated underwriting systems.

Help Comes From Unexpected Places

Many credit reporting agencies assisted in  pinpointing  specifically where  the foreclosure code originated from. Acranet Credit  reporting agency  was the first  to dive into  the problem and connected to  the National Consumer Reporting  Association (NCRAinc.org)  who took the problem to the Consumer Financial Protection Bureau (CFPB.gov). Soon, U.S. Senator Bill Nelson (D-Fl)  was involved ,  taking the plight  to a Senate meeting on credit and he demanded a solution  to this problem that was affecting  millions of past short-sellers.

Senator Nelson  worked with the CFPB  and Fannie Mae  on a workaround that is available in the Fannie Mae  desktop originator /underwriter automated underwriting system to this day.

Seeing the Differences Between 3 Credit Bureaus  is Key.  Meridian Link Platform With Credit Reporting Agency is Necessary.

Multiple credit platforms were evaluated  and it was soon realized that one in particular,  the Meridian link  platform,  provided the ability  for a lender who pulled  a tri-merged credit report  to see  differences in what each of the three credit bureaus, Experian, TransUnion and Equifax, reported for the same past mortgage. A  link  To the breakout of the three bureaus is provided through  Meridian link while other  platforms  require the lender to call in  for this information.  I many cases,  visual  of these differences  will not be provided.  in order to show  differences, a tri-merged credit report from credit reporting agencies that use Meridian link is done.

 

 

Committed to helping my customers achieve homeownership!