HUD Loss Mitigation Home Retention Options

Webinar II:

HUD Loss Mitigation Retention Options

Working Together to Help

Families Stay in Their Homes Presenters:

Amanda Ward &

Stacey Brown National Servicing Center

HUD NATIONAL SERVICING CENTER

LEARNING OBJECTIVES

At the completion of this course, you will better understand:

How HUD Servicers are required to apply loss mitigation tools to customers in need.

The different types, features, and benefits of each HUD Loss Mitigation Home Retention Option: Special Forbearance, Loan Modification, Partial Claim and FHA HAMP.

How to review, qualify and process each HUD Loss Mitigation Home Retention Option.

What actions are required to comply with HUD Loss Mitigation Program guidelines, reporting and documentation.

This presentation is provided for informational purposes and its contents are subject to change. It is not intended to substitute or alter requirements and guidelines found in FHA handbooks, mortgagee letters, and other official FHA publications.

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QUICK REVIEW

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KEY TERMS GENERAL LOSS MITIGATION

PAYMENT DUE DATE: FHA considers payment due on the 1st day of every month; all months consist of 30 days

IMMINENT DEFAULT: Homeowner is either current or less than 30 days past due on their mortgage, and is experiencing a significant reduction in income or some other hardship that will prevent them from making their next mortgage payment

DELINQUENT: 1+ days past the oldest unpaid installment (OUI)

DATE OF DEFAULT (DOD): 30 days past the oldest unpaid installment (60 days delinquent) Example: Last paid installment (LPI) Feb. 1 First payment missed March 1 Date of default - April 1

FIRST LEGAL DEADLINE (FLD): 6 months past the date of default (8 months) Example: Last paid installment May 1, 2011 Oldest unpaid installment June 1, 2011 Date of default July 1, 2011 First legal deadline = Jan. 1, 2012

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LOSS MITIGATION OPTION PRIORITY

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Special Forbearance

Loan Modification

Partial Claim

FHAs Home Affordable Modification Program (HAMP)

Home Retention Options:

Pre-Foreclosure Sale

Deed-In-Lieu of Foreclosure

Disposition Options:

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Minimum # of Installments Due and Unpaid 0 1 2 3 4

Days Past Due (DPD) Imminent 1+ 31+ 61+ 91+

Type DDS Code Description/Requirements

CO

LLEC

TIO

NS Informal FB

HUD HB 4330.1 REV-5, Chapter 7

12-Repayment

Verbal agreement to increase, reduce or suspend payments Duration < 3 months Verbal financials required for agreements over 30 days

Formal FB HUD HB 4330.1 REV-5, Chapter 7

12-Repayment

Written agreement to increase, reduce or suspend payments Duration minimum 3 months Verified/documented financials required for agreements over 30 days

RET

ENTI

ON

Special Forbearance (SFB) ML 2011-23 ML 2002-17

Type I ML 2011-23

Trial Payment Plan ML 2011-28

09-Special Forbearance

08 - Type II/Special Forbearance/ Trial Payment Plan

Structured plan to repay a loan delinquency over time (initial period for financial recovery followed by a payment schedule based on the borrowers ability to repay)

Cannot exceed 12 months PITI Duration minimum 4 months - SFB Type I increased payments Duration minimum 6 months - SFB Type I on a combination of suspended,

reduced or increased payments

Special Provision Type I - CAUSE OF DEFAULT IS UNEMPLOYMENT Duration minimum 12 months May be used to reinstate a loan to facilitate the eventual sale or assumption

of the property

Prerequisite for executing a permanent standard Loan Modification and/or Partial Claim

Requires 3 month trial prior to execution of permanent Loan Mod or Partial Claim

Cannot exceed 12 months delinquent PITI for Partial Claim Option Loan Mod or Partial Claim is concurrent with the end of the Trial Payment

Plan

Loan Modification ML 2011-28 ML 2009-35

08 - Type II/Special Forbearance/Trial Payment Plan

28-Modification Started

Permanent change in 1 or more of the terms, allows the loan to be reinstated and results in a payment a borrower can afford

May include a change in the a) interest rate, b) capitalization of the delinquent principal, interest or escrow items, c) extension of the time available to repay the loan and/or, d) re-amortization of the balance due

3- month Trial Payment Plan required

HUD LOSS MITIGATION OPTIONS AT-A-GLANCE HUD recommends borrowers be evaluated for loss mitigation as early as 30 days past the last paid installment. This enables the Servicer to begin the

process early, allowing time to validate financials and be ready for the borrower to sign an agreement at the appropriate time of delinquency. (Content is subject to change. This document is not intended to substitute or alter requirements and guidelines found in FHA handbooks, mortgagee letters, and other official

FHA publications.)

Minimum # of Installments Due and Unpaid 0 1 2 3 4

Days Past Due (DPD) Imminent 1+ 31+ 61+ 91+

Type DDS Code Description/Requirements

Ret

en

tio

n

Partial Claim (PC) ML 2003-19 ML 2011-28

08 - Type II/Special Forbearance/Trial Payment Plan

10 - Partial Claim Started

Lender will advance funds on behalf of the borrower in an amount to reinstate a delinquent loan (not to exceed 12 months PITI)

Borrower executes promissory note and subordinate mortgage payable to HUD (carries no interest and not payable until the borrower either pays off the first mortgage or no longer owns the property)

3-month Trial Payment Plan required

FHA HAMP ML 2009-23 ML 2009-35

39 - FHA-HAMP Trial

41-FHA HAMP Modification Started

Allows the use of a Partial Claim up to 30% of the UPB as of the date of default and combine it with a Loan Modification

Must successfully complete a trial payment plan (4 months for imminent default and 3 months for 90+ delinquent)

Front ratio not less than 31% and back ratio must not exceed 55%

DIS

PO

SITI

ON

Pre-Foreclosure Sale (Short Sale) ML 2008-43

15 - Pre-Foreclosure Acceptance Plan Available

Allows a borrower in default to sell home and use proceeds to satisfy the mortgage debt even if the proceeds are less than the amount owed

Commit to actively market the property for 4-6 months Borrower qualifications: occupy as primary residence; list property with

licensed real estate broker with a cancellation clause in the event the terms of the PFS sale are not acceptable to HUD; make good effort to aggressively market property, perform all normal maintenance and repairs; standard As Is FHA appraisal; marketable title; Non-Owner Occupant Exceptions available; Tiered Net Proceeds Requirements 1st 30 days 88% - 2nd 30 days 86% - Remainder of marketing time 84%; Funds available for discharge of Subordinate Liens.

Deed-in-Lieu (DIL) ML 2000-05

44 - Deed-in-Lieu Started

Borrower voluntary deeds collateral to HUD in exchange for release from all obligations under the mortgage

Lender must enter into a written agreement with the borrower stating specific actions that the borrower must perform in order to take advantage of this option and receive financial consideration

Borrower qualifications: cause of default is incurable; occupy the property as a primary residence; collateral property must be non-occupied at the time of conveyance; good and marketable title

Occupancy Exceptions: Verifiable that the need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as a rental investment, or used as a rental for more than 18 months

HUDS LOSS MITIGATION OPTIONS AT-A-GLANCE (Content is subject to change. This document is not intended to substitute or alter requirements and guidelines found in FHA handbooks, mortgagee letters, and

other official FHA publications.)

General Requirements:

Special Forbearance Agreements

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Special Forbearance is a written repayment agreement between a Servicer and a borrower containing a plan to reinstate a loan that is a minimum of

three payments due and unpaid.

Must provide relief not typically afforded under a repayment plan or an informal forbearance plan

Accrued arrearage not to exceed the equivalent of 12 months of principal, interest, taxes and insurance (PITI)

Does not change the original loan terms

No maximum agreement term

Minimum agreement term:

4 months = increased payments

6 months = suspended or combo payments

Agreement must clearly state failure options

May also be implemented short-term until a permanent loss mitigation option is identified

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SPECIAL FORBEARANCE AGREEMENTS


Borrower Qualification

Must be owner occupant

Experienced a verifiable loss of income or increase in living expenses

Has or will have sufficient surplus income to correct the delinquency

Property Condition

Servicer must verify property has no adverse conditions

Financial analysis should consider property repair AND maintenance

Property condition was cause for default: SFB may provide a period of time for the property repairs to be completed at borrowers expense

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Financial Analysis

Calculate net income monthly living expenses (i.e. food, utilities, child care), recurring debt and other scheduled obligations

Calculate monthly surplus income for each month the SFB agreement will be in effect (minimum 3 month period)

Consider fluctuations in income and expenses during the time period of the SFB

Reviewing The Agreement

Must be reviewed monthly

Determine if borrower is performing per agreement terms

System reports may be used to document the servicing file

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Servicers eligible for an automatic 90-day extension of First Legal Deadline if: SFB is initiated, but unable to complete Financials have been verified and documented in the servicing file, AND Correct status code is reported in the Single Family Default Monitoring System (SFDMS). See example

below:

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DDS Code Forbearance Agreement

42 Opens default event 09 Borrower has been approved for a Special Forbearance 08 Type II Special Forbearance / Trial Payment Plan (effective 1/1/2012)

98 Borrower reinstated delinquency with benefit of Loss Mitigation Program

AQ Option Failure

Foreclosure Time Requirements Reasonable diligence time frames will be extended for the time borrower was performing under the terms

of the special forbearance agreement, including an allowance of no more than ninety days (90) to get the foreclosure back on schedule from the date the borrower defaulted under the special forbearance agreement

If SFB is broken, Servicers have 90 days to start or recommence foreclosure from the date the SFB is considered failed

TYPES OF SPECIAL FORBEARANCE AGREEMENTS

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SPECIAL FORBEARANCE TYPE I

A written agreement that allows the borrower to repay a loan delinquency over a specified period of time (usually 3-8 months)

Reinstates a loan that is at least 3 months unpaid but not more than 12 months delinquent PITI

Provides more relief than an informal or formal forbearance plan

May also serve as a short-term solution until:

A permanent loss mitigation option is identified, or

Borrower can sell the home

SPECIAL FORBEARANCE TYPE I UNEMPLOYMENT PROVISION

Designed for the borrower whose cause of default is unemployment, with no prospects of employment

To qualify, the borrower must:

Make partial payments, based on ability to pay

Agree to actively seek employment

Immediately notify mortgagee when employment status changes

Minimum forbearance period is 12 months (Effective 8/1/2011)

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TRIAL PAYMENT PLAN: LOAN MODIFICATION & PARTIAL CLAIM

Trial payment plan must successfully be completed in the following situations:

Borrower has been delinquent (30 or more days) twice or more in the preceding 12 month

Borrower has been delinquent for 90 days or more (three or more consecutive payments past due) in the preceding 36 months

Borrower has defaulted within 90 days of a previous loss mitigation retention option executed in the past 12 months

Net surplus income is less than 20 percent of total net income

Less than 14 months have elapsed since the origination of the loan

The amount added to the loan balance in a loan modification and/or partial claim exceeds 10% of the unpaid principal balance

Borrower failed a trial payment plan for FHA HAMP

Servicer determines trial payment plan is necessary to demonstrate the mortgagors ability to sustain the modified payment

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TRIAL PAYMENT PLAN: LOAN MODIFICATION & PARTIAL CLAIM

General Requirements

Trial Payment Plan period minimum 3 months

Three full consecutive monthly payments must be made

No language may be added which requires Borrower to waive their rights for a Loss Mitigation Option

Loan Modification

Must be in compliance with Mortgagee Letter 2009-35

Final payment must be the same or less than the Trial Payment Plan amount

Escrow Analysis must be completed to avoid another payment increase

Partial Claim

Monthly payment is to be the same as the regularly scheduled payment

Combining Options

Trial Payment Plan and/or Loan Modification and/or Partial Claim are considered one Loss Mitigation Option

The combined Trial Payment Plan is offered to protect FHA from the risk of workout failure

Servicers claim files must justify skipping the Trial Payment Plan

Trial Payment Plan/Loan Modification: No delinquency cap

Trial Payment Plan/Partial Claim: Delinquency cannot exceed more than 12 months delinquent Principal, Interest, Taxes and Insurance

Failure & Automatic Extensions

The Borrower vacates or abandons the property; or

The Borrower does not make the scheduled Trial Plan Payment within 15 days of the Trial Payment Plan due date.

Automatic Extension

Servicer is allowed a 90-day extension if the Trial Payment Plan was initiated prior to the expiration of the initial six month period and the action was reported to HUD

Case Study - Mr. & Mrs. Foster

Mr. & Mrs. Foster purchased their home in 2000; Mrs. Foster had hip surgery in August 2011 and was unable to work for three months. She did not receive any income during this timeframe. They are 4 months delinquent for a total of $3,200. Mrs. Foster has returned to work fulltime. The Fosters have no other FHA loans and this home serves as their primary residence.

Current Mortgage Payment: $800 (PITI) Total Monthly expenses: $1450 Net monthly income: $2575 (with wifes employment) Surplus: $1125 Surplus %: 77% Principal: $175,000 Loan type: 30 year FHA Interest rate: 5.75% 1st month delinquent: September 2011 1st contact with lender: December 2011

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1. What is the best loss mitigation option for this situation?

a) Special Forbearance Type I

b) Special Forbearance Type I Unemployment Provision

c) Trial Payment Plan/with Loan Modification

2. What is the minimum term for the agreement?

a) 4 months

b) 3 months

c) No minimum required

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Case Study - Mr. & Mrs. Foster

Features & Benefits:

Loan Modification

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LOAN MODIFICATION

Loan Modification is for borrowers who have experienced a permanent or long-term reduction in income or increase in expenses, but do not have

sufficient surplus income to repay the arrearage through a repayment plan.

Loan characteristics that best support the use of a Loan Modification

Above market interest rate

Low LTV ratio (valuation of the property is not required)

Mature term (loan paid down 10 years or more)

Borrower Benefits

A permanent change in the terms of the loan:

Interest rate reduced to market rate

Loan term extended to 360 months

Modified principal may exceed the original balance and may exceed 100% LTV

Delinquent PITI can be capitalized

Legal fees and related foreclosure costs may be capitalized

Loan is reinstated and results in a payment the borrower can afford

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3 payments due and unpaid (61 days delinquent)

Min. of 12 months elapsed since loan origination date

Default due to a verifiable loss of income or increase in living expenses

Loan may not be in foreclosure when executed

Adjustable Rate Mortgages must be converted to a Fixed Interest Rate

Borrower cannot receive any cash back

Borrower Qualifications

Owner-occupant - committed to occupying property as primary residence

Does not have another FHA-insured mortgage

Surplus income must be sufficient to support the modified mortgage

Property may not have any adverse physical conditions

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LOAN MODIFICATION

Servicer Responsibilities

Analyze the escrow to avoid another payment increase

Verify property condition

Ensure first-lien status of the modified mortgage

Comply with state and federal disclosure laws or notice requirements

May include foreclosure fees and costs related to the canceled foreclosure for the current default episode

Waive all accrued late fees associated with the current default episode

File claim within 60 days of the executed loan modification agreement

Failure Requirements & Limitations of Use

Delinquencies following a Loan Modification shall be treated as a new default and must be serviced accordingly

If modification used within the past 3 years, requires written justification prior to a subsequent modification

Subsequent reason for default cannot be related to the previous reason for default

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LOAN MODIFICATION

Features & Benefits:

Partial Claim

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Partial Claim (PC) is a subordinate mortgage (junior lien) issued in the name of The Secretary of HUD covering the borrowers delinquent

mortgage payments.

Partial Claim is for borrowers who have overcome the cause of default and have sufficient income to resume making monthly mortgage payments but do not have the ability to repay the arrearage through other Loss Mitigation Options.

Partial Claim may not be used if the borrower has sufficient surplus income to bring the loan current through a Special Forbearance or Loan Modification

BORROWER BENEFITS

Partial Claim does not accrue additional interest

Repayment of Partial Claim does not occur until first mortgage is paid off or borrower no longer owns the home

Delinquent PITI, Legal fees and related foreclosure costs can be capitalized.

Loan is fully reinstated

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PARTIAL CLAIM


4 monthly payments due and unpaid (91 days delinquent)

Total delinquency may not exceed 12 months PITI

Loan may not be in foreclosure when note is executed

Must reinstate loan; may not be used to reinstate prior to sale or assumption

May be combined with SFB Type II or standalone


Owner-occupant committed to occupying property as primary residence

Does not have another FHA-insured mortgage

Has overcome cause for default

Income sufficient to support the current mortgage payment

Insufficient surplus income to repay delinquency through SFB or Loan Modification

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PARTIAL CLAIM


Assess borrowers financial status

Verify the property has no adverse physical conditions

Ensure recordation of the subordinate mortgage is not delayed

Comply with state and federal disclosure laws or notice requirements

May include foreclosure fees and costs related to the canceled foreclosure for the current default episode

Waive all accrued late fees associated with the current default episode

Notify HUD when the first mortgage is being paid in full or refinanced

File claim within 60 days from the date of the executed note


Delinquencies treated as a new default and serviced accordingly

If PC used within the past 3 years, requires written justification prior to a subsequent PC

Subsequent default(s) must be unrelated to the previous default reason

Total Arrearage can never exceed equivalent of 12 mos. PITI

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PARTIAL CLAIM

Features & Benefits :

FHA Home Affordable Modification Program (HAMP)

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HAMP combines a Partial Claim with a Loan Modification to help borrowers in default or facing Imminent Default avoid foreclosure.

Designed for borrowers who are current or past due and are experiencing a significant reduction in income or some other hardship that impacts his/her ability to afford the current mortgage payment

Borrowers must be able to document the cause of imminent default which may include, but is not limited to, one or more of the following types of hardship:

Reduction in or loss of income

Change in household financial circumstances

BORROWER BENEFITS

Partial Claim defers principal repayment up to 30% of the outstanding principal balance

Permanent change to loan terms

Delinquent PITI can be capitalized

Legal fees and related foreclosure costs may be capitalized

Loan is fully reinstated; results in affordable mortgage payment 28

FHA HAMP

LOSS MITIGATION FOR IMMINENT DEFAULT

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Cause and

Documentation

Borrower must be able to document the cause of the imminent default, such as: A reduction in or loss

of income that was supporting the mortgage loan

A change in household financial circumstances

Data Reporting Requirements

Report all standard Loss Mitigation activities prior to the FHA-HAMP Option Upon HUDs request,

provide requested documentation related to FHA mortgages

Monitoring

Servicers that violate FHA Program statutes, regulations, or handbook requirements, may be subject to: Repayment of HUD

Loss Mitigation incentives

Indemnification Referral to HUDs

Mortgagee Review Board


First payment due date at least 12 months prior

4 full mortgage payments have been made

Not to exceed 12 months PITI delinquent

Re-amortize to 30 year term, fixed interest rate

HUD LDP and GSA exclusion lists are required checks; no CAIVRS required

HAMP mortgage must maintain first lien priority

Minimum trial period required:

Imminent Default Borrower = 4 months

Defaulted Borrower = 3 months

Loan may not be in foreclosure when PC note is executed

Must reinstate loan; may not be used to reinstate prior to sale or assumption


Owner-occupant committed to occupying property as primary residence

Same borrowers on existing and new mortgage; only exceptions:

Change in ownership due to death or divorce

New borrower may be added if at least one borrower is retained

Did not intentionally default

Income sufficient to support new mortgage payment

Ratios 31/55%

Front-End Ratio: The total first mortgage payment (PITI) divided by the Borrowers gross monthly income, shall be 31%.

Back-End Ratio: The total first mortgage payment plus all recurring monthly debt divided by the Borrowers gross monthly income, shall not exceed 55%.

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FHA HAMP


Verify financial information; obtain credit report, etc.

Verify the property has no adverse physical conditions

Obtain executed Hardship Affidavit

Document the reason for and timing of imminent default

May not require borrower to contribute cash

Comply with disclosure or notice requirements under FHA regs, State or Federal law

Comply with the Equal Credit Opportunity Act and the Fair Housing Act

File claim within 60 days from the date of the executed agreement


Delinquencies treated as a new default and serviced accordingly

If Trial Plan payments are not made in a timely manner, the Borrower is no longer eligible for FHA-HAMP

HAMP may only be used one time for life of loan

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FHA HAMP

HAMP Partial Claim is the sum of three amounts, not to exceed 30% of the outstanding principal balance:

Arrearages not to exceed 12 months PITI; this includes existing Partial Claim dollar amounts

Allowable legal fees and foreclosure costs related to the cancelled, incomplete foreclosure action

Remaining amount of principal reduction required to meet 31% front-end debt to income ratio

No interest accrues on the PC, Payment is not due until:

The maturity of the HAMP mortgage,

A sale of the property, or

A pay-off or refinancing of the HAMP mortgage

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FHA HAMP

FHA HAMP EXAMPLE: EXISTING PARTIAL CLAIM

Unpaid Principal Balance (UPB) = $100,000

30% Principal Deferral Maximum = $30,000

Previous Partial Claim for 6 months unpaid PITI = $6,000

Available Partial Claim for 6 months unpaid PITI = $6,000 NOTE: Example does not include escrow or fees.

Calculation

$100, 000 = UPB $30,000 = 30% Principal Deferral Maximum -6,000 = Previous Partial Claim -6,000 = Available Partial Claim $ 18,000 = Available for Principal Deferral

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FHA HAMP EXAMPLE: NO PARTIAL CLAIM

Unpaid Principal Balance (UPB) = $100,000

30% Principal Deferral Maximum = $30,000

Previous Partial Claim = $0

Delinquency = 4 months PITI = $4,000

Calculation

$100, 000 = UPB

$30,000 = 30% Principal Deferral Maximum

0 = Previous Partial Claim

-4,000 = Available Partial Claim

$ 26,000 = Available for Principal Deferral

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CASE STUDIES

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Mr. & Mrs. Rivera

Mr. & Mrs. Rivera bought their home in 2004. In July 2011, Mrs. Rivera became very ill and unable to work. As a result of her illness, they have $800/mo. in additional medical expenses that are likely to continue indefinitely. She started receiving short term disability from her employer in December 2011, but will lose this benefit in June 2012. Mr. Rivera is still employed, but unable to manage living expenses and the current mortgage payments on his own income. Mrs. Riveras recovery has been slow and her doctors are unsure she will ever be able to work again. They are 6 months delinquent on their mortgage.

Current mortgage payment: $1,324 (PITI)

Monthly expenses: $3156 (includes $800 medical expenses)

Net Monthly income: $3475 (includes $600 for wifes current disability)

Surplus: $319

Surplus %: 10%

Principal: $175,000

Loan type: 30 year fixed FHA at 7.75%

1st month delinquent: November 2011

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a) Loan Modification

b) Partial Claim

c) HAMP

2. What must the lender do to structure the agreement?

a) Lower interest rate.

b) Re-amortize for 360 months

c) Ensure First-lien status

d) All of the above

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Mr. & Mrs. Rivera

Mr. & Mrs. Mayer

Mr. and Mrs. Mayer purchased their home in 2006. In January 2011, their son was diagnosed with Autism, which required Mrs. Mayer to leave her job in July 2011 and incur added expenses for therapy and treatment for their son. Mrs. Mayer can no longer work due to the need to provide care for their disabled child full-time. The couple began missing their mortgage payments in September 2011. Without a second income and the added expense of their childs care, Mr. and Mrs. Mayer are no longer able to make their current mortgage payment. They are currently 10 mos. delinquent.

Current Mortgage: $1862 (PITI) Monthly Expenses: $2762 (excluding the Mayer sons care) Net Monthly Income: $2875 Gross Monthly Income: $4000 Surplus: $113 Surplus %: 4% Principal: $305,000 Loan type: 30 year fixed Interest Rate: 7.50% 1st month delinquent: September 2011 1st contact with lender: February 2012

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a) Special Forbearance

b) Loan Modification

c) Partial Claim

d) HAMP

2. If a Partial Claim is utilized, the maximum percent cannot exceed more than __ % of the outstanding principal balance.

a) 20%

b) 30%

c) 50%

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Mr. & Mrs. Mayer

Ms. Schulte

Ms. Schulte purchased her Miami condo in November 2008. In July 2011 she was notified that her mother was terminally ill. As the only sibling, she immediately took an unpaid leave of absence from work and flew home to New York to care for her mother. Her mother passed away in April 2012. She hasnt been able to pay her mortgage since August 2011. She will resume work on June 15th, but has just returned to Miami and found a foreclosure notice in her stack of mail. What can she do to save her home?

Current Mortgage: $2200 (PITI) Arrearage through August 1: $24,200 Monthly expenses: $3925 (includes condo fees) Net Monthly income: $4180 Surplus: $255 Surplus %: 6% Principal: $498,000 Loan type: 30 year fixed FHA at 4.5% 1st month delinquent: August 2011 1st contact with lender: May 2012

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a) Special Forbearance

b) Loan Modification

c) Partial Claim

d) HAMP

2. Assuming the Servicer discovered the property was vacant on October 1, 2011 and was unable to contact Ms. Schulte via phone, email and US Postal mail, what is the date that the lender could begin the foreclosure process?

a) 30 Days from the date property was discovered vacant

b) 60 Days from the date property was discovered vacant

c) 120 Days from the date property was discovered vacant

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Ms. Schulte

ONLINE RESOURCES

Code of Federal Regulations: 24 CFR 202.2, 203.331, 203.355, 203.356, 203.502, 203.600, 203.606, and 203.608

HUD Handbook 4330.1 Rev-5: Administration of Insured Home Mortgages, Chapter7

National Servicing Center Website

E-Class Servicer Training

Tier Ranking System

NSC Loan Servicing Guidance

Loss Mitigation Mortgagee Letters

NSC Loan Servicing and Loss Mitigation FAQ

HUD Approved Counseling Agencies

Single Family Delinquency/Default Reporting

SFDMS Reporting (FAQs) Neighborhood Watch

Fatal Error Codes FHA Connection

EDI Webpage Error Codes for HUD Default Reporting

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NSC CONTACT INFORMATION

U.S. Department of HUD

National Servicing Center

301 NW 6th Street, Suite 200

Oklahoma City, OK 73102

1-877-622-8525

Secretary Held Servicing Contractor: (877) 622-8525

Home Equity Conversion Mortgage (HECM) Servicing: [email protected]

Requests for Extensions: [email protected]

Training issues: [email protected]

TRS, Data, CAIVRS, SFDMS Reporting: [email protected]

Single Family FHA - Claims Processing: Claims Help Desk ([email protected])

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WHERE TO GET MORE INFORMATION

FHA Resource Center

Frequently Asked Questions

www.hud.gov/answers Available 24/7

A web site containing almost 1,300 questions and answers about FHA programs, underwriting and processing (website available 24/7)

The FHA Resource Center acts as the first line of response for the majority of industry and public inquiries about FHA programs and services

Searchable by keyword and category

Telephone:

1-800-CALL FHA (1-800-225-5342)

Monday-Friday 8:00AM 8:00 PM (Eastern Time)

E-mail: [email protected]

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HUD Loss Mitigation Home Retention Options

Documents

Transcript of HUD Loss Mitigation Home Retention Options