HUD NATIONAL SERVICING CENTER

Webinar II:

HUD Loss Mitigation Retention Options

Working Together to Help Families Stay in Their Homes
Presenters: Amanda Ward & Stacey Brown 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.

QUICK REVIEW

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

Home Retention Options:
Special Forbearance Loan Modification Partial Claim FHAs Home Affordable Modification Program (HAMP)

Disposition Options:
Pre-Foreclosure Sale Deed-In-Lieu of Foreclosure
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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 Days Past Due (DPD)

0
Imminent

1 1+

2 31+

3 61+

4 91+

Type

DDS Code
12Repayment

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

COLLECTIONS

Informal FB
HUD HB 4330.1 REV-5, Chapter 7

Formal FB
HUD HB 4330.1 REV-5, Chapter 7

12Repayment

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

09-Special Forbearance

Type I

RETENTION

ML 2011-23

Trial Payment Plan

ML 2011-28

08 - Type II/Special Forbearance/ Trial Payment Plan

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 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

Loan Modification
ML 2011-28 ML 2009-35

08 - Type II/Special Forbearance/ Trial Payment Plan 28Modification Started

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.)

Minimum # of Installments Due and Unpaid Days Past Due (DPD) Type DDS Code
08 - Type II/Special Forbearance/Trial Payment Plan 10 - Partial Claim Started

0
Imminent

1 1+

2 31+

3 61+

4 91+

Description/Requirements 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 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% 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.

Partial Claim

Retention

(PC) ML 2003-19 ML 2011-28

FHA HAMP
ML 2009-23 ML 2009-35

39 - FHA-HAMP Trial 41-FHA HAMP Modification Started 15 - PreForeclosure Acceptance Plan Available

PreForeclosure Sale (Short Sale)

ML 2008-43

DISPOSITION

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

44 - Deed-in-Lieu Borrower voluntary deeds collateral to HUD in exchange for release from Started 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

General Requirements: Special Forbearance Agreements

SPECIAL FORBEARANCE AGREEMENTS

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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SPECIAL FORBEARANCE AGREEMENTS

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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SPECIAL FORBEARANCE AGREEMENTS

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:

DDS Code 42 09 08 98 AQ

Forbearance Agreement Opens default event Borrower has been approved for a Special Forbearance Type II Special Forbearance / Trial Payment Plan (effective 1/1/2012) Borrower reinstated delinquency with benefit of Loss Mitigation Program 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
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TYPES OF SPECIAL FORBEARANCE AGREEMENTS

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SPECIAL FORBEARANCE AGREEMENTS

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

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Case Study - Mr. & Mrs. Foster

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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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 Borrower Benefits use of a Loan Modification A permanent change in the terms of the loan:
Above market interest rate Low LTV ratio (valuation of the property is not required) Mature term (loan paid down 10 years or more) 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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LOAN MODIFICATION
General Requirements
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 FHAinsured 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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Features & Benefits: Partial Claim

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PARTIAL CLAIM
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
General Requirements
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

Borrower Qualifications
Owner-occupant committed to occupying property as primary residence Does not have another FHAinsured 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
Servicer Responsibilities
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

Failure Requirements & Limitations of Use

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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Features & Benefits : FHA Home Affordable Modification Program (HAMP)

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FHA HAMP
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
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LOSS MITIGATION FOR IMMINENT DEFAULT

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
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FHA HAMP
General Requirements
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

Borrower Qualifications
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
Servicer Responsibilities
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

Failure Requirements & Limitations of Use

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 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: Monthly expenses: Net Monthly income: Surplus: $1,324 (PITI) $3156 (includes $800 medical expenses) $3475 (includes $600 for wifes current disability) $319

Surplus %:
Principal: Loan type: 1st month delinquent:

10%
$175,000 30 year fixed FHA at 7.75% November 2011
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Mr. & Mrs. Rivera

1. What is the best loss mitigation option for this situation? 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. 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: Monthly Expenses: Net Monthly Income: Gross Monthly Income: Surplus: Surplus %: Principal: Loan type: Interest Rate: 1st month delinquent: 1st contact with lender: $1862 (PITI) $2762 (excluding the Mayer sons care) $2875 $4000 $113 4% $305,000 30 year fixed 7.50% September 2011 February 2012
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Mr. & Mrs. Mayer

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

a) b) c) d)
2.

Special Forbearance Loan Modification Partial Claim HAMP

If a Partial Claim is utilized, the maximum percent cannot exceed more than __ % of the outstanding principal balance. a) b) c) 20% 30% 50%

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

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Ms. Schulte
1. What is the best loss mitigation option for this situation? 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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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) Fatal Error Codes EDI Webpage Neighborhood Watch FHA Connection 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

Requests for Extensions: extensionrequests@hud.gov Training issues: eclass@hud.gov

Home Equity Conversion Mortgage (HECM) Servicing: HECMServicing@hud.gov

TRS, Data, CAIVRS, SFDMS Reporting: sfdatarequests@hud.gov Single Family FHA - Claims Processing: Claims Help Desk (FHA_SFClaims@hud.gov)
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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: answers@hud.gov
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