710 – Uniform Borrower Assistance Form fnm short sale application

Auto-Generate Docs We have all required forms, docs, and lender packages built in and ready to pre-populate client/bank information. We can also add any customized package or template you provide for your retainer agreements, contracts, disclosures, etc…	Essential Tools for Loss Mitigation -HAMP Qualifier+Calculator -NPV Calculator for Pass/Fail -Net Investor Benefit for Short Sale Offers -LPS’s SiteXData AVM report -Auto-Calculate Lender Losses due to Foreclsoure	Submit and Track Files Online Clients and affiliates can submit and track updates online via your website with support for file uploading. Several version available for lead capture, short or full applications.
Built In E-Signature Get all your contracts, invoices, and documents E-signed within minutes vs. days. Works for any document type.	Create Tasks and Reminders globally Assign tasks to all user types within the system and view them on a shared calendar. The system sends Email and Text message reminders.	Pipeline Management Viewing, sorting and creating custom reports has never been so easy and robust. You can search and pull reports based on file status, type, assigned user, sale date, lender, or any variation you want.

Software Features:

	Customer and File Management UnderwaterRealEstate.com Strategic Solutions™ software is a web based, multi-user loan modification software and short sale software system giving your entire company a 360-degree view of all your borrowers, prospects, and active client files. Achieve instant, real time visibility and enable collaboration across your company with our loan modification software and short sale software systems. You can generate employee reports that show detailed activity within specified date ranges for every file, including # of notes made, tasks completed, and docs uploaded.
	HAMP and HAFA Loss Mitigation Tools for Loan Modification and Short Sales Our loan modification software and short sale software comes with several built in tools to help automate the pre-qualification process, communicate with the banks and effectively present your client’s case. Our system makes it easy to put a full BANK READY package together that will increase approvals and turn times guaranteed! Knowing what and how to negotiate the best deal doesn’t get any easier with our system. - NPV 4.0 Analysis with pass/fail results- See Screen Shot - HAMP Auto-Qualifier and Proposal Generator Based On HAMP Waterfall Guidelines. SeeScreen Shot - HAFA Compliant Short Sale Offer Analysis to Determine Net Investor Benefit See Screen Shot - Auto-Calculate Lender Losses Incurred in an Executed Foreclosure- See Screen Shot
	Auto-generate Forms, Retainer Agreements, Contracts and custom packages with Built in E-Signture Technology We have all the built in HAMP and HAFA client ready and bank ready documents, packages, disclosures, and waivers needed for loan modifications and short sales. With one click, you can have packages auto-filled with client and bank information. If we don’t have a document, we’ll add it! And if you need something custom designed for your company or your affiliates, we can handle that too! Sample Documents and Packages: • Form 1126  • 4506-T  • Legal Contract  • Retainer Package  • Client Summary  • HAMP and HAFA Docs • 3rd party authorization • HAMP RMA  • Proposals/Offers  • Schedule of Real Estate • Payment Form  • Document Checklist  • Non-HAMP  • Short sale packages  • HAFA Package  • Short Sale Agreement  • BANK READY HAMP Qualification
	Online Submission Portals Allow your clients and affiliates to submit their full scenarios with file uploading capabilities 24/7 through your own private labeled web form hosted on your website. We have several versions of a secure, online submission portal for quick lead capture, complete file submission, or robust Do-It-Yourself System to auto-generate a bank ready loan modification package or short sale package for Realtors or direct homeowners.
	Online Self-Service Portal for Branches, Agents, and Customers Our system is built with multiple levels of users for maximum scalability and visibility. All users can access the system to see, edit and administer their own files, depending what settings are selected per user. Private label versions of these portals are available in the Enterprise edition.
	Sales and Lead Management Our loan modification software and short sale software manages your customer relationships by automating communications and by fostering collaboration for customer reps and managers to track, distribute, and manage customer information. Built in mass Email marketing and auto-responders will easily convert prospects to customers to dramaticallyINCREASE ROI. We can also integrate with 3rd party applications like leads 360, lead point, Etc…
	E-mail Marketing Software with a triggered autodialer Through our partner company www.Tele-mail.com, bulk Emailing has never been cheaper, easier and more innovative. Tele-mail has triggers that facilitate live call transfers triggered by opens or clicks. Imagine sending an email to a nice lead list and automatically generate live calls bridging your sales team to interested leads instantly. This is patent pending technology that you will NOT find with any other web based Email marketing software. Contact them today and mention TheLoanPost for a 15% discount.
	Approval Management: File Status, Sub-Status, and Notes Manage the approval process for loan modification and short sale files with ease. All users can see the primary status (In Bank, In Processing, In QC), sub -status (missing docs, pending signatures, pending borrower confirmation, etc…) and view detailed notes entered by staff. Built in safeguards allow for private and public notes, which determine visibility by the client and agents. Robust reporting tools, will allow you to export via Excel and track sale dates, approval dates, and any important information needed for compliance or analysis.
	Task/Reminder Management with Shared Calendar Creating and tracking tasks or reminders in our loan modification software or short sale software system is critical to manage any short sale or loan modification business. Our system lets you create tasks for yourself or any users associated to a file, including the client, agent, branch manager, or any back office employee. Reminders are sent via Email and/or text message to the assigned user. Each user has their own calendar to see what tasks are assigned to them, while manager can see ALL tasks globally. The centralized calendar can be used to quickly see many date sensitive items like, pending tasks, billings owed, commissions owed, and most importantly sale dates.
	Website Integration or Custom Loan Modification Websites and custom short sale websites Our loan modification software and short sale software system makes it easy to integrate private labeled submission forms and login portals for your users on your website. If you don’t have a website, we can set one up for you. Choose from our gallery of website templates that are content ready for loan modifications, short sales, and Do-It-Yourself loan modification or Do-It-Yourself short sales. All our sites come with a content editor, to make it easy for beginners to edit and change content on the fly.
	HAMP Program and HAFA Program Guidelines and Updates The government is continuously updating the HAMP Program and HAFA Program, specifically relating to principal forgiveness or forbearance, NPV calculations, HAMP Waterfall or “Alternative Waterfall” techniques, and many other details on loss mitigation best practices for lenders and servicers to follow. You should know when, where, and how to find these updates. Our system will auto-calculate pass or fail results for the latest NPV 4.0 formulas modeled after treasury’s guidelines.

Featured business tools for loan mods and short sales:

Auto-Generate Docs We have all required forms, docs, and lender packages built in and ready to pre-populate client/bank information. We can also add any customized package or template you provide for your retainer agreements, contracts, disclosures, etc…	Essential Tools for Loss Mitigation -HAMP Qualifier+Calculator -NPV Calculator for Pass/Fail -Net Investor Benefit for Short Sale Offers -LPS’s SiteXData AVM report -Auto-Calculate Lender Losses due to Foreclsoure	Submit and Track Files Online Clients and affiliates can submit and track updates online via your website with support for file uploading. Several version available for lead capture, short or full applications.
Built In E-Signature Get all your contracts, invoices, and documents E-signed within minutes vs. days. Works for any document type.	Create Tasks and Reminders globally Assign tasks to all user types within the system and view them on a shared calendar. The system sends Email and Text message reminders.	Pipeline Management Viewing, sorting and creating custom reports has never been so easy and robust. You can search and pull reports based on file status, type, assigned user, sale date, lender, or any variation you want.

Strategic Solutions™ software gives YOU the ability to:

• Close more short sales with our step by step program!
• Web based platform lets you log in to your virtual office from any location.
• Save time!!! So you can make more money!
• Limit your legal liability, while protecting your client.
• Improve communication between all parties(agents, sellers, buyers, escrow & attorneys)
• Create a paperless work flow
• Store unlimited files
• Create custom documents
• Access to one click market analysis reports.
• Powerful & proven lead generation easily integrates to your own web site.
• Gives you access to the legal letters to keep your short sale moving.
• Gives your clients a private log in where they can stay up to date on their file.
• Increases customer confidence in your ability to close a short sale.
• Creates a complete client management system.
• Contacts for over 250 lenders and servicers.
• Integrated forms for 35 of the top lenders.
• Launch email drip campaigns to new potential clients.

You may sign up for the software only or you may sign up for our Certified Advisor Program.

Membership is monthly. No long term contracts
You may cancel at any time with 30 day notice.

Software or Certified Advisor Membership

Short sale Software : $55.00USD – monthly Certified Advisor – includes Software : $77.00USD – monthly

We will review recourse vs non recourse loans, anti deficiency legislation, short sale laws and how to customize your strategy for the different lenders. Wells Fargo vs Bank of America can have very different outcomes with the same set of facts.

Fill out this form and we will instantly send you a replay of a recent short sale vs strategic default webinar.

We will also send you the contact info for a Certified Advisor near you.

Attend Webinar Email* First Name Last Name Status – Please select – Owner Agent Broker Salesperson Attorney Other Phone Enter the code:    Please wait…

Far Debt Collection

A well timed and letter disputing the debt can do amazing things.
However, you have to be careful, you can also cease up your entire negotiation with a poorly timed poorly written letter.
Speak to your Certified Advisor about using the law and regulations for leverage.

Debt Collection FAQs: A Guide for Consumers

If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Here are some questions and answers about your rights under the Act.
What types of debts are covered?

The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.
Can a debt collector contact me any time or any place?

No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.
How can I stop a debt collector from contacting me?

If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:

Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my debt?

If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?

Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.
Can a debt collector keep contacting me if I don’t think I owe any money?

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren’t; or
indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

you will be arrested if you don’t pay your debt;
they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn’t; or
use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.

Can I control which debts my payments apply to?

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don’t think you owe.
Can a debt collector garnish my bank account or my wages?

If you don’t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.

Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don’t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Can federal benefits be garnished?

Many federal benefits are exempt from garnishment, including:

Social Security Benefits
Supplemental Security Income (SSI) Benefits
Veterans’ Benefits
Civil Service and Federal Retirement and Disability Benefits
Service Members’ Pay
Military Annuities and Survivors’ Benefits
Student Assistance
Railroad Retirement Benefits
Merchant Seamen Wages
Longshoremen’s and Harbor Workers’ Death and Disability Benefits
Foreign Service Retirement and Disability Benefits
Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
Federal Emergency Management Agency Federal Disaster Assistance

But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
Do I have any recourse if I think a debt collector has violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?

If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.
Where do I report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.
For More Information

To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

RESPA

If you are a consumer with a question or complaint related to your mortgage or mortgage servicer, please contact the CFPB’s Consumer Response team at 855-411-2372 (855-729-2372 TTY/TDD) or click here.

If you are a settlement service provider with questions about RESPA, please email the CFPB at CFPB_RESPAInquiries@cfpb.gov.

The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices.

The most recent RESPA Rule makes obtaining mortgage financing clearer and, ultimately, cheaper for consumers. The new Rule includes a required, standardized Good Faith Estimate (GFE) to facilitate shopping among settlement service providers and to improve disclosure of settlement costs and interest rate related terms. The HUD-1 was improved to help consumers determine if their actual closing costs were within established tolerance requirements.

Highlights

Settlement Agreement, Prospect Mortgage LLC
Settlement Agreement (8 Jul 11), Fidelity National Financial, Inc.
RESPA Roundup April 2011
RESPA Roundup March 2011-Guidance for RESPA in relation to FRB compensation rule
Home Buying Videos (HUD’s You Tube Channel)
Solicitation of Information on Changes in Warehouse Lending
Exemption from RESPA for Certain Subordinate Loan Transactions
Home Warranty Interpretive Rule: Response to Public Comments (11/23/2010)
Home Warranty Interpretive Rule (6/25/2010)
HUD’s new settlement cost booklet
New RESPA Rule FAQs (updated 4/2/2010)
RESPA Final Rule (pdf version)
RESPA Final Rule (Electronic Code of
Federal Regulation version)
RESPA Forms and Completion Instructions
Regulatory Impact Analysis
RESPA ANPR on “Required Use” Prohibition (6/3/2010)
RESPA Roundup Archive

Consumers
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

More about RESPA
FAQ’s about Escrow Accounts
Know Your Borrower’s Rights
Your Rights and the Responsibilities of the Mortgage Servicer
Sample Complaint to Lender
Property Tax Alert
Private Mortgage Insurance (PMI) Act Information
State and Local Consumer Agencies
Other Federal Resources

Industry
Statute
Proposed Rules
Statements of Policy
Program Guidance
Federal Register Notices
Public Guidance Documents
FAQ’s for Industry
Settlement Agreements
Joint Report to Congress
Legal Proceedings

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm

No discussion in California would be complete with CCP 580e.
Californians should also be aware of CCP 580e and the One Action Rule.

Everyone owning a home should no how leverage RESPA and the Fair Debt Collections Practices Act.

principle reduction

Principal Reduction Alternative (PRA)

PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.
Eligibility

You may be eligible for PRA if:

Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.
You owe more than your home is worth.
You live in the home carrying the mortgage you want to modify.
You obtained your mortgage on or before January 1, 2009.
Your mortgage payment is more than 31 percent of your gross (pre-tax) monthly income.
You owe up to $729,750 on your 1st mortgage.
You have a financial hardship and are either delinquent or in danger of falling behind.
You have sufficient, documented income to support the modified payment.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Program Availability

More than 100 HAMP SM-participating servicers are required to evaluate homeowners for principal reduction. Participating servicers are required to develop written standards for PRA application. The largest servicers include Bank of America, CitiMortgage, JP Morgan Chase, and Wells Fargo.

AgFirstFarm Credit Bank
Allstate Mortgage Loans & Investments, Inc.
American Eagle Federal Credit Union
American Finance House LARIBA
American Home Mortgage Servicing, Inc
AMS Servicing, LLC
Aurora Loan Services, LLC
Bank of America, N.A.1
Bank United
Bay Federal Credit Union
BayviewLoan Servicing, LLC
Bramble Savings Bank
Carrington Mortgage Services, LLC
CCO Mortgage
Central Florida Educators Federal Credit Union
CentrueBank
CitiMortgage, Inc.
Citizens 1st National Bank
Citizens Community Bank
Citizens First Wholesale Mortgage Company
Community Bank & Trust Company
Community Credit Union of Florida
CUC Mortgage Corporation
DuPageCredit Union
Eaton National Bank & Trust Co
Farmers State Bank
Fay Servicing, LLC
Fidelity Homestead Savings Bank
First Bank
First Financial Bank, N.A.
First Keystone Bank
First National Bank of Grant Park
First Safety Bank
Franklin Credit Management Corporation
Franklin Savings
Fresno County Federal Credit Union
GFA Federal Credit Union
Glass City Federal Credit Union
GMAC Mortgage, LLC
Golden Plains Credit Union
Grafton Suburban Credit Union
Great Lakes Credit Union
Greater Nevada Mortgage Services
Green Tree Servicing LLC
Hartford Savings Bank
Hillsdale County National Bank
HomEqServicing
HomeStarBank & Financial Services
Horicon Bank
Horizon Bank, NA
Iberiabank
IBM Southeast Employees’ Federal Credit Union
IC Federal Credit Union
Idaho Housing and Finance Association
iServeResidential Lending LLC
iServeServicing Inc.
J.P.MorganChase Bank, NA2
Lake City Bank
Lake National Bank
Liberty Bank and Trust Co.
Litton Loan Servicing
Los Alamos National Bank
Magna Bank
MainstreetCredit Union
MarixServicing, LLC
Metropolitan National Bank
Midland Mortgage Company
Midwest Bank & Trust Co.
Midwest Community Bank
Mission Federal Credit Union
MorEquity, Inc.
Mortgage Center, LLC
Mortgage Clearing Corporation
NationstarMortgage LLC
Navy Federal Credit Union
Oakland Municipal Credit Union
OcwenFinancial Corporation, Inc.
OneWest Bank
ORNL Federal Credit Union
Park View Federal Savings Bank
Pathfinder Bank
PennyMacLoan Services, LLC
PNC Bank, National Association
PNC Mortgage3
Purdue Employees Federal Credit Union
QLending, Inc.
Quantum Servicing Corporation
Residential Credit Solutions
RG Mortgage Corporation
Roebling Bank
RoundPointMortgage Servicing Corporation
Saxon Mortgage Services, Inc.
Schools Financial Credit Union
SEFCU
Select Portfolio Servicing
ServisOne Inc., dbaBSI Financial Services, Inc.
ShoreBank
Silver State Schools Credit Union
Specialized Loan Servicing, LLC
Spirit of Alaska Federal Credit Union
Stanford Federal Credit Union
Sterling Savings Bank
Suburban Mortgage Company of New Mexico
Technology Credit Union
The Golden 1 Credit Union
U.S. Bank National Association
United Bank
United Bank Mortgage Corporation
University First Federal Credit Union
VantiumCapital, Inc.
Verity Credit Union
VistFinancial Corp.
WealthbridgeMortgage Corp.
Wells Fargo Bank, NA4
WescomCentral Credit Union
Yadkin Valley Bank

A Loan Modification is a permanent change in one or more of the terms of a Mortgagor’s loan, allows the loan to be reinstated, and results in a payment the Mortgagor can afford.

Question 1: In utilizing the Loan Modification option to bring an asset current, can the Mortgagee include all fees and corporate advances??

Answer: Mortgagee Letter 2008-21 states in part: Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance.

Question 2:May a Mortgagee perform an interior inspection of the property if they have concerns about property condition?

Answer: Yes, per Mortgagee Letter 2000-05, page 20, the Mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the Mortgagor’s continued ability to support the modified mortgage payment.

Question 3: Can a Mortgagee include late charges in the Loan Modification?

Answer: Mortgagee Letter 2008-21 states that the goal in providing the Mortgagor a Loan Modification is to bring the delinquent mortgage current and give the Mortgagor a new start, the Mortgagee should waive all accrued late fees.

Question 4: When utilizing a Loan Modification option, can a Mortgagee capitalize an escrow advance for Homeowner’s Association fees?

Answer: HUD Handbook 4330.1 REV-5 (Paragraph 2-1, Section B, Escrow Obligations) states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

Question 5: Is there a new basis interest rate which Mortgagees may assess when completing a Loan Modification?

Answer: Yes, Mortgagee Letter 2009-35 states that the Mortgagee shall reduce the Loan Modification note rate to the current Market Rate. Please refer to Mortgagee Letter 2009-35 for more details.

Question 6: Are Mortgagees required to re-amortize the total amount due over 360 month period?

Answer: Yes, per Mortgagee Letter 2009-35, the Mortgagee must re-amortize the total unpaid amount due over a 360 month period from the due date of the first installment required under the modified mortgage.

Question 7: What date is utilized when determining the correct interest rate for a Loan Modification?

Answer: The date the Mortgagee approves the Loan Modification (all verification completed and servicing notes documented, reported to SFDMS) is the date that Mortgagees are to use in determining the interest rate.

Question 8: Will HUD subordinate a Partial Claim, should a Mortgagor subsequently default and qualify for a Loan Modification?

Answer: If a Mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.

Question 9: Are Mortgagees required to perform an escrow analysis when completing a Loan Modification?

Answer: Yes, Mortgagees are to perform a retroactive escrow analysis at the time the Loan Modification to ensure that the delinquent payments being capitalized reflect the actual escrow requirements required for those months capitalized.

Question 10: Can a Mortgagee qualify an asset for the Loan Modification option when the Mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?

Answer: Based upon this scenario, the Mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the Mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm