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RevisedProofofClaimForms

•  Forms410and410AwereavailableforcommentuntilFebruary17,2015.

•  ThenewPoCformswereapprovedbytheAdvisoryandStandingCommitteesonRulesofBankruptcyProcedureandbecameeffectiveDecember1st,2015

• Overallthenewformsutilizelargerfonts,makingthemeasiertoread

•  Therevisedformsalsocontainmoreinstructions,makingthemeasiertofillout

Forms 410 and 410A

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RevisedProofofClaimForms

� Onlyrequiredifloanissecuredbyprincipalresidence

� AdetailedpaymenthistorythatcanbeautomatedshouldbeattachedtothePoC

� Thedisclosurerequirementsshouldbeuniformnationwide;localvariationsshouldbeprohibited

� Theamountofregularmonthlymortgagepaymentasofthepetitiondateshouldbeincluded

� Calculationofthetotalclaimshouldbeshown

Form 410A – Replaces PoC Attachment

RevisedProofofClaimForms

Form 410A – Replaces PoC Attachment

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RevisedProofofClaimForms

� Theloanhistoryshows:� Whenpaymentsaredue� Whenthedebtormadepayments� Howpaymentswereapplied� Whenfeesandchargeswereincurred� Whatthebalanceswereforvariouscomponentsoftheloanafteramountswerereceivedorfeesandchargeswereincurred

Form 410A – Loan History

RevisedProofofClaimForms

�  Thenewformrequiresahomemortgageclaimanttoprovidealoanhistorystartingwiththefirstdateofdefault

�  Thisisthefirstdateonwhichtheborrowerfailedtomakeapaymentinaccordancewiththetermsofthenoteandmortgage�  unlessthenotewassubsequentlybroughtcurrentwithnoprincipal,interest,fees,escrowpayment,orothercharges“immediatelypayable”

� Query:whatifaborrowerreinstatesbypayingallthedelinquentpaymentsandlatecharges,butthefeeforaninspectionperformedwhiletheloanwasdelinquentislaterassessed?Orwhatifthedebtordoesnotpaythelatechargeanditremainstheonlyfeeoutstandingforseveralyears?

Form 410A – Loan History

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RevisedProofofClaimForms

�  Theloanhistoryenablesadebtorto(better)seethebasisforthemortgageclaimandthearrearageamount

�  Thegoalistofacilitatetheresolutionofdisputesaboutmortgageamounts(andprovideabasisforobjectingtoclaimsinothers)

�  Thenewformhastheadvantageofbeinginaformatthatcanbeautomated�  TheformerB10Aformhadtobecompletedmanually�  Someservicershaveautomatedtheform

Form 410A – Replaces PoC Attachment

RevisedProofofClaimForms

�  Thenewformrequiresdisclosureofall the informationonthe current attachment A, but in a format that is moretransparentandcapableofbeingmoreeasilyandaccuratelycompleted

�  Thenew formadds information thecurrent formdoesnotinclude:�  Statementofthecurrentmortgagepayment�  Calculationofthetotalamountofthedebt

Form 410A – Replaces PoC Attachment

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RevisedProofofClaimForms

MortgageandCaseInformation

Form 410A – Part 1

RevisedProofofClaimForms

MortgageandCaseInformation�  Casenumber�  thenamesofDebtor1andDebtor2�  last 4 digits of number used toidentifythemortgage

�  thecreditor’sname�  theservicer’sname,ifapplicable�  themethodusedtocalculateintereston the debt (i.e., fixed accrual, dailysimpleinterest,orothermethod)

Form 410A – Part 1

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RevisedProofofClaimForms

TotalDebtCalculation

Form 410A – Part 2

RevisedProofofClaimForms

TotalDebtCalculation�  theprincipalbalanceonthedebt�  theinterestdueandowing�  anyfeesorcostsowedunderthenoteormortgageandoutstandingasofthedateofthebankruptcyfiling

�  Anyescrowdeficiencyforfundsadvanced�  theamountofanyprepetition

paymentsfortaxesandinsurancethattheservicerormortgageemadeoutofitsownfundsandforwhichithasnotbeenreimbursed

Form 410A – Part 2

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RevisedProofofClaimForms

TotalDebtCalculationAlsodisclosetheTotalamountoffundsonhand.� Thisamountisthetotalofthefollowing,ifapplicable:

� apositiveescrowbalance,� unappliedfunds,and� amountsheldinsuspenseaccounts.

Form 410A – Part 2

RevisedProofofClaimForms

TotalDebtCalculationTodeterminethetotaldebtdue:TotaltheamountsowedThen subtract the total funds onhandInsert this amount underTotaldebt.

Form 410A – Part 2

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RevisedProofofClaimForms

ArrearageasoftheDateofthePetition

Form 410A – Part 3

RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Inserttheamountoftheprincipalandinterestportionofallprepetitionmonthlyinstallmentsthatremainoutstandingasofthepetitiondate

�  TheescrowportionofprepetitionmonthlyinstallmentpaymentsshouldNOTbeincludedinthisfigure

Form 410A – Part 3

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RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Inserttheamountoffeesandcostsoutstandingasofthepetitiondate�  ThisamountshouldequaltheFees/ChargesbalanceasshowninthelastentryinPart5,ColumnP

Form 410A – Part 3

RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Insertanyescrowdeficiencyforfundsadvanced

�  ThisamountshouldbethesameastheamountofescrowdeficiencystatedinPart2

Form 410A – Part 3

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RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Theescrowdeficiencyamount(i.e.,the

negativebalanceintheescrowaccountonthedaythecasewasfiled)isordinarilythestartingbalancefortheescrowanalysis

�  Althoughnotspelledoutintheinstructions,ithasbeendeterminedthatbecausetheescrowdeficiencyisbeinglistedonaseparatelineinPart3,theescrowaccountneedstobebroughtuptozeropriortorunningtheescrowanalysis

�  Thismayrequireaprogrammingchangeforthefirstescrowanalysisrunafterthefilingofabankruptcycase

Form 410A – Part 3 IMPORTANT

RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Inserttheprojectedescrowshortageas

ofthedatethebankruptcypetitionwasfiled(shouldbebasedonandconsistentwithescrowanalysisperformedasofthedateofthepetitionunderRule3001)

�  Thecalculationshouldinclude1/6oftheanticipatedannualchargesagainsttheescrowaccountor2monthsofthemonthlyproratainstallmentsduebytheborrowerascalculatedunderRESPAguidelines

Form 410A – Part 3

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RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:

�  Theshortageisthedifferencebetweentheactualamountintheescrowaccountandtherequiredamount

�  TheamountactuallyheldshouldequaltheamountofapositiveescrowaccountbalanceasshowninthelastentryinPart5,ColumnO

Form 410A – Part 3

RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:

�  Theescrowportionofmissedprepetitionmortgagepaymentswillnotberecoveredasaseparatelineitem

Form 410A – Part 3 IMPORTANT

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RevisedProofofClaimForms

ArrearageasoftheDateofthePetition:�  Inserttheamountoffundsonhandasofthepetitiondate

�  SubtractthisnumberfromthetotalamountsduelistedinPart3toarriveattheTotalPrepetitionArrearage

Form 410A – Part 3

RevisedProofofClaimForms

MonthlyMortgagePayment

Form 410A – Part 4

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RevisedProofofClaimForms

MonthlyMortgagePayment:�  TheTotalMonthlyPaymentisthesumoftheprincipalandinterest,monthlyescrow,PMI,andotheramounts(e.g.,creditlifeinsurance)

�  ThemonthlyescrowshouldnotincludeanyshortageordeficiencyfromPart3

Form 410A – Part 4

RevisedProofofClaimForms

LoanPaymentHistoryfromtheFirstDateofDefault

Form 410A – Part 5

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RevisedProofofClaimForms

LoanPaymentHistoryfromtheFirstDateofDefaultBeginningwiththeFirstDateofDefault,enter:

�  thedateofthedefaultinColumnA�  amountincurredinColumnD�  descriptionofthechargeinColumnE

Form 410A – Part 5

RevisedProofofClaimForms

LoanPaymentHistoryfromtheFirstDateofDefaultBeginningwiththeFirstDateofDefault,enter:

�  thedateofthedefaultinColumnA�  amountincurredinColumnD�  descriptionofthechargeinColumnE�  principalbalance,escrowbalance,andunappliedorsuspense funds

balanceasofthatdateinColumnsM,O,andQ,respectively

Form 410A – Part 5

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RevisedProofofClaimForms

For:�  (1)allsubsequentlyaccruinginstallmentpayments;�  (2)anysubsequentpaymentreceived;�  (3)anyfee,charge,oramountincurred;and�  (4)anyescrowchargesatisfiedsincethedateoffirstdefaultEntertheinformationindateorder,showing:�  theamountpaid,accrued,orincurred�  descriptionofthetransaction�  contractualduedate�  howtheamountwasappliedorassessed�  theresultingprincipalbalance,accruedinterestbalance,escrowbalance,

outstandingfeesorchargesbalance,andthetotalunappliedfundsheldorinsuspense

Form 410A – Part 5

RevisedProofofClaimForms

LoanPaymentHistoryfromtheFirstDateofDefaultColumnN is for showing theaccrued (i.e., running)interestbalance(DSIonly?)

Form 410A – Part 5

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RevisedProofofClaimForms

LoanPaymentHistoryfromtheFirstDateofDefaultTheprincipalbalance,escrowbalance,andunappliedfundsbalanceonthedatethebankruptcycasewasfiledshouldbethefiguresinthelastrowofthehistory forColumnsM,O,andQ,respectively. If theamountat thebottom of Column O is negative, this is the amount of the escrowdeficiencytobeenteredinParts2and3ofForm410A.

Form 410A – Part 5

RevisedProofofClaimForms

�  Therequirementtoproduceahistorybacktothe“firstdateofdefault”couldmeantheservicermustgobackseveralyears�  Iftheloanhasbeentransferred,thetransfereewillneeddetailed

informationaboutanyfeesorcostsincurredpriortothetransferoftheloan�  Otherwise,feesandcostsassessedbeforethetransferneedtobe

waived�  Similarly,iftheloaniscontractuallydelinquentasofthetransferdate,

thetransfereewillneedadetailedhistorygoingbacktothefirstdateofdefault�  Otherwise,theloanwillneedtobebroughtcurrentatleastthrough

thetransferdate�  Therequirementtobringtheescrowaccountuptozerobeforerunningthe

firstpost-petitionescrowanalysiswillrequireprogrammingthatisuniqueforborrowersinbankruptcy

Form 410A – Servicer Challenges