section 184 servicing training servicing traini… · • appeals of loan modification decisions -...
TRANSCRIPT
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Section 184
Servicing Training
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April 21, 2020 and April 22, 2020
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Heidi J. Frechette
Deputy Assistant Secretary
for Native American
Programs
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Krisa M. Johnson
Director,
Office of Loan Guarantee
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Jake Coury Roy Schaeffer Andrika Wagstaff
Mansoor Deen Brian Cook Kevin Hickey
Office of Loan Guarantee Team Members
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Jeffery Glass
Deputy Director,
Office of Loan Guarantee
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COVID 19 National Emergency
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COVID-19 National
Emergency con’t
• DLL - 2020 - 03: Electronic Submission of
Endorsements/Claims
• Duplicate-In Process Files
- Files Shipped prior to April 2, 2020
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COVID-19 National
Emergency con’t
• DLL - 2020 - 02: Loss Mitigation options/COVID-19
• DLL - 2020 - 03: Electronic Submission of
Endorsements/Claims
• DLL - 2020 - 04: Foreclosure / Eviction
Moratorium
• DLL - 2020 – 05: Appraisals, VOE, Tax Transcripts
• https://www.hud.gov/program_offices/public_indian_h
ousing/ih/homeownership/184/lenders
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Thelma Pillay
Loan Guarantee Specialist
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Purpose of Training
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What Makes Servicing
Different in
Indian Country?
Land Ownership
• Fee Simple Land
• Tribal Trust Land
• Allotted or Individual Trust Land
• Allotted Trust Land (with fractionated
ownership)
• Land Assignment
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What Makes it Different?
continued
Land Ownership
• Fee Simple Land within a Reservation
(Checker-Board Reservation)
• Restricted Fee Land – Independently owned
Indian land
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What Makes it Different?
continued
Hawaiian Homelands – Section 184A
• Land is held in trust for the benefit of
Native Hawaiians
• The Department of Hawaiian Homelands
(DHHL) grants eligible borrowers rights to
use the property in the form of a lease.
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Reservations:
Land Ownership
Allotted Trust:
• Lands are held in trust for the use of
individual Indians (or their heirs).
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Land Assignment:
• The assignment of a parcel of land made
to individual tribal members by the tribe.
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Reservations:
Land Ownership
Fee Simple Land:
▪ Reservation land not in trust or subject to
restriction.
Tribal Trust Land:
▪ Held in trust by the BIA for the tribe.
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Reservations:
Land Ownership
Restricted Fee Land:
• Fee Simple land with transfer restrictions
Checkerboard Reservation:
• Land ownership is intermingled between Fee
Simple, Trust Land, and Allotted Trust resulting in
a checkerboard.
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Who can Service
184/184A Loans?
• Approved Direct Guarantee Lenders
• Servicers approved by HUD/ONAP
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What are HUD’s
Servicing Rules?
• Consumer Financial Protection Bureau
• Regulation X (12 CFR 1024)
• Regulation Z (12 CFR 1026)
• HUD
• PIH Notice 2014-11
• Lender Communication 4/30/2019
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Servicing Reporting
Requirements
• Loan Servicing and Default Report (Due within
the first 5 business days monthly)
• Email Report to: [email protected]
• The servicing report must include all Section
184/184A loans (Active & Paid in Full)
• See the HUD suggested format.
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Servicing File
Retention
• All files – life of mortgage plus 3 years
• At HUD request hard copies within 3 days
• Records must be kept in original form
• All docs capable of reproduction into legible hard
copy
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Servicing Performing
Loans
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Regulation X (12 CFR 1024)
Escrow Accounts
Servicing Transfers
Error Resolution & Information
Requests
Force-Placed
Insurance
Early Intervention
Continuity of Contact
Loss Mitigation Procedures
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Servicing Performing
Loans
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Regulation Z (12 CFR 1026)
ARM Disclosures
N/A
Escrow Cancellation
Notice
Prompt Crediting &
No Pyramiding
Payoff Statements
Mortgage Loan Transfer
Disclosures
Periodic Statements
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Servicing Performing
Loans
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• Assumptions:
• Allowable for 184/184A loans; may require
approval by the Tribe, BIA or DHHL
• Lender to process, recommend for approval
using standard 184/184A guidelines
• Lender must send to HUD for final
determination
• Requires Release of Liability for current
Borrower
• HUD issues updated LGC
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Notifications to HUD
• Within 15 days of transfer
• HUD Form 92080Servicing Transfer
• Within 15 days of payoff
• Also on the monthly servicing report
Paid in Full
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Servicing Non-Performing
Loans
Successful Servicing Strategy:
• Treat delinquent borrowers individually
• Early determination of default reasons
• Prompt actions at all stages of default
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Servicing Non-Performing
Loans
Early Intervention:
• Live Contact – By day 36 of default
• Written Contact – By day 45 of default
• Recommendation for borrower to contact their
Tribe or DHHL for possible assistance
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Servicing Non-Performing
Loans
Loss Mitigation:
• Application Received - Complete
• Notify borrower of available loss mitigation
options
• Notify reasons for denial and appeal process
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Servicing Non-Performing
Loans
Loss Mitigation:
• Application Received - Incomplete
• Seek out missing documentation
• Unable to obtain, evaluate application with
information in hand.
• Notify borrower of determination and options,
if applicable
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Servicing Non-Performing
Loans
Loss Mitigation:
• Financial Analysis -
• Servicers must analyze borrower’s surplus
monthly income
• Use reasonable business judgment to
determine if borrower has capacity to repay
the arrearage
• Monthly status evaluations
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Servicing Non-Performing
Loans
Loss Mitigation:
• Borrower Response to Loss Mitigation Offers -
• 14 days to respond 90 days or more prior to
foreclosure sale
• 7 days to respond less than 90 days but more
than 37 days prior to foreclosure sale
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Servicing Non-Performing
Loans
Loss Mitigation:
• Appeals of Loan Modification Decisions -
• For loss mitigation applications 90 days or
more prior to foreclosure sale
• Must be an independent evaluation
• Servicer has 30 days to review appeal
• Borrower has 14 days to respond
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Questions?
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