Seller/Servicer Memorandum 22-07

Date:               July 27, 2022

From:              Jan Miyagishima

                        Director, Mortgage Operations


Custodial Accounting

Section 11002.03.A

·        4. A. The words “or closed” were removed. A new Form SER-15 or SER-16 is not required when the account is closed.

·        4. b. The words “or account closeout” were removed. A new form SER-18 is not required when the account is closed.

Cancellation of Mortgage Insurance - Clarification

Section 12000.04

·        A. Automatic termination for Conventional Mortgage Insurance changed from 80% to 78%, to align with MI requirements.

This change originated with the June 14, 2021 guide update, however is effective the date of this memo.

Foreclosure and Repossessions

Section 13001.06.C.2b

·        Servicer to provide AHFC with a recommendation for type of value(s) necessary to determine bid amount for the sale.

Section 13001.14.F

·        Remitting Third Party Sale Proceeds to AHFC changed from 3 business days to 5 business days.

Section 13001.15

·        AHFC will no longer be providing a confirmation number. Servicers will now receive a confirmation response email from AHFC.

Real Estate Owned

Section 15000.02.A.1C

·        Change due to USDA eliminating need for REO disposition plans: Servicer will maintain coverage until the claim settlement date. AHFC will maintain coverage from settlement claim date through date of property disposal.