SS Single Family Memo 15-03
Date: April 22, 2015
SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
BORROWER'S NOTICE OF POTENTIAL ENERGY EFFICIENCY RATE REDUCTION
AHFC has revised the deadline for submission of the final documents for an energy rate reduction. As presently written, the UND-10 has two deadlines: one deadline of 365 days from closing (note date) to complete the improvements and obtain the final rating, and a second deadline requiring submission of the final documents no later than 30 days after the final energy rating is done.
As revised, a borrower has 365 days to complete the improvements and obtain the final rating, and up to 30 days after the one-year (365 days) anniversary of closing to submit the final documents.
The revised submission deadline is effective immediately; in addition, AHFC will honor the deadline revision for all outstanding UND-10s executed prior to this memorandum. The revised UND-10 or the existing UND-10 may be used effective with the date of this memo; however, the revised UND-10 is mandatory on or after May 15, 2015.
Effective with the date of this memo, AHFC has revised the commitment term for Urban Program loans to allow a 180-day commitment term for renovations. AHFC still allows a 180-day term for new construction. The 60- and 120-day terms remain the same.
A maximum of three 30-day extensions will remain the same for all Urban Program loans.
SERVICING GUIDE REVISIONS: CONTACT SERVICING
COLLECTION OF DELINQUENCIES
AHFC has revised the procedural requirements for collection of delinquencies. The changes address collection efforts, communication with borrower and clarification of the 17th day delinquency notice. AHFC has also changed the delinquency notification time frames of the SER-71 Notification of Recommended Action Form requiring initial notification by the 80th day and recommended action by the 110th day. Routine summary foreclosures are to be completed no later than eight months from the date of default.
DELINQUENCIES, PRESERVATION OF PROPERTY
AHFC removed the property inspection requirement for delinquent loans performing as agreed under a formal repayment/forbearance plan and defined performing as at least four consecutive payments. AHFC revised inspection requirements to include an interior inspection of vacant or abandoned properties, when the Servicer has taken possession. All other property inspection requirements remain the same.
AHFC is introducing the new SER-70B Preauthorization to Pay HOA/Condo Dues Form. This form is to be used when recommending payment to a HOA or Condo Association that is exercising its right for a super priority lien. Submit this form to AHFC for review.
DELINQUENCIES, FORBEARANCE AND REPAYMENT PLANS
Repayment/forbearance plans must be set forth in writing and signed by the Servicer and borrower to be considered a formal plan. Verbal agreements are considered an informal plan.
Clarification: Servicers have delegated authority to approve a forbearance plan of six months or less and/or a repayment plan of 18 months or less.
REO DISBURSEMENT PROCEDURES
AHFC is including payment of HOA or Condo Association dues as of date of possession as a claimable expense, in addition to Assignment of Rents and Super Priority Lien.
ASSISTANCE PROVIDER INTREST RATE REDUCTION PROGRAM
In addition to the requirements for servicing a 1-4 family dwelling, loans originated under the Assistance Provider Interest Rate Reduction Program require annual compliance certifications to be obtained from the borrower. To clarify AHFCs requirements for loans originated under this program, the Servicer is responsible for requesting the compliance documents no later than 60 days prior to the anniversary date of the loan. The Servicer must also submit the documentation to AHFC no later than five days from receipt.
In addition, should the Servicer receive a written request from the borrower, all loans under this program are eligible for a 60-day extension of time to submit compliance documents. In the event an extension of time is requested, all other servicing guidelines will still be in effect upon the expiration of the 60-day extension time frame.
FORMS GUIDE REVISIONS: CONTACT UNDERWRITING/SERVICING
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