Single-Family SS Memo 16-02

Date:  March 22, 2016

SERVICING GUIDE REVISIONS: CONTACT SERVICING

Marketing of REO
(Section 15000.04) 

Section has been updated to remove obsolete statements and more clearly state the current REO marketing practices required of Servicers.

Multi-Family Servicing: Property Inspections
(Section 21001.01.C)

The Delinquent Property Inspection Report requirement to include the condition of 10% of the occupied units has been revised. The new requirement states 10% of the occupied units is required on the initial 45-day Delinquency Inspection Report only. Inspection of 10% of the occupied units is not required on the subsequent 30-day interval inspections. 

AHFC Servicing Guide Revision Review 

The AHFC Servicing Guide has been undergoing a revision review with the AHFC Servicing Partners. The purpose of this project is to clarify and/or amend existing requirements via minor verbiage changes, paragraph restructuring, changes and additions. Phases 1–7 of the revision project are complete and described below. 

Multi-Family Reserves for Replacements and Other Escrows
(Section 11001.05)

Servicers with Delegated Multi-Family Replacement Reserve Disbursement Authority must notify AHFC with the Notification of Replacement Reserves (Form SER-99 Delegated) immediately following each replacement reserve disbursement completed. 

Required Accounts
(Section 11002.02)

The Custodial Account matrix has been updated to remove the obsolete reference to Collection Code “D.” 

Cash Remittance Schedule
(Section 11003.02)

The collection limit for daily remittances has been increased from $2,500 to $5,000. Daily remittances are now required to be made to AHFC whenever the net borrower collections for a given day exceed $5,000. “Borrower Collections” is defined as principal and interest net of service fees for payments, curtailments and payoff transactions. 

Actual Loan Collection System (ALCS) Due Dates
(Section 11004.03)

The penalty for consistently late reporting has changed from $20 per loan per day on single family program loans and $100 per loan per day on multi-family loans to one fee structure of $50 per loan per day. 

Actual Loan Collection System (ALCS) Electronic Reporting
(Section 11004.06)

The Detail of ALCS Escrow Custodial Account (Form SER-8) requirement has been deleted. 

Security and General Procedures
(Section 12000)

A new five-business-day submission timeline has been added to the requirement that Servicers notify AHFC in writing when the Servicer becomes aware there may be an environmental issue involving a property. 

Releases or Change in Collateral
(Section 12000.01)

The entire 12000.01 section has been reorganized to clearly state the requirements for Partial Releases, Addition of Collateral, Replats and Easements. The form used with these actions, Release or Change in Collateral Checklist (Form SER-78), has been reformatted to match the flow of this reorganized Guide section as well. 

Insurance Loss Settlements
(Section 12000.03)

The limit for reporting losses to AHFC has been increased from in excess of $10,000 to in excess of $20,000. Also, a new requirement has been added that after initial notification of a loss to AHFC, a status update of repairs notification must be submitted to AHFC every 60 days until restoration is complete. 

Reportable Loss
(Section 12000.03.B)

Delinquent status has been added to the list of exceptions to the $20,000 Reportable Loss limit. 

Borrower Name Changes
(Section 12000.06)

A new timeline requirement has been added that AHFC be notified within 30 calendar days after the Servicer becomes aware of the name change. 

Transfer of Ownership
(Section 12000.07)

A new timeline requirement has been added that AHFC be notified within 10 business days of the change. 

Release of a Co-Borrower and Assumptions
(Sections 12000.09 & 12000.10)

The timeline for submission of required documentation has been changed from 30 days to 10 business days. 

Energy Efficiency Interest Rate Reduction Modifications
(Section 12000.11.D)

This section was updated to reflect the changes to section 7002.07.C (Borrower’s Notice of Potential Energy Efficiency Rate Reduction) announced in AHFC Seller/Servicer Memo 15-03. The documentation submission deadline has been changed from “within 30 days of the final rating” to “improvements and final rating must be completed with 365 days of closing. The documents must be submitted to the Servicer no later than 30 calendar days after this date.”

A copy of the Loan Information Worksheet (Form UND-3) or the AHFC Commitment Contract reflecting Proposed Energy in the Options section has been added to the required documentation list. 

Voluntary Termination of Servicing
(Section 12003.01)

The reference that AHFC will invoice the Lender each month for the per loan transfer fee has been replaced with the existing practice of deducting the fee from the funded amount at time of loan purchase. 

Assistance Provider Interest Rate Reduction (APIRR)
(Section 12004)

This section has been restated to more clearly define annual requirements. 

Collection of Delinquencies
(Section 13000.06.A and 13000.06.B)

The following verbiage has been added to Section 13000.06.A: “The individual circumstances of each loan should be reviewed and analyzed to determine the appropriate course of action to remedy the delinquency.”

Section 13000.06.B, Type II Manufactured Home Loans (Loans Without Land), has been restated to more clearly define the minimal collection program. 

Preservation of Property
(Section 13000.07.A)

A requirement has been added for the Servicer to notify AHFC in writing of any environmental issue involving a property within five business days of becoming aware of the issue. Failure to take immediate steps to preserve the property may result in denial of expenses associated with the cleanup. 

Property Inspections
(Section 13000.07.B and 13000.07.C)

Thirty day inspections on a delinquent loan can be suspended after receipt of the first payment in accordance with a loss mitigation plan. If the borrower defaults on the loss mitigation plan and the plan is not reinstated or if contact is not made with the borrower, inspections are to resume within 10 business days. 

Servicing Guidelines for Abandoned Non-REO Properties
(Section 13000.07.B.2.a-b)

The notification to AHFC process has been changed from “Call AHFC’s Servicing Department to report any abandoned properties” to “initial notification to AHFC by five business days can be by email or phone call followed by Form SER-71.” Also, a requirement for the use of a locking cap has been added to protect any generator or fuel tank from vandalism or theft. 

Delinquent Loan Modification Documentation
(Section 13000.10.C.2)

Language in the Servicer’s letter specifying the terms of the modification, including amount of capitalization, has been changed to “including an itemized breakdown of the amount of capitalization.” 

Delinquent Loan Modification - Presales
(Sections 13000.11.B.1, 13000.11.B.1.h, 13000.11.D and 13000.11.D.7)

The following are changes to the list of documents required to be submitted to AHFC for approval:

  • The Servicers Loss Computation Worksheet will now include a separate computation reflecting the cost impact of foreclosure compared to the cost impact of the presale transaction. 
     
  • MI/Guarantor approval shall be submitted to AHFC upon receipt by Servicer, rather than concurrently with all other required documents. 
     
  • Documented Marketing Efforts has been added to the list. 
     
  • Status of Homeowner Association due (if applicable) has been added to the list. 
     
  • The Presale Funds Remittance requirement has been changed from 24 hours of receipt to three business days of the recording date. 

Bankruptcy Proceedings
(Section 13000.12)

A section has been added that includes a list of events that require an update to AHFC via email. 

Deed in Lieu of Foreclosure (DIL)
(Section 13001.05.A.1)

A requirement has been added that property must be in marketable condition. The following changes have been made to the list of required documents to submit to AHFC for Deed in Lieu of Foreclosure (DIL) approval: 

  • The timeline requirement for the submission of the DIL package to AHFC has been changed from five days to five business days. 
     
  • The Broker’s Opinion of Value (BOV) has been changed to the Broker’s Price Opinion (BPO). 

MI/Guarantor approval shall be submitted to AHFC upon receipt by Servicer rather than with Form SER-71; approval by AHFC may be issued subject to receipt of MI/Guarantor Approval.


FORMS GUIDE REVISIONS: CONTACT SERVICING
(Only available in PDF - Adobe Acrobat or Adobe Reader is required to read/print PDF files)

New/Revised Forms   

SER-5 (Revised)
SER-6 (Revised)
SER-7 (Revised)
SER-9 (Revised)
SER-10 (Revised)
SER-11 (Revised)
SER-12 (Revised)
SER-13 (Revised)
SER-14 (Revised)
SER-18 (Revised)  
SER-52 (Revised)
SER-75 (Revised)
SER-78 (Revised)  
SER-99 (Revised)
SER-99 Delegated (New)     

ATTACHMENTS