Single-Family SS Memo 16-06
Date: June 7, 2016
SERVICING GUIDE REVISIONS: CONTACT SERVICING
AHFC Approval for Expenses
(Sections 13001.11, 15000.02 and 16000.03.H)
Effective immediately, the expense amount for repairs and maintenance that requires AHFC approval has been increased from $750 to expenses over $2,000. This affects the following sections:
- Foreclosure and Repossessions (Section 13001.11 Preservation of Property);
- Real Estate Owned (Section 15000.02 Management and Maintenance of Acquired Property); and
- REO Disbursement Procedures (Section 16000.03.H Claimable Expenses on FORM SER-70).
Management and Maintenance of Acquired Property
Obsolete reference to acceptance by AHFC authorized Agent has been removed.
Effective June 21, 2016, the hazard insurance requirements for acquired property has changed from AHFC maintaining hazard insurance on all acquired properties to the following:
- Conventional Loans Without MI: AHFC will maintain coverage from acquisition date to disposal date.
- Conventional Loans With MI: Servicer will maintain coverage from acquisition date through the mortgage insurance settlement date. AHFC will maintain insurance after the MI settlement date to disposal date.
- USDA-RHS Loans: Servicer will maintain coverage from the acquisition date through the disposal date or RD marketing period, whichever comes first. If the property remains unsold at end of the marketing period, AHFC will maintain insurance from the end of the marketing date to disposal date.
- VA/FHA/HUD-184 Loans: Servicer is to maintain coverage from the acquisition date until the property is conveyed.
Any property acquired prior to June 21, 2016, will fall under the previous guideline of AHFC maintaining the insurance coverage from the date the property was acquired to date of conveyance or disposal.
All properties acquired on or after June 21, 2016, will fall under the new guidelines.
REO Case Files
Effective immediately, the submission requirement for AHFC Form SER-90A has been changed from within 10 days of acquiring property to within 10 business days of acquiring property.
Property Inspection Guidelines
Effective immediately, the monthly inspection requirement on acquired properties now includes an interior inspection if property is vacant.