Texas Mortgage Corner » obama

New FHA Mortgagee Letter, & HUD Housing Counseling

Tommy — Thu, 15 Oct 2009 03:46:25 +0000

October 9, 2009

Mortgagee Letter 2009-39

TO: ALL APPROVED MORTGAGEES

ATTENTION: Single Family Servicing Managers

SUBJECT: Updated Claim Filing and Delinquency/Default Reporting Requirements

For FHA’s Making Home Affordable Modification Program (FHA-HAMP)

The purpose of this Mortgagee Letter is to provide updated claim filing and delinquency/default reporting requirements for the FHA Home Affordable Modification Program (FHA-HAMP). FHA – HAMP was announced in Mortgage Letter 2009-23, issued on July 30, 2009.

Implementation of FHA – HAMP required system enhancements to both the Department’s Claim System and its Single Family Default Monitoring System (SFDMS). As with the standard FHA Loss Mitigation options, FHA will include FHA-HAMP Loss Mitigation options in its Tier Ranking evaluation of Loss Mitigation.

Single Family Default Monitoring System (SFDMS) Enhancements:

Both the FHA Connection and HUD’s EDI TS 264 application are now ready to accept two updated SFDMS status codes that mortgagees shall use to report HAMP related loss mitigation actions. Status Codes 39 and 41 are now available for the industry to begin SFDMS reporting on FHA-HAMP related loss mitigation initiatives. The specific reporting requirements are outlined in the following section. FHA recognizes that some industry participants may require additional time to complete the required system changes. Therefore, mortgagees may begin using the updated SFDMS status codes immediately, but mortgagees must begin reporting the updated status codes beginning with the January 2010 reporting cycle. That report is due to HUD no later than February 5, 2010, which is the fifth business day of February 2010.

Updated Single Family Default Monitoring System (SFDMS) Instructions

Status Codes 39 and 41 are now available for the industry to begin reporting on FHA – HAMP related loss mitigation initiatives as follows.

Code 39- FHA-HAMP Trial Modification Plan - Prior to the January 2010 reporting cycle, mortgagees that use the FHA Connection for SFDMS reporting or that have the system capability, will report mortgagors that have been approved for an FHA – HAMP trial payment plan as SFDMS Status Code 39. For a limited time, (only through the December 2009 reporting cycle), those mortgagees who are not using the FHA Connection and their systems are not yet ready to support the updated status codes may report the trial FHA-HAMP repayment plan as Status Code 12 – Repayment Plan.

No later than the January 2010 reporting cycle, all mortgagees must report mortgagors approved to begin the FHA-HAMP trial payment plan as SFDMS Status Code 39.

Code 41 – FHA-HAMP Modification and Partial Claim Started – Prior to the January 2010 reporting cycle, mortgagees that use the FHA Connection for SFDMS reporting or that have the system capability, will report mortgagors that have successfully completed the FHA – HAMP trial payment plan and will begin the process to complete the FHA-HAMP Modification and Partial Claim as SFDMS Status Code 41.

Also prior to the January 2010 reporting cycle, those mortgagees who are not using the FHA Connection and their systems are not yet ready to submit the updated status codes will report the completion of the trial FHA-HAMP repayment plan and the beginning of both the FHA-HAMP modification and Partial Claim as Status Codes 10 and 28 (Partial Claim Started and Modification Started).

No later than the January 2010 reporting cycle, all mortgagees must report mortgagors that have successfully completed the FHA – HAMP trial payment plan and will begin the process to complete the FHA-HAMP Modification and Partial Claim as SFDMS Status Code 41.

Reinstatement of any of the above examples shall be reported as SFDMS Status Code 98- Reinstated.

Appendix 1 to this Mortgagee Letter is an update to Appendix 1 of Mortgagee Letter 06-15. While there are no changes to Appendix 2 of Mortgagee Letter 06-15, it is reprinted for industry convenience.

Claim System Enhancements for FHA-HAMP:

HUD’s Claim System enhancements are also now available. The drop-down menu on the FHA Connection screen for Loss Mitigation Claim Input will include additional claim type options named ‘FHA HAMP-Loan Modification’ and ‘FHA HAMP-Partial Claim.’ These new selections will identify Loan Modifications and Partial Claims being filed as part of the FHA-HAMP initiative apart from a standard Partial Claim and a standard Loan Modification. Mortgagees shall select the appropriate claim type when filing for the FHA-HAMP incentives. Appendix 3 revises and supersedes the Claim instructions included as Attachment B to Mortgagee Letter 2001-02, and adds specific instructions for filing both the FHA-HAMP-Partial Claim and the FHA-HAMP-Loan Modification. This means that Mortgagees will actually need to file two separate claims, FHA-HAMP Partial Claim and FHA-HAMP-Loan Modification to receive the incentive payments that are provided by FHA upon successful completion of the HAMP loss mitigation initiative.

Loan modifications and partial claims being filed as part of the FHA-HAMP initiative must be submitted only through FHA Connection to ensure that they are processed as a FHA-HAMP related Loss Mitigation option. Any FHA-HAMP related claim that is submitted using paper Form HUD-27011, Single-Family Application for Insurance Benefits cannot be correctly processed or paid.

Any questions regarding this Mortgagee Letter may be directed to HUD’s National Servicing Center (NSC) at 888-297-8685 or sfdatarequests@hud.gov. Persons with hearing or speech impairments may reach this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).

Sincerely,

David H. Stevens

Assistant Secretary for Housing-

Federal Housing Commissioner

Attachments:

Appendix 1 – Delinquency/Default Status Codes

Appendix 2 – Delinquency/Default Reason Codes

Appendix 3 – Claim Filing Assistance for Loss Mitigation Claims

Paperwork Reduction Act

The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control numbers 2502-0060, 2502 and 0429.. Additionally, the Department has submitted an expansion package to OMB for 2502-04249, where approval is pending. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB Control Number.

Come on 7’s! Daddy Needs a New Roof!

Tommy — Tue, 16 Jun 2009 02:40:57 +0000

Here’s an excerpt from one of my favorite movies, A Bronx Tale. Please follow closely:

Sonny: Get this over with, Mush.

Mush: Come on, dice. Baby needs a new pair of shoes. Come on, seven!

Mush: Come on! Come on, dice!

Sonny: I don’t even have to look.

(Spectator) And seven!

Mush: Craps! I’m out!

Sonny: Get him out of here! Man never hit a number in his life!

As we all have been following lately, rates have been pretty damn good. I mean REALLY DAMN GOOD. That was…until a week or so ago.

I was working with one of my clients and highly advised him to lock in his rate at 4.875% on a 30 Year Fixed, however he decided to float instead of paying a “little” bit more for an extra 15 days. Why? Only he knows.

He is now at a 5.75%. (crickets chirping)

Ladies and Gentlemen- DO NOT END UP LIKE EDDIE MUSH (featured above) and crap out in this market!!! I cannot stress to you enough how important it is to secure a good rate in when you see it. I am coming across several people daily that REALISTICALLY expected rates to go down to the high 3’s because the media puts their dirty little paws on it, and in the end, they lose out on something great.

Would you listen to Al Roker talking to you about mortgage rates or me about weather? I really hope not.

The loan officers that are still here (you can tell who the seasoned ones are) are here for a reason. We have flourished through the good, withstood the bad, study the market, subscribe to various sources of mortgage news, and have a pretty good grasp on what’s going on.

Many feel that when the loan officer says “Mrs. Jones, you need to lock in,” it is mostly viewed as a sales pitch to get your commitment rather than advice, and many clients back off.

I mean this is normal. I can understand it and would probably do the same.

Do this. Next time your loan officer does this, ask them “Why should I secure this rate Mr. Mortgage? And don’t tell me rates are going to go up. Explain WHY” and see what they say. If studdering occurs, move on to the next mortgage professional. If they can advise you with detailed information, they’re a keeper!

In the end, it is only YOU that will win…or lose.

Tommy’s 2 cents

DON’T BE GREEDY.

J.P. Morgan and Citigroup Pause Foreclosures

Tommy — Sun, 15 Feb 2009 16:29:36 +0000

On Friday, Citigroup and J.P. Morgan Chase said that they would temporarily hit the “Pause Button” on foreclosures.

Out of the $350 billion that is left, $50 billion of the last year’s bailout plan is going to be used to buy some time for homeowners that are currently having trouble paying their mortgage payments. This is definitely good news, because even I am guilty of criticizing the disbursement of these funds. It’s kind of like the “Hunt for Osama”. It was hot for the first few months, then everyone forgot about, so I am very glad to see that FINALLY this money is being put to good use.

Personally, I have heard so many clients that are being SCREWED (Escrow money being overcharged, incorrectly calculated, double payments put into effect, no negotiation of terms available, etc) by their current mortgage, its unbelievable! Mark my words, REGULATION AND PROPER EXECUTION of this will be the ONLY way this is going to work, unlike several false promises that have been given to millions of Americans this past year.

So what Obama plans to do is make each homeowner pass an affordability test. This, to the public’s knowledge so far, is not going to be a complicated thing. As long as the homeowner shows that he/she can make enough money to afford some sort of payment plan with the mortgage company, they should be in good hands.

Barney Frank, House Financial Services Committee chairman, requested that a suspension of activity (moratorium) be set in place until the new plan is finalized in the upcoming weeks, and expects that at least 90% of banks will follow suit to help the housing crisis.

Ready? Set? Change!

Tommy — Fri, 06 Feb 2009 00:48:58 +0000

It looks like 2009 has started off in a very exhilarating fashion, I’m sure you would agree.

We have our first African American president, Larry Flynt is asking for a $5 billion PORN bailout , Bernie Madoff got caught with his hand in a $15 billion cookie jar, and of course the Steelers won a very “action packed” SuperBowl.

So where does this leave us and what should you expect in ‘09?

Well, for starters, Obama’s proposed $900 billion Stimulus Plan is still being negotiated in Senate, and from the way it looks, it’s going to pass. Many are wanting to know the dynamics of what this plan is, so I wanted to outline a couple of the top points you may be interested in:

1. Instead of $7,500, a $15,000 Tax Credit to First Time Home Buyers. This is still in the works, but looks good on getting approved.

2. Tax relief to those with middle, and low incomes, in order to restore consumer spending and confidence.

3. $1,500+ tax break to car buyers to get them back in the showrooms

4. Specific measures to relieve financial institutions of their troubled assets. (Where did the “The Bailout” money go last year?)

5. Defined tax breaks for businesses, especially those which encourage them to reduce their debt.

Now I slightly recall a $700 billion Wall Street Bailout plan that passed and that did NOT go the way it was supposed to, yet we’re still paying for that tab.

So where you stand on this? Is the US just writing blank checks to solve problems, or is the “Change” we’ve been waiting for?