Making Home Affordable Case Escalation Process Training Presentation for Servicers

Transcription

1 Making Home Affordable Case Escalation Process Training Presentation for s August July Making Home Home Affordable Home Affordable July 2016

2 Objectives Defining Escalated Cases Commonly Escalated Cases - Examples Requestors Escalations Paths Case Escalations Deadlines Relationship Manager/MHA Support Centers Authorization Escalation Process Reporting Requirements Resources Questions/Answers 2

3 Defining Escalated Cases Escalated Cases reflect that a potential program violation has occurred. Escalated Cases may include the following allegations: Improper assessment of the borrower for MHA program(s). Inappropriate denial. took inappropriate foreclosure actions. Escalated Cases do not include the following: General inquiries about content of a Non-Approval Notice. Inquiries about the status of an evaluation of a borrower where the servicer is in compliance with the required program timeline. Request for evaluation of HAMP under expanded program guidelines. 3

4 Commonly Escalated Cases HAMP Case Examples Lost or misplaced documents Wrongfully denied for HAMP has inappropriately initiated the foreclosure process or conducted the foreclosure sale HAFA Case Examples is unresponsive not following required timelines 4

5 Requestors Escalation Sources and Authorized Advisors Borrower MHA Support Centers Authorized Advisors Receive Escalated Cases from either an MHA Support Center, borrower or authorized advisors. All Escalated Cases must be handled in the same manner regardless of the Requestor. 5

6 Case Escalation Paths From Requestor to Borrower 1 Authorized Advisor MHA Help MHA Support Center HSC MHA Support Center

7 Case Escalations Deadlines Deadlines for MHA Help and HSC MHA Help and the HAMP Solution Center (HSC) will no longer accept new cases nor escalate new cases to servicers effective December 1, A servicer must consider a borrower for comparable proprietary solutions if the servicer is unable to convert the borrower to an MHA permanent modification, DIL, or short sale by December 1, Any escalated case must be resolved by May 1,

8 Relationship Manager If the servicer receives an Escalated Case that is associated with a borrower who has been assigned a relationship manager, the servicer must involve the relationship manager, as appropriate and necessary, to resolve the case. Following resolution, the relationship manager must have access to all documentation related to the Escalated Case. If a borrower escalates a case to the relationship manager, the relationship manager must contact the escalations team to assist where appropriate. Upon request, provide the borrower with contact information for MHA Help, reachable through the Homeowner s HOPE Hotline HOPE (4673). 8

9 Authorization to Disclose Information Ensure that borrower s personal information is not disclosed without written authorization A signed Request for Mortgage Assistance (RMA) or Hardship Affidavit authorizes the servicer to disclose borrower information to the following: Treasury Representatives MHA Support Centers MHA-C or the Program Administrator Investor, insurer, guarantor or servicers associated with the borrower s loan HUD-approved housing counselors Note: If you have an RMA or Hardship Affidavit on file, there is no need for additional authorization from these parties. If the Requestor is not one of the parties listed, they must provide a Third Party Authorization Form. 9

10 Escalated Cases and Foreclosures When appropriate, take corrective action, even if a foreclosure sale has taken place. A foreclosure sale must not be conducted unless and until an Escalated Case is properly resolved. A foreclosure sale is not required to be suspended when: An Escalated Case is received after midnight of the seventh business day before the foreclosure sale date (Deadline) or A court fails/refuses to halt the sale after the servicer has made a reasonable effort to stop the sale. Pending Escalated Cases at the time of foreclosure must still be resolved. 10

11 Case Escalation Process STEP 1 Submission STEP 2 Acknowledgement STEP 3 Resolution STEP 4 Communication Requestor Requestor submits dispute or inquiry to servicer When Requestor is the MHA Support Centers, the Engagement Notice will be submitted Within 5 business days from receipt of an Escalated Case, sends acknowledgement to the borrower and Requestor. When the Requestor is an MHA Support Center, the Acknowledgement Form should be used. Reviews/resolves Escalated Case within 30 calendar days from receipt of case. Any case escalated as of December 1, 2017 must be resolved by May 1, Notifies Requestor within 10 business days of case resolution and next steps in writing. Day 0 5 business days Allow 2 business days for MHA Support Center concurrence 30 calendar days 10 business days 11

12 Escalation Process - Submission STEP 1 Submission STEP 2 Acknowledgement STEP 3 Resolution STEP 4 Communication Requestor Requestor submits dispute or inquiry to servicer When Requestor is the MHA Support Centers, the Engagement Notice will be submitted Within 5 business days from receipt of an Escalated Case, sends acknowledgement to the borrower and Requestor. When the Requestor is an MHA Support Center, the Acknowledgement Form should be used. Reviews/resolves Escalated Case within 30 calendar days from receipt of case. Any case escalated as of December 1, 2017 must be resolved by May 1, Notifies Requestor within 10 business days of case resolution and next steps in writing. Day 0 5 business days Allow 2 business days for MHA Support Center concurrence 30 calendar days 10 business days 12

13 Escalation Process - Acknowledgement STEP 1 Submission STEP 2 Acknowledgement STEP 3 Resolution STEP 4 Communication Requestor Requestor submits dispute or inquiry to servicer When Requestor is the MHA Support Centers, the Engagement Notice will be submitted Within 5 business days from receipt of an Escalated Case, sends acknowledgement to the borrower and Requestor. When the Requestor is an MHA Support Center, the Acknowledgement Form should be used. Reviews/resolves Escalated Case within 30 calendar days from receipt of case. Any case escalated as of December 1, 2017 must be resolved by May 1, Notifies Requestor within 10 business days of case resolution and next steps in writing. Day 0 5 business days Allow 2 business days for MHA Support Center concurrence 30 calendar days 10 business days 13

14 Acknowledgment Basic Guidelines Date stamp the Escalated Case Acknowledge receipt of the Escalated Case in writing via or mail within five business days. Provide the Requestor and borrower with the following in the Acknowledgement: Case reference name or number Resolution date Toll-free escalation contact phone number Use Case Acknowledgement Form if Requestor is an MHA Support Center. In all cases, the borrower should receive a communication from the servicer 14

15 Acknowledgement Review and Evaluation Review the Escalated Case Review and compare information received against information in servicer system of record and data reported to HAMP Reporting Tool. Evaluation may include review and recalculation of HAMP modification waterfall(s) and NPV testing. 15

16 Case Escalation and Pending Litigation Review Notifications If during your review of an Escalated Case, you are notified of pending litigation, you should: Continue to resolve the case; Notify the Requestor in writing; and If the Requestor is an MHA Support Center, gain concurrence first Note: This guidance on closing a case in litigation does not apply when the litigation is a judicial foreclosure action. In this case, you must continue to work to resolve the case as if it were not in litigation. 16

17 Case Acknowledgement Form If you are able to resolve the inquiry in the initial call or within the first five (5) business days, a Case Acknowledgement Form is not required; the Case Resolution Form is sufficient. Account Information Borrower Status Escalated Case Documentation Forms and Guide are available on HMPadmin.com 17

18 Case Acknowledgement Form Negative NPV Provide all 43 NPV Input Values 43 Negative NPV Inputs 18

19 Escalation Process - Resolution STEP 1 Submission STEP 2 Acknowledgement STEP 3 Resolution STEP 4 Communication Requestor Requestor submits dispute or inquiry to servicer When Requestor is the MHA Support Centers, the Engagement Notice will be submitted Within 5 business days from receipt of an Escalated Case, sends acknowledgement to the borrower and Requestor. When the Requestor is an MHA Support Center, the Acknowledgement Form should be used. Reviews/resolves Escalated Case within 30 calendar days from receipt of case. Any case escalated as of December 1, 2017 must be resolved by May 1, Notifies Requestor within 10 business days of case resolution and next steps in writing. Day 0 5 business days Allow 2 business days for MHA Support Center concurrence 30 calendar days 10 business days 19

20 Resolution - Overview An Escalated Case is resolved when you: Review the case Gain concurrence from the MHA Support Center (if applicable) Appropriately document If a change is required to the proposed resolution in the servicing system and/or mortgage file; and Take the first action to implement the proposed resolution 20

21 Resolution NPV Requirements for Disputed Inputs Re-evaluate NPV Results Important notes to remember during re-evaluation Use the same major version of the NPV model All other NPV inputs other than disputed inputs should remain constant The input values must be as of the NPV Date. You are not required to re-evaluate the borrower if the borrower is ineligible for a trial on a basis other than negative NPV. 21

22 Resolution Disputing NPV Inputs: Property Value Perform a preliminary NPV re-evaluation using the borrower property value estimate The following steps occur: If NPV result is positive: Accept borrower s value without an appraisal or; Offer the borrower the opportunity to request an appraisal. The borrower sends $200 against the appraisal cost within 15 calendar days. Appraisal must establish the fair market value as of initial NPV Date. 22

23 Resolution Case Resolution Form HMPadmin.com Escalated Case Documentation forms and Template Guides are available on HMPadmin.com 23

24 Case Extension Notification HMPadmin.com Case Extension Notification form is available on HMPadmin.com 24

25 Resolution - Substantially Similar Case Substantially Similar cases require concurrence if referred by MHA Support Center You are not required to review a case that is substantially similar to one that has been previously resolved. Cases are considered substantially similar when the substance of an inquiry pertains to the same borrower and loan as a previously resolved Escalated Case. 25

26 Resolution Original Determination Original Determination: The initial loss mitigation path selected by the servicer You must: Determine whether there is a change in original determination Document the resolution determination and next steps for borrower 26

27 Resolution Original Determination HMPadmin.com Original Determination If there is a change in original determination, select yes. Resolution Category You must choose a resolution category that corresponds to the loss mitigation path, regardless of whether or not a change in original determination was indicated. The Resolution Category should be based on the proposed loss mitigation path that you will pursue once the case is resolved. Original Determination Resolution Category 27

28 Resolution Completed Case Resolution Form HMPadmin.com The homeowner was approved for the HAMP Trial Period Plan on August 23, The trial period payments are in the amount of and are due 11/1/ /1/2012 1/1/2013 The borrower will be sent permanent HAMP modification documents for the borrower to sign and have notarized once the trial plan is completed. No other documents are needed for review. 28

29 Resolution Completed Case Resolution Form HMPadmin.com Description: Our records are missing 2 most recent pay stubs, 1099, and pension/annuity award letter (if applicable). Next Steps: Borrowers should stay in contact with us weekly or bi-weekly to ensure a timely review. Borrowers can fax docs to xxx-xxx-xxxx or mail to xxx Address, City, State, Zip. They may contact their point of contact below or our Foreclosure Prevention Department available Mon-Thu 8am-8pm CDT, or Fri 8am-5pm CDT. 29

30 Escalation Process - Communication STEP 1 Submission STEP 2 Acknowledgement STEP 3 Resolution TEP 4 STEP 4 Communication Requestor Requestor submits dispute or inquiry to servicer When Requestor is the MHA Support Centers, the Engagement Notice will be submitted Within 5 business days from receipt of an Escalated Case, sends acknowledgement to the borrower and Requestor. When the Requestor is an MHA Support Center, the Acknowledgement Form should be used. Reviews/resolves Escalated Case within 30 calendar days from receipt of case. Any case escalated as of December 1, 2017 must be resolved by May 1, Notifies Requestor within 10 business days of case resolution and next steps in writing. Day 0 5 business days Allow 2 business days for MHA Support Center concurrence 30 calendar days 10 business days 30

31 Communication The following communications must be completed: Communicate appropriate change, proposed resolution, and next steps to the Borrower and Requestor in writing (within 10 business days of decision). Communication includes change in determination. 31

32 Program Reporting Requirements You must maintain accurate and thorough reporting, subject to MHA-C review. Reporting During Borrower Dispute Period Continue to report status of the loan. May not cancel loan from HAMP Reporting Tool or report loan as not approved/not accepted within 30 calendar days from Non-Approval Notice or until Escalated Case is resolved. 32

33 Resources: HMPadmin.com HMPadmin.com Policy guidance and prescheduled training sessions HSC 33

34 Discussion/Questions U.S. Department of the Treasury Homeownership Preservation Office 34