Assumptions
- Assumption of an FHA-insured mortgage is a servicing function
where the responsibility or paying for a mortgage is taken over
by another person through simple assumption or creditworthiness
assumption.
Claims
-
The vehicle
utilized for payment of insurance proceeds from HUD to a Mortgagee
is the Insurance Benefit Claim form HUD- 27011. This form is utilized
for all submissions of claims for Conveyance of Property and Loss
Mitigation Option incentives.
Deed-in-Lieu
- A Deed in Lieu of foreclosure (DIL) is a disposition option in
which a mortgagor voluntarily deeds collateral property in exchange
for a release from all obligations under the mortgage. A DIL of
foreclosure may not be accepted from mortgagors who can financially
make their mortgage payments.
DIL Fact Sheet
Extension
of Time -
To
comply with required time frames, an Extension of Time may be granted
for a mortgagee to initiate or complete a Loss Mitigation (except
Preforeclosure Sales) and/or foreclosure action. A mortgagee is
required to submit to NSC-Oklahoma City, form HUD-50012, Request
for Extension of Time, prior to the expiration of the respective
time frame to Fax Number (405) 609-8405.
FHA
Connection - FHA Connection (FHAC) is a portal used by mortgagees
to report on and update the status of their FHA portfolio. In addition,
the FHAC facilitates the following Single Family Servicing functions:
Claims Processing, Delinquent Loans, HECM Reports, Monthly Premiums,
Mortgage Record Changes, Mortgage Calculator, Mortgage Servicing
Data Quality system and Lender Query by Case Number. FHAC
FAQs.
Foreclosure
- Foreclosure should only be considered as a last resort and should
not be initiated until all relief options have been exhausted. When
foreclosure cannot be avoided, it must be started quickly and prosecuted
vigorously to minimize losses to both the mortgagee and HUD.
General
Loss Mitigation - This category includes all Loss Mitigation
questions that are not specific to one of the five Loss Mitigation
Options.
General
Servicing -
This
category includes all General Servicing items stated within HUD
Handbook 4330.1 REV-5, Administration of Insured Home Mortgages.
Loan
Modification - A Loan Modification is a permanent change in
one or more of the terms of a mortgagor's loan, allows the loan
to be reinstated, and results in a payment the mortgagor can afford.
Loan
Modification Fact Sheet
Partial
Claim - Under the Partial Claim option, a mortgagee will advance
funds on behalf of a mortgagor in an amount necessary to reinstate
a delinquent loan (not to exceed the equivalent of 12 months PITI).
The mortgagor will execute a promissory note and subordinate mortgage
payable to HUD. Currently, these promissory or "Partial Claim" notes
assess no interest and are not due and payable until the mortgagor
either pays off the first mortgage or no longer owns the property.
Partial
Claim Fact Sheet
Preforeclosure
Sale - The Preforeclosure Sale (PFS) Program allows the mortgagor
in default to sell his/her home and use the net sale proceeds to
satisfy the mortgage debt even though these proceeds are less than
the amount owed. Preforeclosure
Sale Fact Sheet
Preforeclosure
Sale Variance - A mortgagee is required to submit to NSC - Oklahoma
City, form HUD-90041,
Request for Variance Procedure, to request permission from HUD regarding
any Preforeclosure Sale Program exception as well as to request
an Extension of Time pertaining to the Preforeclosure Sale Program.
Variances are considered on a case-by-case basis. Requests are to
be faxed to (405) 609-8405.
Single
Family Default Monitoring System - Data reported to the Single
Family Default Monitoring System (SFDMS) is used to measure the
effectiveness of origination and servicing activities, and the potential
risk to the insurance fund. For additional information, please see
www.hud.gov/offices/hsg/sfh/nsc/sfdms.cfm
Special
Forbearance - A Special Forbearance (SFB) is a written repayment
agreement between a mortgagee and a mortgagor, which contains a
plan to reinstate an asset that is minimum three mortgage payments
due and unpaid. Special
Forbearance Fact Sheet
Variance
-
On company letterhead,
mortgagees are required to submit to NSC-Oklahoma City any request
requiring a variance associated with Special Forbearance, Loan Modification,
Partial Claim or Deed-in-Lieu of Foreclosure eligibility criteria
or servicing guidelines. Variances are considered on a case-by-case
basis. Requests are to be faxed to (405) 609-8405.
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