module 4: the rass & alt. rass 45 4-1. the rass 45 4-2
TRANSCRIPT
Module 4:Module 4:
The RASS & Alt.
The RASS & Alt.
RASSRASS
454-1
The The
RASSRASS45
4-2
RASS Cover LetterRASS Cover Letter
Lines 1-3 & 5 reiterate items discussed in SSA
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RASS Cover LetterRASS Cover Letter
Line 4: No other agreements or offers not disclosed to servicer
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Emerging Fraud Trends: Emerging Fraud Trends: Short Short Payoff FraudPayoff Fraud
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Short Payoff FraudShort Payoff Fraud "Any misrepresentation or deliberate
omission of fact that would induce the lender, investor or insurer to agree to the terms of a short payoff that it would not approve had all facts been known."
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How Short Payoff How Short Payoff Fraud WorksFraud Works
• Seller owes $100,000, property worth $80,000
• Facilitator negotiates a $70,000 payoff• Facilitator doesn’t disclose existing offer
for $95,000• Both sales close
simultaneously
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Where’s the Fraud?Where’s the Fraud?• Failure to disclose the second offer• Lender takes bigger loss
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Other Agreements or OffersOther Agreements or Offers
• If other offers received servicer should be informed
• REALTORS® – Be aware– Avoid fraud or appearance of fraud
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RASS Page 2RASS Page 2Seller Net Sheet
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$3,000 to seller or tenant
RASS Page 2RASS Page 2
•Preliminary HUD-1•Complete RASS based on HUD-1
$8,500 Max Subordinate Mortgage lien payoff
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RASS Page 2 (cont’d.)RASS Page 2 (cont’d.)
Attach all required info
•Remember required contract language:Arm’s length90 day prohibition on re-sale
•Return within 3 Biz days49
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RASS Page 3 RASS Page 3
Sale Approved!!!
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RASS Page 4 RASS Page 4 Disapproval of Sale
Reasons explained
•May include counter offer
•If no counter, determine cause for disapproval and re-submit
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The Alt. The Alt.
RASSRASS52
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The Alternative RASSThe Alternative RASS• Purchase offer received but…• Seller has not:– Requested a HAFA short sale– Qualified yet for HAFA– Received SSA
• Submit contract with Alt. RASS
• Check servicer’s web site for form or procedure
No Alt. RASS
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Submitting the Alt. RASSSubmitting the Alt. RASS• Check servicer’s web site for package
or procedure
• Submit Alt. RASS & contract
• Non-GSE loans, servicer must approve, disapprove or counter offer within 30 days of receipt of Alt. RASS & other docs.
• Fannie Mae, no time frame
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Alt. RASS Alt. RASS Detailed Detailed
DiscussionDiscussion
Alt. RASS Cover LetterAlt. RASS Cover Letter
• Takes the form of a solicitation by servicer
• Contact servicer for specific instructions and/or forms
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Alt. RASS Page 2Alt. RASS Page 2
Borrower has received an offer and requests a short sale
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Alt. RASS Pages 2 & 3Alt. RASS Pages 2 & 3
• Contain same information regarding the Program Terms and Conditions as in the SSA &/or RASS
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Alt. RASS Page 4Alt. RASS Page 4Net Sheet, same as RASS
Attached document list• Check servicer’s web site for complete list of required docs
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Alt. RASS Pages 5 & 6Alt. RASS Pages 5 & 6
• Approval & Disapproval pages
• If disapproved, review reasons and re-submit
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HAFA General HAFA General Terms & ConditionsTerms & Conditions
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Foreclosure sale suspended:
• Determining eligibility
• Awaiting SSA
• During SSA term
• Pending closing
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Payment ForbearancePayment Forbearance
• Servicer may require monthly payments?
• Can’t exceed 31% of gross income
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First Mortgage ReleaseFirst Mortgage Release• Released within 30 days
• Waive deficiency judgment
• Can’t require note from borrower
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##11
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Subordinate LiensSubordinate Liens• $8,500 total aggregate for all
mortgage liens
• On HUD-1
• Liens released
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Subordinate LiensSubordinate Liens• No future liability for
borrower
• Written release required prior to releasing funds
• Can’t require $$$ from seller or licensee
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Borrower FeesBorrower Fees• No processing fees
• Servicer pays all
• Borrower waives reimbursement of impounds and insurance
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Mortgage InsuranceMortgage Insurance• Approval required
• Insurer must waive rights to collect
• Fannie & Freddie seek “Delegations of Authority”
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Incentives – Thru 2013Incentives – Thru 2013• Borrower or tenant: $3,000– On HUD-1– Servicer reimbursed
• Servicer: $1,500
• Investor: $2,000 max. to release subordinate liens– $1 for $3 basis
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Required SignaturesRequired Signatures• Servicer– Actual date
• Original borrowers
• Exceptions– Deceased– Divorced– Special cases
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Reporting RequirementsReporting Requirements• Servicer reports to Fannie Mae– SSA executed or updated– Sale Closes– SSA Terminates
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Servicer ComplianceServicer Compliance
• Freddie Mac is compliance agent
• Servicer must have staff & resources to implement HAFA
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Email Questions or Complaints to:[email protected]
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Problems???Problems???
• Treasury HAFA– [email protected]
– 866-939-4469
• Fannie Mae– [email protected]
– 800-7FANNIE 800-732-6643
• Freddie Mac– [email protected]
– 800-FREDDIE 800-373-3343
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Problems???Problems???
• Escalation for non-HAFA Programs• FHA loans: FHA National Servicing
Center– 1-877-622-8525
• VA loans: Service Center– 1-877-827-3702
• USDA loans: Centralized Servicing Center– 1-800-414-1226
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