triage requirements manual & order coversheet w questionnaire

8/2/2019 Triage Requirements Manual & Order Coversheet w Questionnaire

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The Diligence Group, LLC. [email protected] office: (305) 814-4831

*REJECTED TRIAGE REQUESTS*

In the interest of preserving the quality of our Attorney Triage Services, keeping this service no-cost for our

select professional network, and maintaining an efficient turnaround time, we have outlined specific

documentation requirements below. Please note the list below is all that is required to perform an effective

Triage, preliminary scrub. Please refrain from delivering more documents than are specified in the list

provided below. Please review the documents in advance of transmission to ensure each document iswhole (all pages are present) and that pages are in order.

The following documents are mandatory for each Triage request type. Documents for review should be

submitted to us via Dropboxor some other means that provides a secure method of transmitting sensitive

data. We can accept email at first for Attorneys new to our network. We ask that a separate folder be

prepared for each individual client and that only the documents specifically required are transmitted for the

initial Triage review. Please review the documents to ensure they are whole (include all pages) and are

sent in page order. Each page of a loan document bears the loan number which should be the same on

each page. The loan documents are also numbered.

If we receive the wrong documents for the requested Triage, or receive an incomplete list of the required

documents without an explanation, we cannot proceed with the requested Triage and it will be Rejected. If

there is a need to deviate from our Triage document requirements, please contact us in advance so we can

prepare our intake team and underwriters.

To avoid a REJECTED Triage request, please be certain a TRIAGE COVERSHEET and checklist has been completed and

delivered with the required Documents.


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MORTGAGE REVIEW REQUIRED TRIAGE DOCUMENTS

In short we require the following Documents to perform a Mortgage Review Triage:

Loan Application Note TIL Income Documents Borrower Questionnaire/Story (brief) Coversheet & Checklist

1. LOAN APPLICATION* (UNIFORM RESIDENTIAL LOAN APPLICATION, THE 1003) 1. The information for married borrowers is combined on one loan application. Unmarried

borrowers are required to provide a separate loan application, one for each borrower.

Please make sure that a loan application is provided for each person who is obligated to

repay the debt (see signature page of Note).

2. THE NOTE& ADDENDUMS3. TRUTH IN LENDING(THE TIL)4. INCOME DOCUMENTS(3 YEARS IF POSSIBLE)

We must accurately reconstruct the borrowers income, back in time, to determine if the borrowers

earnings were sufficient to repay the debt, and if their repayment capacity met FNMA standards.

1. We require income documents for each borrower reflected on the Signature page of theNote be submitted. We require W-2s if the borrower is a wage-earner. 1040 Tax Returns

are required for borrowers who were self-employed, or who owned rental property when

the loan was granted. If tax returns are submitted, please make sure that all schedules and

pages are provided, or the borrowers income cannot be accurately calculatedby the

underwriter.

2. Please submit income documents for the year the loan closed and the two years prior toloan closure. We need this information to determine the borrowers true debt-to-income

(DTI) ratios, despite the fact the loan may have been originated by the Lender as a Stated

Income Loan.

I. NOTE: If the borrower was a salaried employee, and the salary changed little duringthe two years prior to the granting of the loan, 3 years worth of Income Documents

may not be required for Triage. You will need to submit W-2s the year the loan

closed and a written statement from the borrower stating his/her income was the

same, or substantially the same, two years prior to loan closure. Additional income

documents may be requested for the performance of the actual Analysis.

II. We will also accept Tax Transcripts for salaried employees provided the borrowerreceived no other additional income, or write-offs.

III. Borrowers who earned commission income will be required to deliver Tax Returns, asa borrowers earnings can fluctuate, and income tax returns often reflect significant

expenses and write-offs that have the ability to reduce a borrowers allowable

earnings.

5. BORROWER QUESTIONNAIRE (See Attached Questionnaire Sheet)1. Please tell us why the borrower considers the transaction to be predatory and provide us

with the basic details in a written statement. A Basic Narrative is acceptable for the


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purposes of the Triage, but we will need to be provided a detailed narrative for the Analysis.

The following questions can be a good guide:

I. How did you come to have this loan?II. How do you feel you were taken advantage of, treated with bias, or discriminated

against?

III. How have you been harmed financially?IV. Was there anything about the sales process you feel was misleading or corrupt?V. How were you Marketed To? Were you approached by the lender in regard to this

loan? Were you cold called?

VI. How did this loan become unaffordable?VII. Were you steered away from one loan, or discouraged to apply for a loan instrument

in favor of the loan in question.

6. MORTGAGE REVIEW TRIAGE CHECKLIST & COVERSHEET1. Please attach the Checklist Coversheet included at the end of this document

NOTE regarding subordinate financing: A 2nd lien that closes simultaneously with a 1st mortgage is usuallyunderwritten by the same lender as one unit (same loan application and credit documents will apply). A

2nd lien that closes independently of the 1st is a separate transaction. Please provide the appropriate

documents and inquire about pricing as an up-charge will be applied if an Analysis is ordered for 2 separate

liens.


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APPRAISAL REVIEW REQUIRED DOCUMENTS

In short, we only require the Appraisal from the loans origination, in addition to the Checklist:

Appraisal Checklist & Cover Sheet Borrower Questionnaire

1. THE APPRAISALIf there is a question of the homes value at the time of loan origination, please be sure to include

the original APPRAISAL for Triage; the Appraisal can be found as part of the Closing Package.

Appraisals performed afterclosing day are not valid for the purposes of determining property value.

If Valuation is all that is in question, we only require the actual Appraisal used for the loan and property in question.


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COMBO APPRAISAL & MORTGAGE REVIEW REQUIRED

DOCUMENTS

We strongly recommend including the Appraisal whenever submitting the Mortgage documents for Triage

review. We will be able to review valuation and the loan origination, or modification simultaneously.

In short we require the following Documents to perform a Mortgage & Appraisal Combo Triage:

Loan Application Note TIL Income Documents Borrower Questionnaire/Story (brief) Appraisal Cover Sheet & Checklist

If possible, ALWAYS include the Appraisal in a Mortgage Review Triage- the resulting Report Card will showboth a loan review and valuation review.


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*SHORT SALE & MODIFICATION TRIAGE REQUIRED

DOCUMENTS*

*IMPORTANT*: The goal of an actual SHORT SALE REPORT is to give the homeowner the leveragenecessary to compel the Lender to agree to a Fair Market Value for the property in question. An accepted

Fair Housing Complaint or Consumer Financial Protection Bureau complaint can compel the Lender to a

short sale agreement. This leverage however is created by evidencing the harm in a Mortgage transaction

and the modification denial history.

Therefore a SHORT SALE TRIAGE is a combination of harm caused in the original mortgage transaction, the

modification denials within the past 365 days, and a review of the current Fair Market Value. We will

require therefore many of the documents needed for a MORTGAGE REVIEW TRIAGE.

In short we require the following Documents to perform a SHORT SALE & MODIFICAITON TRIAGE:

Loan Application Note TIL Income Documents Borrower Questionnaire/Story (brief) Cover Sheet & Checklist

In addition we require:

Foreclosure Documents: LIS PENDENS, NOTICE OF INTENT TO FORECLOSE etc Current Condition of the Property

Any data that may be available regarding the Subject Propertys current marketFORECLOSURE DOCUMENTS: Any documents delivered to the homeowner which would detail thefollowing sets of facts:

Current Unpaid Principal Balance Escrow Advances Fees and Penalties Due Interest Due Remaining Loan Term

The information we need can usually be found in the following documents:

1. LIS PENDENS2. NOTICE OF INTENT TO FORECLOSE


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**FAIR HOUSING COMPLAINT ADDITIONAL DOCUMENT

& SITUATIONAL REQUIREMENTS**

PRIMARY RESIDENCE

Current occupancy is not an issue for a HUD complaint; however please ensure the property at loan

origination was intended to be used as the borrowers PRIMARY RESIDENCE if a HUD Complaint is

being considered. The Loan Application will determine occupancy type.

MODIFICATION DENIAL

An officialmodification DENIAL must be provided to the borrower, in writing. A written

modification denial must be dated within the most recent 12 Months, in order to file a Fair Housing

Complaint. A denial can also be provided in many forms:

1. DENIAL LETTER: The most obvious is a straight forward Denial letter sent by the Servicer.2. IGNORED APPLICATION: If someone has applied for a Modification and has been ignored for

more than 30 days please have proof of applying for the modification.

3. HARMFUL MODIFICATION: The borrower was granted a Modification which is not beneficial,or even financially harmful to the client. Borrowers under threat of foreclosure are under

pressure and often agree to modifications which are not beneficial to their financial

situation.

PROTECTED CLASS STATUS

Federal law prohibits housing discrimination based on your:

Race, color, national origin, religion, sex, familial status, or disability.Please understand Age, Alternative Lifestyle, and other discrimination factors may not fall under the

FHA, but may fall under ECOA and are also addressed in a Consumer Financial Protection Bureau

complaint. To better understand Fair Housing Complaint eligibility please speak with a Diligence

Group partner.

Please be sure, if the Application does not state so already, the race, color, national origin, or

disability is mentioned in the borrowers narrative to explore the possibility of discrimination.


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TRIAGE PROCESS & REPORT CARD DELIVERY

Once we receive the documents IN GOOD ORDER, an initial TRIAGE of the clients files will begin. All Triage

preliminary reviews are performed by our Senior QC Underwriter, or a credentialed team Underwriter.

A typical client file, based upon the National Averages in terms of mortgage type and size, could be Triaged

within 2-3 business days. Large, detailed, and exceptional cases could take longer, and might require a

nominal processing fee.

A completed Triage generates a two page Report Card of Summary Findings, which can be shared

electronically. Our Report Card will generate additional document requests, share our findings, and provide

the Attorney with a direction relative to how the client might be handled moving forward. If warranted, we

will recommend specific analysis we think would yield the most evidence to support the attorney and their

respective client.

Our Specialized Analyses & Services Include:

1. In-Depth Mortgage Transaction Analysis; includes origination, underwriting closing, servicing, andloan securitization processes

2. In Depth Historical Appraisal Analysis3. In Depth Compliance Analysis4. Document Enforceability5. Fraud & Loan Put-Back Analysis6. Predatory Lending & Loan Product Harm Analysis7. Fair Housing/HUD Complaint Filing Services8. Expert Witness Testimony

Each Triage also includes a brief explanation and consult time from a Diligence Group, LLC Officer.


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MORTGAGE REVIEW TRIAGE CHECKLIST

APPRAISAL REVIEW TRIAGE

COMBO MORTGAGE & APPRAISAL REVIEW TRIAGE CHECKLIST

SHORT SALE & MODIFICATION REVIEW TRIAGE CHECKLIST

BORROWERS NAME:

PROPERTY ADDRESS:

ATTORNEY:

NOTE _____

APPLICATION _____

TIL (TRUTH IN LENDING) _____

INCOME DOCS _____

BORROWERS NARRATIVE _____

HUD-1 (HIGHLY RECOMMENDED) _____

BORROWER QUESTIONNAIRE _____

APPRAISAL _____BORROWER QUESTIONNAIRE _____

NOTE _____

APPLICATION _____


INCOME DOCS _____

BORROWERS NARRATIVE _____

HUD-1 (HIGHLY RECOMMENDED) _____

APPRAISAL _____BORROWER QUESTIONNAIRE _____

NOTE _____

APPLICATION _____


INCOME DOCS _____

BORROWER QUESTIONNAIRE _____

FORECLOSURE DOCUMENTS _____

NOTICE OF INTENT &/OR LIS PENDENS

THE DILIGENCE GROUP, LLC

ATTORNEY TRIAGE SERVICES

MANDATORY CHECKLIST & COVERSHEET


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1. Did the loan or modification granted to the borrower cause financial harm? How was the borrowerharmed?

2. Is the borrower current, in default, or in foreclosure? Why cant the borrower afford to make mortgagepayments?

3. Was the borrower promised something which was not delivered? Were there any surprises about theloan, loan process, or modification process?

4. Was the borrower told to purposely miss some mortgage payments to become eligible for aModification? Who directed the borrower to miss payments?

THE DILIGENCE GROUP, LLC

TRIAGE BORROWER QUESTIONNAIRE

& NARRATIVE


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5. Does the borrower feel taken advantage of, discriminated against, or treated differently?

6. Was the borrower pressured to sign a loan agreement without having ample time to ask questions, orreview the loan in question?

7. Was the loan product the borrower received truthfully represented to them by their LoanOfficer/Mortgage Broker? Or did any of their loan terms or conditions change, without warning, at

signing?

Borrower Additional Comments and Story: