April 28, 2016
Loss Mitigation Mandatory Waiver, 7 Code of Federal Regulations (CFR) 3555, Sec 3555.301(h)
USDA
continues to explore effective means by which to improve the quality and
effectiveness of the Single Family Housing Guaranteed Loan Program (SFHGLP).
Effective loss mitigation keeps borrowers in their homes by avoiding
foreclosure while minimizing credit losses to the Agency. The Agency has
determined, through successful Pilot results, issuing a written waiver of
Agency concurrence reduces process times, increases program effectiveness and
improves the customer’s experience.
Effective
August 1, 2016, USDA is mandating all active participating SFHGLP lenders begin processing formal loss mitigation
servicing plans in accordance with subject waiver, foregoing
Agency concurrence granted by the authority under 7CFR 3555, Sec 3555.301(h).
However, the Agency may revoke a lender’s waiver at any time, upon notice and
without appeal rights.
The
waiver is applicable to the following loss mitigation alternatives:
- Traditional Servicing Options, subject to applicable provisions of 7CFR 3555, Sec 3555.303 and the SFHGLP “Loss Mitigation Guide”;
- Special Servicing Options, subject to the applicable provision of 7 CFR 3555, Sec 3555.304 and the SFHGLP “Loss Mitigation Guide”;
- Special Relief Measures subject to the applicable provisions of 7 CFR 3555 sec. 3555.307(c) and the SFHGLP’s “Loss Mitigation Guide”;
- Voluntary Liquidations, subject to applicable provisions of 7 CFR, Sec 3555.305 and the SFHGLP “Loss Mitigation Guide”.
All
active participating lenders will be required to enter and submit all loss
mitigation servicing plans to the Agency’s Guaranteed Loan System (GLS) to
serve as a record of all loss mitigation alternatives approved by the lender.
All servicing actions completed under this waiver which are not submitted as
required in GLS will not be considered authorized servicing and will be
processed as an unauthorized servicing action should a loss claim be submitted
in the future. In addition, the Monthly Default Reporting and Quarterly Status
Reporting must be completed using the Electronic Data Interchange (EDI) Status
of Mortgage Code Values.
Training Opportunities
The
USDA, Centralized Servicing Center, located in St. Louis Missouri, is providing
several training sessions to assist active participating lenders with Loss
Mitigation, as well as Property Disposition and Loss Claim processing (Registration form). All
training material will be provided on site. Below, please find a list of
training sessions and dates available for registration:
Loss Mitigation
Sessions* Loss Claim/PDP Sessions*
May
23-24, 2016 8:00am/5:00pm May 25-27, 2016 8:00am to 5:00pm
June
6-7, 2016 8:00am/5:00pm June 8-10, 2016 8:00am to 5:00pm
June
13-15, 2016 8:30am/4:30pm August 8-11, 2016 8:30am/4:00pm
July
11-13, 2016 8:30am/4:30pm August 22-25, 2016 8:30am/4:00pm
July
18-20, 2016 8:30am/4:30pm
*All training session times will be offered
during Central Daylight Time and there will be no registration fees or charges
for the training session(s).
Training Facility Location
USDA/RD/Centralized
Servicing Center
4300 GOODFELLOW
BLVD
BLDG 105
SAINT LOUIS, MO
63120
Registration
Contact: william.wines@stl.usda.gov
Facility Access
Travel
expenses to and from the facility will be the Lender’s responsibility. Access
to the facility is restricted without proper clearance. Below, please find a
list of requirements/procedures that must be met to gain access to facility:
- The person driving any vehicle on premises must be preregistered and designated as the driver and include a list of all passengers.
- Each person that will attend the training must be preregistered.
-
Upon arrival, each person will be required to provide one of the following forms of identification that must include your picture: a) Valid Passport, b) Valid State Driver's License, c) Valid State Issued ID, or d) Valid Military ID.
- Upon confirmation of attendance, parking assignment and site passes will be issued at the front gate.
- All persons attending will need to arrive a minimum of 30 minutes, prior to the session start time, to allow sufficient time for site access.
General Travel
Guidance
Travel
to and from the facility is the responsibility of the Lender. Attendees should
ensure that travel to and from the facility is planned to accommodate the start
and conclusion of each training session. In addition, sufficient time should be
allotted for air travel, depending upon the attendee’s destination. St. Louis offers
ample hotel accommodations near St. Louis Lambert Airport and Downtown St.
Louis. Both areas are within approximately 15 minutes of the facility.
System Access Requirements & Loss Mitigation Mandatory Waiver
In
order to maintain compliance with the aforementioned waiver, the lender must appoint
a minimum of two (2) internal Security Administrators that will be responsible
for maintaining system access for all internal users. Furthermore, the lender must
establish a loss mitigation processing staff and ensure they are properly
trained in a manner consistent with published Agency Regulations and
Guidelines.
Prior
to August 1, 2016, the designated Security Administrators must 1) obtain Level II
access to the GLS System and 2) complete/remit the Loss Mitigation User Agreement.
Once
the designated Security Administrators have received confirmation of Level II
access and the user agreement has been approved, the Security Administrators will need to ensure
all internal loss mitigation processing staff obtain Level II access to GLS.
Level II access will allow all loss mitigation processing staff to input all
servicing plans into GLS.
Additional eAuthentication training is available online.
|
