MHA Case Escalation Process Training Presentation for Trusted Advisors

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1 MHA Case Escalation Process Training Presentation for Trusted Advisors 1 MHA Case Escalations Process Objectives Type of Mortgage Loan - Determines Escalation Path Escalation Contacts Definition of an Escalated Case (Non-GSE/Non-Gov) Case Escalation Paths for Homeowner MHA Escalation Process Special Considerations Escalation Examples Resources Questions/Answers 2 Type of Mortgage Loan Determines Escalation Path It is important to know the type of mortgage loan the homeowner has, to determine the escalation path to follow. Definition of the mortgage loan types: A GSE loan is a loan that is owned or guaranteed by Fannie Mae or Freddie Mac. A non-gse loan is not owned or guaranteed by Fannie Mae or Freddie Mac or is not a government loan. To determine if the loan is owned by one of the GSEs, you can look up the loan using MakingHomeAffordable.gov, under the Get Assistance tab and clicking Loan Look Up. A government loan is owned or guaranteed by FHA, VA or USDA/RHS. Any loan can be escalated directly to the servicer. 3 MHA Case Escalations for TA 1

2 Escalation Contacts Non-GSE Loan GSE Loan Non-GSE Loan GSE Loan Fannie Mae (GSE Loan) Freddie Mac (GSE Loan) Escalation Contact HAMP Solution Center: (Trusted Advisor) MHA Help - HOPE Hotline at HOPE(4673) (Homeowner) FannieMae.com: (800)7Fannie resource_center@fanniemae.com FreddieMac.com: (800)Freddie borrower_outreach@freddiemac.com FHA Loans National Servicing Center: (877) FHA.gov VA Loans (877) or HomeLoans.va.gov RHS Loans Centralized Servicing Center (800) Definition of an Escalated Case Non-GSE/Non-Government Escalated Cases include allegations that the servicer: Did not properly assess or inappropriately denied the homeowner for applicable MHA program(s), or Took inappropriate foreclosure actions. Escalated Cases do not include: General inquiries about the content of a Non-Approval Notice, or inquiries about the status of an evaluation of a homeowner where the servicer is in compliance with the required program timelines. 5 Case Escalation Paths For Homeowners Homeowner Trusted Advisor MHA Help HSC Resolution 6 MHA Case Escalations for TA 2

3 MHA Escalation Process STEP 1 STEP 2 STEP 3 STEP 4 Acknowledgement Resolution Communication Escalating Party Sends inquiry or dispute to servicer either directly or through HSC or MHA Help acting on behalf of the homeowner. Sends acknowledgement to escalating party and homeowner within 5 business days from receipt of Escalated Case. Reviews and resolves Escalated Case within 30 calendar days from receipt of case by escalating party. Notifies escalating party or homeowner within 10 business days of final resolution and next steps in writing. HSC or MHA Help Within 2 business days of receipt of completed submission forms, sends information to servicer to escalate. Includes Resolution Date within 30 calendar days of receipt date of escalation request. HSC or MHA Help Notifies escalating party or or homeowner, respectively, of acknowledgement. HSC or MHA Help Notifies escalating party and homeowner, respectively, of resolution, within five business days of concurring with the servicer. HSC or MHA Help Reviews any outstanding items or questions from trusted advisor or homeowner and closes the case, as appropriate. Day 0 2 business days 5 business days 10 business days 30 calendar days 7 Homeowner Escalates a Case Homeowner Trusted Advisor MHA Help HSC Resolution 8 Homeowner Escalates to The homeowner may escalate a case directly to the servicer following these steps: Contact the servicer directly to escalate a case, working through the assigned relationship manager, Complete any servicer forms that may be required, and Submit complete information to the servicer to escalate the case including description of the inquiry or dispute. A servicer has: 5 business days from receipt of an Escalated Case to send a written acknowledgement to the homeowner, and 30 calendar days to review and resolve an Escalated Case from the receipt date of the escalation notice. 9 MHA Case Escalations for TA 3

4 Homeowners Escalate Cases MHA Help Hope Hotline Help is a Phone Help Call Away is a Phone Call Away HOPE HOPE ( ) (4673) 10 Homeowner Submits Case to MHA Help Steps in the submission process: The homeowner contacts the Homeowner s HOPE Hotline at HOPE (4673) and provides the information about his or her inquiry or dispute of the case. MHA Help assigns a housing expert to the case. MHA Help acknowledges receipt of the escalated case via this initial telephone conversation with the homeowner. MHA Help attempts a 3-way call with the homeowner and the servicer to review the case. MHA Help sends a Engagement Notice to the servicer within 2 business days from the call to escalate, if needed. 11 Case Escalation Paths For Trusted Advisors Homeowner Trusted Advisor MHA Help HSC Resolution 12 MHA Case Escalations for TA 4

5 Trusted Advisor Escalates to The trusted advisor should: Contact the servicer (the relationship manager, in most cases) for assistance. Provide a signed Third-Party Authorization Form. s are required to have written procedures and personnel in place to provide timely and appropriate responses to homeowner inquiries and disputes that rise to the level of an Escalated Case. A servicer has: 5 business days - from receipt of an Escalated Case to send a written acknowledgement to the trusted advisor, and 30 calendar days - from receipt date of the escalation notice to review and resolve an Escalated Case. 13 Trusted Advisor Escalates Cases HAMP Solution Center (HSC) HSC escalations@hmpadmin.com Required Forms for Trusted Advisors Important! FILL OUT BOTH FORMS Case Form Third-Party Authorization Form 15 MHA Case Escalations for TA 5

6 Case Form Homeowner Information Information Escalation Information 16 Third-Party Authorization Form Account Information Authorized Parties Signatures 17 Trusted Advisor Submits Case to HSC Steps in the HSC submission process: The trusted advisor sends the escalated case, including the completed Third-Party Authorization Form and the Case Form via to HSC sends an automated response to the trusted advisor upon receipt of the . HSC reviews the escalated case within 2 business days and sends the Engagement Notice to the servicer to escalate the case within these 2 business days. HSC reaches out to the trusted advisor to request any additional information that is needed. 18 MHA Case Escalations for TA 6

7 Acknowledgement Escalating Party Notified Case Was Received sends acknowledgement that the Escalated Case was received, to the escalating party, within 5 business days from the receipt of the request to escalate. The acknowledgement will be in writing and will include: Case reference name or number, Anticipated Resolution Date, and Toll-free escalation contact phone number. Anticipated Resolution Date may not exceed 30 calendar days from the later of: (i) The date the inquiry was received or (ii)the date on which any necessary authorizations (including third-party authorizations) were received. 19 Case Resolution s Resolve Escalated Cases Upon receipt of the Escalated Case, the servicer will review the case to: Determine the nature of the inquiry, Compare the information provided against the information on file, Determine a proposed resolution within 30 calendar days of the case submission date, and Secure concurrence for the proposed resolution, if applicable. If resolution takes longer than 30 calendar days, servicer must provide an update every 15 calendar days. 20 Communication HSC, MHA Help and s Communication of Case Resolution HSC and MHA Help Within 5 business days of concurring with the servicer, HSC and MHA Help must communicate the resolution to the escalating party and the homeowner, respectively. Within 10 business days of reaching a decision, the servicer must communicate the resolution to the homeowner and escalating party in writing. 21 MHA Case Escalations for TA 7

8 Special Considerations Substantially Similar Case s Substantially similar means the substance of an Escalated Case inquiry pertains to the same homeowner and loan inquiry or dispute as a previously resolved Escalated Case. s are not required to review substantially similar cases. If the case was escalated by HSC or MHA Help, then a determination that a case is substantially similar to a previous inquiry or dispute will not be final until HSC or MHA Help concurs with the servicer s determination. 22 Special Considerations Escalated Cases and Foreclosures Timing A servicer may not refer a loan to foreclosure or conduct a foreclosure sale unless and until an Escalated Case is properly resolved. Exceptions A servicer is not required to suspend a foreclosure sale when: An Escalated Case is received after midnight of the seventh business day before the foreclosure sale date, or A court fails/refuses to halt the sale after the servicer has made reasonable effort to stop the sale. Pending Cases Escalated Cases that are pending at the time of a foreclosure sale must still be resolved. 23 Special Considerations Homeowner Incorrectly Denied a Trial Period Plan If a servicer determines, as a result of an Escalated Case, that a homeowner was incorrectly denied a trial period plan: The servicer must offer the homeowner a trial period plan based on the status of the homeowner and the loan at the time of the servicer s initial evaluation, and To the greatest extent possible, the homeowner must be put in the same position as he or she would have been if the servicer had offered the homeowner the trial period plan in accordance with MHA guidelines. 24 MHA Case Escalations for TA 8

9 Special Considerations Escalated Cases Pending Litigation In some cases, a servicer cannot provide information regarding the issues related to the Escalated Case due to pending litigation involving the servicer and the homeowner. The servicer must resolve the Escalated Case by a written communication to the escalating party, including the relevant litigation case name, case number and date and court of filing. The servicer still must obtain concurrence from either HSC or MHA Help, if applicable, before the case can be resolved. Pending litigation does not include foreclosure actions brought on by the servicer. 25 Examples of Escalated Cases HAMP Escalations Document Handling Home Retention Options Status Issues Foreclosure Initiated The homeowner submitted documents, but the servicer has either lost or misplaced the documents. did not properly assess the homeowner for MHArelated home retention/workout options. Communications sent from the servicer to homeowner did not accurately portray homeowner s MHA-related status. The servicer has wrongfully referred a case to foreclosure. 26 Examples of Escalated Cases HAFA Policy issues that should be escalated. is not responding according to program timelines. Issues Eligibility Issues claims homeowner is not HAFA-eligible because homeowner is in bankruptcy. Issues Post-Closing Issues is not allowing at least 30 days for the buyer to close. has provided incorrect tax forms or incorrect information on the form # 1099-C. HAFA issues that may be escalated to the servicer, but not to the MHA Support Centers. Property Valuation Mortgage Insurance Denial will not allow adjustments to the list price of the property. claims that the mortgage insurance company is denying approval of the short sale. 27 MHA Case Escalations for TA 9

10 Resources: HMPadmin.com Easy access to to MHA information and tools 28 Resources: MakingHomeAffordable.gov Information on Easy MHA access to programs MHA and information additional and tools resources Resources for Counselors and Trusted Advisors Program Guidelines How to Help Borrowers Brochures, flyers, posters MHA Storefront Case Escalations 29 Discussion / Questions U.S. Department of the Treasury Homeownership Preservation Office 30 MHA Case Escalations for TA 10