Guide for Using Reverse Mortgage Borrower Communication Materials

Transcription

1 Guide for Using Borrower Communication Materials January 4, 2014 Borrower Materials for Servicers This document provides instructions and terms and conditions for using the reverse mortgage borrower communication materials available on the Fannie Mae Business Portal at: What s in this Guide? 1. Objectives 2. Terms and Conditions 3. Materials Available Recommended Packages 4. Getting Started Sample Timing 5. How to Customize These Documents 6. Borrower Communication Best Practices 2014 Fannie Mae

2 1. Objectives Fannie Mae has developed the reverse mortgage borrower communication materials to help servicers reach out to homeowners with a reverse mortgage and help them understand their responsibilities. These materials are designed to help you regularly communicate with these borrowers as well as nonborrower spouses and heirs. It s highly recommended that you use these pieces to replace or supplement your current reverse mortgage borrower communication materials. 2. Terms and Conditions Fannie Mae disclaims any and all warranties. Fannie Mae shall not be liable for any errors or omissions or for any damages related to the reverse mortgage borrower communication materials. Different reverse mortgage servicers may be subject to different and/or additional requirements under federal and state law; Fannie Mae makes no representation or warranty as to the materials' compliance with state or federal laws. All communications with borrowers must comply with the requirements of any applicable laws; servicers should only revise the reverse mortgage borrower communication materials as appropriate to comply with applicable laws and/or FHA servicing guidelines. The contents of the reverse mortgage borrower communication materials are provided "as is." The materials may be customized with your logo and company information as well as the borrower s loan number and property address. Any use of the Fannie Mae logo and name, outside of these reverse mortgage borrower communication materials, is not allowed unless prior consent has been obtained by Fannie Mae. The reverse mortgage borrower communication materials may not be appropriate for all borrowers; reverse mortgage servicers should carefully evaluate a borrower's situation before providing any of these educational materials Fannie Mae

3 3. Materials Available Recommended Packages Fannie Mae s reverse mortgage borrower communication materials have been developed based on borrower research and servicer best practices. The chart below shows our recommendations for how to best use these materials: Standalone Messages Purpose Statement Messages These messages can be printed on the borrowers monthly statements. There are 7 messages you can choose from to immediately add value to your borrower mailings. Letter Name/ID Purpose Suggested Inserts Welcome Letter (RM_WEL_LET) This letter provides borrowers with your contact information and provides information about the resources you have available to assist them. No insert is necessary; however any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with this letter. Be sure to add hyperlinks to the document names if the documents Borrower Education (RM_BE_UYO_LTR) Reminder of Upcoming Property Payments (RM_UPP_LTR) This letter reminds borrowers of their responsibilities under a reverse mortgage. It can be sent out when you begin servicing the loan or at any time. This letter can be sent one or more months in advance of payments due. listed are available on your website., (2) Questions and Answers About s, and (3) What Spouses and Heirs Should Know About Reverse Mortgages Annual Occupancy Certification (RM_AO1_CERT) Annual Occupancy Certification, 2 nd Reminder (RM_AO2_CERT) Required annually. Consists of a cover letter and certification page to sign and return. The servicer should include a return envelope. Send 30 days (or sooner) after RM_AO1_CERT if certification document has not been returned. Annual Occupancy Certification, 3 rd Reminder (RM_AO3_CERT) Send 60 days (or sooner) after RM_AO1_CERT if certification document has not been returned. Aged Repairs Letter (RM_AGEREP_LTR) Send on date repairs were to be completed per the Repair Rider. Repair Rider, (2) Where to Get Help With Your 2014 Fannie Mae

4 Contact Update Form (RM_CONTACT_LTR) Third-Party Authorization Form (RM_TRDPARTY_LTR) Withdrawal of Third-Party Authorization (RM_NO_TRD_LTR) Send upon request of borrower to update/add contacts to the loan file. Send upon request of the borrower to provide servicer with permission to discuss the reverse mortgage loan with borrower-designated third-parties. Send upon request of the borrower to rescind permission to discuss the reverse mortgage loan with borrowerdesignated third-parties. Self Mailer Name/ID Send When Inserts Reminder of Upcoming Property Payments (RM_UPP_SM) This can be sent one or more months in advance of payments due, alternate with letter RM_UPP_LTR. n/a No insert is necessary; however any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with this letter. No insert is necessary; however any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with this letter. No insert is necessary; however any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with this letter. Property-related Expense Servicer Paid (RM_PRE_SM) This can be sent when property-related expenses have been paid by the servicer and must be reimbursed. It does not replace the need to send HUD s Model Property Charge Delinquency Letter. n/a Insert Name/ID Where to Get Help With Your (RM_WGH_FLY) Understand Your Reverse Mortgage Options (RM_ALL_FLY) Questions and Answers About s (RM_FAQ_FLY) What Non-Borrower Spouses and Heirs Should Know About s (RM_FAQSH_FLY) Responsibilities Reminder Buckslip (RM_RESP_INS) Counseling Buckslip (RM_COUN_INS) Options Buckslip Send When Can be sent with any letter in this series or on its own when borrower indicates he/she is struggling and may need to be recommended to a HUD-approved counseling agency. Can be sent when borrower or non-borrower spouse indicates he/she would like to leave the home or can no longer occupy the home. Can be sent with any letter in the series or on its own when borrower or other interested party has general questions about reverse mortgages. Can be sent with Annual Occupancy Certification letter or on its own. It can also be sent when requested by borrower or other interested party who has questions relating to his/her role, the responsibilities of a reverse mortgage, and what happens after the borrower dies. Can be inserted into any letter in this series or your existing letters/statements. Suggest rotating with other available buckslips in this series. Can be inserted into any letter in this series or your existing letters/statements. Suggest rotating with other available buckslips in this series. Can be inserted into any letter in this series or your existing letters/statements Fannie Mae

5 (RM_OPTIONS_INS) Suggest rotating with other available buckslips in this series. 4. Getting Started Sample Timing In addition to the best practices described above, we have some suggestions on how to get started and when to use each letter. When you begin servicing the loan or at any time Upon request Two to six months after you begin servicing the loan One or more months before payments are due If payments are missed Annually When borrower has general questions about reverse mortgages When borrower indicates they are struggling Welcome Letter and recommended buckslips Contact Update Form; Third-Party Authorization Form; Withdrawal of Third-Party Authorization. Any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with these letters. Borrower Education Letter and recommended flyers: (1) Where to Get Help With Your, (2) Questions and Answers About s, and (3) What Spouses and Heirs Should Know About Reverse Mortgages Reminder of Upcoming Property Payments Letter and Where to Get Help With Your Flyer; alternate with Reminder of Upcoming Property Payments Self Mailer HUD s Model Property Charge Delinquency Letter (see HUD website for letter) and (1) Where to Get Help With Your, (2) Questions and Answers About s, and (3) Understand Your Options; alternate with Property- Related Expense Servicer Paid Self Mailer Annual Occupancy Certification Letter with Where to Get Help With Your Flyer. To be followed by the 2 nd and 3 rd reminder letters if needed at 30 dates past-due and 60 days past-due, respectively. Questions and Answers About s Flyer Also, any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ). Where to Get Help With Your Flyer 2014 Fannie Mae

6 with required payments (e.g., taxes, insurance, or HOA fees) When borrower indicates he/she would like to leave the home or can no longer occupy the home When borrower wants to provide information to a non-borrower spouse or heir about the reverse mortgage When borrower has not completed required repairs by the deadline indicated in the Repair Rider. If you do not want to send additional materials or update your letters at this time Understand Your Options Flyer What Non-Borrower Spouses and Heirs Should Know About s Flyer Aged Repairs Letter along with (1) Repair Rider, (2) Where to Get Help With Your Standalone messaging (7 messages are available) can be printed on your existing materials to quickly add value for your reverse mortgage borrowers. Also, any of the three buckslips available in this series can be used (RM_RESP_INS, RM_COUN_INS, or RM_OPTIONS_INS ) with your existing letters Fannie Mae

7 5. How to Customize These Documents The reverse mortgage borrower communication materials can be customized with your contact information, logo, and legal disclaimers. All materials have been posted in Adobe PDF format and as a.zip file, which contains the files in Adobe InDesign format (also called native files ). You may view the files using any PDF reader, e.g., Adobe Acrobat. To customize the materials, it is strongly recommended that you use the InDesign files. However, you can edit the print-ready PDF files in Illustrator or other compatible production software if you prefer. Keep in mind: 1. Areas to be customized in the materials are shown with < > see sample on next page. 2. Export each document as a print-ready PDF. 3. Self-mailers should include crop marks and bleeds. 4. Files can be sent to your print vendor or direct mail provider. Special notes for the self mailers: Our self mailers are designed to meet post office requirements for machinable, automated (discounted) pricing. To meet postal regulations and run through post office machinery, self mailers must print on 80# cover stock. To meet postal regulations and run through post office machinery, self mailers must be sealed with two tabs (wafer seals). Tabs must seal the open flap opposite the folded edge. One tab must be placed at the left top and one at the right top. Tabs cannot have perforations and must be circular, measuring 1 or 1.5. The self mailers measure 16" x 6" flat, folding to 8" x 6" and print 4/4 with bleeds. Special notes for the buckslips: The trimmed size is 8.5 x 3.5 and print 4/4 with bleeds Fannie Mae

8 Sample Letter Customization Insert logo Insert phone Insert your address Insert loan number and property address securing the reverse mortgage Insert phone here Be sure to include the recommended inserts r p and loan number 2014 Fannie Mae

9 6. Borrower Communications Best Practices Here are a few tips on improving direct marketing effectiveness when using these materials: Keep messaging simple, use large fonts and minimal graphics Use colors to highlight important information Use an oversized envelope for letters and have a printed message on the outside of the envelope above the borrower s address for example: Important Information About s Enclosed Try overnight or 2-day mail delivery instead of First Class mail to boost response rates Rotate the use of letters and self mailers repetition is key. Homeowners may need to see the same message three times before responding. Promote our helpful flyers like the Where to Get Help Flyer or Questions and Answers About s on your website or when you telephone reverse mortgage borrowers Fannie Mae