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Evaluation

Evaluation. Borrower Solicitation and response and Servicer evaluation. Servicers must comply with the evaluation hierarchy and solicitation requirements What the Servicer must do when extending a HAFA short sale offer to the Borrower.

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Evaluation

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  1. Evaluation

  2. Borrower Solicitation and response and Servicer evaluation • Servicers must comply with the evaluation hierarchy and solicitation requirements • What the Servicer must do when extending a HAFA short sale offer to the Borrower

  3. Borrower Solicitation and response and Servicer evaluation • If Freddie Mac approves the Borrower for a HAFA Deed-in-Lieu • What the Servicer must include in the evaluation notice

  4. Evaluation Criteria • If a HAFA-eligible Borrower responds to the Servicer's solicitation. • If the Borrower was previously considered for HAMP.

  5. Evaluation Criteria • The documentation • What the Servicer is not required to obtain.

  6. Evaluation Criteria • If the Servicer must order a new credit report • If a HAFA Short Sale or Deed-in-Lieu is completed

  7. Evaluation Criteria • There are a number of criteria required from the Borrower to be eligible for an SSA • Explained in the following slides.

  8. Borrower Criteria • The Borrower must currently occupy the Mortgaged Premises • The Servicer must obtain a credit report from the Borrowers

  9. Borrower Criteria • What must be submitted • What the Servicer must process

  10. Borrower Criteria • Have Cash Reserves ,determined as follows: • Principal and interest • Monthly pro rata amount for real estate taxes, property and flood insurance • Monthly pro rata amount of homeowner's association/condominium fees • Any Escrow payment shortage amounts subject to a repayment plan

  11. Cash Reserves • The process for calculating and verifying Cash Reserves: • 1) The Servicer must determine the Borrower's Cash Reserves • 2) If the Servicer observes interest, dividend income or gains/losses

  12. Cash Reserves (cont) • 3) If there are inconsistencies between the Borrower's disclosure of assets and the tax return information • 4) Based on the Cash Reserves test, if the Servicer determines that the Borrower's Cash Reserves exceed the greater of $5000 or three times the monthly payment.

  13. Mortgage Premises Criteria • The Servicer must order an interior Broker's Price Opinion (BPO) or appraisal using the 90 day "as is" marketing value from Freddie Mac's web site at https://www.bpodirect.com • The BPO or appraisal may not be more than 30 days old

  14. Mortgage Premises Criteria • The Servicer must review the BPO or appraisal • The Borrower pay in advance for the valuation to the Servicer.

  15. Mortgage Insurer Approval • If the Mortgage is covered by mortgage insurance

  16. Title Criteria • The Servicer must review readily available information provided by the Borrower

  17. Title Criteria • When the Borrower is ineligible for a HAFA Short Sale or a HAFA Deed-in-Lieu. • If the Servicer's review of the title information reveals a lien, claim, encumbrance or defect that prevents the Borrower from conveying clear, marketable title to the Mortgaged Premises

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