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Client Bulletin 11/05/21

New Same-Day Homeowner Call-Back Assist with Scheduling Capability

We recognize that your homeowners are busy people and want to connect with us quickly whenever a question arises. That’s why we’ve launched a new same-day homeowner call-back assist program that enables callers to schedule a callback via the IVR.

How to Schedule a Callback

Callers who schedule callbacks via the IVR between 9:00 AM and Noon ET will be able to choose any callback time between Noon and 5:00 PM ET Tuesday through Friday.

Our Plans for COVID-19 Homeowner Recovery Programs

FHA/HUD, the USDA, and VA announced plans in late July to provide homeowners with a roughly 25% reduction in monthly principal and interest (P&I) payments. These reductions are intended to help homeowners affected by the COVID pandemic to remain in their homes and build equity. The announcement was in keeping with options previously announced by Fannie Mae and Freddie Mac. A summary of the guidance outlined by HUD, VA and USDA follows below.

FHA/HUD – The FHA requires mortgage servicers to offer a no-cost option to eligible homeowners who can resume their current mortgage payments. To achieve those goals, HUD is now offering:

·       COVID-19 Recovery Standalone Partial Claim. For homeowners who can resume their current mortgage payments, HUD will provide borrowers with an option to continue these payments by offering a zero interest, subordinate lien (also known as a partial claim) that is repaid when the mortgage terminates, such as upon sale or refinance.

·     COVID-19 Recovery Modification. For homeowners who cannot resume making their current monthly mortgage payments, the COVID-19 Recovery Modification extends the term of the mortgage to 360 months at market rate and targets reducing the borrowers’ monthly P&I portion of their monthly mortgage payment by 25%.

For properties not occupied by the owner, mortgage servicers must offer eligible homeowners FHA’s COVID-19 Recovery Non-Occupant Loan Modification. This program extends the term of the mortgage to 360 months, or less if requested by the homeowner, at a fixed interest rate.

 
VA – Two new programs will be made available to borrowers to assist them and provide viable loss-mitigation solutions.

·       COVID-19 VA Partial Claim (VAPCP). This is a temporary program intended to assist veteran borrowers directly impacted by the COVID-19 pandemic. The goal is to help them resume making their regular (pre-COVID) mortgage payments after exiting forbearance. This option creates a partial claim to be created (not to exceed 30% of the unpaid principal balance of the VA-guaranteed loan). All missed monthly principal, interest and escrow payments for real estate taxes and insurance premiums to bring the loan current can be included in the partial claim amount. The VAPCP can be offered once over the life cycle of the loan.

Eligibility

  • Borrower was current or less than 30 days past due as of March 1, 2020 or origination occurred on or after March 1, 2020.
  • Borrower missed at least one scheduled payment under a COVID-19 forbearance.
  • Loan is at least 30 days delinquent after the forbearance period has ended.
  • The borrower occupies, as the borrower’s residence, the property securing the guaranteed loan.
·       COVID-19 Refund Option – VA’s new COVID-19 Refund Modification provides multiple tools to assist certain borrowers in achieving a 20-25% reduction in the dollar amount for monthly P&I mortgage payments. VA can purchase a borrower’s COVID-19 arrearages from the servicer and, if needed, additional amounts of loan principal (subject to an overall cap corresponding to 30% of the borrower’s unpaid principal balance as of the first day of the borrower’s COVID-19 forbearance).

Similar to VA’s COVID-19 partial claim option, the COVID-19 refund will be established as a junior lien, payable to VA at 0% interest. In addition, servicers can modify the loan and add up to 120 months to the original maturity date (total repayment term can be up to 480 months).

Eligibility

  • Borrower was current or less than 30 days past due as of March 1, 2020 or origination occurred on or after March 1, 2020.
  • Borrower missed at least one scheduled payment under a COVID-19 forbearance.
  • Loan is at least 30 days delinquent after the forbearance period has ended.
  • The borrower occupies, as the borrower’s residence, the property securing the guaranteed loan.
·       COVID-19 Refund Option – VA’s new COVID-19 Refund Modification provides multiple tools to assist certain borrowers in achieving a 20-25% reduction in the dollar amount for monthly P&I mortgage payments. VA can purchase a borrower’s COVID-19 arrearages from the servicer and, if needed, additional amounts of loan principal (subject to an overall cap corresponding to 30% of the borrower’s unpaid principal balance as of the first day of the borrower’s COVID-19 forbearance).

Similar to VA’s COVID-19 partial claim option, the COVID-19 refund will be established as a junior lien, payable to VA at 0% interest. In addition, servicers can modify the loan and add up to 120 months to the original maturity date (total repayment term can be up to 480 months).

 

Veterans Day Holiday Closure

In observance of the Veterans Day holiday, Cenlar will be closed on Thursday, November 11, 2021. Any files received on Thursday, November 11 will be processed the night of Friday, November 12. Output will be available Monday, November 15, 2021.

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