Homeowner Assistance Fund Update: Fee Structure
As you know, implementation of the Homeowner Assistance Fund (HAF) is underway. Over the past many months Cenlar has been actively reviewing the requirements, building business processes to support the requirements and hiring staff to perform this work. We have also been actively processing inquiries and approvals on behalf of homeowners in order to comply with the requirements of the program.
Managing this effort requires a substantial use of our resources. This includes careful oversight and automation of processes and coordination with each of the states which was not anticipated under our existing subservicing pricing. We have been working hard to evaluate and understand the related costs. Based upon our research, we will be assessing the following fees to you for the loans that we have processed and will process going forward through this program.
- I-Record Intake Fee: A one-time charge of $450 for the I-Record intake. The I-Record is the initial request or submission record that the state sends to Cenlar to request appropriate homeowner information needed to launch the HAF process. Cenlar will apply the Intake Fee for every I-Record it receives but will only charge it once on a particular loan if subsequent information is required on the same application/inquiry.
- Reinstatement and Recast Fee: A $250 fee will be charged to complete the processing of any funds a borrower is awarded. The fee aligns to the recast fee currently charged to borrowers in most cases. With HAF, Cenlar will bill you, our client, this fee rather than the borrower.
- Contractual Decisioning Fee: When the HAF funds do not cover the entirety of a delinquency or whereas otherwise required by a state’s program, Cenlar will assess our contractual Decisioning Fee to determine what, if any, additional mortgage assistance funds may be available. Please Note: Any principal and interest losses that may occur as a result of modifications or recasts shall be considered an ownership risk under our Subservicing Agreement.
Your next monthly invoice will reflect charges for loans that are being actively processed at this time. We are finalizing activity reports that we will provide to you on a daily basis summarizing the loans that are being processed. We will begin report delivery on Monday, April 18 and include it with your daily report feed. You will not receive a report unless you have at least one loan which has resulted in the submission of an I-Record.
As this program and the related requirements mature, Cenlar reserves the right to review fees in the future should the program requirements change causing our actual costs to be affected by those program changes.