Contemporary Report by lonyoo

VIEWS: 10 PAGES: 25

									                                                                PMI Loss Mitigation & Claims Reference Manual
                                                                                                                                Revised: March 2010




PMI MORTGAGE INSURANCE CO......................................................................................................III

DELINQUENCY REPORTING ................................................................................................................. 1
   HOW TO FILE ............................................................................................................................................... 1
     Paper ...................................................................................................................................................... 1
     Electronic ............................................................................................................................................... 1
     EDI ......................................................................................................................................................... 2
     Internet/Web ........................................................................................................................................... 2
   UPDATE REQUIREMENTS ............................................................................................................................. 2
     EDI ......................................................................................................................................................... 2
     Paper/Internet/Web ................................................................................................................................ 2
   BANKRUPTCY FILING .................................................................................................................................. 2
   LITIGATION ................................................................................................................................................. 2
MONTHLY PREMIUM PAYMENTS....................................................................................................... 3
   OPTIONS DURING DEFAULT ........................................................................................................................ 3
WORKOUT AND LOSS MITIGATION................................................................................................... 4
   WHO TO CONTACT ...................................................................................................................................... 4
   HOW TO CONTACT OUR LOSS MITIGATION DEPARTMENT .......................................................................... 4
   REPAYMENT PROGRAMS ............................................................................................................................. 4
   ASSUMPTIONS ............................................................................................................................................. 4
     Documentation Requirements................................................................................................................. 4
   DELINQUENT LOAN MODIFICATIONS .......................................................................................................... 5
   PREARRANGED SALES (PRE-FORECLOSURE SALE)...................................................................................... 5
     Documentation Requirements................................................................................................................. 5
   DEED IN LIEU OF FORECLOSURE ................................................................................................................. 6
     Documentation Requirements................................................................................................................. 6
FORECLOSURE REQUIREMENTS ........................................................................................................ 7
   WHEN TO BEGIN FORECLOSURE .................................................................................................................. 7
   FORECLOSURE TIME FRAMES ...................................................................................................................... 7
   BANKRUPTCY TIME FRAMES ....................................................................................................................... 7
   CLAIMEASESM TIMETABLE INSTRUCTIONS .................................................................................................. 8
   FORECLOSURE SALE BIDDING INSTRUCTIONS ............................................................................................. 9
POST FORECLOSURE AND REO ......................................................................................................... 11
   LISTING THE PROPERTY FOR SALE ............................................................................................................ 11
   OFFERS TO PURCHASE ............................................................................................................................... 11
CLAIM FOR LOSS – FILING INSTRUCTIONS .................................................................................. 12

CLAIM FOR LOSS - PROCESSING....................................................................................................... 13
   CLAIMABLE ITEMS INCLUDE: .................................................................................................................... 13
     Principal Balance................................................................................................................................. 13
     Past Due Interest .................................................................................................................................. 13
     Attorney’s Fees..................................................................................................................................... 13
     Statutory Disbursements....................................................................................................................... 13
     Property Taxes...................................................................................................................................... 13
     Hazard Insurance Premiums ................................................................................................................ 14
     Preservation Costs................................................................................................................................ 14

                           To Contact the Claims Department please call 800.795.4764                                                                               I
                                                              PMI Loss Mitigation & Claims Reference Manual
                                                                                                                              Revised: March 2010




     Other Expenses..................................................................................................................................... 14
   NONCLAIMABLE ITEMS INCLUDE:............................................................................................................. 14
     Judgments/Liens ................................................................................................................................... 14
     Late Charges for Homeowner Association and Tax Penalties ............................................................. 14
   DEDUCTIBLE ITEMS INCLUDE .................................................................................................................... 15
     Escrow Funds ....................................................................................................................................... 15
     Pledged Accounts ................................................................................................................................. 15
     Receivership ......................................................................................................................................... 15
     Net Proceeds......................................................................................................................................... 15
CLAIM SETTLEMENT............................................................................................................................ 17
   CLAIM SETTLEMENT METHODS................................................................................................................. 17
     Percentage Option................................................................................................................................ 17
     PreArranged Sale Option ..................................................................................................................... 17
     Acquisition Option................................................................................................................................ 17
   CLOSED WITHOUT PAYMENT .................................................................................................................... 17
     Non-Perfected....................................................................................................................................... 17
     Eviction................................................................................................................................................. 17
     Request By Claim Filer......................................................................................................................... 17
   SUPPLEMENTAL CLAIMS ........................................................................................................................... 18
DISASTER RELIEF POLICY.................................................................................................................. 19
   FORBEARANCE FOR VICTIMS IN DISASTER AREAS DESIGNATED BY FEMA.............................................. 19
SAVING HOMEOWNERSHIP AND REPAYMENT PROGRAM (SHARP) ..................................... 20
   HOW DOES THE SAVING HOMEOWNERSHIP AND REPAYMENT PROGRAM WORK? .................................... 20
   WHICH BORROWERS ARE ELIGIBLE? ........................................................................................................ 20
   ARE THERE ANY SPECIAL REQUIREMENTS? ............................................................................................. 20
   WHAT TYPES OF DEFAULTS QUALIFY FOR THE SAVING HOMEOWNERSHIP AND REPAYMENT PROGRAM? 21
   WHAT ARE THE STEPS IN THE QUALIFICATION PROCESS?......................................................................... 21
   WHAT DOCUMENTATION MUST THE SERVICER COLLECT? ....................................................................... 21




                                 For further information, please call 800.288.1970                                                                             II
                                     PMI Loss Mitigation & Claims Reference Manual
                                                                               Revised: March 2010




PMI MORTGAGE INSURANCE CO.
        PMI’s Delinquency and Claims Procedures are based on the terms and conditions of PMI’s
        First Lien Master Policy (the “Policy”) and on our belief that the lending industry is better
        served if a claim is averted or minimized. Our goal is to work with you to cure the
        delinquency within the framework of the Policy if at all possible. If the delinquency cannot be
        cured, we seek to limit the loss where appropriate. PMI’s Loss Mitigation and Claims
        professionals are committed to working with you to achieve this goal.
        The ultimate value of PMI’s coverage is realized when a Loan goes into default. To preserve
        this value, it is important that you understand and follow the Loss Mitigation and Claims
        procedures outlined and summarized in this manual.
        This Loss Mitigation and Claims Procedures Manual (the “Manual”) is generally based on the
        First Lien Master Policy UW 2170.00 (3/94) and the Bulk Primary First Lien Master Policy
        2510.00 (9/00). Please contact PMI for guidance on Loss Mitigation and Claims as they
        apply to Pool Insurance and other products.
        All capitalized terms in this manual shall have the meaning stated in the Policy unless defined
        herein.
        This Manual is intended to explain and assist in following the requirements of the Policy, but
        is not intended to amend or modify the Policy and, therefore, in the event of any inconsistency
        between the Manual and the Policy, the terms of the Policy will prevail.




                 For further information, please call 800.288.1970                                   III
                                       PMI Loss Mitigation & Claims Reference Manual
                                                                                            March 2010




Delinquency Reporting
          PMI accepts notices of default (NOD) using ADR (Automated Delinquency Reporting)
          reporting, ePMI-Servicing, EDI, PMI Form CL 3004 or any other mutually-agreed upon
          format. A loan is considered delinquent on the close of the installment due date. The NOD
          must be filed when two payments are missed or when foreclosure or other appropriate
          proceedings have been commenced. For example, if the January 1 payment and subsequent
          monthly payment is missed, the NOD would be required by PMI in the February reporting
          cycle, typically after the 15th of the month. PMI also requires notification of bankruptcies if
          the loan is delinquent or if any litigation commences.

          If the first scheduled mortgage loan payment is missed, the NOD must be filed within 45 days
          of the missed payment.

          PMI will generate a delinquency turnaround report for manual reporting each month, which
          must be updated and returned within 10 days of receipt.

          Failure to file a Notice of Default in the time required entitles PMI to deduct 30 days of
          interest from the Claim Amount.

       How to File
         Paper
          You may use PMI’s Form CLM 019, Notice of Delinquency – First Lien form or any other
          mutually accepted reporting paper format. Form CLM 019 requires information concerning
          the Policy, Borrower, Property and Loan. The Loan’s principal balance, next payment due and
          the reason for delinquency are particularly important components that PMI requires to assist
          you in the servicing process. The address for filing the Notice of Delinquency – First Lien
          Form is:

          PMI Mortgage Insurance Co.
          Loss Mitigation and Claims Department
          3003 Oak Road
          Walnut Creek, CA 94597
          You may also Fax the Default Form to us at: 888-305-2981. This is a dedicated Fax line for
          Default Reporting.

          For a copy of the Form CLM 019, please visit the PMI website at www.pmi-us.com. If you
          have any questions concerning any of the information requested, please contact PMI’s Loss
          Mitigation and Claims Department.
          You may also send requests or information to PMI concerning default reporting to the
          following address: pmidefault.reporting@pmigroup.com

         Electronic
          PMI allows for electronic reporting through its ADR (Automated Delinquency Reporting)
          electronic data interchange system as a paperless alternative to the delinquency reporting
          requirements of our Primary and Pool policies.


               To Contact the Claims Department please call 800.795.4764                               1
                               PMI Loss Mitigation & Claims Reference Manual
                                                                         Revised: March 2010




   To be set up for electronic reporting, simply call PMI’s Loss Mitigation and Claims
   Department at 800.288.1970. We will provide you with a booklet outlining the standardized
   format details.

  EDI
   Delinquencies may be reported using various Electronic Data Interchange connection
   methods. To begin transmission utilizing EDI, please contact the Loss Mitigation and Claims
   Department.

  Internet/Web
   Notice of Delinquencies may be reported by using our PMI’s E-PMI Servicing website.
   Please contact our Claims Department for more information.



Update Requirements
  EDI
   If you report by EDI, the standard ADR file format provides for the automatic updating of
   previously reported delinquencies.

  Paper/Internet/Web
   The month after filing a Notice of Default, PMI will send you a Monthly Delinquency
   “Turnaround” Report for all Paper filers. This report is generated to track the status of all
   PMI-insured delinquent Loans.
   Simply update the status of your delinquencies via Paper and return the form to PMI within
   10 days of receipt. You will be receiving Turnaround Reports for each loan reported
   delinquent until you report it reinstated or the Claim has been settled.
   Web (ePMI Servicing Website) filers are able to pull a Turnaround Report directly from the
   website. No report will be sent out by PMI.



Bankruptcy Filing
   In the event the Borrower(s) file a bankruptcy on a delinquent Loan, notify PMI of the chapter
   and filing date. This can be done by Tape/EDI or Monthly Turnaround Reports.

Litigation
   In the event any Appropriate Proceeding or any litigation involving the Borrower, Loan or
   Property is commenced on a PMI-insured Loan, notify PMI of the nature of such proceedings.
   This can be done by Tape/EDI or Monthly Turnaround Reports.




             For further information, please call 800.288.1970                                 2
                                     PMI Loss Mitigation & Claims Reference Manual
                                                                               Revised: March 2010




MONTHLY PREMIUM PAYMENTS
      Options During Default
         A key feature of PMI’s Monthly Premium product comes into play once a Default occurs.
         With PMI’s product, no premium payment is required during the Default period. In addition,
         as long as PMI has been notified of a default before the end of the premium payment grace
         period (i.e., 45 days after the due date of the premium), the Loan is eligible for automatic
         reinstatement. Consequently, if you choose, you do not have to advance corporate funds to
         ensure continued coverage when the Default is cured. If a Loan cures that has not had
         premium advanced, you will have 45 days to pay all of the back premiums. If the premium is
         not received, coverage will terminate at the end of the 45-day period. If a Claim is filed for
         such Loan, all unpaid premium through the date of Default will be deducted from the Claim
         amount.
         If you decide to advance premiums during the Default, PMI will apply the premium to the
         outstanding bills. Should the Default be cured, simply notify PMI and continue to pay the
         renewal premiums as they are billed. If a Claim is filed for the Loan without the Default
         curing, PMI will return the unearned premium (i.e., premium received after the Default
         occurred) as part of the Insurance Benefit.
         PMI will continue to bill monthly for defaulted Loans in both of the above situations. For
         both paper electronic renewals, if the premium is not advanced, the outstanding bill will be
         included as an additional line item on the bill for the delinquent Loan.
         Remember that although you have marked a Loan as “delinquent” on the renewal bill, you
         still need to notify PMI formally if the Loan becomes three payments in default. This
         notification can be filed by sending a Notice of Default or reporting by tape or EDI.




                  For further information, please call 800.288.1970                                  3
                                      PMI Loss Mitigation & Claims Reference Manual
                                                                                 Revised: March 2010




WORKOUT and LOSS MITIGATION
      Who to Contact
         PMI has a dedicated team of Loss Mitigation professionals who work exclusively on
         preforeclosure Loss Mitigation and Workouts. PMI does generally require the Servicer to
         contact PMI with any workout request. Our Loss Mitigation Team does understand that
         timing can be very critical on Workout approval and we are dedicated to providing a quick
         turnaround on all workout requests.

      How to Contact Our Loss Mitigation Department
         To facilitate efficient turnaround on workout requests, PMI has several ways to receive
         requests. We have a dedicated email address for Loss Mitigation:
         loss.mitigation@pmigroup.com
         Requests received through this email account will be routed to the appropriate Loss
         Mitigation Specialist for review and processing.
         PMI has also created a dedicated Fax line for Loss Mitigation requests: 888-305-2956.
         All requests received via this Fax line will automatically go into our imaging system and will
         be routed to the appropriate Loss Mitigation Specialist for review and processing.
         Most Workout requests can also be sent to PMI via our E-PMI Servicing Website. Please
         contact PMI for more details on E-PMI Servicing and how to get a login.

      Repayment Programs
         To help Borrowers keep their homes, PMI encourages any attempts to reinstate a Loan
         provided the Borrower can afford the payment plan.
         You do not need PMI’s approval for any reasonable repayment program as long as the Loan
         is never more than twelve months delinquent. However, PMI recommends providing
         notification of the terms of any plan that exceeds six months as it may increase the foreclosure
         time-line should the plan fail and result in a Claim. In cases where the Loan will be more
         than twelve months delinquent, contact your Servicing Representative.

      Assumptions
         Assumption of the Loan by a third party may be an alternative to foreclosure in many
         distressed situations.
         Contact your PMI Servicing Representative for assistance on the assumption process. We may
         ask you to provide:

        Documentation Requirements
             •    New Loan Application on assumptor
             •    VOE from all employers
             •    VOD for each checking/savings account

                  For further information, please call 800.288.1970                                    4
                                PMI Loss Mitigation & Claims Reference Manual
                                                                            Revised: March 2010




Delinquent Loan Modifications
   Modification of the Loan’s interest rate and term can be a useful tool in preventing a loss.
   Additionally, if your analysis shows that the Borrower does not have the funds necessary to
   reinstate the Loan, PMI may approve a capitalization of past due interest.
   If you are modifying the interest rate down or performing a step rate modification, no
   approval is necessary. Simply advise PMI in writing of the change.
   For modification of the term or Loan type and or capitalization of delinquent interest, please
   complete the PMI delinquent loan modification form and submit it to your Servicing
   Representative.



PreArranged Sales (Pre-foreclosure Sale)
   Although PMI recognizes that potential loss can be minimized by working with distressed
   Borrowers to negotiate a sale of the Property in lieu of a foreclosure, prudent standards of
   workout are always observed for the benefit of all parties and markets.
   Your PMI Servicing Representative is ready to assist you in this process.

  Documentation Requirements
   Your Servicing Representative will ask you to provide information necessary to evaluate your
   PreArranged Sale request, which may include:
       •    Payoff statement / Total Debt
       •    Sales contract and estimated net proceeds
       •    Current Property Valuation (interior broker’s price opinion or appraisal)
       •    Hardship letter
       •    Current financial statement
       •    Credit Bureau Report
       •    Financial Documents (tax returns, bank statements, etc.)


   After reviewing the PreArranged Sale package documentation, your PMI Servicing
   Representative will consider the information with respect to Hardship, Claim Probability and
   Loss Mitigation.
   Hardship: Is the delinquency and subsequent PreArranged Sale request caused by factors
   beyond the Borrower’s control? Acceptable hardship reasons include: loss of employment,
   loss of income, divorce, illness, involuntary job relocation, etc. Doubtful hardship reasons
   would be loss of equity, tenant problems and voluntary relocation.
   Claim Probability: Are you or PMI going to suffer a loss on the Property regardless of
   whether there is a PreArranged Sale? One good indicator of Claim probability is delinquency
   status. If the Loan is current, PMI finds it difficult to predict if there will be eventual loss.
   Illness or permanent losses of employment are other predictors of possible loss.




            For further information, please call 800.288.1970                                     5
                                  PMI Loss Mitigation & Claims Reference Manual
                                                                          Revised: March 2010




   Loss Mitigation: Providing there is probability of Claim, we are always interested in
   proposals that reduce loss both to the lender and to PMI.
   If there is a true hardship, which would result in the Property being foreclosed, and if the
   proposed PreArranged Sale would mitigate loss, PMI will generally agree to the PreArranged
   Sale. If there is hardship and good probability of a Claim being filed, but no mitigation, PMI
   may approve the PreArranged Sale and pay an Insurance Benefit based on the Percentage
   Option. If the lender is nearing a foreclosure sale date and a PreArranged Sale offer is
   received, contact your PMI Servicing Representative for instructions.
   At any point in the delinquency process, your PMI Servicing Representative remains available
   to assist you to answer any questions concerning the proposal.



Deed in Lieu of Foreclosure
   Because approval of a deed in lieu of foreclosure results in a Claim is made, PMI usually
   limits approval to truly exceptional circumstances, such as permanent disability, fatal illness
   or death. Contact your PMI Servicing Representative for assistance. Please provide the
   following documents for PMI’s review along with your deed in lieu request:

  Documentation Requirements
       •    Financial Statement
       •    Financial Documents (tax returns, bank statements, etc.)
       •    Borrower Hardship Letter
       •    Payoff Statement / Total Debt
       •    Current Property Valuation (interior broker’s price opinion or appraisal)
       •    Credit Bureau Report
   The borrower’s financial documents are not required in the event the mortgage loan debt has
   been discharged in a Chapter 7 Bankruptcy.




            For further information, please call 800.288.1970                                   6
                                      PMI Loss Mitigation & Claims Reference Manual
                                                                                 Revised: March 2010




FORECLOSURE REQUIREMENTS
        When the lender has exhausted all efforts for a Loan workout, it is in both the lender’s and
        PMI’s best interest to conduct a timely foreclosure. Deviation from the time frames outlined
        by PMI may result in claimed interest curtailments.

     When to Begin Foreclosure
        The first filed legal action (not referral to attorney’s office) must be initiated by the time the
        Loan is six months in Default. For example, if the Loan is due for the January 1 payment,
        first legal action must commence by June 1.
        PMI may direct you to commence foreclosure proceedings at anytime after the Default.

     Foreclosure Time Frames
        To avoid interest curtailments, once foreclosure is initiated, you must diligently pursue the
        necessary steps to acquire possession of and title to the Property, and if PMI elects to acquire
        the Property, you must be able to tender Good and Merchantable title.

     Bankruptcy Time Frames
        In the event the delinquent Borrower files a bankruptcy, PMI allows six months from the date
        of the filing for you to obtain relief from the automatic stay or dismissal of the case. On
        Chapter 11 or 13 filings, PMI allows six months from the last post petition payment to obtain
        relief. You are required to (re)institute foreclosure action no later than sixty days from the
        date you obtain relief. Failure to do so may result in a curtailment to a future claim.




                 For further information, please call 800.288.1970                                      7
                                      PMI Loss Mitigation & Claims Reference Manual
                                                                                Revised: March 2010




    ClaimEaseSM Timetable Instructions
         The ClaimEaseSM Timetable is an easy reference chart of foreclosure days PMI allows for
         each state and District of Columbia. With ClaimEaseSM PMI will not normally require
         backup documentation for Claimable expenses.
         If a foreclosure action extends past ClaimEaseSM PMI will typically require backup
         information including a chronology to explain the delay. If a delay is acceptable PMI will
         generally allow for the additional time to complete the foreclosure and file a Claim.
         ClaimEaseSM = 150 (days to initiate foreclosure) + foreclosure time line (days from referral to
         completion). Foreclosure timelines vary by State. PMI does monitor various investor
                                                                           SM
         guidelines as well as our own experience and does update ClaimEase as appropriate.



      STATE                  CLAIMEASE                        STATE                   CLAIMEASE
Alabama                           235                  Montana                              355
Alaska                            290                  Nebraska                             305
Arizona                           275                  Nevada                               305
Arkansas                          280                  New Hampshire                        260
California                        285                  New Jersey                           450
Colorado                          280                  New Mexico                           400
Connecticut                       370                  New York                             430
Delaware                          400                  North Carolina                       270
District of Columbia              250                  North Dakota                         340
Florida                           320                  Ohio                                 415
Georgia                           230                  Oklahoma                             400
Hawaii                            290                  Oregon                               330
Idaho                             340                  Pennsylvania                         450
Illinois                          425                  Rhode Island                         235
Indiana                           415                  South Carolina                       365
Iowa                              465                  South Dakota                         355
Kansas                            330                  Tennessee                            240
Kentucky                          415                  Texas                                240
Louisiana                         370                  Utah                                 315
Maine                             505                  Vermont                              510
Maryland                          235                  Virginia                             210
Massachusetts                     285                  Washington                           310
Michigan                          225                  West Virginia                        295
Minnesota                         260                  Wisconsin                            460
Mississippi                       280                  Wyoming                              250
Missouri                          235




                  For further information, please call 800.288.1970                                   8
                                         PMI Loss Mitigation & Claims Reference Manual
                                                                                   Revised: March 2010




     Foreclosure Sale Bidding Instructions
          Unless instructed otherwise by the Investor, to establish foreclosure sale bids and promote
          legitimate third-party bidding, PMI requires you to obtain either a current Broker’s Price
          Opinion (BPO) or Appraisal prior to the foreclosure sale date to determine the current Fair
          Market Value (FMV) of the Property. Review the BPO or Appraisal for accuracy,
          reasonableness and any indication of physical damage or casualty.

          Given there is only normal wear and tear to the Property, start the bidding at the percent
          current Fair Market Value of the Property as indicated on the following bidding instruction
          chart, not to exceed the total debt (Claim Amount). If a third party enters the bidding, you
          must continue bidding up to a minimum of the current Fair Market Value of the Property and
          you may continue bidding up to total debt (Claim Amount).

          For Fannie Mae investor loans, bid per Fannie Mae’s guidelines unless specifically instructed
          otherwise by PMI.

      PMI                                                    PMI
ST                         Instruction             ST                              Instruction
     DFCY                                                   DFCY

AK            100% of FMV                          MT                 100% of FMV
AL            Total Debt                           NC         Y       90% of FMV
AR    Y       80% of FMV *                         ND         Y       90% of FMV
AZ            100% of FMV                          NE         Y       90% of FMV
CA            100% of FMV                          NH         Y       80% Appraisal ^
CO    Y       90% of FMV                           NJ         Y       Open @ $100 up to FMV **
CT    Y       80% Appraisal ^                      NM         Y       90% of FMV
DC    Y       80% of FMV                           NV         Y       90% Appraisal ^
DE    Y       80% of FMV                           NY                 100% of FMV
FL    Y       Open @ $100 up to full FMV **        OH                 Open @ 2/3 sheriff's appraisal
GA            100% of FMV                          OK         Y       Open @ 2/3 sheriff's appraisal
HI    Y       80% of FMV                           OR                 100% of FMV
IA            Total Debt                           PA         Y       100% of FMV
ID    Y       90% of FMV                            RI        Y       80% of FMV
IL            Total Debt                           SC         Y       90% Appraisal ^
IN    Y       90% of FMV                           SD         Y       Total Debt
KS            Total Debt                           TN         Y       80% of FMV
KY    Y       80% Appraisal ^                      TX                 90% of FMV
LA    Y       Open @ 2/3 sheriff's appraisal       UT         Y       90% of FMV
MA    Y       70% of FMV                           VA                 100% of FMV
MD    Y       80% of FMV                           VT         Y       90% Appraisal ^
ME    Y       100% Appraisal ^                     WA                 100% of FMV
MI    Y       90% Appraisal ^                      WI                 100% of FMV
MN            100% of FMV                          WV         Y       100% of FMV
MO    Y       80% of FMV                           WY                 Total Debt
                                                  Puerto
MS    Y       80% Appraisal ^                                 Y       NA
                                                   Rico



                   For further information, please call 800.288.1970                                   9
                             PMI Loss Mitigation & Claims Reference Manual
                                                                         Revised: March 2010




If these bidding instructions conflict with either the Investor’s or your mortgage pool insurer’s
instructions, if you have any questions about the bidding process, or if you require special
consideration in establishing a foreclosure sale bid amount, please feel free to contact the PMI
Loss Mitigation Department.

FAX the foreclosure sale results to PMI within 48 hours of the foreclosure sale at 888-305-
2956.




         For further information, please call 800.288.1970                                    10
                                       PMI Loss Mitigation & Claims Reference Manual
                                                                                  Revised: March 2010




Post Foreclosure and REO

       Listing the Property for Sale
          Once you have acquired title to the Property, you should list the Property at Fair Market
          Value with a real estate agency of your choice. While not necessarily claimable, the
          marketing of the Property in “repaired” condition will generally expedite the liquidation of the
          Property.
          PMI may call and inquire on your marketing plan for the property including contacting the
          Real Estate Broker directly to gather more information.



       Offers to Purchase
          Should an offer to purchase be presented prior to Claim payment, you must contact PMI for
          review and approval. In the event the net proceeds from the sale of the REO are sufficient to
          mitigate PMI’s loss, additional interest will be paid by PMI through the close of escrow and
          the Claim paid using the PreArranged Sale Option as provided in the Policy. A copy of the
          HUD-1 Document will be required before final Claim settlement.
          To facilitate efficient turnaround for REO Offers PMI has set up a dedicated email account.
          Please send all REO offers to reo.offer@pmigroup.com
          You may also Fax the offer information to PMI at 888-305-2843.




                   For further information, please call 800.288.1970                                    11
                                       PMI Loss Mitigation & Claims Reference Manual
                                                                                   Revised: March 2010




Claim for Loss – Filing Instructions
          The lender must file its claim for loss within 60 days after the earlier of acquiring the
          Borrower’s Title to the property or a Pre-Arranged Sale. In states where there is a post-sale
          redemption period, the claim may be filed within 60 days of expiration of the redemption
          rights. PMI may suspend payment of the claim if unable to obtain access to the property for
          the purposes of determining its acquisition option.

          PMI prefers Claims to be submitted through electronic means. PMI supports both EDI 260
          Claim submissions and Claim filing through our website E-PMI Servicing. Please contact the
          Loss Mitigation and Claims Department for more information on either of these channels.
          Claims may also be faxed or mailed to PMI to our street address listed below.

          PMI Mortgage Insurance Co.
          Claims Department
          3003 Oak Road
          Walnut Creek, CA 94597

          FAX Telephone Number: 888-305-2978

          Note: This Fax # is dedicated to receive Claims and will automatically load the information into
          our image system ready for review and processing.
          The Claim for Loss Form is located on our website:
          http://www.pmigroup.com/lenders/claims.html
          ***Effective May 15, 2009, PMI will require customers to submit a Broker’s Price
          Opinion (BPO) / appraisal with all claims submissions.
          Foreclosure BPO/Appraisal acceptable if the property is occupied.
          A Post foreclosure BPO / Appraisal with “As Is” and “Repaired Values”, and estimated
          “Repair Costs” is required for vacant properties.
          PMI may request a BPO / Appraisal on claims submitted prior to May 15, 2009.
          These documents may be submitted via E Mail to: pmiclaims@pmigroup.com. The PMI
          Certificate number must be listed on the E mail subject line.
          Once the Claim is received it will be assigned to a Claims Specialist who will work to process
          the Claim in a timely manner. Claims submitted electronically automatically enter our Claims
          System. Paper Claims received through fax or mail are manually entered into our Claims
          system within 2 business days.
          The PMI Claims Specialist will work to “Perfect” the Claim. This means that PMI has all the
          information and documentation necessary to fully review and process the Claim. PMI has 20
          days to request additional information concerning the filed Claim.
          Once a Claim is filed, status of the Claim is available real-time through our e-PMI Servicing
          website. Thus even if you do not submit Claims through this Channel, it is useful to have a
          login to access status information.



                   For further information, please call 800.288.1970                                    12
                                        PMI Loss Mitigation & Claims Reference Manual
                                                                                  Revised: March 2010




Claim for Loss - Processing
   Claimable Items Include:
            Principal Balance
            The unpaid principal balance of the Loan as of the date the last regular Payment was applied.
            The amount should match the unpaid principal balance reported to PMI through Default
            Reporting.

            Past Due Interest
            Interest accrued on the unpaid principal balance from the last regular payment due date
            through the Claim filed date. There may be Claim adjustments for unreasonable delays in the
            foreclosure process.
            Advances

            Advances include any reasonable and necessary expenses paid by the Servicer with respect to
            a Loan after Default, for the following:


                  Attorney’s Fees
                  Reasonable Attorney’s Fees are claimable based on the lesser of actual fees paid or a
                  maximum of three percent (3%) of both the unpaid principal balance and allowable
                  past due interest.

                  Statutory Disbursements
                  Expenses related to foreclosure, bankruptcy and eviction should be in this section. See
                  examples below:
                  •      Sale Publications
                  •      Title related costs/fees/charges
                  •      Filing Fees
                  •      Deed Recording
                  •      Expenses related to Sheriff’s sale


                  Property Taxes
                  Real estate taxes are claimable from the Default date to the Claim filing date and
                  may be prorated based on the Default period. Claims for delinquent real estate taxes
                  prior to Default will be considered upon submission and review of supporting
                  documentation.

                      For further information, please call 800.288.1970                                13
                                        PMI Loss Mitigation & Claims Reference Manual
                                                                                  Revised: March 2010




                   Hazard Insurance Premiums
                   Hazard insurance premiums are claimable from the Default date to the Claim filing
                   date and may be prorated based on the Default period.

                   Preservation Costs
                   The cost to preserve and protect the Property includes utilities, re-keying, homeowner
                   association fees and normal maintenance necessary to protect the Property following
                   Default. Total expenses in excess of $500.00 must be authorized by PMI with backup
                   documentation provided.

                   Other Expenses
                   Reasonable BPO and appraisal costs are allowed and can be filed as Other Expenses. In
                   order for BPOs and appraisals to be a claimable expense, PMI must receive a copy
                   along with your Claim.
                   Other miscellaneous expenses can also be Claimed. Note: if an expense is placed in
                   the incorrect category, PMI will reclassify the expense into the proper expense
                   category.



NonClaimable Items Include:
            Judgments/Liens
            Any judgments or liens placed on the Property are not generally claimable expenses, as they
            were not insured by PMI.

            Late Charges for Homeowner Association and Tax Penalties
            These expenses are generally not claimable.


The previously listed Claimable and NonClaimable items are the most common. Please refer to PMI’s
Master Policy for more specific information. If you have a specific item that needs clarification, the
Specialist assigned to your Claim is available to review and discuss the details.




                     For further information, please call 800.288.1970                                14
                                      PMI Loss Mitigation & Claims Reference Manual
                                                                                 Revised: March 2010




Deductible Items Include
         Escrow Funds
         When an escrow account has been established for taxes and insurance, the balance in the
         escrow account as of the date the last regular applied payment was made is deducted from the
         Claim Amount.

         Pledged Accounts
         Buydown funds or other compensating balances are deducted from the Claim Amount.

         Receivership
         Any income collected from hazard insurance proceeds, managing/renting the Property, other
         suspense/holding accounts or Borrower contributions are deducted from the Claim Amount.

         Net Proceeds
         When the Property is sold through a PreArranged sale or through a third-party sale at
         foreclosure, the net proceeds from the sale, including cash contributions from the Borrower,
         will be applied against the total Claim Amount.


Comments
         In the comments section of the Claim for Loss Form please provide the following information
         as applicable.
         •   Foreclosure Sale Date (for properties sold at foreclosure)
         •   HUD Settlement Date (for properties sold pre-foreclosure)
         •   Redemption Date (fore properties redeemed by borrower)
         •   Redemption Expiration Date (for properties located in Redemption states)
         •   Execution Date (for deed-in-lieu)
         •   Most recent BPO/Appraisal Values (include date value was completed)
         •   Occupancy Status (specify: vacant or occupied)
         •   Broker Information: Agent’s Name, Phone number and/or email address
         •   Bankruptcy Information broken down by:
                 • Case #
                 • Bankruptcy Type (Chapter 7 or 13)
                 • Date Bankruptcy Filed
                 • Date Bankruptcy Released/Dismissed/Discharged

         For multiple bankruptcies filed, follow above but, break it down according to the chronology
         of oldest to most recent bankruptcy
         If there are no bankruptcies involved with the Claim, it is useful to inform PMI and to write
         “NO BANKRUPTCY” in the comments section.




                  For further information, please call 800.288.1970                                      15
                                         PMI Loss Mitigation & Claims Reference Manual
                                                                                     Revised: March 2010




Additional Documentation Requirements
In the following situations please provide the following information:


            Third Party Sale
            •    Copy of 3rd Party Check Proceeds should be provided
            •    BPO or Appraisal Value at the time of Foreclosure should be reflected on the comments
                 section of the claim

            Redemption
            •    Copy of Redemption Check Proceeds should be provided
            •    BPO or Appraisal Value at the time of redemption should be reflected on the comments
                 section of the claim

            Pre-Arranged Sale / REO Sale
            •    HUD-1 Statement
            •    BPO or Appraisal Value during pre-foreclosure should be reflected on the comments
                 section of the claim



            VALUE REVIEW
            If there is a significant value drop from origination, the Claim may be flagged for further
            review and we will require the following additional information:
            •    Origination Appraisal
            •    Most recent BPO or Appraisal




                      For further information, please call 800.288.1970                                   16
                                    PMI Loss Mitigation & Claims Reference Manual
                                                                              Revised: March 2010




Claim Settlement
  Claim Settlement Methods
        When the Claim is in process by your PMI Claims Specialist, he or she verifies that coverage
        is in force and that all documents necessary to perfect the Claim are received. PMI then
        reaches its settlement decision.

       Percentage Option
        An amount equal to the Claim Amount multiplied by the percentage of coverage specified on
        the Certificate, adjusted by any coverage options as specified on the Certificate.

       PreArranged Sale Option
        An amount equal to the lesser of the Percentage Options or the Insured’s actual loss in
        connection with a PreArranged Sale of the Property. The Insured’s actual loss shall be an
        amount equal to the Claim Amount plus all reasonable costs incurred in obtaining and closing
        such sale less the proceeds of the PreArranged Sale.

       Acquisition Option
        An amount that will equal the Claim Amount less the amount of any payments of Loss
        previously made by the Company with respect to the Loan, payable in exchange for the
        conveyance of Good and Merchantable Title to and possession of the Property.




  Closed Without Payment
        After the Claim has been received, PMI may close your Claim file for the following reasons:

       Non-Perfected
        All of the documents necessary to perfect your Claim have not been received after PMI has
        requested them in writing on two separate occasions and more than 60 days has elapsed
        since the Claim was filed.

       Eviction
        So PMI can evaluate the Acquisition Option potential, when the Property is occupied and an
        eviction is in process, PMI may close your file without payment until you can obtain access to
        the Property.

       Request By Claim Filer
        At the request of the Claim Filer PMI can Close out a Claim without payment. This is
        typically done when the Insured received make whole funds.




                  For further information, please call 800.288.1970                                17
                                PMI Loss Mitigation & Claims Reference Manual
                                                                       Revised: March 2010




Supplemental Claims
     The Claim Settlement is considered the full and final discharge of PMI’s obligation. For
     previously unfilled expenses, PMI may consider a supplemental Claim request if received
     within 30 days of the initial Claim payment.




             For further information, please call 800.288.1970                            18
                                       PMI Loss Mitigation & Claims Reference Manual
                                                                                 Revised: March 2010




Disaster Relief POLICY
       Forbearance for Victims in Disaster Areas Designated by FEMA
       Once the Federal Emergency Management Agency (FEMA) designates a geographic area as a
       federal disaster area, PMI’s Loss Mitigation and Claims Specialists will immediately begin
       working with affected lenders and borrowers in the disaster area to avoid delinquency and
       foreclosure. PMI will accommodate any reasonable policy for handling loan defaults that are
       worsened by a federally declared disaster and which is in accordance with Fannie Mae and
       Freddie Mac guidelines.

       PMI’s Disaster Relief Policy includes our standard workout programs and procedures, several
       forbearance programs, and allows a 90-day moratorium on the initiation of any legal action or the
       continuation of any pending legal action involving borrowers with property or jobs located in the
       affected disaster area. Lenders must notify PMI of their intention to allow the 90-day moratorium
       on a PMI-insured loan.

       PMI agrees with Fannie Mae’s Servicer Guidelines allowing 90-day delays in foreclosure for
       accounts with payments less than 90 days delinquent at the time of the disaster, and the
       capitalization of these deferred payments for the remaining life of the loan. In addition, PMI
       encourages you to work with affected borrowers to cure the delinquency as soon as possible.




                    For further information, please call 800.288.1970                                19
                                       PMI Loss Mitigation & Claims Reference Manual
                                                                                   Revised: March 2010




Saving Homeownership and Repayment Program (SHARP)
          In the event that capitalization or a repayment program is not feasible to reinstate the Default,
          PMI's Saving Homeownership and Repayment Program (SHARP) pays an Advance Claim to
          cover delinquent interest on the defaulted loan. SHARP is a special workout program
          designed for the delinquent Borrower(s) who clearly has the ability to maintain future
          payments, but unfortunate circumstances have forced them into Default. SHARP gives the
          Borrower(s) the opportunity and the motivation to maintain their loan obligation and, most
          importantly, keep their home.

       How Does the Saving Homeownership and Repayment Program Work?
          After careful assessment of the situation by both yourself and your PMI Loss Mitigation and
          Claims Representative, qualified Borrower(s) may be offered one of the following workout
          alternatives:

          Loan Modification
          When a loan modification will enable the Borrower(s) to maintain future payments, PMI may
          advance a portion of the delinquent mortgage loan payments. This positions the Borrower(s)
          to successfully resume future obligations.

          Assumption
          In instances where income curtailments make the sale of the property the only viable
          alternative, PMI may assist in an assumption of the loan by a new owner-occupant buyer by
          advancing a portion of the delinquent mortgage loan payments. This requires the assumptor to
          qualify under PMI’s current underwriting guidelines.
          Note: PMI may require the delinquent Borrower(s) to execute an interest-free Note endorsed
          and transferred by the Servicer or Investor to PMI to repay the funds advanced by PMI.

       Which Borrowers Are Eligible?
          There are three main factors in determining Borrower eligibility.
              •    First, the Borrower(s) must be a homeowner, residing in the property that is
                   in Default.
              •    Second, although any defaulted loan can be considered for the Saving
                   Homeownership and Repayment Program, if any advance on the current
                   insurance policy is required to modify the defaulted loan, title must still be
                   vested in the Borrower(s)/Occupant(s).
              •    Third, and most importantly, the defaulting Borrower(s) must have a history
                   of job stability and the willingness and ability to maintain future payments
                   on the newly modified loan.



       Are There Any Special Requirements?
          One of the most innovative features of PMI’s Saving Homeownership and Repayment
          Program (SHARP) is the flexibility built right into the Program. An Advance Claim Payment
                   For further information, please call 800.288.1970                                    20
                               PMI Loss Mitigation & Claims Reference Manual
                                                                         Revised: March 2010




   made by PMI may assist facilitating either a loan modification or an assumption and may
   either maintain the existing mortgage insurance policy or result in a new mortgage insurance
   policy. If the existing policy is maintained, the advance would be applied against any future
   Claim. The benefit of maintaining the existing policy is a streamlined qualification process.
   Naturally, if a new policy is needed, the Borrower(s) must meet certain underwriting
   requirements. In keeping with the spirit of the Program, Servicers cannot collect a prepayment
   penalty on the old loan or an origination fee on the new loan.



What Types of Defaults Qualify for the Saving Homeownership and
Repayment Program?
   SHARP has been developed especially to address the problems of three Default groups.
       •   Defaults by Borrowers who have suffered from a temporary loss of income,
           but who have the ability to make future payments, especially if those
           payments would be lowered as a result of lower interest rates.
       •   Defaults on properties that have depreciated in value, particularly in cases
           where it is financed with a negatively amortizing loan.
       •   Defaults caused by ARM adjustments, especially if it has resulted in an
           interest rate greater than current market rates.

What Are the Steps in the Qualification Process?
   A PMI Servicing and Claims Representative will work closely with you in determining which
   workout program best fits the profile of the defaulting Borrower(s). A decision will be made
   based on the Borrower(s) qualifications, reason for Default, ability to maintain future
   payments, and other pertinent considerations. Once approved, your PMI Servicing and Claims
   Representative will assist you in coordinating the details of the loan modification or
   assumption and the advance of funds to bring the loan current.

What Documentation Must the Servicer Collect?
   For a Borrower(s) to be considered for participation in PMI’s Saving Homeownership and
   Repayment Program (SHARP), you will be asked to present the following documentation
   provided by the Borrower(s):
       •   Borrower(s) hardship letter
       •   Borrower(s) current financial statement
       •   Where applicable, documentation from the Borrower(s) and all Creditors on
           any repayment plan the Borrower(s) may have entered with those Creditors
       •   Borrower(s) current pay stubs
       •   Borrower(s) federal tax returns for the past two (2) years
       •   Current Broker’s Price Opinion (BPO) or Appraisal of the Property
           provided by either a Fannie Mae or Freddie Mac approved
           Broker/Appraiser

            For further information, please call 800.288.1970                                 21
                       PMI Loss Mitigation & Claims Reference Manual
                                                             Revised: March 2010




For a SHARP assumption, you will also be asked to provide:
•   Assumptor’s new loan application
•   Assumptor’s Verification of Employment (VOE) from all employers
•   Assumptor’s Verification of Deposit (VOD) for each checking and savings
    account.




    For further information, please call 800.288.1970                         22

								
To top