RASS Cover LetterRASS Cover Letter
Line 4: No other agreements or offers not disclosed to servicer
4-446
Short Payoff FraudShort Payoff Fraud "Any misrepresentation or deliberate
omission of fact that would induce the lender, investor or insurer to agree to the terms of a short payoff that it would not approve had all facts been known."
464-6
How Short Payoff How Short Payoff Fraud WorksFraud Works
• Seller owes $100,000, property worth $80,000
• Facilitator negotiates a $70,000 payoff• Facilitator doesn’t disclose existing offer
for $95,000• Both sales close
simultaneously
474-7
Where’s the Fraud?Where’s the Fraud?• Failure to disclose the second offer• Lender takes bigger loss
474-8
Other Agreements or OffersOther Agreements or Offers
• If other offers received servicer should be informed
• REALTORS® – Be aware– Avoid fraud or appearance of fraud
474-9
RASS Page 2RASS Page 2
•Preliminary HUD-1•Complete RASS based on HUD-1
$8,500 Max Subordinate Mortgage lien payoff
484-11
RASS Page 2 (cont’d.)RASS Page 2 (cont’d.)
Attach all required info
•Remember required contract language:Arm’s length90 day prohibition on re-sale
•Return within 3 Biz days49
4-12
RASS Page 4 RASS Page 4 Disapproval of Sale
Reasons explained
•May include counter offer
•If no counter, determine cause for disapproval and re-submit
524-14
The Alternative RASSThe Alternative RASS• Purchase offer received but…• Seller has not:– Requested a HAFA short sale– Qualified yet for HAFA– Received SSA
• Submit contract with Alt. RASS
• Check servicer’s web site for form or procedure
No Alt. RASS
52-534-16
Submitting the Alt. RASSSubmitting the Alt. RASS• Check servicer’s web site for package
or procedure
• Submit Alt. RASS & contract
• Non-GSE loans, servicer must approve, disapprove or counter offer within 30 days of receipt of Alt. RASS & other docs.
• Fannie Mae, no time frame
534-17
Alt. RASS Alt. RASS Detailed Detailed
DiscussionDiscussion
Alt. RASS Cover LetterAlt. RASS Cover Letter
• Takes the form of a solicitation by servicer
• Contact servicer for specific instructions and/or forms
544-18
Alt. RASS Pages 2 & 3Alt. RASS Pages 2 & 3
• Contain same information regarding the Program Terms and Conditions as in the SSA &/or RASS
55-564-20
Alt. RASS Page 4Alt. RASS Page 4Net Sheet, same as RASS
Attached document list• Check servicer’s web site for complete list of required docs
574-21
Alt. RASS Pages 5 & 6Alt. RASS Pages 5 & 6
• Approval & Disapproval pages
• If disapproved, review reasons and re-submit
574-22
Foreclosure sale suspended:
• Determining eligibility
• Awaiting SSA
• During SSA term
• Pending closing
584-24
Payment ForbearancePayment Forbearance
• Servicer may require monthly payments?
• Can’t exceed 31% of gross income
584-25
First Mortgage ReleaseFirst Mortgage Release• Released within 30 days
• Waive deficiency judgment
• Can’t require note from borrower
58-59
##11
4-26
Subordinate LiensSubordinate Liens• $8,500 total aggregate for all
mortgage liens
• On HUD-1
• Liens released
594-27
Subordinate LiensSubordinate Liens• No future liability for
borrower
• Written release required prior to releasing funds
• Can’t require $$$ from seller or licensee
594-28
Borrower FeesBorrower Fees• No processing fees
• Servicer pays all
• Borrower waives reimbursement of impounds and insurance
594-29
Mortgage InsuranceMortgage Insurance• Approval required
• Insurer must waive rights to collect
• Fannie & Freddie seek “Delegations of Authority”
594-30
Incentives – Thru 2013Incentives – Thru 2013• Borrower or tenant: $3,000– On HUD-1– Servicer reimbursed
• Servicer: $1,500
• Investor: $2,000 max. to release subordinate liens– $1 for $3 basis
604-31
Required SignaturesRequired Signatures• Servicer– Actual date
• Original borrowers
• Exceptions– Deceased– Divorced– Special cases
614-32
Reporting RequirementsReporting Requirements• Servicer reports to Fannie Mae– SSA executed or updated– Sale Closes– SSA Terminates
614-33
Servicer ComplianceServicer Compliance
• Freddie Mac is compliance agent
• Servicer must have staff & resources to implement HAFA
61
Email Questions or Complaints to:[email protected]
4-34
Problems???Problems???
• Treasury HAFA– [email protected]
– 866-939-4469
• Fannie Mae– [email protected]
– 800-7FANNIE 800-732-6643
• Freddie Mac– [email protected]
– 800-FREDDIE 800-373-3343
624-35
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