online training done right basic alternatives to...

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"Online Training Done Right"

www.thecounselorscorner.net

Basic Alternatives to Foreclosure: The Decision Tree

Tuesday, March 21, 2017



Get to Know Your Presenter

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Robin Stout Migala

• Consultant to the industry – three years with The

Counselor’s Corner

• Over 47 years’ experience in residential lending and default

servicing

• 23 years with Freddie Mac in Housing Outreach

• Specialty in loss mitigation and foreclosure prevention for

housing counselors and real estate professionals

http://www.thecounselorscorner.net/


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GoToWebinar Platform

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The Counselor’s Corner…

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THE Online Resource for Housing Counseling and Real Estate Professionals

Your one-stop Resource Center:

• Provides information that enhances your knowledge of industry

changes and regulatory updates in a timely manner, all in one location

• Our online “Learning Center” provides Continued Education Hours for

your active participation



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Certificate of Completion Eligibility

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IMPORTANT! Please add [email protected] to your address book

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Questions for You

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• Knowledge

Checkpoint

Questions will

display during

today's presentation

• Your responses

must be entered in

the control panel

question box

We encourage you to take notes as we go.

• Polling Questions will pop up during today's presentation

• Your responses must be selected on the screen

• Case Studies will be presented toward the end of the session

• Your responses must be entered in the control panel question box


mailto:[email protected]


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National Industry Standards

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The Counselor’s Corner supports the mission of the National Industry Standards in Foreclosure, Homeownership Counseling & Education.

• The Standards help practitioners and organizations serve families and communities in a consistent and professional manner.

• This webinar: Promotes consistent & quality counseling Builds competency & knowledge of requirements Provides useable resources




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Our objective today is to enable you to:

• Evaluate a borrower’s situation

• Define hardship

• Understand the alternatives to foreclosure

• Know when to consider a particular option

• Get the resources available to you and your clients

DISCLAIMER:

This training is a summary of the detailed requirements of various Investors’ policies and procedures regarding Alternatives to Foreclosure and Foreclosure Prevention and is not a

substitute for those requirements. This training is meant for educational purposes only. For additional information, please reference the applicable sections of Investors’ Guides and

Handbooks. Please note that those requirements are subject to change at any time.



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Polling Question #1

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Approximately what percentage of your agency’s business is still foreclosure

prevention?



Industry Philosophy Then

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Servicers, investors and mortgage insurance companies are committed to

helping distressed borrowers find solutions to their delinquencies.

Alternatives to foreclosure can…

• Help reduce impact to borrower’s credit rating

• Help prevent loss of the home

• Eliminate time and expense the Servicer incurs on a defaulted loan

• Reinstate the servicing fee income the Servicer earns on a loan

• Improve the Servicer’s relationship with the borrower

• Minimize investor and mortgage insurance company credit losses

• Stabilize neighborhoods



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Industry Philosophy Now

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Servicers, investors and mortgage insurance companies are committed

to helping distressed borrowers find solutions to their delinquencies.

Other workout options used before MHA ended still exist:

• Treasury/FHFA/HUD - Guiding Principles for the Future of Loss Mitigation: How

the Lessons Learned from the Financial Crisis Can Influence the Path Forward

• CFPB – Principles for the Future of Loss Mitigation

• MBA – Life After HAMP – The Future of Loss Mitigation



Your Steps to Help Borrowers Avoid Foreclosure

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1. Evaluate the borrower’s situation, including the hardship and ability to repay

2. Contact the Servicer and know the timelines

3. Encourage clients to stay in contact with their Servicers

4. Evaluate the options

5. Counsel and coach the homeowner


https://www.treasury.gov/press-center/press-releases/Documents/guiding-principles-future-of-loss-mitigation.pdf

http://files.consumerfinance.gov/f/documents/20160802_CFPB_Principles_for_Future_of_Loss_Mitigation.pdf

https://www.mba.org/issues/residential-issues/one-mod-a-post-hamp-loan-modification


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Collection Records

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Servicer collection records must evidence:

• Dates that letters and notices were mailed

• Dates and results of personal contact with the borrower

• Reasons for prior and current defaults

• Terms of any repayment arrangements

• Documentation of property inspections



When is a Mortgage Delinquent?

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• Delinquency occurs when all or part of a borrower’s monthly mortgage

payment is unpaid after the due date.

• Encourage your clients to set up ACH (Automated Clearing House)

payments with their Servicers.


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Collection Process

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Most Servicers…

• Use SPOC (Single Point of Contact)

• Use skip tracing to reach borrowers

• Attempt to contact borrowers early and often

• Continue collection attempts until foreclosure begins

• If reinstatement not possible, pursue alternatives to foreclosure



Establishing Borrower Contact

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Upon contacting the borrower, Servicers will…

• Determine the reason for default and whether it is temporary or permanent

• Determine if the property is vacant or the borrower intends to vacate

• Determine the borrower’s perception of his/her financial situation and

ability to repay

• Set payment expectations and explain alternatives to foreclosure

• Obtain a commitment from the borrower to reinstate or

try an alternative to foreclosure



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Knowledge Checkpoint Question #1

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A borrower is not considered to be delinquent on the mortgage payment until at least

one full payment is 30 days past due.

Is this true or false?

False.

The loan is delinquent if the payment has not been made as of midnight on the date the

payment is due. The grace period is for late charges only.



Hardships

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• Unemployment

• Income reduction

• Increased housing expenses

• Divorce or legal separation

• Death

• Disability or illness

• Disaster

• Distant employment transfer (including PCS)

• Business failure

• Other



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Non Hardships

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• Property value depreciation

• Temporary income interruption with sufficient liquid assets to pay

• ARM rate adjustment or interest only converting to amortization



Alternatives to Foreclosure Hierarchy

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Refinance

Full and partial reinstatement

Repayment and forbearance plans

Retention workout options

Liquidation workout options



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The Decision Tree – No Hardship

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Current borrower –

no hardshipPositive income and balanced budget with surplus but little or

no equity in property

• Traditional refinance

• Home Affordable Refinance Program (HARP) for GSE loans

• FHA Short Refi for conventional loans

• FHA loan Streamlined Refi

• Interest Rate Reduction Refinance Loan (IRRRL) for VA loans

• USDA Refinance Program



The Decision Tree –Hardship Resolved With Surplus

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Delinquent borrower –

hardship resolvedPositive income and balanced budget with surplus

• Full reinstatement

• Partial reinstatement with Repayment Plan

• Repayment Plan



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The Decision Tree –Ongoing Temporary Hardship

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ongoing temporary

hardship

Insufficient or negative income

• Traditional Short-term or Long-term Forbearance Plan

• GSE Short-term and Extended Unemployment Forbearance

• FHA Special Unemployment Forbearance Agreement

• VA Forbearance Agreement

• USDA Special Forbearance Agreement

• Hardest Hit Fund



The Decision Tree –Hardship Resolved With No Surplus

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hardship resolved Positive income and balanced budget but no surplus

• GSE Standard Modification

• GSE Streamlined Modification

• GSE Disaster Relief Modification

• GSE Flex Modification

Service Member Options

• FHA Partial Claim/PMI company Advance Claim

• USDA Mortgage Recovery Advance

• VA Reamortization or Refunding

• USDA Modification


• Generic write off



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The Decision Tree –Permanent Hardship

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permanent hardship Insufficient or negative income

• Assumption

• Straight sale (equity)

• GSE Standard Short Sale

• FHA Pre-Foreclosure Sale

• VA Compromise Claim

• USDA Pre-Foreclosure Sale


• Freddie Mac Standard (DIL)

• Fannie Mae Mortgage Release (DIL)

• FHA/VA/USDA DIL

• Service Member Options

• Bankruptcy



Polling Question #2

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Do you use any other kind of decision tree in

your counseling process to help make

decisions?



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Retention Options



Refinance

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Refinance entails paying off the existing loan and obtaining a new first mortgage on the property. Types of refinance are:

• Traditional refinance (must have equity)

• Home Affordable Refinance Program – HARP - (little or no equity) for GSE loans only –expires September 30, 2017)

• FHA Short Refi (little or no equity) for conventional loans only

• FHA loan Streamlined Refinance

• VA Interest Rate Reduction Refinance Loan (IRRRL)

• USDA Refinance Program (pilot)

• Reverse Mortgage (must have equity)



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Encourage Refinance When…

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• The borrower is current on the loan and is not in imminent default

• The existing loan’s interest rate is higher than market

• The borrower wants to replace an ARM with a fixed rate mortgage

• Junior lienholders agree to subordinate

• Senior citizen with equity



Full Reinstatement

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A full reinstatement occurs when the borrower restores a delinquent mortgage

to current status by paying the total amount delinquent, including advances,

accrued interest, legal costs and other expenses incurred.



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Encourage Full Reinstatement When…

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The borrower can pay, in cash or certified funds, the total amount

delinquent, or total amount delinquent except accrued late charges

and the Broker’s Price Opinion (BPO).



Partial Reinstatement

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A partial reinstatement occurs when the borrower restores a delinquent mortgage to current status by:

• Paying an amount less than the total amount delinquent, including advances, legal costs and other expenses incurred;

• Agreeing to a repayment plan that provides for repayment of the remaining arrearage*; and

• Completing the repayment plan

* If the property is in foreclosure, the repay plan will include a stipulation suspending foreclosure proceedings during the repay plan and which allows the Servicer to recommence foreclosure at the point where the foreclosure was suspended if the borrower defaults on the repay plan.



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Encourage Partial Reinstatement When…

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The borrower can pay, in cash or certified funds, both of the following:

• All outstanding fees and expenses, or all outstanding

fees and expenses accept accrued late charges and the

BPO cost; and

• At a minimum, the first payment due under the

repayment plan




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The Home Affordable Refinance Program (HARP) is only available on Freddie Mac and

Fannie Mae loans.

Is this correct?

Yes.



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Repayment Plan

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An agreement that gives the borrower a fixed period of time to bring delinquent

mortgage payments current by paying the normal monthly payment plus an additional

amount.

All Servicers and Investors allow repayment plans.



Encourage Repayment Plan When…

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• The reason for the delinquency has ended

• The borrower’s budget is balanced and the borrower has a monthly

surplus to apply to the mortgage payment

• The borrower can repay the delinquent amount in 12 months or less



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Forbearance Plan

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An agreement to temporarily let a borrower pay less than a full mortgage payment or pay

nothing at all during the forbearance period. The loan must be brought current (via

reinstatement, repayment plan or modification) at the end of the forbearance.

Types of forbearance plans are:

• Traditional short-term forbearance (up to six months)

• Traditional long-term forbearance (up to 12 months)

• GSE short-term Unemployment Forbearance (up to six

months)

• GSE extended Unemployment Forbearance (not to exceed

12 months’ delinquency)

• FHA Special Unemployment Forbearance

Agreement

• VA Forbearance Agreement

• USDA Special Forbearance Agreement




Encourage Forbearance Plan When…

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• The hardship is temporary

• The borrower wants to keep the property

• The borrower is deceased and the estate is in probate

• The borrower’s current income is insufficient to sustain the mortgage payment

• The property or borrower’s place of employment has been damaged by a natural disaster

• The hardship is due to long-term disability or serious illness of the borrower or dependent



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Modification

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A loan modification permanently changes one or more of the original terms

of the note such as:

• Increase in the unpaid principal balance (UPB) due to capitalization of interest,

escrow or other advances

• Change in the rate, monthly payment or loan term

• Forbearance or write down of a portion of the principal balance

• Change in product type (e.g., an adjustable rate mortgage to a fixed rate mortgage)



Modification Types

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Types of loan modifications are:

• GSE Standard Modification (until October 1, 2017)

• GSE Streamlined Modification (until October 1, 2017)

• GSE Disaster Relief Modification

• Freddie Mac Flex Modification (effective October 1, 2017)

• Fannie Mae Flex Modification (effective October 1, 2017 with early use

available March 1, 2017)

• FHA Modification

• VA Reamortization/Refunding

• USDA Modification



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Encourage Modification When…

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One of the following conditions exist:

• The borrower has income to support some level of payment

• The borrower wishes to retain the home

• The borrower had a hardship which is now resolved

• There is risk of property ownership




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Forbearance plans are not available to borrowers who are in permanent or long-term

hardship situations.


True.

Forbearance is for temporary hardship and is always followed by another

alternative to foreclosure.



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Principal Forbearance/Reduction

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There are several programs in the industry that encourage servicers and investors to

reduce the unpaid principal balance of a loan to make the monthly payments more

affordable. Principal forbearance and reduction usually accompany a loan modification.

Types are:

• Private Mortgage Insurance company Advance Claim

• Generic write off specific to servicer/investor

• FHA Partial Claim

• USDA Mortgage Recovery Advance




Encourage Principal Forbearance or Reduction When…

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One of the following conditions exist:

• The first mortgage balance is higher than the property value

• The borrower has income to support the final monthly payment

• The borrower wishes to retain the home

• The borrower had a hardship which is now resolved

• There is risk of property ownership

• The investor on the loan would allow it



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Mediation

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http://www.nolo.com/legal-encyclopedia/mediation

Mediation brings together borrowers and servicers together with a mediator to

try to resolve a delinquency.

Some cities, counties and states will have mediation programs.

There is no cost to the borrower to participate in a mediation program.

If the delinquency cannot be reinstated, workout options are discussed.

http://www.nolo.com/legal-encyclopedia/state-foreclosure-mediation-programs


www.thecounselorscorner.net 46

Please Raise Your Hand When You Return


http://www.nolo.com/legal-encyclopedia/mediation

http://www.nolo.com/legal-encyclopedia/state-foreclosure-mediation-programs


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Liquidation Options



Polling Question #3

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Have you had clients who refuse to recognize that they can’t afford to keep

the property?



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Delinquent Mortgage Assumption

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Permits a qualified applicant to assume title to the property and the mortgage

obligation from a borrower who is delinquent or who is in imminent danger of

default. Some investors allow modification of the mortgage concurrent with

the assumption.



Encourage Assumption When…

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• The borrower has a permanent hardship

• The borrower has exhausted all other options to retain ownership of

the property

• There is a potential buyer for the property who is willing to assume

the loan



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51

All investors allow principal write off on their loans.

Is this correct?

No.

The GSE temporary program ended at the end of last year and other investors may

not allow principal reduction at all.



Straight Sale

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If there is equity in the property or if there is no equity and the shortfall will be paid

by the borrower, the Private Mortgage Insurer, insurance proceeds or any other

source, the borrower can sell the property and pay off the existing mortgage.



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Encourage Straight Sale When…

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• The borrower has exhausted all other options to retain ownership

of the property

• The borrower might be able to recover some equity for future use



Short Sale

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The sale of a property for less than the total amount necessary to pay the loan off in full, resulting in a shortfall.

Types are:

• GSE Standard Short Sale

• FHA Pre-Foreclosure Sale

• VA Compromise Claim

• USDA Pre-Foreclosure Sale




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Encourage Short Sale When…

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• The borrower can’t or doesn’t want to keep the home

• There is a potential buyer for the property and the net proceeds

will not be sufficient to pay off the mortgage



Deed in Lieu of Foreclosure

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Permits the borrower to voluntarily convey clear property title to the servicer in

exchange for a discharge of the debt.

Types are:

• GSE Standard Deed in Lieu of Foreclosure

• FHA/VA/USDA Deed in Lieu of Foreclosure



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Encourage DIL When…

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• The borrower has a hardship

• The borrower can’t or doesn’t want to keep the home

• The borrower has been unable to sell the property

• There are no other liens on the property

• Foreclosure would take longer than six months

• The property is not in distressed condition

• The borrower has been discharged from a Chapter 7 bankruptcy



Polling Question #4

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Have those clients, who are in denial, also refused to list their properties, even if

there’s equity?



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Options of Last Resort

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• Chapter 7 Bankruptcy

Liquidation of assets

Keep or not keep the home


Keep the home

Available income to pay the regular mortgage

payment plus


Corporate self-employed business failure


Farm

• Foreclosure



Options for Servicemembers

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• In 2011, the GSEs announced that Permanent Change of Station Orders (PCS) is an

eligible hardship for Servicemembers under the Distant Employment Transfer hardship.

• FHA and VA have specific programs for service members

• USDA partners with many military support organizations to help service members

achieve and sustain homeownership

If a Servicemember believes his/her property is being unlawfully foreclosed, he/she should

contact the nearest JAG (Judge Advocate General) office for a consultation.



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Beware of Loan Scams!

The scammer –

• accepts payment in advance but provides no service

• guarantees to stop foreclosure

• instructs the borrower to stop paying the mortgage to the servicer and pay the

scammer

• pressures distressed borrowers to turn the property deed over to the scammer

• promises a loan modification

http://www.preventloanscams.org/




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In the majority of cases, a Deed in Lieu of Foreclosure is preferred over a Short Sale.


False.

Why? Tell me briefly in the question box.


http://www.preventloanscams.org/


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Case Studies Ground Rules

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These exercises are as much for discussion as they are for education.

Please share your best practices in the question box.

Thank you!



Let’s Review the Options Again

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1. Refinance

2. Repayment Plan

3. Short-term Forbearance

4. Long-term Forbearance

5. Loan Modification

6. Assumption

7. Short Sale

8. Straight Sale

9. Deed in Lieu of Foreclosure



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Case Study #1

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Mrs. Williams has been in a nursing home for six months. Mr. Williams listed

the property at market value for five months with no success.

Mr. Williams just passed away and Mrs. Williams is not strong enough to

continue marketing their home. There are no children. The house is in good

condition.

Which option is the most appropriate for this scenario?

Option #9 – Deed in Lieu of Foreclosure



Case Study #2

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Mr. Davis was laid off for five months and just found another job but it pays 15%

less than his previous job.

Mrs. Davis works part-time. They can’t bring the account current but they want

to keep their dream home.

Which option is appropriate for this scenario?

Option #5 – Loan Modification



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Case Study #3

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The Watsons are recently divorced. They are both physicians at area hospitals.

The house has been listed since they separated. Finally, there is an offer but it is

still $6,000 short of the payoff. The Private Mortgage Insurance company has

approved the offer.


Option #8 – Straight Sale



Case Study #4

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Mr. and Mrs. Jones just learned their young son has leukemia and will have to

undergo intensive medical treatment for eight months.

Mr. Jones will not be able to work during this period so that he can travel with his

son to a distant hospital for the treatment.

Mrs. Jones will continue to work and take care of their other child but her income

will not be enough to make their mortgage payments.


Option #4 – Long-term Forbearance

.



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Case Study #5

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Mrs. Edwards was out of work for three months and even though Mr. Edwards

was working, they couldn’t make their mortgage payments.

Mrs. Edwards just got a new job making more than her previous job. They want

to catch up on their mortgage payments.


Option #2 – Repayment Plan – 1.5 payments for six months



Case Study #6

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Mr. Kincaid has been unemployed for two years and just completed an extended

unemployment forbearance program but he has no prospects for another job.

He was counseled to put his house on the market. A buyer presented a good offer on

the property. The loan to value ratio is 170%.


Option #7 – Short Sale



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Case Study #7

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Ms. Howard has developed a serious medical problem that prohibits her from

working as a florist. Her possibilities for future employment are slim.

Her neighbor, Mr. Green, has been renting the house next door and has always

liked Ms. Howard’s house. Mr. Green has a good job and is interested in buying

the house. The loan to value ratio is 100%.


Option #6 – Assumption



Case Study #8

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Mr. Smith and 50 other employees were furloughed from their jobs at a manufacturing

plant. Mr. Smith doesn’t have enough savings to make his mortgage payments.

He expects to be back to work in two months.


Option #3 – Short-term Forbearance



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Case Study #9

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Mr. Marshall has a 6.5%, 30-year conventional mortgage on his condo. Mr. Marshall

is financially secure, has never been delinquent on his loan, is not in financial distress

and can afford to make his monthly mortgage payments.

Mr. Marshall would like to get his rate lowered to less than 5% on his mortgage.

He has little or no equity in the property.


Option #1 – GSE HARP refinance



HUD Certification Exam Resources

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• HUD Housing Counseling Certification Final Rule – https://www.hudexchange.info/resource/5191/housing-counseling-new-certification-

requirements-final-rule/

• HUD Housing Counseling Certification Press Release – https://www.hudexchange.info/resource/5193/hud-press-release-hud-announces-new-

housing-counseling-certification-requirements/

• HUD Housing Counseling Certification Requirements Overview – https://www.hudexchange.info/programs/housing-counseling/certification/

• HUD Housing Counseling Certification Requirements FAQs – https://www.hudexchange.info/resource/5194/housing-counseling-new-

certification-requirements-faqs/

• HUD other Programs Covered Under Final Rule – https://www.hudexchange.info/resource/5192/other-hud-programs-covered-under-huds-

final-rule-for-housing-counseling-certification/

• HUD training and certification exam website – http://www.hudhousingcounselors.com/

• HUD housing counseling resources – https://www.hudexchange.info/programs/housing-counseling/

• HUD certification final rule key provisions and dates – https://www.hudexchange.info/resources/documents/Housing-Counseling-Certification-

Chart-of-Key-Provisions-and-Dates.pdf

• HUD Stakeholders December 19, 2016 recorded conference call on the certification final rule –

https://www.hudexchange.info/trainings/courses/stakeholders-conference-call-on-the-final-rule-on-housing-counseling-certification/



https://www.hudexchange.info/resource/5191/housing-counseling-new-certification-requirements-final-rule/

https://www.hudexchange.info/resource/5193/hud-press-release-hud-announces-new-housing-counseling-certification-requirements/

https://www.hudexchange.info/programs/housing-counseling/certification/

https://www.hudexchange.info/resource/5194/housing-counseling-new-certification-requirements-faqs/

https://www.hudexchange.info/resource/5192/other-hud-programs-covered-under-huds-final-rule-for-housing-counseling-certification/

http://www.hudhousingcounselors.com/

https://www.hudexchange.info/programs/housing-counseling/

https://www.hudexchange.info/resources/documents/Housing-Counseling-Certification-Chart-of-Key-Provisions-and-Dates.pdf

https://www.hudexchange.info/trainings/courses/stakeholders-conference-call-on-the-final-rule-on-housing-counseling-certification/

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Loss Mitigation Resources

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Refinance

• HARP general website – https://www.harp.gov/

• Freddie Mac HARP – http://myhome.freddiemac.com/refinance/understand-harp.html

• Fannie Mae HARP – http://www.knowyouroptions.com/refinance/overview

• FHA Short Refi – http://www.fha.com/fha_article?id=177

• FHA loan Streamlined Refi –

https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/streamline

• VA – http://benefits.va.gov/homeloans/irrrl.asp

• USDA –

https://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=2016/05

/0116.xml

• Reverse Mortgage (Federal Trade Commission Info) –

http://www.consumer.ftc.gov/articles/0192-reverse-mortgages




76

Forbearance

• Freddie Mac –

http://www.freddiemac.com/singlefamily/service/unemployment_forbearance.html

• Fannie Mae – http://knowyouroptions.com/avoid-foreclosure/options-to-stay-in-your-

home/forbearance

• FHA – http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

• VA – http://www.va.gov/

• USDA –

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/lossclaim/Loss%20Mitigation%20Guide.pdf

• Hardest Hit Fund – http://www.treasury.gov/initiatives/financial-stability/TARP-

Programs/housing/hhf/Pages/default.aspx


https://www.harp.gov/

http://myhome.freddiemac.com/refinance/understand-harp.html

http://www.knowyouroptions.com/refinance/overview

http://www.fha.com/fha_article?id=177

https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/streamline

http://benefits.va.gov/homeloans/irrrl.asp

https://www.usda.gov/wps/portal/usda/usdahome?contentidonly=true&contentid=2016/05/0116.xml

http://www.consumer.ftc.gov/articles/0192-reverse-mortgages


http://www.freddiemac.com/singlefamily/service/unemployment_forbearance.html

http://knowyouroptions.com/avoid-foreclosure/options-to-stay-in-your-home/forbearance

http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

http://www.va.gov/

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/lossclaim/Loss Mitigation Guide.pdf

http://www.treasury.gov/initiatives/financial-stability/TARP-Programs/housing/hhf/Pages/default.aspx

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77

Modification

• Freddie Mac Standard Mod – http://www.freddiemac.com/singlefamily/service/standard_modification.html

• Freddie Mac Streamlined Mod – http://www.freddiemac.com/singlefamily/service/streamlined_modification.html

• Freddie Mac Disaster Relief Modification –

http://www.freddiemac.com/singlefamily/news/2013/0815_disaster_relief_options_and_requirements.html

• Freddie Mac Flex Modification – http://www.freddiemac.com/singlefamily/service/flex_modification.html

• Fannie Mae Standard Modification – https://www.fanniemae.com/content/guide/servicing/d2/3.2/05.html

• Fannie Mae Streamlined Modification – https://www.fanniemae.com/content/guide/servicing/d2/3.2/08.html

• Fannie Mae Disaster Relief Modification – https://www.fanniemae.com/content/guide/servicing/d2/3.2/10.html

• Fannie Mae Flex Modification – http://www.fanniemae.com/portal/funding-the-market/credit-risk/news/credit-

risk-flex-modification-program-announcement-121516.html

• FHA Modification – https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1

• VA Modification –

http://www.benefits.va.gov/homeloans/documents/docs/delinquent_veteran_borrowers_in_delinquency.pdf

• USDA Modification –

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/3555/DocumentationAndResources/LossMitHandbook2014Final.

pdf




78

Principal Reduction/Principal Forbearance

• FHA Partial Claim – https://portal.hud.gov/hudportal/documents/huddoc?id=13-

19ml.pdf

• USDA Mortgage Recovery Advance –

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/3555/DocumentationAndResources/L

ossMitHandbook2014Final.pdf

• Hardest Hit Fund – http://www.treasury.gov/initiatives/financial-stability/TARP-

Programs/housing/hhf/Pages/default.aspx


http://www.freddiemac.com/singlefamily/service/standard_modification.html

http://www.freddiemac.com/singlefamily/service/streamlined_modification.html

http://www.freddiemac.com/singlefamily/news/2013/0815_disaster_relief_options_and_requirements.html

http://www.freddiemac.com/singlefamily/service/flex_modification.html

https://www.fanniemae.com/content/guide/servicing/d2/3.2/05.html



http://www.fanniemae.com/portal/funding-the-market/credit-risk/news/credit-risk-flex-modification-program-announcement-121516.html

https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/handbook_4000-1

http://www.benefits.va.gov/homeloans/documents/docs/delinquent_veteran_borrowers_in_delinquency.pdf

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/3555/DocumentationAndResources/LossMitHandbook2014Final.pdf


https://portal.hud.gov/hudportal/documents/huddoc?id=13-19ml.pdf

https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/3555/DocumentationAndResources/LossMitHandbook2014Final.pdf

http://www.treasury.gov/initiatives/financial-stability/TARP-Programs/housing/hhf/Pages/default.aspx

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79

Short Sale and Deed-in-Lieu of Foreclosure

• Freddie Mac Short Sale –

http://www.freddiemac.com/singlefamily/service/short_sales.html

• Fannie Mae Short Sale – http://knowyouroptions.com/avoid-foreclosure/options-to-

leave-your-home/short-sale

• Freddie Mac DIL –

http://www.freddiemac.com/singlefamily/service/standard_deed_in_lieu.html

• Fannie Mae DIL – http://knowyouroptions.com/avoid-foreclosure/options-to-leave-

your-home/mortgage-release



Additional Resources

80

• General

Freddie Mac loan lookup – https://ww3.freddiemac.com/corporate/?intcmp=LLT-HPimage

Freddie Mac Guide – http://www.freddiemac.com/singlefamily/guide/

Fannie Mae loan lookup – https://knowyouroptions.com/loanlookup

Fannie Mae Guide – https://www.fanniemae.com/singlefamily/guides?taskId=task-58

HUD – http://portal.hud.gov/hudportal/HUD

VA – http://www.va.gov/

USDA – http://www.usda.gov/wps/portal/usda/usdahome

• USDA contacts –

USDA guaranteed loans customer service > 1-866-550-5887

USDA direct loans customer service > 1-800-414-1226 and fax number to send

authorizations > 314-457-4431

USDA multifamily customer service > 1-866-600-7984


http://www.freddiemac.com/singlefamily/service/short_sales.html

http://knowyouroptions.com/avoid-foreclosure/options-to-leave-your-home/short-sale

http://www.freddiemac.com/singlefamily/service/standard_deed_in_lieu.html

http://knowyouroptions.com/avoid-foreclosure/options-to-leave-your-home/mortgage-release


https://ww3.freddiemac.com/corporate/?intcmp=LLT-HPimage

http://www.freddiemac.com/singlefamily/guide/

https://knowyouroptions.com/loanlookup

https://www.fanniemae.com/singlefamily/guides?taskId=task-58

http://portal.hud.gov/hudportal/HUD

http://www.va.gov/

http://www.usda.gov/wps/portal/usda/usdahome

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Additional Resources

81

• Hardest Hit Fund new allocation announcement – https://www.treasury.gov/press-center/press-

releases/Pages/jl0358.aspx

• CFPB consumer complaint page – http://www.consumerfinance.gov/complaint/

• CFPB help for struggling borrowers – http://files.consumerfinance.gov/f/201402_cfpb_mortgages_help-for-

struggling-borrowers.pdf

• HUD Office of Fair Housing and Equal Opportunity – http://www.hud.gov/fairhousing

• National Industry Standards for Homeownership Education and Counseling –

http://www.homeownershipstandards.com/Home/Home.aspx

• Bankruptcy

Legal Aid – http://www.lsc.gov/local-programs/program-profiles



General Resources

82

• Free credit report – https://www.annualcreditreport.com/index.action

Equifax – 1-800-685-1111 – http://www.Equifax.com

Experian – 1-888-397-3742 – http://www.Experian.com

Trans Union – 1-800-888-4213 – http://www.transunion.com

• Property value estimates –

http://www.zillow.com

http://www.eppraisal.com

http://www.realtor.com

• Freddie Mac Housing Professionals Resource Center Subscribe –

http://www.freddiemac.com/singlefamily/housingpros/subscribe.html

• Freddie Mac Real Estate Professionals Resource Center Subscribe –

http://www.freddiemac.com/singlefamily/housingpros/real_estate_professionals_resource_center.html


https://www.treasury.gov/press-center/press-releases/Pages/jl0358.aspx

http://www.consumerfinance.gov/complaint/

http://files.consumerfinance.gov/f/201402_cfpb_mortgages_help-for-struggling-borrowers.pdf

http://www.hud.gov/fairhousing

http://www.homeownershipstandards.com/Home/Home.aspx

http://www.lsc.gov/local-programs/program-profiles


https://www.annualcreditreport.com/index.action

http://www.equifax.com/

http://www.experian.com/

http://www.transunion.com/

http://www.zillow.com/

http://www.eppraisal.com/

http://www.realtor.com/

http://www.freddiemac.com/singlefamily/housingpros/subscribe.html

http://www.freddiemac.com/singlefamily/housingpros/real_estate_professionals_resource_center.html

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Military Resources

83

• Freddie Mac – http://myhome.freddiemac.com/mortgage-help/military-assistance.html

• Fannie Mae – http://knowyouroptions.com/news/help-for-military-homeowners

• CFPB – http://www.consumerfinance.gov/blog/servicemembers-you-have-new-mortgage-

protections-in-2014/

• Help for homeless Veterans – http://www.va.gov/homeless/

• Armed Forces Legal Assistance Program Office –

http://legalassistance.law.af.mil/content/locator.php

• Veterans Crisis Line – http://veteranscrisisline.net/



News Resources

84

• CFPB

• DSNews

• Equifax

• Experian

• Fannie Mae

• Federal Trade Commission

• Freddie Mac

• Google Alerts – set up alerts for any topic

• HousingWire

• HUD listserv

• myFICO

• The Counselor’s Corner free membership

• TransUnion


http://myhome.freddiemac.com/mortgage-help/military-assistance.html

http://knowyouroptions.com/news/help-for-military-homeowners

http://www.consumerfinance.gov/blog/servicemembers-you-have-new-mortgage-protections-in-2014/

http://www.va.gov/homeless/

http://legalassistance.law.af.mil/content/locator.php

http://veteranscrisisline.net/


https://public.govdelivery.com/accounts/USCFPB/subscriber/new

http://www.dsnews.com/subscribe

https://www.equifax.com/personal/education

http://www.experian.com/consumer-information/experian-news-subscription-form.html

https://www.fanniemae.com/s/profile/notification

https://public.govdelivery.com/accounts/USFTC/subscriber/new?category_id=USFTC_C7

http://www.freddiemac.com/singlefamily/news/subscribe.html

https://www.google.com/alerts

http://www.housingwire.com/products/12-printdigital-subscription

https://www.hudexchange.info/programs/housing-counseling/mailing-list/

http://www.myfico.com/credit-education/credit-report-credit-score-articles/

https://www.thecounselorscorner.net/

http://newsroom.transunion.com/subscribe/

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What is the Housing Counselor’s Responsibility?

85

To know the programs and the options to assist in your client’s coaching and counseling needs.

To stay up to date with industry news and training, maintain your membership with The Counselor’s Corner and invite your associates to join.

Membership and all webinars are free!



Continued Education Hours

86

• 2.0 hours for today’s session

• Must take the short test to receive the Certificate of Completion

• The test link will be sent to you within three hours after the end of this webinar

IMPORTANT! Please add [email protected] to your address book

• Once you pass the test, you can print your certificate right away at the test site

Please complete the survey that will pop up at the end of today’s webinar.



mailto:[email protected]

03-21-17

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Upcoming Webinars

87



Strategic Partnership

88

• Additional online training events

• Increased resources

• Extended networking opportunities

• More Continued Education Hours

http://www.afcpe.org/



http://www.afcpe.org/

03-21-17

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Self-care for Housing Counselors

http://www.eleanorbrownn.com/




http://www.eleanorbrownn.com/


03-21-17

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