reaching out to mortgagees for stronger partnerships … · 2014. 1. 24. · timely and in...

Issue 14. January 2014

Reaching Out to Mortgagees for Stronger Partnerships

BBBeeehhhiiinnnddd ttthhheee VVVoooiiiccceee MCB’s Customer Ser vice Team is Ready to Assist

IIInnn TTThhhiiisss IIIssssssuuueee MCB’s Customer Service Team 3

Meet the professionals ready to handle a potpourri of issues.

Winterization Requirements 6

Protect properties from the “polar vortex”! A reminder of HUD’s

requirements for winterizing.

Demand Appeals: Doomed to Denial? 7

Denied appeals cost Mortgagees money. Many denials can be avoided

by reading the reasons for the demand, and appealing appropriately.

When HUD is Named in Title in Error 8

Follow this procedure to correct title when HUD is named in error.

Important Info for FSMs! 10

Clarification on reporting damaged properties.

Visit mcbreo.com to subscribe to MCB’s MCM UpDate

If you missed an issue, all past newsletters can be downloaded.

http://www.mcbreo.com/contracting/mortgagee-compliance-manager/

Issue 14. January 2014

Reaching Out to Mortgagees for Stronger Partnerships

MCM UpDate is published by Michaelson, Connor & Boul to provide news, information, and tips on how Mortgagees and Servicers can avoid the issues that cause delays in processing property conveyance to HUD. Our communication goal is to help Mortgagees and Servicers understand the MCM processes and improve the way the various transactions are submitted for pre- and post-conveyance activities.

Photo: Dustin Harjo

MCM UpDate Published by MCB - 3 - January 2014

Behind the Voice: MCB’s Customer Service Team is Ready to Assist Fielding a potpourri of questions from a widely diverse audience takes quick thinking and sometimes a sense of humor. Anyone who has worked in the customer service world can attest that each customer can bring unique and sometimes bizarre questions or requests. Since one never knows what to expect…one needs to expect the unexpected – and be prepared for it. Such is the case with MCB’s Customer Service Team. A small, but mighty group of three customer service representatives who answer questions, field requests, and sometimes just listens. As HUD’s Mortgagee Compliance Manager, MCB provides service to several stakeholders across the country. Obviously, we work closely with our client personnel at HUD’s National Servicing Centers and regional HUD Home Ownership Centers (HOC). We also interact with fellow HUD contractors, such as the Field Service Managers and Asset Managers. And, of course, we work with Mortgagees, and various vendors doing work on the Mortgagees’ behalf, such as property preservation field service companies and attorneys. The nature of the MCM work also entails contact with the general public. Our primary contact is with homeowners who are involved in foreclosure and/or eviction proceedings and need help with HUD’s Occupied Conveyance request process. We also deal with local municipalities and Homeowners Association (HOA) officials. Since there is such a variety in the types of customers and the kind of assistance they need, the customer service representatives must be prepared to answer questions and provide direction on a wide range of issues. Meet MCB’s Customer Service Team

Standing left is Marji Pittman, Operations Manager. Marji is responsible for managing the customer service and operations departments. Next to Marji (L-R) are MCB’s Customer Service Representatives Amber Adams, Stephanie Sandberg, and Alisha Beavers. Amber, Stephanie and Alisha field phone calls and respond to emails that are sent to the general email box: [email protected]

Photo: Dustin Harjo


The Top Topics That Makes the Phone Ring Since MCB handles mortgagee compliance for the entire country, it is understandable that many questions come our way simply because callers don’t know who else to call. Here are the most popular reasons why people call us – along with a few of the answers:

1. Distressed Borrowers. The highest number of incoming phone calls is from borrowers who are under financial and sometimes medical stress and have just received the “Notice of Pending Acquisition” from their lender. They are confused by the occupied conveyance process and sometimes need a little hand holding and extra explanation.

2. Property Condition Complaints. Neighbors, HOA or city code enforcement officials will

contact us regarding a property that is in disrepair, or causing other problems for the neighborhood.

Many times, these properties are still in the pre-conveyance stage, yet Mortgagees (or their vendors) erroneously post signs on the property that HUD is the owner and refer to MCB (see MCM UpDate issue September 2013 “Mortgagees: Communicate with Your Vendor”). In these instances, the callers are referred back to the Mortgagee.

3. Getting Access to P260. Mortgagee Letter 2010-16 introduces P260 as the internet portal to process mortgagee compliance transactions. In order for a Mortgagee to get first time set up and provide P260 access to others (within the organization or to vendors), a “Super User” (or primary contact) needs to be identified.

The identified “Super User” should send an email to [email protected] and include the following information: � Company name and address � Servicing lender ID number � Name, phone, fax and email address for the Super User

4. P260 Technical Questions. We often get questions from Mortgagees or their vendors that are navigational or technical in nature. These callers are referred to the Yardi Help Desk at 805-699-2053 or [email protected].

5. Pre-Conveyance Questions. Mortgagees or their field service vendors will call with questions on how to submit initial requests and if certain types of work is allowable.

6. Individuals Interested in Purchasing a HUD Home. People driving through the neighborhood will see the posting on the property and call to see how they can buy the home. These callers are referred to HUD’s Asset Manager for the property, or if one is not yet assigned, they are advised to monitor www.hudhomestore.com.

7. HOA, Utilities, Violations. Agencies call because they are trying to collect an outstanding balance on a property account. If the property is still in pre-conveyance, the Mortgagee needs to resolve prior to conveying. If the property has already conveyed, we refer to the assigned HUD contractor (a demand to the Mortgagee may be forthcoming).


Mortgagee Compliance from the Reps’ Point of View

Some memorable characters While we get our fair share of angry, frustrated or kooky callers just like any customer service call center, there are some memorable characters who give us an occasional chuckle. Here are some examples: The Language of Occupied Conveyance. A borrower once called their informal conference to discuss their occupied conveyance request as an “infernal confrontation”. Another borrower referred to the term occupied conveyance as “occupancy of convenience”. The Cat Lady. This woman called every day for several months. The city condemned her home, so she was not able to live there. However, she thought she should be able to apply for occupied conveyance because her cats were still occupying the home. The National Security Guy. This gentleman sent us a letter with his occupied conveyance request stating it was a matter of national security and he was doing spiritual work for our nation. He could not leave the house because he was allergic to cigarette smoke, which is the number one weakness in America. Finders Keepers. This man took up squatting in a particular house. He said that he saw it, he liked it, and should not have to vacate, because the house was empty anyway and he could make it better by putting some work into it.

“As customer service representatives, we are the first point of contact for many of our customers. My hope is to convey a positive and professional attitude that represents the excellence we strive for as the MCM."

Amber Adams

“I believe that good customer service is an integral part of mortgagee compliance management. We must know something about all aspects of what we do as the MCM…or else know where to go to find the answer – and quick!”

Stephanie Sandberg

“We handle such a variety of questions and issues that it really keeps us on our toes! My goal is to provide good answers or direction to callers so they can do their job well. If mortgagees have the right information, it helps us too.”

Alisha Beavers Photos: Dustin Harjo


Winterization Requirements Many parts of the country have been in a deep freeze over the last several weeks, which means we are “knee-deep” in the winterization season. Mortgagees and their field property service vendors need to know HUD’s winterization requirements, and what constitutes Mortgagee responsibility. Winterization season began October 1 and goes through March 31, unless climatic conditions require extended treatment periods. Mortgagee Letter 2010-18 Sections F and G outline the requirements for snow removal and winterization.

• If the property is not secured or winterized timely, any damages (such as water damage, plumbing damage and thawing expenses) associated with the freeze damage will be remediated at the Mortgagee’s expense prior to conveyance.

• If freeze damage is discovered at first time vacancy and the property was secured timely, the

Mortgagee should file an insurance claim in an attempt to recover funds for repair. If freeze damage is discovered at first time vacancy, we will consider bids to thaw the lines. The Mortgagee should winterize if the plumbing has minor damage.

• If the plumbing is damaged and causes water damage, yet the insurance company denies the claim for legitimate reasons, the Mortgagee should submit a surchargeable damage request to convey as is with freeze damage. At this point, the Mortgagee needs to ensure that all visible broken or damaged plumbing is capped to prevent further damage.

Overallowable Requests

Snow Removal. Requests to exceed the ML 2010-18 Exhibit B allowable cost for snow removal must include photos demonstrating the need, and detailed information – such as, the length of the driveway, sidewalks, etc. that will support why the $50 allowable is not sufficient. ALSO, proof must be provided that the snowfall is recent – to support the fact that the snow has not been continuously accumulating, which is the reason for the request to exceed the allowable. If the request is due to a local city ordinance or code violation, this should be clearly indicated on the OA and must include supporting documentation. Thaw Frozen Properties. Requests to thaw frozen properties and/or fixtures must be submitted with inspections from the date of default (each time, verification that the property is secured and the initial entry was completed timely). The request will not be approved if the property has not been secured timely and in accordance with HUD guidelines. A detailed breakdown of how the cost for thawing is being determined must be provided and include items such as: number and type of heaters to be used, number of labor hours, number of rooms, etc. All requests must include DATE-STAMPED photos of frozen pipes, toilets and sinks.


Doomed to Denial? When Your Demand Appeals Don’t Stand a Chance Carelessly prepared appeals that don’t address the demand can be costly. Last year, MCB issued more than 52,000 demand letters. Half of these demands were issued as the result of the 27011 Part BCD claim review. Missing documentation to support the claimed expenses is the #1 reason why so many demands were issued. Now, some might think that it’s no problem if the documentation doesn’t accompany the claim, because it can always be remedied by providing the documentation on the appeal side, right? To do so would be risky, at best. While these demands could have been avoided in the first place by having all the documentation uploaded with the claim, the corresponding appeals submitted by the Mortgagee are often doomed to denial because of the same lack of preparation, or attention to detail. Appeals that we have been receiving lately clearly indicate that the Mortgagee’s processors are not reading the contents of the demand letter, which results in submitting a non-responsive appeal, such as in the example below: Real Case Example:

The Demand Letter: The Appeal: The Part D: The demand was issued because there was no documentation to support that the two line items on the Part D were paid as claimed. Based on the statement in the appeal response, it appears the Mortgagee’s processor only looked at the date of conveyance and the date of the line items charged in the demand letter, and came to the conclusion that they were being charged for an expense that occurred after the property conveyed. The appeal was denied because no documentation was provided, even with the appeal! Contrary to the reasoning in the appeal, the dates of service were prior to the date of conveyance.


All demands issued by MCB include clear and thorough reasoning for the charges, along with any supporting documentation (if applicable). The Mortgagees’ appeal should address each issue outlined in the demand letter, and provide all necessary documentation. 52,000 Demands: Why They Were Issued 2013’s breakdown of the reasons demands were sent to Mortgagees is featured in this graph. As you can see, approximately 26,000 demands are issued because there is no documentation provided with the Part BCD.

When HUD is Named in Title in Error In order to correct title when HUD is placed in title in error, please follow these instructions:

• Email the corrected Quit Claim Deed in the form of a Word document to [email protected].

• Include your UPS or Fed Ex shipping account number so the document can be returned to you. • Provide a detailed reason for the request and advise whether the lender intends to convey the

property to HUD in the future. • Provide a copy of the recorded deed that placed HUD in title.

We will review and determine the appropriate signing authority – HUD or MCB.


Photos That Made Us Take a Second Look The MCB staff reviews thousands of photos every day. Sometimes we come across photos that are unique, and warrant sharing. Anyone can submit a photo to MCM UpDate for consideration to be included in a future issue. Email as a jpg file with an explanation to: [email protected]. One contractor found a way to make use of “Hello Kitty” signage…

…and a real kitty was caught squatting in this property and made an escape!


Reporting Damaged Properties – Potential Need to Reconvey Email notification to [email protected] will be discontinued on February 7, 2014! Field Service Managers – please note the process for submitting reconveyance requests due to damaged properties:

• Upon discovery of a damaged property, the FSM should ensure the HPIR is uploaded to P260. • Supporting documentation should be uploaded in P260 within the HOM 7 Disposition. • Once the HOM 7 Disposition is approved, the case will be assigned to an MCB staff reviewer

for review. • MCB will review, request additional documentation from the Mortgagee and FSM if needed,

and begin the review process. • MCB will notify the FSM and their GTR of the decision via P260. • If the reconveyance is approved, MCB will email the FSM requesting the case be reanalyzed in

P260 so it can be moved to HOM 3. The FSM must notify MCB once this has been done. • We recommend checking P260 to find out the status of your request (see also How to

Determine the Status of a Reconveyance, below). How to Determine the Status of a Reconveyance

• Check the email history, notes and/or the Communications Log in P260 for dates and types of communications that occur between the MCM and Mortgagee. For example:

o Date of the Preliminary Notice of Intent to Reconvey o Date of the Billing Letter o Date of the Notice of Intent to Administrative Offset o Appeals submitted by the Mortgagee; Appeal decisions rendered by the MCM

Placing Properties in HOM 3 in P260. Although FSMs have the P260 capability to move properties in and out of HOM status, please do not perform this function for any Mortgagee related issue - leave this function to the MCM. It is the MCM’s responsibility to initiate reconveyance when appropriate and the MCM will perform this step in P260. Upon doing so, we will notify the HOC GTR and the FSM. The FSM is responsible for preserving and protecting the property throughout the reconveyance process.

MCM Messages for Field Service Managers


MCM Requests for Surcharge Inspections/Estimates: When the MCM requests a surcharge estimate/inspection from the FSM, it is generally to determine the actual dollar amount of damage that exists at the property. In some cases the FSMs are sending back a recommendation to demo, or a bid to demo if the property is too damaged to repair. In these scenarios, we are already aware of the property condition and need the estimates to determine the potential dollar amount to demand from the Mortgagee. Please provide an itemized cost estimate to repair that is calculated by cost estimating software; this document will serve as supporting documentation to demands that are issued to Mortgagees. The current HPIR form being used with the cost to cure section filled out is not detailed enough and is not sufficient to be used as documentation to support a demand. Continue to send HOA and Utility issues to: [email protected] How to Send a Demand Request to the MCM:

• Upload supporting documentation to P260 as an attachment under the category “Accounting” and sub-category “Reimburseables”. Label the description as “Supporting Documentation for Demand”.

• Through P260, send an email to [email protected]. o If there are multiple charges for different expenses for the same case, send only one

email and list all the charges to be itemized – not a separate email for each charge. • Format the Subject Line of the email as case number, reason for demand and dollar amount.

Example: “123-456789: Water Charge, $15.75” • In the body of your email, state the amount that is due from the Mortgagee, and ensure the

calculations are clear. Also state that supporting documents are in P260. • Make sure your documents and calculations clearly support the dollar amount demanded. • MCB will review your request and issue the necessary demands.

Field Service Managers can send suggestions for topics of interest and request additional personnel to be added to the MCM UpDate distribution to: [email protected]

The MCM Email Boxes are for Notification Only! � Be sure to upload the attachments to P260 – do not send with the email. � No need to send screen shots of P260 within your email; this adds to the file size.

MCM Messages for Field Service Managers


Resources MCB Points of Contact http://www.mcbreo.com/contracting/mortgagee-compliance-manager/ MCM UpDate Issues http://www.mcbreo.com/contracting/mortgagee-compliance-manager/ MCB Customer Service [email protected] Reconsideration/Rescission Requests: Demands/Reconveyances

[email protected]

Voluntary Reconveyances [email protected] Re-Acquisition (return a property to HUD inventory)

[email protected]

Notification of Violations [email protected] HUD Web Page on MCM http://www.hud.gov/offices/hsg/sfh/nsc/mcm.cfm

HUD FAQ’s for P260 Internet Portal http://www.hud.gov/offices/hsg/sfh/nsc/mcmfaqsII2010.pdf

Contact List for FSM and AM Contractors http://www.hud.gov/offices/hsg/sfh/reo/mm/mminfo.cfm

Yardi Help Desk for P260 [email protected]

MCB Contacts Preconveyance, Surcharge and Emergency P&P Requests Susan Sipe (405) 595-2024 [email protected] Justin Park (405) 585-2023 Justin.park@mcbreo,com Ryan McDoulett (405) 595-2025 [email protected] Part A Claims Leana Lim (714) 230-3620 [email protected] Part BCDE Claims Amie Rother (405) 595-2018 [email protected] Sheree McClure (405) 595-2032 [email protected] Title Gwen VanEvery (405) 595-2016 [email protected] Reconveyance/Reacquisitions Cynthia Diaz (714) 230-2390 [email protected] Appeals for All Request Decisions, Demands and Reconveyances Dustin Harjo (405) 595-2012 [email protected] Occupied Conveyance Greg Nelson (405) 595-2020 [email protected]

reaching out to mortgagees for stronger partnerships … · 2014. 1. 24. · timely and in...

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