Servicing Guide - NCHFA

North Carolina Housing Finance Agency

Servicing Guide

Revised October 2017

North Carolina Housing Finance Agency Servicing Guide as of October 2017

Page 1

Servicing Guide Table of Contents

Note: The North Carolina Housing Finance Agency's Servicing Guide ("NCHFA's Servicing Guide") is the controlling document. I f a topic is not addressed in NCHFA's Servicing Guide, the Servicer should follow the guidelines set forth in the Fannie Mae Servicing Guide. Any questions should be directed to the North Carolina Housing Finance Agency (NCHFA) for clarification.

Section 1: Remittance Responsibilities

1.1

Servicing Overview

1.2

Servicer's Accounting and Remittance Responsibilities

1.3

Servicing Accounting Records

1.4

Acceptable Mortgage Accounting Method

1.5

Establishment of Custodial or Trust Accounts

1.6

Monthly Remittance Report Packages

1.7

Remittance of Funds

1.8

Wiring Instructions

1.9

Custodial Files Held By Bank of New York

1.10

Penalties for Late Remittances and Reports

1.11

Examination of Servicer's Records

1.12

1985 Series U/V and Future Bond Issues with the same MBS Structure

1.13

Breach of Servicing Agreement

Section 2: Default Management

2.1

Default Management Overview

2.2

Early Intervention

2.3

Collections and Notices

2.3.1 Delinquency Letters

2.3.2 Breach Letter

2.3.3 North Carolina General Statute (45-Day Letter)

2.4

Acceleration

2.4.1 Chronic Default

2.4.2 Abandonment of Property

2.4.3 Non-Monetary Default

2.4.4 Occupancy

2.5

Foreclosure Prevention Alternatives

2.5.1 Forbearance Plans

2.5.2 Partial Payments

2.5.3 Home Affordable Modification Plan (HAMP)

2.5.4 Modification (Recasting, Extending or Re-amortizing)

North Carolina Housing Finance Agency Servicing Guide as of October 2017

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2.5.5 Deed-in-Lieu of Foreclosure

2.6

Reporting Delinquencies to Credit Bureaus

2.7

Property Inspections

Section 3: Bankruptcy Management

3.1

Bankruptcy Management Overview

3.2

Preparing and Filing the Proof of Claim

3.3

Monitoring Borrower Payments and Crucial Dates

3.4

Delays in the Bankruptcy Process

3.5

Special Circumstance Bankruptcies

3.5.1 Abusive Filers

3.5.2 Individuals with Fractional Interest

3.5.3 Cramdowns of the Mortgage Debt

3.6

Post-Foreclosure Filings

Section 4: Short Sale Procedures

4.1

Short Sale Analysis

4.2

Insurer Approval

4.3

NCHFA Approval (Conventional and USDA Loans)

4.4

Remittance of Short Sale Funds

Section 5: Foreclosure Management

5.1

Overview

5.2

Bidding Instructions

5.3

Deficiency Judgments

5.4

Foreclose In The Name of North Carolina Housing Finance Agency

5.5

Property Conveyance

5.6

Reinstatements

5.7

Property Maintenance and Management

5.8

Eviction Proceedings

5.9

Hazard Insurance Policies

5.10

Reporting to NCHFA During and After Foreclosure

5.11

Compliance with Internal Revenue Service (Form 1099-A)

5.12

Compliance with MERS (Mortgage Electronic Registration System)

North Carolina Housing Finance Agency Servicing Guide as of October 2017

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Section 6: Real Estate Owned (REO)

6.1

Foreclosure Confirmation

6.2

Insurer Requirements

6.3

Maintenance and Preservation of Property

6.4

Inspections

6.5

Final Claims to Insurers

Section 7: Servicer Claims to NCHFA

7.1

When to File a Servicer Claim

7.2

REO Properties (Conventional or USDA)

7.3

REO Properties (FHA or VA)

7.4

Short Sales Claims

7.5

Attorney Fees

7.6

Servicer Interest Penalty

7.7

Reimbursement of Servicer's Foreclosure Expense Request

7.8

Removal of Loan from Servicer's Trial Balance

Section 8: Servicing Subordinate Liens

8.1

New Loan Setup

8.2

Monthly Servicer Subordinate Reconciliation Report

8.3

Payoff Quotes

8.4

Subordinating a Second Loan for a Streamline Refinance

8.5

Wiring Instructions

8.6

Satisfactions

Section 9: Quality Control Servicing Audits

Section 10: Assumptions Section 11: Waiver Process

North Carolina Housing Finance Agency Servicing Guide as of October 2017

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Section 12: Exhibits

Exhibit 1: Form SFS-25, Letter of Agreement for Servicer's Custodial Accounts Exhibit 2: Automated Investor-Delinquency Reporting File Format Exhibit 3: Bank of New York Mellon Trust Company, N.A. Registration Form Exhibit 4: Occupancy Certificate Exhibit 5: Variance Letter from HUD regarding Mortgagee Letter 2009-35 Exhibit 6: Loan Modification Capitalization Reimbursement Request Exhibit 7: Short Sale Transmittal Summary Exhibit 8: Servicer REO Securing Notice Exhibit 9: NCHFA Claims-Foreclosure Expense Reimbursement Request Exhibit 10 Servicing Waiver Request Form

North Carolina Housing Finance Agency Servicing Guide as of October 2017

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