Attachment 3 MCM 4.0 Appendix B - REO Steps In HRSR.pdf

Acquisition

Disposition Pending

3A

HUD Detail Steps - State DiagramConveyance

Appraisal Complete

Ready-to-Show Condition

1C

Clean-out Complete

1B

Initial Inspection (HPIR) Complete

1A

Pre-Conveyance

INS1

Assigned

FSM1 asks INS1 to do Inspection

INS1 does Initial

Inspection Inspection Needs Approval

FSM1 Approves inspection

FSM1 Rejects Inspection

FSM1 promotes to Step 1A

INS1

Assigned

AM1 asks INS1 to do Inspection

INS1 does

AM

Inspection Inspection Needs Approval

AM1 Approves Inspection

AM1 Rejects Inspection

AM Inspection Complete

APP1

Assigned

AM1 asks APP1 to do Appraisal

APP1 does Appraisal Appraisal Needs Approval

AM1 Approves Appraisal & promotes to Step 2

AM1 Rejects Appraisal

FSM1 adds Disposition Plan to be held off market (see “Table of Reasons…(HOM)” at right for HOM codes & optional forms and approvals) FSM1 promotes to Step 3A

Due to bad condition:

Due to bad condition, AM1 adds Disposition Plan to be held off market & promotes to Step 3A

AM1 adds Disposition Plan & promotes to Step 3A

Title Package Complete

MCM adds Title Info.

& uploads Title Pkg.

Title Approved

Within 30 days of Acquisition, Title info.

must be entered and

Title approved

HUD pays claim through A43EDI If no A43C errors present Programmatically promote to Step 1 Otherwise for some A43C soft error codes:

MCM works with Mortgagee to fix soft errors MCM manually promotes to Step 1 FSM programmatically assigned when promoted

Mortgagee initiates claim through A43C

MCM reviews Form 27011A MCM fills in 27011A Review Date MCM optionally uploads 27011A form.

Claim Review Complete

After Acquisition If “27011A Claim

Review Complete” = N

27011B,C,D Claim Review

Completed

MCM uploads 27011B,C,D form & sets Review Date

MCM Approves Title

FSM1 cleans out house FSM1 promotes to Step 1B

FSM1 prepares and/or signs off Property Condition Report (PCR) and promotes to Step 1C (AM is programmatically assigned)

AM1 does AM inspection

MCM1 adds Disposition Plan to be held off market (see “Table of Reasons…(HOM)” at right for HOM codes & optional forms and approvals) MCM1 promotes to Step 3A or Due to administrative action:

FSM1 does Initial inspection (Note: if inpection is not finished within 48 hours, GTR has to either extend the deadline or assign a new FSM)4

4/23/2013

Disposition Pending

3A

Sub-State

Legend:

‘sub-state’ of object final state initial state event event

Ready to List

Held Off Market

Direct Sale

Reconveyed to Mortgagee

(Contract Area=HD) if HOM = 3 reconvey to mortgagee

Listed for Sale

Preliminary Offer

Sales Offer

Sale Closed

Reconciled

Primary State ‘primary state’ of object

Bids are entered via Listing Site.

Bidding period ends.

AM1 accepts best bid, adds Preliminary Acceptance & promotes to Step 7 if HOM = 9, AM2 approves Disposition AM1/2 promotes to Step 4 if HOM = N, AM2 approves Disposition AM1/2 promotes to Step 5

AM1/2 adds Preliminary Acceptance & adds Purchaser & promotes to Step 7 if HOM not= N & not= 9 Supervisor approves Disp.

xM1/2 promotes to Step 3

Table of reasons a case can be Held off Market (HOM) and what Roles can do that.

GTR

HOM HOM --- Who Can Set --- Appr.

Code Description FSM1 AM1 MCM1 Req.

1 Mortgagee Indemnify * 2 Awaiting Redemption * * 3 Reconvey to Mortgagee (a) * 4 Programmed for Rent * * 5 Adverse Occupants * * 6 Mortgagee Action Req.(b) * 7 Req for Reconvey (c) * * * 9 Offered Direct Sale * 11 Occupied Convey. Proc. * 13 Failing IIF * 14 $1 Home Prelim. * 15 Gov/NonProfit Prelim * 16 HUD Title Action Req. * * 20 ACA Waiting Closing * 21 ACA Awaiting Reconc. * BH BioHazard (d) * C 312's Needing Info. * * D Disaster Relief * DM Demolition (e) * EC Environmental Cleanup * G Government Use * * * LP Lead Based Paint * N Not Held Off Market * O Occupied Sale PM Program Mandate * * * *

Notes:

(a) Requires Reconveyance Info. Screen to be filled in

(b) Requires Mortgagee Action Info Screen to be filled in

(c) Requires MCM approval as well (case stays in Step 3a)

(d) Requires Biohazard Info Screen to be filled in

(e) Requires Demolition/Repairs Screen to be filled in

Reanalyze Case and if the problem or situation that caused it to be moved to Held Off Market state has been rectified then return to appropriate prior step.

if closing date extension needed AM1 adds Contract Extension

AM1 adds Sales Contract & promotes to Step 8

INS1

Assigned

AM1 asks INS1 to do Closing AM Inspection

Inspection Needs Approval

AM1 Approves Inspection

AM1 Rejects Inspection

Closing AM Insp.Complete

AM1 does Closing AM Inspection

CL adds Closing Date to Contract Form & uploads Sales Contract Document

Contract Complete

CL uploads HUD-1 Settlement Document

HUD-1 Doc.

Uploaded

CL sends HUD-1 to AM1 who uploads HUD-1 Settlement Document

Sytem reconciles sale proceeds & automatically promotes to Step 10 when Fedwire Amount from SAMS matches the Total Settlement Amount (System Total)

AM1 reviews uploaded HUD-1 Settlement Document & populates P260 HUD-1 Screen AM1 continues to update/add HUD-1 forms until status = “Closing Confirmed” which automatically promotes case to Step 9

INS1 does AM Inspection

If disposition list date > current date. then case automatically promoted to Step 6 on list date;

Otherwise AM1 manually promotes to Step 6

4/23/13