MM III 3.6 PRESENTATION-REO.pdf

OVERVIEW OF M&M III

Atlanta Industry Day Presentation

M&M II M&M III

Inconsistent mortgagee compliance guidance

Single, centralized Mortgagee Compliance contractor ensures that all properties are conveyed according to HUD rules, and that HUD can better monitor compliance and process lender requests.

Reliance on contractor’s system for case management and bid sites

HUD has its own case management system, P260, to provide real-time property data and ensure oversight controls.

HUD’s Internet bid site, tied directly to the new case management system, allows us to more accurately analyze bids to more effectively sell properties at a higher net return.

Conflicts of interest and lack of contractor accountability

Separating mortgagee compliance, property maintenance, and marketing functions allows for checks and balances among the respective contractors.

Eliminates conflict of interest, while also streamlining these processes overall, creating incentives for cost efficiencies, and reducing risk.

Single contractor operating in an exclusive territory

Multiple contractors in each market area, which will spur competition and provide for seamless operations in instances of changes in market conditions.

Multiple contractors within a contract area provides HUD with options in the event of contractor default and/or poor contractor performance.

Behind the Scenes:

Improvements Incorporated into M&M III

WHAT HUD EXPECTS:

• MULTIPLE CONTRACTORS –

Operating in various contract areas

• GREATER COMPETITION ( among the various vendors)

• ENHANCED Management, Marketing, and Sales of REO properties

• BETTER Customer Service

HUD’S New Property Disposition Program Structure

STRUCTURE

• Mortgage Compliance Manager(MCM)

• Field Service Manager (FSM)

• Asset Manager (AM)

• P260 & Listing/Bidsite

MORTGAGEE COMPLIANCE

MANAGER (MCM)

• Must ensure mortgagees meet HUD’s property conveyance standards

• Responsible for time extension requests, overallowable requests, title reviews, requests for occupied conveyances

ASSET MANAGER (AM)

• Responsible for the marketing and sale of REO property.

• Responsible for establishing relationships with Local Listing Brokers and Selling Agents

• Responsible for confirming that FSM has ensured that property is in “Ready to Show” condition

FIELD SERVICE MANAGER

(FSM)

• Property maintenance and preservation services, including inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance

• Responsible for paying condo/HOA fees, utility bills, ground rents, dues, and assessments

P260 AND BIDSITE

• Centralized REO case management into one system versus separate contractor owned and run EMS’s under M&MII.

• Centralized web-based REO listing and electronic bid site versus separate designs procured by the contractors under

M&MII.

• One bidsite with consistent information.

• Ability for anyone to determine the AM and FSM assigned to the property.

FHA Frequently Asked Questions

• http://www.fhaoutreach.gov/FHAFAQ/

• A web site containing almost 1,300 questions and answers about FHA programs, underwriting and processing

• Searchable by key word and category

Additional Resources http://www.fhaoutreach.gov/FHAFAQ/ www.hud.gov/fha

The main web site for the latest news on FHA programs http://www.hud.gov/offices/adm/hudclips/i ndex.cfm

HUDCLIPS - the source for FHA policy documents -handbooks, mortgagee letters and notices

Additional Resources