A80H_SMART_Functional_Requirements_Document.pdf

FUNCTIONAL

REQUIREMENTS

DOCUMENT

Single-Family Mortgage Asset Recovery Technology (SMART)—Baseline

U.S. Department of Housing and Urban Development

May 15, 2009

Attachment 3

Revision Sheet

Release No. Date Revision Description

Rev. 1 03/2008 Post-transition draft

Rev. 2 08/2008 Revised draft

Rev. 2.5 05/2009 Updated draft

Functional Requirements Document Authorization Memorandum

I have carefully assessed the baseline Functional Requirements Document for the Single-Family Mortgage Asset Recovery Technology. This document has been completed in accordance with the requirements of the HUD System Development Methodology.

MANAGEMENT CERTIFICATION—Please check the appropriate statement.

______ The document is accepted.

______ The document is accepted pending the changes noted.

______ The document is not accepted.

We fully accept the changes as needed improvements and authorize initiation of work to proceed. Based on our authority and judgment, the continued operation of this system is authorized.

Vance B. Morris, Director DATE U. S. Department of Housing and Urban Development

Felicia B. Jones, Government Technical Representative DATE

Donald Scott, Management Information Specialist DATE

Alexina Person, Contract Manager DATE Morris-Griffin Corporation

Matthew Blackwell, Director of IT DATE Morris-Griffin Corporation

Table of Contents

Functional Requirements Document Page i

Functional Requirements Document

Table of Contents

Page#

1.0 General Information .......................................................................................................................................1-1

1.1. Purpose..................................................................................................................................1-2

1.2. Scope .....................................................................................................................................1-2

1.3. Project References..................................................................................................................1-2

1.4. Acronyms and Abbreviations.................................................................................................. 1-3

1.5. Points of Contact....................................................................................................................1-4

1.5.1. Information......................................................................................................................1-4

1.5.2. Coordination....................................................................................................................1-4

2.0 Current System Summary ............................................................................................................................2-1

2.1. Background............................................................................................................................2-2

2.1.1. Initial Development.......................................................................................................... 2-2

2.1.2. Loan Servicing Functions ................................................................................................. 2-2

2.1.3. Data Sources....................................................................................................................2-2

2.2. System Objectives and Current Functionality.......................................................................... 2-4

2.2.1. Availability.......................................................................................................................2-4

2.2.2. Authentication and Security ............................................................................................. 2-4

2.2.3. General Navigation .......................................................................................................... 2-9

2.2.4. Loan Inquiries Module ................................................................................................... 2-11

2.2.5. Bankruptcy Module ........................................................................................................ 2-16

2.2.6. Foreclosure Module ....................................................................................................... 2-17

2.2.7. Mortgage Release Module .............................................................................................. 2-17

2.2.8. Servicing Module ........................................................................................................... 2-18

2.2.9. Customer Service Module .............................................................................................. 2-19

2.3. Current Methods and Procedures ......................................................................................... 2-19

2.3.1. PowerBuilder.................................................................................................................. 2-19

2.3.2. Month-End Processing.................................................................................................... 2-20

2.3.3. Equipment Being Used ................................................................................................... 2-20

2.3.4. Input and Output ........................................................................................................... 2-21

2.3.5. Provisions in the Existing System Design ....................................................................... 2-24

2.3.6. Deficiencies ................................................................................................................... 2-25

3.0 Proposed Methods and Procedures ........................................................................................................3-1

3.1. Summary................................................................................................................................3-2

4.0 Detailed Characteristics ...............................................................................................................................4-1

4.1. Specific Performance Requirements........................................................................................ 4-2

4.1.1. Accuracy and Validity....................................................................................................... 4-2

4.1.2. Timing.............................................................................................................................4-3

4.1.3. Capacity Limits ................................................................................................................ 4-3

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4.2. Functional Area System Functions .......................................................................................... 4-4

4.2.1. Loan Inquiry Module ........................................................................................................ 4-4

4.2.2. Bankruptcy Module ........................................................................................................ 4-31

4.2.3. Foreclosure Module ....................................................................................................... 4-32

4.2.4. Mortgage Release Module .............................................................................................. 4-34

4.2.5. Servicing Module ........................................................................................................... 4-39

4.2.6. Maintenance Module...................................................................................................... 4-40

4.2.7. Customer Service Module .............................................................................................. 4-41

4.3. Input and Output .................................................................................................................4-44

4.3.1. Inputs ............................................................................................................................4-44

4.3.2. Outputs .........................................................................................................................4-45

4.4. Failure Contingencies...........................................................................................................4-47

4.4.1. Backup...........................................................................................................................4-47

4.4.2. Fallback .........................................................................................................................4-49

4.4.3. Degraded Modes of Operation ....................................................................................... 4-49

5.0 Design Considerations..................................................................................................................................5-1

5.1. System Description ................................................................................................................5-2

5.1.1. System Interfaces............................................................................................................. 5-3

5.2. System Functions ...................................................................................................................5-5

5.2.1. Servicing..........................................................................................................................5-6

5.3. Flexibility ...............................................................................................................................5-7

6.0 Environment .......................................................................................................................................................6-1

6.1. Equipment Environment ......................................................................................................... 6-2

6.1.1. System Component Inventory .......................................................................................... 6-2

6.1.2. System Hardware Inventory.............................................................................................. 6-3

6.1.3. Storage Media.................................................................................................................. 6-5

6.1.4. Input/Output Devices ...................................................................................................... 6-5

6.2. Software Environment ............................................................................................................6-6

6.3. Communications Requirements.............................................................................................. 6-7

6.3.1. Communications Overview............................................................................................... 6-7

6.3.2. Communications Hardware.............................................................................................. 6-9

6.4. Interfaces ...............................................................................................................................6-9

6.4.1. CHUMS .......................................................................................................................... 6-10

6.4.2. Lexis/Nexis BANKO........................................................................................................ 6-11

6.4.3. Strategy .........................................................................................................................6-12

6.4.4. Rēkon2000 .................................................................................................................... 6-16

6.4.5. Wachovia Positive Pay .................................................................................................... 6-19

6.4.6. WPPS Upload.................................................................................................................. 6-20

6.4.7. Single Family Acquired Asset Management System (SAMS)............................................. 6-21

6.4.8. Tax Payment Services (TPS)............................................................................................ 6-22

6.4.9. Federal Housing Administration Subsidiary Ledger (FHASL) ........................................... 6-22

6.5. Summary of Impacts ............................................................................................................ 6-24

6.5.1. Organizational Impacts.................................................................................................. 6-24

6.5.2. Operational Impacts....................................................................................................... 6-25

6.5.3. IS Developmental Impacts.............................................................................................. 6-25

6.6. Failure Contingencies...........................................................................................................6-25

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6.6.1. Daily Procedure.............................................................................................................. 6-25

6.6.2. Weekly Procedure .......................................................................................................... 6-26

6.6.3. Offsite Backup Procedure............................................................................................... 6-26

6.6.4. Restart/Recovery ........................................................................................................... 6-26

6.6.5. Other Contingencies ...................................................................................................... 6-26

6.7. Assumptions and Constraints .............................................................................................. 6-27

7.0 Security .................................................................................................................................................................7-1

7.1. Background Information......................................................................................................... 7-2

7.2. Control Points, Vulnerabilities, and Safeguards ...................................................................... 7-2

7.2.1. Control Points..................................................................................................................7-2

7.2.2. Vulnerabilities..................................................................................................................7-3

7.2.3. Safeguards.......................................................................................................................7-4

7.3. System Monitoring and Auditing ............................................................................................ 7-8

7.3.1. Journalizing .....................................................................................................................7-9

7.3.2. Audit Trail .....................................................................................................................7-13

Figures

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Figures

Figure 1. SMART Security Disclaimer.................................................................................... 2-4 Figure 2. Federal System Warning Process Flow ................................................................... 2-5 Figure 3. SMART Windows® Authentication dialog............................................................... 2-5 Figure 4. Windows® Authentication Process Flow................................................................. 2-6 Figure 5. Security Interface.................................................................................................. 2-7 Figure 6. User/Group Management Data Window................................................................. 2-8 Figure 7. User/Group Management Toolbar......................................................................... 2-8 Figure 8. User/Object Management Data Window ................................................................ 2-9 Figure 9. User/Object Management Toolbar ........................................................................ 2-9 Figure 10. SMART Menu Bar ................................................................................................ 2-9 Figure 11. SMART Window Status Bar................................................................................. 2-10 Figure 12. SMART Module Toolbar..................................................................................... 2-11 Figure 13. The Loan Recording Tab ................................................................................... 2-13 Figure 14. The Borrowers Tab ........................................................................................... 2-14 Figure 15. Property Inspection tab..................................................................................... 2-14 Figure 16. Property Detail Window..................................................................................... 2-15 Figure 17. Inspection Report ............................................................................................. 2-15 Figure 18. SMART System Interfaces.................................................................................. 2-21 Figure 19. Loan Search Criteria fields .................................................................................. 4-4 Figure 20. Notes Search Criteria fields................................................................................. 4-5 Figure 21. The Loan Wizard................................................................................................. 4-5 Figure 22. Loan Header data (HECM-Assigned loan) ............................................................. 4-6 Figure 23. Loan Summary tab (non HECM-Assigned loan) .................................................... 4-6 Figure 24. Loan Detail tab (non HECM-Assigned loan).......................................................... 4-8 Figure 25. Edit Loan Filing window (Non HECM-Assigned loan) .......................................... 4-10 Figure 26. Edit Loan Recording data (Non HECM-Assigned loan) ....................................... 4-11 Figure 27. Edit Borrower data window ............................................................................... 4-12 Figure 28. Edit Property Details window ............................................................................ 4-14 Figure 29. Note tab ........................................................................................................... 4-15 Figure 30. Auto Note—Edit Note dialog ............................................................................. 4-16 Figure 31. Loan Detail tab (HECM-Assigned loan)............................................................... 4-17 Figure 32. Edit Loan Filing data window ............................................................................ 4-19 Figure 33. Edit Loan Recording data window ..................................................................... 4-20 Figure 34. Edit Borrow data window .................................................................................. 4-21 Figure 35. Edit Property Details window ............................................................................ 4-23 Figure 36. Add Loan Balance Transaction data window ...................................................... 4-24 Figure 37. Notes tab ......................................................................................................... 4-25 Figure 38. Auto Note—Edit Note dialog ............................................................................. 4-26 Figure 39. Add Loan Disbursement data window ............................................................... 4-27 Figure 40. Edit ACH Bank data window .............................................................................. 4-28 Figure 41. Add Set-Aside Transaction data window............................................................ 4-30 Figure 42. SMART–FHASL Interface Process Flow.................................................................. 5-3 Figure 43. Rēkon Initial Release........................................................................................... 5-4 Figure 44. Release Change Step Status from Rēkon to SMART.............................................. 5-5 Figure 45. SMART Network Diagram.................................................................................... 6-8 Figure 46. Loan Audit Log Process..................................................................................... 7-10 Figure 47. The Audit Data Model ....................................................................................... 7-11 Figure 48. a_loan Table Data............................................................................................. 7-12 Figure 49. Sample Security Log.......................................................................................... 7-13

Figures

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Figure 50. Sample Transaction Log.................................................................................... 7-14 Figure 51. Sample Agent Log............................................................................................. 7-14 Figure 52. SMART Security Report Options ........................................................................ 7-15 Figure 53. Audit By User Report......................................................................................... 7-16 Figure 54. Audit Tracking Report....................................................................................... 7-17 Figure 55. Audit Tracking By User Report .......................................................................... 7-18

General Information

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1.0 GENERAL INFORMATION

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1.0 GENERAL INFORMATION

1.1. Purpose

The Functional Requirements Document (FRD) defines the functional requirements for the Single-Family

Mortgage Asset Recovery Technology (SMART) system. SMART is a Microsoft® Windows®-based Graphical User Interface (GUI) client/server application used to manage loan processing operations for the U.S. Department of Housing and Urban Development (HUD).

Currently, SMART is used to perform a wide range of Federal Housing Administration (FHA) Insured and Secretary-Held first, second and subordinate note and mortgage loan servicing functions, specifically processing the mortgage transactions for both forward and reverse mortgages, including interest, appreciation, amortization and other calculations for the Secretary-Owned Title II portfolio.

The SMART system is a major application that services a total of 704,216 loans:

• Open loans—514,367

• Closed loans—188,8681

The system allows users to search and review loan information, foreclosure and bankruptcy activity, make and review disbursements, run reports, send letters, and manage and control various other loan servicing activities.

The current contract for loan servicing, contract C-DEN-02188 (Contract), and system maintenance of SMART was awarded to C & L Service Corporation (CLS) and its subcontractor Morris-Griffin Corporation (MGC), collectively known as CLS-MGC, on September 30, 2007.

1.2. Scope

The SMART system streamlines the process of managing the HUD mortgage loan portfolio. The SMART system allows users to search and review loan information, foreclosure and bankruptcy activity, make and review disbursements, run reports, send letters, perform customer service duties and manage and control various other loan servicing activities.

1.3. Project References

• HUD System Development Methodology, Release 6.05

• HUD Handbook 2400.25, Revision 1, U.S. Department of Housing and Urban Development

Information Technology Security Policy Handbook

• SMART Configuration Management Plan

• SMART Data Requirements Document

• SMART Risk Assessment

• SMART System Security Plan

• SMART System Subsystem Specifications

1 Closed loans may require inquiries, correspondence, or congressional servicing.

Functional Requirements Document Page 1-3

1.4. Acronyms and Abbreviations

Abbreviation Description

ACA Asset Control Area

ACH Automated Clearing House

CCB Change Control Board

CHUMS Computerized Homes Underwriting Management System

CI Change Item

CLS C & L Service Corporation

COI Certificate of Indebtedness

DRD Data Requirements Document

FHA Federal Housing Administration

FRD Functional Requirements Document

GNND Good Neighbor Next Door, formerly known as Officer/Teacher Next Door (OTND)

GTR Government Technical Representative

GUI Graphical User Interface

HECM Home Equity Conversion Mortgage

HUD U.S. Department of Housing and Urban Development

HUDAR HUD Acquisition Regulations

IT Information Technology

LAN Local Area Network

MGC Morris Griffin Corporation

MS Microsoft

NSC National Servicing Center

PC Partial Claims

SAMS Single Family Acquired Asset Management System

VPN Virtual Private Network

WPP Wachovia Positive Pay

Functional Requirements Document Page 1-4

1.5. Points of Contact

1.5.1. Information

Organization Title Name and Address

HUD Deputy Director

Felicia B. Jones National Servicing Center

2 West Second St., Suite 400 Tulsa, OK 74103

(918) 292-8958

Felicia.B.Jones@hud.gov

MGC Contract Manager

Alexina Person

2488 East 81st St., Suite 700 Tulsa, OK 74137

(918) 551-5301 zperson@cls-mgc.com

MGC Director of IT

Matthew Blackwell 4221 Forbes Blvd, Suite 240

Lanham, MD 20706

(240) 965-1765 mblackwell@morrisgriffin.com

1.5.2. Coordination

Organization Responsibility

C & L Service Corporation Current prime contractor for current contract vehicle to maintain and enhance the SMART system

First American Corporation Provider Tax Payment Service (TPS) file used for determining property tax delinquencies

HUD

Owner of the SMART system; provides general oversight and director for the development and maintenance of SMART

LexisNexis (a division of Reed Elsevier Inc.)

Provider of Banko file for bankruptcy servicing

MGC

Current subcontractor to C & L Service Corporation; charged with the day to day responsibilities related to maintenance of and enhancements to the SMART system

Ongoing Operations LLC Disaster recovery vendor

Rēkon Technologies Vendor for release system, Rēkon2000

Wachovia Bank, N.A.

Banking service provider with whom an interface exists for the exchange of checking information mailto:Felicia.B.Jones@hud.gov� mailto:zperson@cls-mgc.com� mailto:mblackwell@morrisgriffin.com�

Current System Summary

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2.0 CURRENT SYSTEM SUMMARY

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2.0 CURRENT SYSTEM SUMMARY

2.1. Background

The SMART system is deployed in production and continues to undergo maintenance, including minor changes and major enhancements. Morris-Griffin assumed responsibility for maintaining SMART through the contract C-DEN-02188, (hereinafter the “Contract”). The organization tasked with maintaining SMART as a subcontractor to MGC prior to the most recent contract award was a subsidiary of Clayton Holdings, Inc. (Clayton), First Madison Services. Another Clayton subsidiary, Quantum Servicing Corporation (Quantum) was directly involved in the development of SMART.

2.1.1. Initial Development

SMART was initially developed under the name Mortgage Asset Recovery System (MARS) as a proprietary asset management system. The name MARS converted to SMART in February 2006. Full ownership of SMART was ceded to HUD under the Contract. During the transition phase of the most recent contract award, Clayton and its subsidiaries provided little in the way of system documentation.

2.1.2. Loan Servicing Functions

The SMART system currently supports the servicing functions related to a variety of FHA Insured and Secretary-held first, second and subordinates notes and mortgages. SMART is capable of handling both forward and reverse mortgages, including the functionality related to certain calculations such as interest, appreciation, amortization and others related to the Secretary-held Title II portfolio.

2.1.3. Data Sources

Though SMART is a standalone application, data is provided from a variety of sources including bulk data import, manual data entry, and direct data connection. The table below gives a quick snapshot of how data is used currently in SMART.

Data Input/Import to SMART Data Output/Export from SMART

User User

Lexis/Nexis (BANKO) Lexis/Nexis (BANKO)

FARETS/TPS FARETS/TPS

Rēkon Rēkon

Strategy/A80N Reports

SAMS/A80S FHASL/P013

Wachovia Positive Pay Wachovia Positive Pay

SFIS/A43

CHUMS/

Functional Requirements Document Page 2-3

2.1.3.1. HUD Strategy

Presently, SMART interfaces with the HUD Strategy mainframe system to receive loan information. Strategy is the HUD system of record for the Assignment Program loans and Partial Claim (PC) Subordinate loans.

Prior to the operation of the Strategy system, HUD used the Single Family Mortgage Notes (SFMNS or F60P or F60S) system for servicing the Secretary-Held loan portfolio. SFMNS recorded, maintained, and monitored complete commercial mortgage servicing activities for Secretary-Held mortgages. It also contained the historical data for all assigned mortgages prior to 1999.

SMART is the system of record for:

• Single Family Notes

• Title II Secretary-owned first and second mortgages

Therefore, SMART is being enhanced to incorporate the historical data and functionality of the Strategy system. Following this, the Strategy system shall be terminated. It is anticipated that the new release of SMART incorporating the Strategy functionality is May 1, 2009.

2.1.3.2. HUD P013/FHASL

SMART also interfaces with the HUD P013 Interface Subsystem, a subsystem of the Federal Housing Administration Subsidiary Ledger System General Ledger (FHASL). Data extracted from SMART updates FHASL and appropriate accounting reports to automate the posting of transactions in FHASL as well as facilitate the reconciliation of these transactions.

2.1.3.3. Bulk Data

Bulk data is imported into SMART as:

• Computerized Homes Underwriting Management System (CHUMS) data

• Single Family Acquired Asset Management System (SAMS) data

• Home Equity Conversion Mortgage (HECM) Claims Disbursements from the Single Family

Insurance System (A43) data

• Lexis/Nexis (BANKO) data

• First American Real Estate Tax Service (FARETS) Tax Payment Service (TPS) data

2.1.3.4. External Service Agreements

Lexis/Nexis (BANKO) and FARETS TPS are outside vendors with which MGC has service agreements for tracking bankruptcy filings, dismissal, and discharges, and reporting delinquent taxes, respectively. This information is imported from flat files and exported as listed below.

System Frequency2

User Daily

Lexis/Nexis (BANKO) Weekly/Monthly

FARETS/TPS Daily/Weekly

Strategy/A80N Daily

2 If data is both imported and exported, frequency is listed in order of imported and exported.

Functional Requirements Document Page 2-4

System Frequency2

SAMS/A80S Monthly

SFIS/A43 Weekly

CHUMS/ Weekly

Reports As needed

P013/FHASL Monthly

2.2. System Objectives and Current Functionality

2.2.1. Availability

The SMART system is functional and fully operational during normal business hours, defined in Section 7.1 of the Contract, as between 7:00 A.M and 7:00 P.M. (Central Time). Moreover, the system allows remote access by HUD users.

2.2.2. Authentication and Security

2.2.2.1. Federal System Warning Banner

A pre-logon warning banner is displayed as dictated by the National Institute of Standards and Technology (NIST) Special Publication 800-64 Revision 1. The advisory text provided is:

Figure 1. SMART Security Disclaimer

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Figure 2. Federal System Warning Process Flow

Users have the option to continue to the logon screen or exit from the system if they do not agree with the terms presented.

2.2.2.2. User Authentication—Logon

Users must be authenticated to access the SMART system; either by using Windows® Authentication based on the individual’s network credentials or by providing a database user id and password. Additionally, a drop-down menu is displayed with the available databases. Most often, only the default option is offered, limiting access to the production database while running the production executable file. If the user selects the Cancel button, the user exitd the system.

Figure 3. SMART Windows® Authentication dialog

Functional Requirements Document Page 2-6

Figure 4. Windows® Authentication Process Flow

2.2.2.3. Logging

The SMART system incorporates three types of logging which creates an audit trail of various activities. The first two are covered fully in the SMART System Security Plan. The first of these two is network logging and the second is database transaction logging. The third type of logging, more appropriately within the scope of this document, is trigger-based3 within the SMART application code.

The trigger-based audit logging functionality focuses on recording two general types of changes in the database—loan-based changes and security-relevant changes. Loan-based changes are primarily financial or related to personal information. Security-relevant changes relate to a user or group rights.

Loan-based changes focus on the following areas:

• Automated Clearing House (ACH) Information (for an individual)

• Borrower Information

• Check Information

• General Loan Information

• Loan Exceptions

• Loan Servicing Activity

• Loan Servicing Management

3 Triggers exist within the SMART database and are associated with certain tables. A given action is performed when certain parameters are met during the insert, update or delete of information in a specific table. In the SMART system, items may only be inserted or updated but not deleted.

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• Loan Transactions

• Property Information

Security-based changes focus on the following areas:

• Application Objects

• Users

• User Groups

• User Group Hierarchy

2.2.2.4. Security Interface

A security interface provides the ability to control access to all system objects by group assignment. Also, the security interface allows for the control of user assignments to various groups based on job duties. Such access should be controlled from bottom up, meaning; groups start with the least access and additional access is opened only as needed. See also SMART System Security Plan, Sections 1.2.1-2 and 5.2.3.

Figure 5. Security Interface

Access to the security interface is limited to system administrators. Access is provided to the main menu, Entry|Security, for user and group management and to Entry|Permissions for object management.

2.2.2.4.1. User and Group Management

Upon open of the User/Group Management window, a specialized tool bar is displayed All active system users are displayed in the data window entitled Users. The group(s) to which a user belongs are displayed or hidden when the name is double-clicked. The same display and hide functionality applies to the data window entitled Groups. The Groups data window displays all active groups and user assignments.

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Figure 6. User/Group Management Data Window

Figure 7. User/Group Management Toolbar

A master/detail data window exists for both Users and Groups. The detail data window for Users displays the user’s login (name) and full name (Description). The detail data window for Groups displays the group Name, Description, and Priority (hierarchy, 1 being the highest level of permissions and 99 having the least amount of access rights).

2.2.2.4.2. Object Management

The User/Object Management window provides an interface to control the object level permissions, both for groups and individuals. Each object, including ancestor objects displays in the left data window. The details provided in the data window on the right side of the User/Object Management window provides the control name, status, description and type of control. The right side of the window provides a drop-down list box to show the specific group or individual permissions associated with the object. For each control associated with the particular object, a status can be selected using a drop-down list with these choices:

• Enabled

• Disabled

• Invisible

• Not Set (default)

The window provides radio buttons to show either all controls or only those with an Active status.

Functional Requirements Document Page 2-9

Figure 8. User/Object Management Data Window

When the User/Object Management window is open, a toolbar specific to this window is displayed. This toolbar provides the following options:

• Save

• Print

• Print Preview

• Close.

Figure 9. User/Object Management Toolbar

2.2.3. General Navigation

2.2.3.1. SMART Menu Bar

Figure 10. SMART Menu Bar

The SMART menu bar provides access to these functions:

• File Menu o Printer Setup o Print Screen o Exit

• Entry Menu o Loan Inquiry o Bankruptcy

Functional Requirements Document Page 2-10 o Foreclosure o Mtg. Release (Mortgage Release) o Servicing o Maintenance o Cust. Serv. [Customer Service] o Security o Permissions

• Tools Menu o Customize Tool Bar

• Reports Menu o Batch Reports o Foreclosure o Monthly/Weekly Reports o Servicing Release Reports

• Window Menu o Cascade o Tile Horizontal o Tile Vertical o Layer o Minimize all Windows o Undo

• Help Menu o About

• Status Bar o A status bar on the bottom of the main window frame provides general information related to the current action, debugging status, user and the current database.

Figure 11. SMART Window Status Bar

2.2.3.2. Module Toolbar

A top-level toolbar allows access to all of the system modules, including:

• Loan

• Bankruptcy

• Foreclosure

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• Mtg. Release (Mortgage Release)

• Servicing

• Maintenance

• Cust. Serv. (Customer Service)

Users close SMART by clicking the Exit button.

Figure 12. SMART Module Toolbar

2.2.4. Loan Inquiries Module

Authorized system users can search loan records based on a variety of criteria. Users additionally have the ability to view and edit loan records.4 Due to the different servicing requirements for the loans in the SMART system, HECM Assigned loans have a separate functionality set from all other, Non-HECM Assigned, loans.

2.2.4.1. Non-HECM Assigned Loans

2.2.4.1.1. Loan Summary

The Loan Summary tab provides information related to current balances, year to date amount paid and monthly constants. The Loan Summary tab provides authorized users the ability to make changes to the data within this tab.

Note: Loans in the HECM Assigned portfolio do not have a Loan Summary tab within the Loan

Inquiry window.

2.2.4.1.2. Loan Detail

For non-HECM Assigned loans, the Loan Detail tab provides information related to loan status, loan type, loan amounts, interest rates, important dates and additional information. The Loan Detail tab provides authorized users the ability to make changes to loan detail data.

2.2.4.2. HECM Assigned Loans

2.2.4.2.1. Loan Summary

The requirements for the Loan Detail tab for HECM Assigned loans are significantly different from those discussed above. The information provided in this tab includes:

• Loan payment information

• Rates

• Dates

• Claim payment information

4 Users are assigned group-based permissions, limiting access to only what is required for a particular job function.

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• Loan balance

• Net principal limit

• Set aside balance

• Escrow balance

The Loan Detail tab for HECM Assigned loans provides authorized users the ability to make changes to the data within this tab.

2.2.4.2.2. Loan Balance Transactions

The Loan Balance Transaction tab for HECM Assigned loans provides and interface through which transactions can be viewed the system. Additionally, users with the requisite authorization level have the ability to add new transactions in the system.

2.2.4.2.3. Disbursements

The Disbursements tab provides the ability to initiate payment for various transactions related to servicing the HECM Assigned portfolio. Users with the requisite permissions to initiate a transaction can open the Pay to Selection window by clicking the New button. The New Disbursement window is opened after the data has been completed in the Pay to Selection. An authorized user may open the Edit Disbursement window if the disbursement (either check or ACH) has neither been voided nor printed. After the disbursement has been made, the Edit Disbursement window can only be opened in a read-only mode.

2.2.4.2.4. Property Tax

The Property Tax tab displays the status of tax obligations related to a loan. Data related to property taxes is provided by the FARETS system.

2.2.4.2.5. ACH Information

The ACH Information tab provides authorized users the ability to identify whether the borrower receives a check or an ACH transfer and, if applicable, the borrower’s bank information details. To ensure the accuracy of ACH transfers, bank routing numbers are held in the SMART database; only valid routing numbers may be entered for a borrower. Furthermore, a confirmation message is displayed that identifies the bank name by the routing number.

2.2.4.2.6. Payoff

The Payoff tab provides pertinent information regarding the loan balance. This tab also provides choices related to the mechanics of paying off a loan, such as:

• Setting the payoff date

• Issuing a payoff letter

• Completing a payoff worksheet

• Entering the payoff transaction

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2.2.4.2.7. Monthly Statements

The Monthly Statements tab provides users with the ability to view and print all statements for a particular loan.

2.2.4.2.8. Set Aside and Escrow Transactions

The Set Aside and Escrow Transactions tab allows for authorized users to view, add and edit transactions in a borrower’s set aside account, for such items as for repairs and tax escrow.

2.2.4.3. Common Functions

2.2.4.3.1. Loan Filing

The Loan Filing tab is the same for both Non-HECM Assigned and HECM Assigned loans. It contains general information related to the loan filing such as the prior servicer and data pertaining to the physical file record. The Loan Filing tab authorized users the ability to make changes to the data within this tab.

2.2.4.3.2. Loan Recording

The Loan Recording tab is the same for all loan types in the system and captures information related to that which is required by the applicable land records office. The Loan Recording tab provides authorized users the ability to make changes to the data within this tab.

Figure 13. The Loan Recording Tab

2.2.4.3.3. Borrowers

The Borrowers tab is the same for all loan types in the system and contains vital information related to the borrower or borrowers. The Loan Recording tab authorized users the ability to make changes to the data within this tab.

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Figure 14. The Borrowers Tab

2.2.4.3.4. Property Inspection

The Property Inspection tab allows input of data related to property inspections and appraisals. Users may enter a new property inspection record by clicking the New button or edit an existing record by selecting the desired row and clicking the View/Edit button or double clicking the row.

Figure 15. Property Inspection tab

The Property Detail window opens when the View/Edit button is clicked or when a user double-clicks a row in the data window on the Property Inspection tab. The Property Detail window has two tabs, Property Detail and Pictures.

The Property Detail window provides an interface to input a variety of information related to land records recording, appraisals, escrow and inspections. Additionally when a user wishes to edit an existing record, the Property Detail tab provides a link to MapQuest.com with the Map It! link on the bottom left hand corner of the Property Detail window.

The Map It! link, Print Preview button, and Pictures tab are not available for a new record.

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Figure 16. Property Detail Window

The Pictures tab provides the ability to add, edit, view and delete photos to the particular loan file. The data window on the Pictures tab provides the individual identification number associated with the particular image as well as a description, active check box indicator, and creation information.

The Property Picture Entry window opens when either New or Edit buttons are clicked. The Property Picture

Entry window provides the interface through which data specific to an individual image is entered.

Additionally a user can detach an image when it is not applicable to a loan. Clicking the View button on the Property Detail window, Pictures tab opens the Property Picture window.

Clicking the Preview button opens the Choose Picture window.

The Property Picture window opens when the Open button on the Choose Picture window is clicked. The Property Picture window provides a variety of zoom levels as well as Print and Close buttons.

Clicking the Detach button on the Property Picture Entry window displays a dialog requiring the user to confirm the action to permanently detach the picture from the loan record.

An inspection report is available from the Property Detail window, by clicking the Print Preview button. The Inspection Report window provides a variety of zoom levels as well as Print and Close buttons.

Figure 17. Inspection Report

2.2.4.3.5. Documents

The Documents tab is used to attach and detach documents relevant to a particular mortgage. The Documents tab authorized users the ability to make changes to the data within this tab.

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2.2.4.3.6. Notes

The Loan Inquiry page has a tab for Notes for all loan types.

2.2.4.3.7. Mortgage Release

The Loan Inquiry page has a read-only data window displaying mortgage release activity for all loan types.

2.2.4.3.8. Exceptions

The Exceptions tab allows a user to view the exceptions, such as if a borrower is deceased, the loan is in foreclosure or the insurance has expired, to name a few. A new exception can be added or edited for authorized users.

2.2.4.3.9. Servicing

The Servicing tab provides a read-only view of the servicing steps that have taken place for a particular loan.

Moreover, the Servicing tab provides filter logic to limit the view to only a certain servicing activity.

2.2.4.3.10. Foreclosure

The Foreclosure tab provides a read-only view of foreclosure activity, if any, that has occurred for a particular loan.

2.2.4.3.11. Bankruptcy

The Bankruptcy tab provides a read-only view of the bankruptcy activity, if any, that has occurred for a particular loan.

2.2.4.3.12. Notes

Users who perform servicing functions as well as HUD users are able to enter notes attached to a particular loan in the system.

2.2.5. Bankruptcy Module

The Bankruptcy module provides for servicing loan in a Chapter 7 or Chapter 13 bankruptcy status. Upon opening the Bankruptcy module, a second level tool bar specific to bankruptcies displays with the Bankruptcy

Search window

2.2.5.1. Bankruptcy Steps

This tab identifies the steps taken in the bankruptcy procedure.

2.2.5.2. Bankruptcy Management

This tab is used to identify all information needed to manage the bankruptcy action.

2.2.5.3. Borrowers

Authorized users can input the names of the borrowers affected by the bankruptcy action.

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2.2.5.4. Notes

Authorized users can enter notes relevant to the bankruptcy action up to, but not past, its conclusion.

2.2.6. Foreclosure Module

The Foreclosure module manages loan records in the foreclosure process. Provide a timeline of the required foreclosure steps and track the scheduled foreclosure activity against the actual dates for the completed foreclosure activity.

2.2.7. Mortgage Release Module

A critical portion of the mortgage servicing process is the release, where the mortgagor is relieved of his/her obligation to the mortgagee. A release is initiated upon payoff of the outstanding loan amount or upon receipt of notice of the recordation of a deed in lieu of foreclosure. Mortgage releases are sent to the respective state or local entity no later than five business days for all loans except ACA compliance, and no later than three days for ACA compliance loans, from the request for release or receipt of payoff (see Section 15, Performance Requirement 1 of the Contract).

The Mortgage Release Search window has two tabs, Mortgage Release Search, described below and Notes.

The Mortgage Release Search tab is used to find open loans which can be released or loans which are already in the release process. A release is initiated by opening a loan in the open status. By doing so, the Loan

Release Initiation window is displayed, with a default initiation date as the current date, and which cannot fall on a weekend, and the Deed in Lieu check box. The user is directed to the Mortgage Release Activity window after clicking the OK button on the Loan Release Initiation window.

The top portion of the Mortgage Release Activity window displays Loan, Borrower & Property, and Additional Loan Information. A selection of tabs provide an interface through which data can be entered, edited and viewed for releases.

2.2.7.1. Release Activity

The Release Activity tab provides the steps and scheduled timeframe for completing the release. This tab allows the user to enter the actual date the step was completed as well as add additional steps, such as when mortgage documentation is missing. Rēkon provides the actual completion date.

• Borrowers

• Loan Detail

• Loan Filing

• Loan Summary (Non-HECM Assigned)

• Property Inspection

• Transactions

• Documents

• Loan Recording Information

• Checks—The Checks tab displays the history of checks related to a certain loan. The data provided on this tab is simply read-only. The entry of checks is discussed in detail in Section 4.2.7.3 below.

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• Notes

• Exceptions

2.2.7.2. Rēkon

Rēkon is a system provided by Rēkon Technologies which facilitates the release process by providing forms and reference data required by local land records offices and/or other respective authorities. When a release is initiated, a download process, which runs every fifteen minutes, checks for new releases. Upon finding the new release, it extracts the relevant data, and allows the output file created by this process to be uploaded into Rēkon.