M and M III Presentation.pdf

OVERVIEW OF M&M III

Denver 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

National Map of Contract Areas

Atlanta HOC’s Awarded Contracts Asset Managers (AMs) Field Service Managers (FSMs)

Area 1A Area 1A

HOMETELOS

OFORI

PEMCO

AMS

A2Z

CITYSIDE

COOPER-CITIWEST

INNOTION

CWIS

PK MANAGEMENT GROUP

CITYSIDE

COOPER-CITIWEST

INNOTION

Area 2A Area 2A

HOMETELOS

OFORI

PEMCO

Denver HOC’s Awarded Contracts

Area 1D

HOMETELOS

MATT MARTIN

PEMCO

Area 2D Area 2D

BEST ASSETS

OVERVIEW OF M&M III

Area 3D

HOMETELOS

MATT MARTIN

PEMCO

Area 1D

Area 3D

AMS

SIGMA

AMS

A2Z

CITYSIDE

AMS

FIRST PRESTON

Philadelphia HOC’s Awarded Contracts

Area 1P

BLB

CITYSIDE

Area 2P Area 2P

CITYSIDE

OFORI

OVERVIEW OF M&M III

Area 3P

HOMETELOS

MATT MARTIN

OFORI

Area 1P

Area 3P

AMS

A-SONS

IEI-TIDEWATER

SIGMA

INNOTION

A2Z

CITYSIDE

AMS

A-SONS

COOPER-CITIWEST

Santa Ana’s HOC’s Awarded Contracts

Area 1S Area 1S

BLB FIRST PRESTON

SIGMA

AMS

CITYSIDE

Area 2S Area 2S

BLB

PEMCO

CHANGES for Real Estate Brokers:

• NEW WEBSITE – HUDHomestore.com for all listing

• ONE NATIONAL WEBSITE FOR ALL HUD LISTING AND PROPERTY INFORMATION

• ASSET MANAGER (AM) – MARKET & SALES REO

• 50/50 commission split between listing and selling brokers

• MULTIPLE ASSET MANAGERS IN EACH MARKET AREA

• FIELD SERVICE MANAGERS – MAINTAIN PROPERTIES

BETTER CUSTOMER SERVICE AND RESPONSIVENESS

Impact on Realtors

•Improved Customer Service

•Longer “EXCLUSIVE” period to Select FHA Insured Properties o 30 Days vs. 10 Days

•Greater Opportunity for Homeownership

Enhancements

Impact on Homebuyers

• Buying Process Remains Unchanged

• Owner/Occupant (O/O) –Longer period to bid

• Uninsured Properties open to all bidders with a shorter “exclusive” period – 5 days

•IMPROVED SALES & FASTER TURN AROUND OF UNINSURED PROPERTIES

•COMPETIVE MARKETING TO MOVE INVENTORY

EXPECTED IMPROVEMENTS

Impact on Investors

• Asset Control Area (ACA) Program

• NSP First Look Program

• Good Neighbor Next Door (GNND) Program

• REO Sales to Nonprofits and Government Entities

• $1 Home Sales to local Government

• Bulk Sales Program

HUD REO PROGRAMS

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.

Period of Performance

Atlanta

HOC

Denver

HOC

Philadelphia

HOC

Santa Ana

HOC

Fiscal YTD as of

7/10/11

Sales 21,478 21,466 17,582 11,014

Current Inventory

21,077 14,248 9,730 7,261

HUD REO Inventory Overview

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