ATTACHMENT_A_RPSC_Related_Documents.pdf

(LOCAL REPRODUCTION AUTHORIZED)

Veterans Benefits Administration Circular 26-16-37 Department of Veterans Affairs November 29, 2016 Washington, DC 20420

Requirements for Notification, Evaluation, and Reduction of Lead-Based Paint Hazards in VA-Acquired Properties

1. Purpose. To update VA guidance on implementation of Department of Housing and Urban Development (HUD) and Environmental Protection Agency (EPA) guidelines governing the notification, evaluation, and reduction of lead-based paint (LBP) and/or lead-based paint hazards in federally-owned residential housing managed by a private sector service provider.

2. Background. Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992, which is Title X of the Housing and Community Development Act of 1992, to address the need to control exposure to LBP hazards. This Circular updates and implements changes that have occurred since the rescission of Circular 26-04-02.

3. Title X Requirements. The full text of the Final Rule is in the Federal Register dated September 15, 1999. It is entitled “Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance: Final Rule.” The most authoritative and comprehensive document available to understand the procedures and technology involved in implementing these requirements is the “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing.”

Copies of this document can be downloaded from HUD’s website:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines.

a. Target Housing. In accordance with HUD guidelines that identify “target housing” as any housing constructed prior to 1978, VA implemented the following requirements to eliminate, as far as practical, LBP hazards prior to the sale of a residential property that is owned by VA:

(1) Visual assessment report of all painted surfaces

(2) Paint stabilization of all deteriorated paint

(3) Clearance examination report

(4) Notification/Disclosure

b. Exempted Properties and Actions. The following properties and actions are exempt from these regulations:

(1) Emergency actions required to immediately safeguard against imminent danger to human life, health, or to protect property from further structural damage (i.e., when a property has been damaged by a natural disaster, fire, or structural collapse). However, once emergency actions are completed, the requirements for LBP activities in target housing outlined in this Circular must then be met.

Attachment A RPSC Related Documents http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines

Circular 26-16-37 November 29, 2016

(2) Performance of the evaluation and the LBP stabilization on an exterior painted surface, as required under this part may be delayed for a reasonable period of time when weather conditions are unsuitable for conventional construction activities. However, the service provider will complete the required LBP activities prior to any sale as soon as the weather permits.

(3) An unoccupied dwelling unit or residential property that is to be demolished, provided the dwelling unit or property will remain unoccupied until demolition. However, parties planning demolition shall determine first whether other Federal, state or local environmental requirements apply. It is possible that lead hazards may be generated in the act of demolition of residential properties with LBP. A clearance examination will report any unacceptable soil lead hazards.

The appropriate lead control office of jurisdiction will provide guidance on eliminating unacceptable soil lead hazards.

4. Implementation. Implementation is a three-step process including evaluation, reduction, and notification.

a. Evaluation. Evaluate the condition of all interior and exterior painted surfaces of a property.

A visual assessment will be performed on all target housing to determine if there is deteriorated paint. The service provider or its authorized representatives shall perform the visual assessment during the preparation of the Property Inspection Report and Market Analysis (PIR). The service provider shall ensure that the construction date is properly identified and that the visual assessment is an accurate report of all deteriorated paint surfaces.

(1) Sections of the PIR which pertain to LBP must include the following information:

(a) Date the home was built

(b) Estimated Costs

(c) Provide complete repair specifications and cost estimates for stabilizing deteriorated paint

(d) Provide the data source from where the construction date was obtained and results of the visual assessment of all painted surfaces, identifying the size and exact location of any deteriorated paint.

(2) Visual Assessment Report. A visual assessment report must be completed by a person who has completed a visual assessment training course.

(3) Option for Further Evaluation. The service provider has the option to order a LBP inspection, on deteriorated paint surfaces to determine the presence of LBP. When using this option, paint stabilization and clearance examinations are only required on those deteriorated surfaces that are reported to contain LBP. The service provider shall consider ordering LBP inspection on a case-by-case basis. The LBP inspection can only be performed by an EPA certified (licensed) LBP inspector or risk assessor. A sample of a LBP inspection report for a single-family residence may be found in “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing.”

b. Reduction. The service provider will reduce potential hazards by stabilizing all deteriorated paint in housing built prior to 1978 unless the property is exempt, or there is no LBP present as reported in a LBP inspection. Deterioration limited to hairline cracks, small nicks, scratches or nail holes is not considered deteriorated paint.

(1) Paint Stabilization. The repair of any defect in the substrate, or any defect in a building component, that is causing paint deterioration. Examples of defective substrate conditions include dry-rot, rust, moisture-related defects, crumbling plaster, and missing siding or other components not securely fastened. Examples of defective building components that cause paint deterioration include a doorknob that knocks into a wall, a door that knocks against its door frame, windows causing abrasion, etc. A detailed summary of how to treat friction and impact surfaces can be found in the “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing.” In these circumstances, remove all loose paint and other loose material from the surface to be treated and apply a new protective coating, or paint.

(2) Qualified Contractor. The contractors who perform paint stabilization must be qualified as defined by HUD guidance and local law.

(3) Safe work practices are required. Safe work practices are required for paint stabilization.

See the “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing,” which defines these practices.

(4) Clearance Examination Report. The clearance examination shall certify that the deteriorated paint surfaces have been eliminated and that no soil-lead or settled dust-lead hazards exist in the dwelling or unit. Clearance examinations must be completed by a person who was not involved in the paint stabilization, and who is certified as LBP inspector, risk assessor, or a clearance technician. Uncertified, but trained clearance technicians may perform clearances, as long as their clearance report is signed by a certified LBP inspector or risk assessor. Samples of clearance forms for a single-family dwelling are located in Chapter 15 of the “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing.” Chapter 15 can be found here: http://portal.hud.gov/hudportal/documents/huddoc?id=ch15_clearance_121212.pdf.

c. Special Exemption to Stabilization Requirements. Properties may be exempt from paint stabilization and clearance requirements with clear documentation that the property meets all of the following conditions:

(1) Uninhabitable due to severe damage

(2) The deteriorated paint surfaces will need to be opened or removed so that structural or utility system repairs can be completed http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines http://portal.hud.gov/hudportal/documents/huddoc?id=ch15_clearance_121212.pdf

(3) The major renovation costs cannot be recovered

(4) Cash offers only, no vendee financing

d. The property sales listing must specify that the property is uninhabitable, severely damaged with deteriorated paint surfaces that will not be treated by VA or which will need to be opened or removed so that structural or utility system repairs can be completed prior to occupancy. The service provider will ensure that special exemption case purchasers sign and return the “VA Disclosure Form: Notice of Possible Lead-Based Paint and/or Lead-based Paint Hazards.” VA Form 26-6705 can be found here: https://vrms.vrmco.com/AMS/Templates/LBPDisclosure.pdf

e. Notification. The service provider must comply with the requirements of the Lead Disclosure Rule at 24 C.F.R. Part 35, Subpart A with respect to the disposition of all properties constructed prior to 1978.

(1) Outline of Notification Requirements. All purchasers whose offers have been selected for processing will be provided with full LBP notification in accordance with subpart A. The detailed procedures for notification and disclosure are as follows:

(a) Provide notice of the presence of known LBP and/or LBP hazards in the housing to purchasers, lessees, and agents.

(b) Provide purchasers and lessees with copies of all available known records or reports pertaining to the presence of LBP and/or LBP hazards. The private sector service provider will provide a copy of the clearance examination report to purchasers.

(c) Provide purchasers and lessees with EPA approved pamphlet 747-K-97-001, “Protect Your Family from Lead in Your Home” or equivalent pamphlet that has been approved for use in that State by the EPA. EPA Pamphlet 747-K-97-001 can be found here:

https://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11876.pdf

(d) Provide purchasers with a 10-day opportunity (the number of days can be changed by mutual consent) to conduct, at their own expense, a risk assessment or inspection for the presence of LBP and/or LBP hazards before being obligated under a purchase contract.

(2) Property Listings. All sales listings for properties built before 1978, must state the house was built prior to 1978, and LBP potentially exists. Each contract to sell target housing shall include an attachment containing the following element, in the language of the contract (e.g., English, Spanish):

(a) Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from LBP.

The seller of any interest in residential real property is required to provide the buyer with any information on LBP hazards from risk assessments or inspections in the seller’s possession and https://vrms.vrmco.com/AMS/Templates/LBPDisclosure.pdf https://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11876.pdf notify the buyer of any known LBP hazards. A risk assessment or inspection for possible LBP hazards is recommended prior to purchase.

(b) Waiver of the 10-Day Opportunity Period. The 10-day opportunity period may be modified by mutual agreement. If the purchaser chooses to waive the evaluation, he/she is still obligated to acknowledge receipt of the full LBP notification and document the decision to waive the evaluation opportunity in writing. A verbal waiver will not be accepted.

5. Sales Prior to Listing. In target housing that is being sold prior to listing, the service provider must comply with the requirements of Title X. However, paint stabilization and clearance shall not be conducted while a property is occupied. If the target housing has deteriorated paint, the service provider shall notify all occupants approved for purchase by certified mail of VA requirements under Title X. If the occupants wish to exercise their option to purchase, the property shall be vacated in order to complete the deteriorated paint repairs and obtain the clearance examination.

6. Condominiums.

a. In target housing with reported deteriorated paint surfaces which are the responsibility of the Homeowner’s Association (HOA), the service provider shall notify the HOA by certified mail of the needed repairs under Title X requirements. If the HOA does not complete the required repairs within thirty days, the service provider shall list the property for sale with a notice disclosing the presence of deteriorated paint surfaces.

b. The service provider is required to provide full disclosure to all purchasers. In addition to providing copies of “Protect Your Family from Lead in Your Home,” or equivalent pamphlet and the “VA Disclosure Form: Notice of Possible Lead-Based Paint and/or Lead-based Paint Hazards,” the service provider shall also provide a copy of the certified letter previously sent to the HOA which identified deteriorated paint surfaces the HOA is responsible for repairing. The service provider shall also obtain a specific hold-harmless acknowledgment letter signed by all purchasers in these cases to ensure purchasers have been sufficiently notified about all reported deteriorated paint surfaces.

7. Training and Resources.

a. Training. The service provider shall conduct on-going LBP activity training for all employees and its authorized representatives.

(1) Initial Training. The service provider shall conduct an initial training session for employees and its authorized representative, to review and understand VA policies on the requirements of the Final Rule.

https://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11876.pdf

(2) On-going Training. The service provider shall assure that its employees and authorized representative’s knowledge of VA LBP regulations, requirements, and policies are current at all times.

b. Resources. The following is a list of resources to assist the service provider to implement the new LBP requirements of this Circular:

(1) For technical information regarding LBP activities, call the HUD Office of Lead Hazard Control and Healthy Homes, at 202-755-1785, ext. 104 or email HUD at LeadRegulations@hud.gov. A copy of the “HUD Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing” is available at http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/lbp/hudguidelines and EPA’s pamphlet 747-K-97-001 is available at https://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11876.pdf.

(2) HUD’s internet site is: www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm and EPA’s internet site is: www.epa.gov.

(3) The National Lead Information Clearinghouse may be reached at 1-800-424-LEAD (5323), and can provide publications and answers to specific lead-related questions.

(4) The “EPA Guidance on Residential Lead-Based Paint, Lead-Contaminated Dust, and Lead Contaminated Soil” provides guidance, methods and protocols issued by states and Indian tribes authorized under 40 C.F.R. 745.324 and by the EPA to administer and enforce LBP programs.

This document can be obtained from EPA’s internet site:

https://nepis.epa.gov/Exe/ZyPDF.cgi/9100L91T.PDF?Dockey=9100L91T.PDF.

(5) A copy of 40 C.F.R. 745.227, “Work Practice Standards for Conducting Lead-based Paint Activities: Target housing and Child-Occupied Facilities,” can be downloaded from EPA’s internet site: https://www.gpo.gov/fdsys/pkg/CFR-1999-title40-vol23/pdf/CFR-1999-title40-vol23-sec745-227.pdf.

8. Record Keeping. Under Title X, sellers and agents are required to retain a copy of the completed “VA Disclosure Form; Notice of Possible Lead-Based Paint and/or Lead-based Paint Hazards,” and all other related LBP documents for three years. To comply with this requirement, the notification form and attachments will be maintained in the service provider’s folder and the agent’s copy will be included in the closing package. These documents shall be transferred with the new vendee file if the loan is sold.

9. Contact. Inquiries by subcontractors of the service provider concerning application of this Circular to a specific property should be addressed directly with the service provider. Other inquiries concerning this Circular or other LBP issues may be addressed with the VA Central Office Property Management staff by e-mail at PM.VBACO@VA.GOV .

mailto:LeadRegulations@hud.gov https://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11876.pdf http://www.hud.gov/offices/lead/guidelines/hudguidelines/index.cfm http://www.epa.gov/ https://nepis.epa.gov/Exe/ZyPDF.cgi/9100L91T.PDF?Dockey=9100L91T.PDF https://www.gpo.gov/fdsys/pkg/CFR-1999-title40-vol23/pdf/CFR-1999-title40-vol23-sec745-227.pdf https://www.gpo.gov/fdsys/pkg/CFR-1999-title40-vol23/pdf/CFR-1999-title40-vol23-sec745-227.pdf https://vrms.vrmco.com/AMS/Templates/LBPDisclosure.pdf mailto:PM.VBACO@VA.GOV

10. Rescission: This Circular is rescinded October 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London Acting Director, Loan Guaranty Service

Exhibit A

DEFINITIONS

Certified. Licensed or certified to perform such activities as risk assessment, LBP inspection, or abatement supervision, either by a State or Indian tribe with an LBP certification program authorized by the Environmental Protection Agency (EPA).

Clearance Examination. An activity conducted following LBP hazard reduction activities to determine that the hazard reduction activities are complete and that no soil-lead hazards or settled dust-lead hazards, as defined in this part, exist in the dwelling unit or worksite. The clearance process includes a visual assessment and collection and analysis of environmental samples.

Deteriorated Paint. Any interior or exterior paint or other coating that is peeling, chipping, chalking or cracking, or any paint or coating located on an interior or exterior surface or fixture that is otherwise damaged or separated from the substrate.

Dry Sanding. Sanding without moisture and includes both hand and machine sanding.

Dust-Lead Hazard. Surface dust that contains a dust-lead loading (area concentration of lead) at or exceeding the levels promulgated by the EPA.

Enclosure. The use of rigid, durable construction materials that are mechanically fastened to the substrate in order to act as a barrier between LBP and the environment. Enclosure may be used as a method of abatement if it is designed to be permanent.

Friction Surface. An interior or exterior surface that is subject to abrasion or friction, including, but not limited to, certain window, floor, and stair surfaces.

HEPA Vacuum. A vacuum cleaner device with an included high-efficiency particulate air (HEPA) filter through which the contaminated air flows, that captures at least 99.97 percent of airborne particles of at least 0.3 micrometers in diameter.

Impact Surface. An interior or exterior surface that is subject to damage by repeated sudden force, such as certain parts of door frames.

Lead-Based Paint. Paint or other surface coatings that contain lead equal to or exceeding 1.0 milligram per square centimeter or 0.5 percent by weight or 5,000 parts per million (ppm) by weight.

Lead-Based Paint Hazard. Any condition that causes exposure to lead from dust-lead hazards, soil-lead hazards, or LBP that is deteriorated or present in chewable surfaces, friction surfaces, or impact surfaces, and that would result in adverse human health effects.

Exhibit A

Lead-Based Paint Inspection. A surface-to-surface investigation to determine the presence of lead-based paint and the provision of a report explaining the results of the investigation. LBP inspections measure the concentration of lead in paint on a surface-by-surface investigation of all painted surfaces (interior and exterior) using portable x-ray fluorescence paint analyzers and/or laboratory analysis of paint samples to determine the presence of LBP, and a written report is provided on the results. Inspection reports identify only the presence of LBP, and they do not establish the location of LBP hazards. While very technical in nature, the report should clearly identify whether lead is present.

Lead-Contaminated Dust. Any surface dust in residential dwellings, or child occupied facilities that contains an area or mass concentration of lead at or in excess of levels identified by

HUD.

Lead-Contaminated Soil. Bare soil on residential real property, and on the property of a child-occupied facility that contains lead at or in excess of levels identified by HUD.

Paint Stabilization. Repairing any physical defect in the substrate of a painted surface that is causing paint deterioration, removing loose paint and other material from the surface to be treated, and applying a new protective coating or paint.

Paint Testing. The process of determining, by a certified LBP inspector or risk assessor, the presence or the absence of LBP on deteriorated surfaces or painted surfaces to be disturbed or replaced.

Residential Property. A dwelling unit, common areas, building exterior surfaces, and any surrounding land, including outbuildings, fences, and play equipment affixed to the land, not including paint on the pavement of parking lots, garages, or roadways.

Safe Work Practices. Contractors performing paint stabilization must be properly trained in safe work practices. The minimum requirements are: (1) Prohibited methods of paint removal shall not be used, (2) Proper worker protection, (3) Worksite preparation to prevent the release of any leaded debris or dust, (4) Warning Signs are properly posted, (5) Specialized cleaning after paint stabilization.

Substrate. The material directly beneath the painted surface out of which the components are constructed, including wood, drywall, plaster, concrete, brick or metal.

Target Housing. Any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless a child of less than 6 years of age resides or is expected to reside in such housing for the elderly or person with disabilities) or any zero-bedroom dwelling.

Visual Assessment. Looking for, as applicable: (1) Deteriorated paint; (2) Visible surface dust, debris and residue as part of a risk assessment or clearance examination; or (3) The completion or failure of a hazard reduction measure.

Veterans Benefits Administration Circular 26-14-31 Department of Veterans Affairs October 6, 2014 Washington, DC 20420

Requirement for the Transfer of Properties to VA

1. Purpose. This Circular provides details for transferring properties to the Department of Veterans Affairs’ (VA) Property Management contractor, Vendor Resource Management

(VRM).

2. Background. In connection with the termination of VA-guaranteed loans, servicers have the option to convey to VA the properties acquired at termination. VA accepts such properties into our inventory to be managed, maintained, and marketed by our property management contractor, VRM. Under the same contract, VRM also provides servicing of VA’s portfolio of owned loans.

Bank of America had previously been awarded both contracts separately. VA made the decision to consolidate these two awards and recompete it as a single solicitation, now known as Real Estate Owned (REO) and Portfolio Servicing Contract (RPSC). On April 13, 2012, VA awarded RPSC to Vendor Resource Management (VRM), http://www.vrmco.com/. VRM is subcontracting for the servicing of VA’s loan portfolio with Residential Credit Solutions.

3. Submission of Title Documents. The address to submit title documents for new properties conveyed to VA is VRM, ATTN: VA REO - VA Title Dept., 4100 International Pkwy, Suite 1000, Carrollton, Texas 75007. Documents must be provided no later than 60-calendar days after the liquidation sale or Deed-in-Lieu of foreclosure in most jurisdictions. VA previously provided guidance concerning additional time for title submission in certain jurisdictions.

Timeframes for each jurisdiction may be referenced by selecting “Title Documentation and Insurance Submission, Timeframe and Documentation Requirements” link on the VA Loan Electronic Reporting Interface (VALERI) webpage (http://www.benefits.va.gov/homeloans/valeri.asp).

4. Insurance on Conveyed Properties. VA regulation 38 Code of Federal Regulations (CFR) 36.4323(d)(2) requires servicers to request endorsements on all insurance policies in force at termination, naming the insured as the Secretary of Veterans Affairs, c/o VRM, ATTN: VA REO

- VA Title Dept., 4100 International Pkwy, Suite 1000, Carrollton, Texas 75007. In addition, information about the insurance policy should appear in the “Transfer of Custody Event” (TOC) submitted in VALERI. Servicers should include endorsements with the title packages on properties conveyed to VA, or, if endorsements are received after title packages have already been submitted, they may be identified with the VA loan number and sent to VRM at the address in this paragraph. Notices of cancellation on homeowners or force-placed policies may be handled in a similar manner. If insurers cancel policies, servicers must properly account for any unearned premiums refunded by the insurer.

5. Insurance on Refunded Loans, Loans Repurchased Under 38 CFR 36.4600. Insurance policies on loans refunded (acquired) or repurchased by VA will be endorsed to the Secretary of Veterans Affairs, c/o Residential Credit Solutions, Inc., Attn: Moses Castelo, 4708 Mercantile Drive, Fort Worth, TX 76137. Copies of letters requesting endorsement may be included with

LOCAL REPRODUCTION AUTHORIZED

Circular 26-14-31 October 6, 2014 the title packages sent to the VA Loan Technician on refunded loans. On loans repurchased under 38 CFR 36.4600, title documents should be sent to the St. Paul Regional Loan Center.

6. Reconveyance Implications. VA pays for a property upon receipt of an accepted TOC and then waits for acceptable title documents to be provided. Since holders should be able to verify the validity of sales prior to conveyance, upon reconveyance of a property VA will demand reimbursement of the amount paid for the property and all expenses incurred while the property was in VA custody. At a minimum, VA incurs expenses of $3,410 ($1,500 Service Provider Fee, $1,885 Property Preservation Flat Fee, and a $25 Tax Scrub fee) as soon as a conveyance is accepted. Holders should be prepared to reimburse at least that amount in addition to the amount paid for conveyance of the property. A separate Bill of Collection (BOC) will be issued to the servicer for any additional expenses incurred by VA from the acceptance of custody to the time of reconveyance (such as when an erroneous conveyance is discovered or it is determined that acceptable title documents cannot be provided). When a BOC is not paid promptly, the amount due will be offset from subsequent payments.

7. Additional Information. Any parties interested in contracting with VRM to provide services should direct inquiries to VRM at VRM-supplier@vrmco.com or http://prospects.vrmco.com/join.aspx to initiate the application process. Questions for VA on property management issues may be directed to Lance.Kornicker@va.gov. Questions for VA regarding portfolio servicing issues may be directed to Ronnie.Lamb1@va.gov.

8. Rescission:

a. Circular 26-12-05 is rescinded immediately.

b. This Circular is rescinded July 1, 2016.

By Direction of the Under Secretary for Benefits

Michael J. Frueh Director, Loan Guaranty Service

Distribution: CO: RPC 2024 SS(26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2024)

Homes.gov:

Software Requirements

Specification

Version 0.1 Tuesday, March 23, 2004 ttaAt

1. INTRODUCTION

RURAL DEVELOPMENT (RD), THE DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT (HUD), AND VETERANS ADMINISTRATION (VA)

HAVE AGREED TO COLLABORATE IN THE AREA OF “REAL ESTATE FOR

SALE”. BOTH RD AND HUD HAVE INDEPENDENTLY DEVELOPED

INTERNET SERVICES FOR THEIR CONSTITUENTS TO EASILY SEARCH

REAL ESTATE INVENTORY AT THEIR CONVENIENCE. AUTHORITATIVE DATA SOURCES

2.1. XML Structure

Request 1 Response 1 Request 2 Response 2

3. SYSTEM ARCHITECTURE

4. DATA FLOW

1. Introduction Rural Development (RD), the Department of Housing and Urban Development (HUD), and Veterans Administration (VA) have agreed to collaborate in the area of “Real Estate for Sale”. These organizations have independently developed internet services for their constituents to easily search Real Estate inventory at their convenience.

RD currently lists both Single Family Housing (SFH) and Multi-Family Housing (MFH) properties through the internet. The SFH "Real Estate for Sale" web site provides an online guide to Government owned real estate and potential foreclosure sales information on single family homes. The MFH "Real Estate for Sale" web site provides an online guide to Government owned real estate and potential foreclosure sales information on multiple family housing.

Through the collaboration, a single Federal Government internet service providing Real Estate for Sale will begin to emerge. The URL for this service will be www.homes.gov.

2. Authoritative Data Sources Authoritative Data Sources are data sets that represent specific business data domains and are administered by subject matter experts (SME). Authoritative data sources may be consumed utilizing many strategies such as:

• Extract and Load (CSV, FLD, XML, etc.)

• Web Services (SOAP + XML)

• Parameter based HTTP request

• Publish Subscribe (DTS)

This initiative recognizes each participating organizations Real Estate inventory as authoritative. The consumer strategy that will be leveraged is the parameter based HTTP request. The response to this request will be a well formed XML data stream.

2.1. Request and Response Format

Each participating organization with an authoritative data source will be required to provide a URL that supports two parameterized http requests and two xml based http responses.

Request 1 http://<dns>?Form=1%20stabbr=<XX>

Form (required value of 1 indicates an xml response) Stabbr (required state abbreviation) NumberOfBedRooms (optional) NumberOfBathRooms (optional)

Response 1 <?xml version="1.0" encoding="utf-8"?> Source : The agency source of the property listing (RD, VA, HUD,etc..), one occurance per seacrh crieteria Attributess

Agency : RD, HUD , VA etc...

AgencyURl: agency reo application main entry point

State :

ID : Unique Identifier in the sender system (ex: State Fips ID) All Others are self explaniatory

Property : This element is repated as many as needed Attributes

ID : Unique Identifier in the sender system (ex: County Fips ID) All Others are self explaniatory

City : This element is repated as many as needed within the County Attributes

ID : Unique Identifier in the sender system (ex: City ID) All Others are self explaniatory

<Source Agency="" AgencyURL="">

<State ID="" Abbr="" StateName=""> <County ID="" Name="" > </County> <City ID="" Name=""> </City>

</State> </Source>

Request 2 http://<dns>?Form=1%20StateAbbr=XX%20CountyID=XXX%20CityID=XXXXX

Form--> (required --> value of 1 indicates an xml response) StateAbbr (required) CountID--> (county code optional)

OR

CityID--> (optional) NumberOfBedRooms (optional) NumberOfBathRooms--> (optional)

If both CountyID and CityID are empty then the request is for all property in the StateAbbr.

If the CoutnyID,CityID, and StateAbbr are empty then an error condition should be provided in the response indicating insufficient data provided in the request.

Response 2

<?xml version="1.0" encoding="utf-8"?> Source : The agency source of the property listing (RD, VA, HUD,etc..), one occurance per seacrh crieteria Attributess

Agency : RD, HUD , VA etc...

AgencyURl: agency reo application main entry point

Property : This element is repated as many as needed Attributes

ID : Unique Identifier in the sender system (ex: HUD case number) linkURL : The URL link for the detail listing All Others are self explaniatory

<Source Agency="" AgencyURL="">

<Property ID="" NumberOfRooms="" PropertType="" Age="" SquareFeetLiving="" NumberOfBedRooms="" NumberOfBathRooms="" NumberOfStories="" linkURL=""> <Address StreetAddress1="" StreetAddress2="" City="" Zip="" County=""> </Address>

</Property> </Source>

Attachment

3. System Architecture

HUD Employee N HUD Employee N

Portal REO System

DRAFT

Tuesday, March 23, 2004

HUD REO

RD Employee 1 RD Employee N

RD REO Agency X REO

Emp 1 Agency X Emp N Agency X

Internet Application

Server TomCat tan

Http No SSL

REO Server

REO Server

REO Server

Internet

DB

DB

DB

Group Non Authenticated

No SSL

Http request Response Data as in

XML Format

Http request Response Data as in

XML Format Http request

Response Data as in

XML Format

Web Server Apache

Blue

MS-SQL

Gray

4. Data Flow

Home.gov

HUD properties

Property Data

XML Document

VA properties RD properties FSA properties

Submit Request?

Valid Request

Yes

Send Response

No

Property Data

XML Document

Valid Request

Yes

Send Response

No

Property Data

XML Document

Valid Request

Yes

Send Response

No

Property Data

XML Document

Valid Request

Yes

Send Response

No

Yes

Notification of New Property

Confirmation of Boarding New Property

Listing of REO Property

Offer on REO Property

Habitability of REO Property

Title on REO Property

Reconveyance of REO Property

Other Withdrawal of REO Property

Invoicing on REO Property

Fees for Managing REO Property

Homeowners Association (HOA) Information on REO Property

Deactivations of REO Property

Reconciliation of REO Property Between VA and SP Systems

Sale of REO Property

Repairs on REO Property

Deposits for REO Property

Redemption of REO Property

Tax Information on REO Property

Use of REO Property in a Federally Declared Disaster

Foreclosure on Loans Serviced

Closing on PL Loans

RPSC Service Provider Solicitation Interfaces

RPSC Service Provider Solicitation Interfaces

June 24, 2016

This document presents the high level specifications for the U.S. Department of Veterans Affairs (VA) interfaces that must be in place with the Service Provider (SP). Interfaces will be utilized to convey the REO to the SP and to communicate information between the parties so that the VA can oversee the Real Estate Owned (REO) management and Portfolio Loan (PL) servicing.

Unless otherwise specified, each interface exchange is provided in real-time and this document provides the various data that are exchanged across the interface, the purpose, the triggers, and the format. Interface data will be sent using web service requests or files as appropriate.

VA and SP will use transaction acknowledgements to confirm the receipt of transmissions. These will be sent as XML files/requests that will list the transmissions that were received, as well as meta-data about the transmission. Transaction acknowledgements will not include potentially sensitive data. Error codes will be used by VA and SP systems to identify pre-determined error conditions and exceptions. Error codes will be specified in transaction acknowledgements and Database Logs to report errors in data exchanges.

In the future, there could be modifications to these interfaces.

Notification of New Property

Brief Description: New REO property information.

Purpose: When a REO property is acquired, VA generates the notification of new property to convey new property information to the SP. This consists of property, servicer and foreclosure data.

Frequency: Daily file.

Trigger: New REO property is received or an existing REO property has not been boarded by the SP

Element name Type Length Mandatory Description ACQUISITION_AMOUNT Number (10,2) Yes

ATTORNEY_EMAIL String 100 No

ATTORNEY_NAME String 250 No

ATTORNEY_PHONE String 20 No

COHORT_YR String 4 Yes

FORMER_OWNER_NAME String 100 Yes

FUND String 4 Yes

INSURANCE_CARRIER_NAME String 100 No

INSURANCE_EXPIRATION_DA

TE Date

No

INSURANCE_POLICY_NUMBE

R String

No

INSURANCE_TYPE String 20 No

LEGAL_TXT String 1500 No

NPTagDate Date Yes

ORIG_DT Date No

PM_NET_VALUE Number (10,2) Yes

PROPERTY_ADDRESS String 100 Yes

PROPERTY_CITY String 50 Yes

PROPERTY_COUNTY String 50 Yes

PROPERTY_STATE_CODE String 2 Yes

PROPERTY_ZIP String 10 Yes

RECONVEYED_INDICATOR String (Y/N) 1 No

SERVICER_ADDRESS String 110 No

SERVICER_LOAN_NUMBER String 50 Yes

SERVICER_NAME String 50 Yes

SSN_HASH_TYPE String 10 No Required if SSN hash is not null SSN_HASH String 64 No

TERMINATED_LOAN_INTERE

ST_RATE Number

(4,2) No

TERMINATION_DATE

Date

Yes Foreclosure Sale Date and must be a date in the past.

TERMNTN_CD String 1 No

VA_LIN

String

Yes

VBA 12-digit loan number should be only numbers. The field validations are matches pattern: [0-9]{12} and matches RPSC LIN

VARecordId Long Yes Unique for each new property.

Confirmation of Boarding New Property

Brief Description: Information on the acceptance and boarding of property by SP.

Purpose: When a REO property is accepted and boarded by the SP, SP generates a confirmation of new property to VA. This consists of boarding and SP point of contact data.

Frequency: Real time.

Trigger: New REO property is boarded by the SP

Element name Type Length Mandatory Description

VARecordID String 20 Yes Transaction ID for VA record used in the NP.

SP FileID String 20 Yes

SP RecordID String 20 Yes Transaction ID for SP record

MCDate Date Yes

VA_LIN String 12 Yes Assumes no hyphens are sent

LOAD_DATE Date Yes

SP REO_NUMBER String 50 Yes

ConfirmationMessage String 250 No

Will be based on boarding exception business handler (e.g. Property cannot be geo-coded)

POC POCType

No (provide if available

Person of contact for this property. Asset manager

Company CompanyType No

CompanyID String 100 No companyID in SP system

ClientType String 100 No Possible values are Outsourcer/Vendor

Status String 100 No Possible values are Accepted, Removed, Closed

BusinessType String 100 No Business type of the Company

BusinessName String 100 No Name of the company

PhysicalAddress PhysicalAddressType No Address of the Company. Not Post box.

− Street Address String 100 No

− UnitNumber String 100 No

− City String 100 No

− County String 100 No

− State String 100 No

− Zip String 100 No

PhoneNumber String 50 No

AcceptedDate String (date) No Start Date of the Vendor

ContactPerson List of ContactPerson No List of one or more ContactPerson belonging to a Company. Refer to table below

ContactPerson ContactPersonType

If a POC is received, at a minimum it must have Last Name, E-mail and Phone Number

ContactID String

15 Yes Numeric linAssociatedTo String (numeric) 15 No Numeric

ContactStatus String 20 No Possible value are Active, Removed

ContactType String 100 No Name associated to the contact type (e.g. AGENT, EVICTION SPECIALIST, ETC.)

ContactName ContactNameType Yes

− FirstName String 100 Yes

− LastName String 100 Yes

ContactEmail String 250 Yes

ContactPhoneNumber String 50 Yes

StartDate Date No Date on which contact was assigned to the asset

EndDate Date No Date on which contact is removed from asset

Listing of REO Property

Brief Description: Listing REO property information.

Purpose: When a REO property is listed for sale, SP generates the notification of listing information to the VA. This consists of listing, building, land, broker and MLS data.

Frequency: Real time.

Trigger: REO property is listed in MLS or property listing is modified

Element name Type Length Mandatory Description

List LIST (complex type)

Element described in the table below. There could be one or multiple occurrences of this element in a request message.

Loan Number (LIN) 12 AN

String 12 Yes Must agree to LIN number SP Asset # String 50 Yes

Listing Status String

Available or Unavailable (i.e.

listing status is unavailable when offer is accepted)

Property Type

String

Yes

Not enumerated. Expected values: Single Family, 2-4 Unit, Condo, CO-OP, MFG Single Wide, MFG Double Wide, MFG Other, PUD, Townhome, Vacant Land, Condotel, Modular, Unknown

More Link (URL for the property on website) String

Marketing Statement String 1500 Yes Sales Method String No Sales Terms String No Comments String No Original List date Date Yes Current List Date Date Yes List price Decimal Yes Listing expiration date Date Yes Marketed String Yes Enumration: As-Is, Repaired MLS # String 50 Yes

Structure Structure (complex type)

Element described below. One occurrence of this element in a request message.

Building Square Feet Numeric No Number Of Rooms Numeric No Number of Floors Numeric No Number of Bedrooms Numeric No Number of Baths String No Year Built Numeric No Building Description String 1500 No

Land Land (complex type)

Element described below. One occurrence of this element in a request message.

Land Acres String No Land Potential Use String No Land Zoning String No Land Description String No Lat/Long Coordinates Yes

Listing Broker Listing Broker (complex type)

Element described in the table below. One occurrence of this element in a request message.

Broker First Name String Yes Broker Last Name String Yes Broker Email Address String Yes Broker Phone Number String 10 Yes

Document Count Numeric 3 Yes

Document Type Document Type (complex)

Yes if Doc Count other than 0

Element in table below. There could be one or more occurrences of this element in a request message

Document Identifier String 10 Yes

Document Type String

Yes MLS Agent Detail Report or General

Document Name String 100 Yes

Document Object Yes Will be mimeType pdf. If document encoding is used it will be BASE64.

Offer on REO Property

Brief Description: Offer REO property information.

Purpose: When an offer is received on a REO property for sale, SP generates the notification of offer information to the VA. This consists of listing, building, land, broker and MLS data.

Frequency: Real time.

Trigger: REO property offer is accepted or offer is modified (offer status: Initial – Contract Execution, Update – On Any Contract Modification, Cancel – On Any Sale Fall Through)

Element name Type Length Mandatory Description Offer Offer (complex type) Yes Element described below.

Loan Number (LIN) String 12 Yes Must agree to LIN number in defined status

SP Asset # String 50 No

Offer Number Numeric Yes

Offer Version Numeric Yes

Offer Status String 9 Yes Updateable; Enumeration: A — Accepted; W —Withdrawn Sent as a literal.

Offer Status Date DateTime Yes Updateable; Less than or = to system date

Reason String 50 No Updateable

Offer Accepted Date DateTime Yes Less than or = to system date

Contract Execution Date DateTime Yes Less than or = to system date

Estimated Closing Date DateTime Yes Updateable; Any valid date No restriction on past, current or future, all allowed..

Purchase Type String Yes Enumerated: Owner- Occupant, Non-Profit, Investor, Government, Tenant

Purchaser Name One String 200 Yes This field is concatenation of first name, middle name and last name. Use this field when the buyer is a company.

Purchaser Name Two String 200 No Updateable; Optional, Can be null when the buyer is a company

Homeless Service Provider Yes Boolean Yes/No

Offer Price Decimal 10,2 Yes Updateable; Positive number, > 0

Offer Comments String 1500 No

Updateable; These are the comments that are provided by the Asset Manager at the time of acceptance/ cancellation of a sale.

Offer Type String 6 Yes Enumerated: Cash or Vendee

Projected net proceeds Decimal Yes

Sales Price – [commission & (other seller concessions)] Original formula meant to also subtract Prorated costs based on estimated closing date however these are not known at time of offer.

Highest and Best String 3 Yes Boolean Yes/No

Habitability of REO Property

Brief Description: Habitability of REO property information.

Purpose: When an inspection of a REO property is made the habitability is determined and SP generates the notification of habitability information to the VA.

Frequency: Real time.

Trigger: REO property is inspected by the SP or habitability status is modified. In addition, allow the VA to request habitability inspections for specified geographic locations

Habitability Habitability (complex Yes Element described in the type) table below. There could be one or multiple occurrences of this element in a request message.

Loan Number (LIN) String 12 Yes Must agree to LIN number in defined status

SP Asset # String 50 No

Habitable Type String Yes Initial or Update

Habitable Status Type String Yes Habitable, Inhabitable or Undetermined

Condition Date Date Yes

Title Status Type String Yes Clear or Unknown

NumberOfStories String Yes

Neighborhood Comments String 5000 No

Title on REO Property

Brief Description: Title review request and title decision REO property information.

Purpose: SP to send title information/documents and request a title review from VA Regional Counsel (RC). Title review request consists of title and title document data. VA to send VARC title review decision to SP. Title review decision consists of title decision data.

Frequency: Real time.

Trigger: Title decision is required on each REO property. The service allows for updates to and cancellation of the title request.

Title Review Request:

Element name Type Length Mandatory Description Title Title Complex Yes Element described below.

There could be one or multiple occurrences of this element in a request message.

Loan Number (LIN) String 12 Yes Must agree to LIN number in defined status

SP Asset # String 10 No Title Review Request ID String 10 Yes Title Request Type String 50 Yes Initial, Resubmission, Review for Revised Opinion, Cancel Request Date Date Yes MM/DD/YYYY Title Due Date Date Yes MM/DD/YYYY Extension Due Date Date No MM/DD/YYYY Document Count Numeric 3 Yes Document Type Document Type (complex)

Yes Title Request Type is other than Cancel

Element below. There could be one or more occurrences of this element in a request message

Document Identifier String 10 Yes Document Type String 30 Yes Document Name String 100 Yes Document Object

Yes Will be mimeType pdf. If document encoding is used it will be BASE64.

Title Decision:

Title Decision Title Decision Complex Yes Element below.

Loan Number (LIN) String 12 Yes Must agree to LIN number in defined status

SP Asset # String Yes Title Review Request ID String Yes Decision Status Type String Yes Approve, Deny or Cancel Decision Status Date Date Yes Reason

Yes if Decision Status Type is

Deny

Document Type Document Type (complex) No Element below. There could be zero or more occurrences of this element in a request message. Used when VARC gives the opinion in a document

Document Identifier String 10 Yes

Document Type String 30 Yes Document Name String 100 Yes Document Object Yes

Reconveyance of REO Property

Brief Description: Reconveyance recommendation on a REO property. Reconveyance decision on reconveyance recommendation.

Purpose: When a title opinion indicates that a REO property should be reconveyed to the servicer, SP generates the reconveyance approval request to the VA. This consists of reconveyance, title and document data. The VA generates notification of reconveyance decision. This consists of reconveyance decision data.

Frequency: Real time.

Trigger: Title opinion indicates that a REO property should be reconveyed to the servicer. When new information is obtained service allows for updates to and cancellation of reconveyance requests.

Reconveyance Approval Request:

Element name Type Length Mandatory Description

Reconveyance Approval Reconveyance Approval Complex Yes

Element described in the table below. There could be one or multiple occurrences of this element in a request message.

Loan Number (LIN) String 12 Yes Must agree to LIN number in defined status

SP Asset # String No

Reconveyance Request ID String 10 Yes

Reconveyance Status Type String 25 Yes Initial, Update, Complete or Cancel

Reconveyance Status Date Date Yes

Pre-Reconveyance Date Date Yes

Reason String 4000 Yes

Title Vested String Yes Yes/No

Name on Title String Yes

Title Package Due Date Date Yes

Title Status Type String Yes

Needs further definition (e.g.

Awaiting Title Package, Package Received Rejected, etc.)

Title Decision Date Date No

Document Count String 4 Yes

Document Type Document Type (complex) Yes

Element below. There could be one or more occurrences of this element in a request message

Document Identifier String 10 Yes

Document Type String 30 Yes

Document Name String 100 Yes

Document Object Yes

Documents can be rather large. Will be mimeType pdf.

If document encoding is used it will be BASE64.

Reconveyance Decision:

Reconveyance Decision Reconveyance Decision Complex

Yes

Loan Number (LIN) String 12 Yes SP Asset # String Yes

Reconveyance Request ID String 10 Yes Decision Status Type String 25 Yes Approve, Deny or Cancel Decision Status Date Date Yes

Reason String Yes if Decision

Other Withdrawal of REO Property

Brief Description: Other withdrawal recommendation on a REO property. Withdrawal decision on other withdrawal recommendation.

Purpose: When an event indicates that a REO property should be reconveyed to the servicer for a reason other than title issue, SP generates the other withdrawal approval request to the VA. This consists of withdrawal and document data. The VA generates notification of withdrawal decision. This consists of withdrawal decision data.

Frequency: Real time.

Trigger: Event or data indicates that a REO property should be reconveyed to the servicer for reason other than title issue. When new information is obtained service allows for updates to and cancellation of withdrawal requests.

Withdrawal Approval Request:

Element name Type Length Mandatory Description

Withdrawal Approval Withdrawal Approval Complex

Yes

Element described in the table below. There could be one or multiple occurrences of this element in a request message.

Loan Number (LIN) String 12 Yes Must agree to LIN number in 9 or 9B. Min & Max length 12.

SP Asset # String No Withdrawal Request ID String Yes Deactivation Status Type String Yes…