MHA Case Escalation Process

MHA Case Escalation Process
Training Presentation for Trusted Advisors

Making Home Affordable | February 2012 1

MHA Case Escalations Process
Objectives

• Type of Mortgage Loan ‐ Determines Escalation Path
• Escalation Contacts
• Definition of an Escalated Case (Non‐GSE/Non‐Gov)
• Case Escalation Paths for Homeowner
• MHA Escalation Process
• Special Considerations
• Escalation Examples
• Resources
• Questions/Answers


Type of Mortgage Loan
Determines Escalation Path

When escalating a case it is important to know:

• The type of mortgage loan,
• How to determine the type of mortgage loan and,
• How to escalate a case based on the type of mortgage loan.

Any loan can be escalated directly to the servicer.


Escalation Contacts
Escalation Contact
Non‐GSE Loan • MHA Help – HOPE™ Hotline at 888‐995‐HOPE
GSE Loan
Non‐GSE Loan • HAMP Solution Center: escalations@hmpadmin.com
GSE Loan
Fannie Mae • FannieMae.com: (800)7Fannie;
(GSE Loan) • resource_center@fanniemae.com
Freddie Mac • FreddieMac.com: (800)Freddie;
(GSE Loan) • borrower_outreach@freddiemac.com
FHA Loans • National Servicing Center: (877)622‐8525
• FHA.gov
VA Loans • (877)827‐3702 or
• HomeLoans.va.gov
RHS Loans • Centralized Servicing Center (800)414‐1226


Definition of an Escalated Case
Non‐GSE/Non‐Government

Escalated Cases include allegations that the servicer:
• Did not properly assess or inappropriately denied the homeowner for
applicable MHA program(s), or
• Took inappropriate foreclosure actions.

Escalated Cases do not include:
• General inquiries about the content of a Non‐Approval Notice, or
inquiries about the status of an evaluation of a homeowner where
the servicer is in compliance with the required program timelines.


Case Escalation Paths
For Homeowners

Trusted
Homeowner Advisor

MHA Support Center MHA Support Center
MHA Help HSC

Servicer

Resolution


MHA Escalation Process STEP 1 STEP 2 STEP 3 STEP 4

STEP 1 STEP 2 STEP 3 STEP 4
Submission Acknowledgement Resolution Communication

Escalating Party Servicer Servicer Servicer
Sends inquiry or dispute Sends acknowledgement Reviews and resolves Notifies trusted advisor
to servicer either directly to escalating party and Escalated Case within or homeowner within 10
or through HSC or MHA homeowner, within 5 30 calendar days from business days of final
Help acting on behalf of business days from receipt receipt of case by resolution and next
the homeowner. of Escalated Case.   escalating party.   steps in writing.

Includes Resolution Date
HSC or MHA Help within 30 calendar days HSC or MHA Help HSC or MHA Help
Within 2 business days of receipt date of Concurs with resolution. Reviews any outstanding
of receipt of completed escalation request. Notifies trusted advisor items or questions from
submission forms, sends or homeowner, respectively trusted advisor or
information to servicer to HSC or MHA Help of resolution.   homeowner  and closes the
escalate.   Notifies trusted advisor or case, as appropriate.
homeowner, respectively,
of acknowledgement.
Day 0
2 business days 5 business days 10 business days
30 calendar days


Submission STEP 1
Homeowner Escalates a Case

Trusted
Homeowner Advisor

MHA Help HSC

Servicer

Resolution


Submission STEP 1
Homeowner Escalates to Servicer

The homeowner may escalate a case directly to the servicer
following these steps:
• Contact the servicer directly to escalate a case, working
through the assigned relationship manager,
• Complete any servicer forms that may be required, and
• Submit complete information to the servicer to escalate the case
including description of the inquiry or dispute.

A servicer has:
5 business days from receipt of an Escalated Case to send a written
acknowledgement to the homeowner, and
30 calendar days to review and resolve an Escalated Case from receipt
date of the escalation notice.


Homeowners Escalate Cases STEP 1

MHA Help ‐ HOPE™ Hotline

Help is a Phone Call Away
888‐995‐HOPE (4673)


Submission STEP 1
Homeowner Submits Case to MHA Help

Steps in the submission process:
• The homeowner contacts the Homeowner’s HOPE™ Hotline at
888‐995‐HOPE (4673) and provides the information about his or
her inquiry or dispute of the case.
• MHA Help assigns a housing expert to the case.
• MHA Help acknowledges receipt of the escalated case via this
initial telephone conversation with the homeowner.
• MHA Help attempts a 3‐way call with the homeowner and the
servicer to review the case.
• MHA Help sends a Servicer Engagement Notice to the servicer
within 2 days from the call to escalate, if needed.


Case Escalation Paths STEP 1
For Trusted Advisors

Trusted
Homeowner Advisor

MHA Help HSC

Servicer

Resolution


Submission STEP 1

Trusted Advisor Escalates to Servicer

The trusted advisor should:
• Contact the servicer, the relationship manager in most cases, for
assistance.
• Provide a signed Third‐Party Authorization Form.
• Servicers are required to have written procedures and personnel in
place to provide timely and appropriate responses to homeowner
inquiries and disputes that rise to the level of an Escalated Case.
A servicer has:
5 business days ‐ from receipt of an Escalated Case to send a written
acknowledgement to the trusted advisor, and
30 calendar days ‐ from receipt date of the escalation notice to review and
resolve an Escalated Case.


Trusted Advisor Escalates Cases STEP 1

HAMP Solution Center (HSC)

HSC
escalations@hmpadmin.com
866‐939‐4469


Submission STEP 1
Required Forms for Trusted Advisors

Case Submission Form

Third‐Party
Authorization Form

Important!
FILL OUT BOTH FORMS


Case Submission Form STEP 1

Homeowner
Information

Servicer
Information

Escalation
Information


Third‐Party Authorization Form STEP 1

Account Information

Authorized Parties

Signatures


Submission STEP 1
Trusted Advisor Submits Case to HSC

Steps in the HSC submission process:
• The trusted advisor sends the escalated case, including the
completed Third‐Party Authorization Form and the Case Submission
Form via email to escalations@hmpadmin.com.
• HSC sends an automated response returned to the trusted advisor
upon receipt of the e‐mail.
• HSC reviews the escalated case within 2 business days and sends the
Servicer Engagement Notice to the servicer to escalate the case within
these 2 business days.
• HSC reaches out to the trusted advisor to request any additional
information that is needed.


Acknowledgement STEP 1 STEP 2

Escalating Party Notified Case Was Received

Servicer sends acknowledgement that the Escalated Case was received,
to the escalating party, within 5 business days from the receipt of the
request to escalate.

• The acknowledgement will be in writing and will include:
 Case reference name or number,
 Anticipated Resolution Date, and
 Toll‐free escalation contact phone number.

Anticipated Resolution Date – may not exceed 30 calendar days from the
later of:
(i) The date the inquiry was received or
(ii)The date on which any necessary third‐party authorizations where
received.


Case Resolution STEP 1 STEP 3

Servicers Resolve Escalated Cases

Upon receipt of the Escalated Case, the servicer will review the case to:
• Determine the nature of the inquiry,
• Compare the information provided against the information on file,
• Determine a proposed resolution within 30 calendar days of the
case submission date, and
• Secure concurrence for the proposed resolution, if applicable.

If resolution takes longer than 30 calendar days, servicer must
provide an update every 15 calendar days.


Communication
STEP 1 STEP 4

Servicers Communicate Case Resolution

Within 10 business days of reaching a decision, the servicer must
communicate the resolution to the homeowner and escalating party in
writing.

• This communication must include the change in determination, the
resolution, and the next steps.
• The servicer will take the first action to implement the resolution.


Special Considerations
Substantially Similar Case Submissions

“Substantially similar” means the substance of an Escalated Case inquiry
pertains to the same homeowner and loan inquiry or dispute as a previously
resolved Escalated Case.

• Servicers are not required to review substantially similar cases.
• If the case was escalated by HSC or MHA Help, then a determination
that a case is substantially similar to a previous inquiry or dispute will
not be final until HSC or MHA Help concurs with the servicer’s
determination.


Escalated Cases and Foreclosures

Timing
A servicer may not refer a loan to foreclosure or conduct a foreclosure
sale unless and until an Escalated Case is properly resolved.
3 DAYS

Exceptions
A servicer is not required to suspend a foreclosure sale when:
• An Escalated Case is received after midnight of the seventh
business day before the foreclosure sale date, or
• A court fails/refuses to halt the sale after the servicer has
made reasonable effort to stop the sale.
Pending Cases
Escalated Cases that are pending at the time of a foreclosure sale must
still be resolved.


Homeowner Incorrectly Denied a Trial Period Plan

If a servicer determines, as a result of an Escalated Case, that a
homeowner was incorrectly denied a trial period plan: 3 DAYS

• The servicer must offer the homeowner a trial period plan based
on the status of the homeowner and the loan at the time of the
servicer’s initial evaluation, and

• To the greatest extent possible, the homeowner must be put in
the same position as he or she would have been if the servicer
had offered the homeowner the trial period plan in accordance
with MHA guidelines.


Escalated Cases ‐ Pending Litigation

In some cases, a servicer cannot provide information regarding the
issues related to the Escalated Case due to pending litigation involving
3 DAYS
the servicer and the homeowner.
• The servicer must resolve the Escalated Case by a written
communication to the escalating party, including the relevant
litigation case name, case number and date and court of filing.
• The servicer still must obtain concurrence from either HSC or
MHA Help, if applicable, before the case can be resolved.
• Pending litigation does not include foreclosure actions brought
on by the servicer.


Examples of Escalated Cases
HAMP Escalations

Document The homeowner submitted documents, but the servicer  has
Handling either lost or misplaced the documents.

Home
Servicer did not properly  assess the homeowner for MHA‐
Retention
related home retention/workout options.
Options
Status Communications sent from the servicer to homeowner did
Issues not accurately portray homeowner’s MHA‐related status.

Foreclosure
The servicer has wrongfully referred a case to foreclosure.
Initiated


Examples of Escalated Cases
HAFA issues that should be escalated.
HAFA Policy
Servicer is not responding according to program timelines.
Issues

Eligibility Servicer claims homeowner is not HAFA‐eligible because homeowner
Issues is in bankruptcy.

Servicer Issues Servicer is not allowing at least 45 days for the buyer to close.

Post‐Closing Servicer has provided incorrect tax forms or incorrect information
Issues on the form # 1099‐C.

HAFA issues that may be escalated to the servicer, but not to the MHA Support
Centers.
Property
Servicer will not allow adjustments to the list price of the property.
Valuation

Mortgage Servicer claims that the mortgage insurance company is denying
Insurance Denial approval of the short sale.


Resources: HMPadmin.com

Easy access to
MHA
information
Resources for Counselors and
and tools Trusted Advisors
• Program update calls
• Training webinars
• Escalation process details


Resources: MakingHomeAffordable.gov NEW SCREEN
As of 1227/11

Information
on MHA Resources for Counselors and
Trusted Advisors
programs and • Program Guidelines
• How to Help Borrowers
additional • Brochures, flyers, posters
• MHA Storefront
resources • Case Escalations


Discussion/Questions

Thank You


MHA Case Escalation Process

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