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Applying Reinstatement Funds – Rev 01/15/07 *

Applying Reinstatement Funds – Rev 01/15/07 *

 

Applying Reinstatement Funds – Rev 01/15/07 [Reinstatements Explained]

-Remember: When receiving a check if the check is received after the 15th there is a problem, but if it is only one day late we will waive the fee.

FUNCTIONAL OVERVIEW:

Prior to accepting funds, the foreclosure attorney contacts the bank, to verify the funds are sufficient to reinstate the account. If the amounts are sufficient to reinstate the account, the foreclosure attorney will immediately stop the foreclosure proceedings and accept the funds and forward the funds to the specialist via overnight mail. The foreclosure specialist must process the reinstatement within 48 hours of receipt of the funds.

REQUIREMENTS: EFFECTIVE DATE:

12/01/00

08/16/06

01/15/07

PROCEDURE:

Documentation and System

When the check is received, the foreclosure specialist will complete the following steps:

FOR1HIST - on MTC and MCP accounts

The check number and amount of the check are notated throughout "FOR2" as well as a breakdown of how the funds will be applied. This procedure will update the account’s history.

The check information is then entered into the payment logbook by the operations specialist and signed for by the foreclosure specialist.

Home Equity Payments (If applicable) - the foreclosure specialist will obtain the reinstatement quote from the file and complete the home equity payment form according to the quote.

Principal Balance/Interest - input the total payment amount collected from the quote on this line.

Late Charges - input the total amount of late charges collected.

Inspections - input inspection amount, general ledger account number and cost center on form. A credit ticket - 631374/607275 originating cost center is 801576 (other outside services) will be prepared to repay inspections captured from the by products account history.

Broker Price Opinion - input BPO amount, general ledger account number and originating branch of by product cost center on form. A credit ticket - 631721/ 607275 branch cost center will be prepared to repay BPO costs captured from the by products account history.

Administrative Fee - input $100.00 administrative fee on form, general ledger account number. A credit ticket – 631721/607275 will be prepared to credit "M/I - Oth" account.

Miscellaneous Expenses - when funds are advanced to pay property taxes the reimbursed amount is entered on this line. A general ledger credit ticket 638080/ 607275 branch cost center will be prepared to credit "legal" account.

Legal Fees/Expenses - when funds are advanced to pay attorney fees the reimbursed amount is entered on this line. A general ledger credit ticket 631655/607275 /branch cost center will be prepared to credit "legal" account. If funds are received to pay attorney fees and a final invoice hat not been obtained from the attorney. Deposit funds to General Ledger account. When attorney invoice is received, charge the General Ledger account and issue check to attorney.

* Note: on the payoff form write the general ledger and cost center number next to the amount.

Authorization to Process - once all the paperwork has been completed and the system has been documented, the paperwork and tickets are submitted to the foreclosure supervisor for approval to process. After the supervisor has signed the paperwork and tickets, copies will be made.

Processing Reinstatement Funds - the foreclosure specialist will submit the original tickets and forms to the payment processing department to process the reinstatement. Place copies of ticket work in file.

Property Preservation - all property preservation work must be canceled at this time. To do this the foreclosure specialist will complete the "PP Property Cancellation Request Form" on Toss.

Applying Reinstatement Funds – Rev 01/15/07 [The Procedure]

FUNCTIONAL OVERVIEW:

When the foreclosure attorney receives certified funds, a phone call is made to the foreclosure specialist to verify the funds are sufficient to reinstate the account. If the funds received are sufficient to reinstate the account, the foreclosure attorney will immediately stop the foreclosure proceedings and will forward the funds to the specialist via overnight mail. The foreclosure specialist must process the reinstatement within 24 hours of receipt of the funds.

REQUIREMENTS: EFFECTIVE DATE:

12/01/00

11/14/01

08/16/06

01/15/07

PROCEDURE:

Documentation and CPI Maintenance

When the check is received, the foreclosure specialist will complete the following steps:

Type REIN and press enter – REINSTATE ON (This should be today’s date) – INCLUDE OPTIONAL INSURANCE Y/N (Change the ‘N’ to ‘Y’) and then press enter.
-Match the figures from this screen against the ones in the REINSTATEMENT FIGURES (accessing on NEWTRAK, under View Docs, but should be uploaded into our shared network drive, if not create it based on the same figures – this is done to show what figures India provided to the attorneys).

Update FOR2 (FCRVW):
-
The check number and amount of the check are notated on FOR2 as well as how the funds will be applied.
-The check information is then entered into the payment logbook (RPlog.xls) by the operations specialist and signed for by the foreclosure specialist. ONLY NOTATE Copy of Default Check when receiving an email from SHARI to do so….

CORPORATE DEPOSIT FORM (really r.xls)
-
The foreclosure specialist will obtain the reinstatement quote from the file and complete the "Payment Request Form" according to the quote.

a. Type REIN, PF8, change the INCLUDE OPTIONAL INSURANCE Y/N to a ‘Y’ and then press enter; PR8 (Compare the figures here against that in the CORPORATE DEPOSIT FORM, and if anything does not match up make the changes to the form).

i. Rule of H20 or Consumer Lending:

1. Type p309, PF10 (to assure page #), PF8 (till the end), if the PROCESSOR code shows as ‘ACQ’ then this was an acquisition and as such the amounts need to be reflected in ‘Corporate Advance Deposit (CPMT) Inv/Cat #’ section. Be sure that in ‘Inv/Car#’ that it shows ACQ (from PROCESSOR) and the MREC BAL.

b. BPO (If applicable)
-
If a BPO was ordered through FHLMC, $95.00 will be credited to suspense so a check can be made payable to FHLMC to reimburse the expense of the BPO.

c. Corporate Advance
-
The "Foreclosure/Bankruptcy Deposits" form will be completed to repay the outstanding corporate advances.
-To obtain the transaction code, amount, corporate payee, and reason code, the foreclosure specialist will access the "P309" screen or "FOR1 DISB" screen.
-The foreclosure specialist will also apply the amount that will be paid to the attorney to corporate using the appropriate payee code and reason code.
*Note: This will create a credit, however, when the invoice is paid, there will be a zero corporate balance.

d. Asset Loans (If applicable)
-
On asset loans the FOR2 and FOR3 screens must be reviewed to determine if a BPO was ordered and/or a foreclosure sale date is scheduled.
-The operations specialist must toss the REO Department Manager to cancel the BPO request indicating the reason to cancel the order.
-Then notate on FOR2 that the REO Manager was notified.

Print 2 copies of the CORPORATE DEPOSIT FORM (One with the check, and the other for my own personal records).

 

 

 

 

 

FHA

On FHA loans in investor category 175 the accounts must be reviewed to determine if buyout interest exists. The funds are generated when the loan is bought out of the GNMA pool. The Investor Accounting Department must be notified so they can clear the ledger account.

- input FOR1, account number, CORP and enter

- review the 3rd party recoverable field on the screen to determine if funds exist

- if there is a balance in the 3rd party recoverable field a toss must be generated to notify investor accounting

- on toss access for "Buyout Interest Form", indicate account number and if account is being reinstated or paid off

Update the FOR2 screen that funds existed in the 3rd party recoverable field and the Investor Accounting Department was notified via toss

Processing Reinstatement Funds - the foreclosure operations specialist will submit the payment registration sheet and check to the payment processing department to process the reinstatement. A copy of all the forms and the tickets are placed in the file.

Property Preservation - all property preservation work must be canceled at this time. To do this, the foreclosure specialist will complete the ‘PP Property Cancellation Request Form" on Toss.

Closing Tracking:

The next day, the foreclosure specialist will complete the following steps: (Refer to QC Review checklist)

- verify the account is current by viewing the due date and application of payments on P309.

- SAF1 - change all stops to 0.

- TSK1 - complete "ANARIN" task to have the account reanalyzed.

- complete "PMTMSC" task (if applicable) to have a:

- check issued to FHLMC for the BPO.

- FOR2 - document the account has reinstated, tracking will be closed, and the file will be forwarded to the vault.

- FOR3 - insert step number 727 (fully reinstated)

- place a one in the "ACT" field

* Note: whenever the cursor is placed, the step will be inserted below that point

- press enter

- type step number in "step" field

- type predecessor step number in the "pred" field

- type account reinstated and the name of the specialist inserting the step in the ‘reas" field

- press enter

- complete the step by typing "C" in the "ACT" field

- type date the account reinstated

- press enter

- FOR1 MAST screen - change the man code to the appropriate man code

- FOR1 STAT screen - change status to "R" (removed) and removal code to "01".

- BILR screen - the screen is used to request monthly billing statements

- tab to "calendar date" ("add a new request")

- enter the date the tracking is being closed

- type loan number

- press enter

- change "N" to "Y" in "select detail history trans" field

- change "number of trans" to 010.

press enter

New Trak

log on to New Trak

click on search accounts

click on account

go to bottom of page

hit drop down and select reason for closing file

click on close

click update

Attorney follow-up - the foreclosure specialist will ensure inter com that the attorney’s invoice has been paid in full and their file has been closed.

The foreclosure specialist will monitor the account daily to ensure all balances go to zero. Only then can the documents in the file be transferred.

The documents in the file will then be transferred to a manila file folder. The account number is written on the right side of the file and it is placed in the designated area to be sent to the vault.