FR–4887–A–01
Accelerated Claim and Asset Disposition (ACD) Program; Advance Notice of Proposed Rulemaking 
2006-07-05 2006-07-29 2006-10-13 2006-08-07 2006-07-26 2006-09-25 2006-08-04 2006-08-07 2006-08-04
HUD-2006-0169-0002 HUD-2006-0169-0004 HUD-2006-0169-0012 HUD-2006-0169-0007 HUD-2006-0169-0003 HUD-2006-0169-0011 HUD-2006-0169-0005 HUD-2006-0169-0008 HUD-2006-0169-0006
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https://api.regulations.gov/v4/comments/HUD-2006-0169-0002 https://api.regulations.gov/v4/comments/HUD-2006-0169-0004 https://api.regulations.gov/v4/comments/HUD-2006-0169-0012 https://api.regulations.gov/v4/comments/HUD-2006-0169-0007 https://api.regulations.gov/v4/comments/HUD-2006-0169-0003 https://api.regulations.gov/v4/comments/HUD-2006-0169-0011 https://api.regulations.gov/v4/comments/HUD-2006-0169-0005 https://api.regulations.gov/v4/comments/HUD-2006-0169-0008 https://api.regulations.gov/v4/comments/HUD-2006-0169-0006
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Suggestions:1)  Do NOT utilize the standard HUD liquidation claim form.  Create a new claim form for the specific purpose of ACD;2)  Treat the process more like a service transfer from a servicers standpoint....require a P  I claim simultaneous with the service transfer and then a second claim for reimbursement of escrow and corporate advances and fees associated with the ACD claim within a 60 day time period.  This will avoid supplemental claims;3)  Change the order/timelines....for example:  preliminary approval with a claim  service transfer within 60 days, submit P  I claim with simultaneous service transfer, prepare the advances/reimbursement/2nd claim within the next 60 days.4) Far too many HUD contractors with conflicting opinions.  Reduce/eliminate to one or two contractors, especially for purposes of documentation breaches.  Eliminate the requirements to send multiple copies to multiple contractors, i.e., shipment of docs required multiple notifications to various contractors.5) Generally, speed the service transfer time so as to not make the servicer responsible for potential servicing errors during the holding period.  Under the current format, a loan may not be transferred for months after claim and claim payment, but during that period, taxes and insurance becomes due, thus requiring payment and supplemental claim(s).Comment on FR Doc # E6-08637 The ACD program proved to be ineffective for Bank of America as only 4 loans during the demonstration period feel into the criteria.  Althought submission of loans happened every month, the first loan was always denied for provisional approval.  We are also having issues with new servicer requesting reimbursement for the participation fee Bank of America made on these loans for participating.  I believe this program would be more succesful if the criteria was broadened. Comment on FR Doc # E6-08637 Here is our response concerning HUD-2006-0169-0010Comment on FR Doc # E6-15285 Docket No FR-4887-A-01Response from Midland Mortgage CoComment on FR Doc # E6-08637 I.  Vacant Properties ? Section II. 1. (1) States, ?Mortgagees that elect to file claims on certain defaulted mortgages (such as vacant homes) would be required to submit the mortgages for assignment and payment of a claim pursuant to the ACD program?.  Question ? If a loan in foreclosure is found to be vacant does it automatically get submitted into the ACD program? If the above mentioned defaulted mortgages are not submitted will it jeopardize the conveyance claim post foreclosure? II.  Specified Eligibility Criteria ? Section II. 1. (2) Discusses eligible mortgagees (such as Chase) would be permitted to submit other types of defaulted mortgages that meet specified eligibility criteria. Question ? Please define other.  Would existing eligibility criteria change?III.  Multiple Servicers ? Section II. 2.  This section discusses the possibility of offering transferred loans to multiple servicers.  Question ? This could lead to reporting problems.  Would whole batches still go to one servicer and change from batch to batch?  Would a batch of loans be divided amongst various servicers?IV.  Other Alternatives ? Section II. 3. States, ?Another alternative would be for HUD to transfer the servicing of the loan to a servicer who would be responsible for servicing, foreclosing, and selling the assets?. Question- Please expand on this comment. Would loans in foreclosure be required to be transferred simply for the completion of the foreclosure?  Would this be an open bidding process for all P-Servicers, could Chase acquire loans from other servicers just to perform the foreclosure?V.  Control population results.  Over the last four phases there has been a control population excluded from every batch.  The purpose was to compare the control population with loans in the program to see if they cured the default through traditional measures as opposed to being part of the ACD program.  Question - Are any results from this study available?VI.  Will there be contract periods and commitments by the Lenders similar to the current practices?VII.  What kind of penalties will be involved for nonparticipation or not meeting quotas?Comment on FR Doc # E6-08637General Comment:I.  Vacant Properties ? Section II. 1. (1) States, ?Mortgagees that elect to file claims on certain defaulted mortgages (such as vacant homes) would be required to submit the mortgages for assignment and payment of a claim pursuant to the ACD program?.  Question ? If a loan in foreclosure is found to be vacant does it automatically get submitted into the ACD program? If the above mentioned defaulted mortgages are not submitted will it jeopardize the conveyance claim post foreclosure? II.  Specified Eligibility Criteria ? Section II. 1. (2) Discusses eligible mortgagees (such as Chase) would be permitted to submit other types of defaulted mortgages that meet specified eligibility criteria. Question ? Please define other.  Would existing eligibility criteria change?III.  Multiple Servicers ? Section II. 2.  This section discusses the possibility of offering transferred loans to multiple servicers.  Question ? This could lead to reporting problems.  Would whole batches still go to one servicer and change from batch to batch?  Would a batch of loans be divided amongst various servicers?IV.  Other Alternatives ? Section II. 3. States, ?Another alternative would be for HUD to transfer the servicing of the loan to a servicer who would be responsible for servicing, foreclosing, and selling the assets?. Question- Please expand on this comment. Would loans in foreclosure be required to be transferred simply for the completion of the foreclosure?  Would this be an open bidding process for all P-Servicers, could Chase acquire loans from other servicers just to perform the foreclosure?V.  Control population results.  Over the last four phases there has been a control population excluded from every batch.  The purpose was to compare the control population with loans in the program to see if they cured the default through traditional measures as opposed to being part of the ACD program.  Question - Are any results from this study available?VI.  Will there be contract periods and commitments by the Lenders similar to the current practices?VII.  What kind of penalties will be involved for nonparticipation or not meeting quotas? Docket No. FR?4887?N?02 and title, HUDS ACCELERATED CLAIM AND ASSET DISPOSITION (ACD) PROGRAM; REOPENING OF PUBLIC COMMENT PERIOD .Bank of America is opposed to this ruling as it didnt prove to be beneficial.  The criteria was so strict that we only had 4 loans that actually were accepted as the first item submitted was always thrown out. Comment on FR Doc # E6-15285 Make participation voluntary and increase the incentive to participate.The claim filing process is extremely complicated.  Consider reducing the logistal difficulites associated with claim fling by allowing claims to be filed through HUD Connection.  Remove the requirement to isolate and recover advances pre and post approval date.Comment on FR Doc # E6-08637 Amended response from Midland Mortgage Co re: Accelerated Claim and Asset Disposition (ACD) Program; Advance Notice of Proposed Rulemaking; Propoposed RuleComment on FR Doc # E6-08637 August 3, 2006 Regulations DivisionOffice of the General Counsel, Room 10276Department of Housing and Urban Development451 Seventh Street, SWWashington, DC 20410-0500RE:  24 CFR Parts 203 and 291, Docket No. FR 4887-A-01; HUD-2006-0007 Accelerated Claim and Disposition ProgramDear Regulations Division:Thank you for the opportunity to comment on the Department of Housing and Urban Development?s Accelerated Claim and Disposition (ACD) Program proposed rule.  The Georgia Housing and Finance Authority (GHFA) has enjoyed a long and rewarding relationship with HUD and FHA.  As a State Housing Finance Agency (HFA) we share a similar mission with HUD, as does every state HFA, in that we work to help low and moderate income families achieve the American Dream of affordable homeownership.  The state HFA?s thank FHA for working with us over the last two years by being available to us and by listening and responding to our concerns.  You have proven to be a wonderful partner as we work together to meet our shared mission.In the request for comment on the proposed rule, you ask for comments on specific topics relating to the ACD Demonstration program.  As such, you specifically ask for comments from program participants.  The questions you ask in the request and the issues raised in the ?Third Report, Evaluation of 601 Accelerated Claims Disposition Demonstration? document dated February 17, 2006 can certainly best be addressed by program participants.  Therefore, we will address more global issues that we feel would add value to the program and prove to be not only cost effective for FHA but also add value to the FHA program for HUD and program participants, specifically state HFA?s.Regulations DivisionPage TwoAugust 3, 2006First, we feel that the ACD program can do more for FHA then just provide a cost effective means of managing foreclosure costs.  Implementing the ACD program should provide a cost savings to those of us who service FHA insured loans.  It also simplifies an area of frustration for many small servicers.   This coupled with FHA?s initiatives in recent years to simplify your program, could assist in increasing FHA?s market share.In Georgia, we estimate that by participating in the ACD program, we would recognize a cost savings sufficient enough to pass on to our customers in the form of lower interest rates.  While we already provide below market interest rates to low and moderate income families purchasing a home, any opportunity we have to further reduce our costs will be passed on to our customers.  This is consistent with our mission as well as FHA?s mission.  State HFA?s feel that our customers are our partners for the life of their mortgage.  Consequently, we try to the best of our ability to keep people in their homes and only foreclose when we have exhausted all available loss mitigation options.  We help fund an extensive counseling network throughout the state.  We require pre-purchase counseling for people who receive down payment assistance from us.  We also fund these same agencies for post-purchase counseling as another means of helping people stay in their homes and avoiding foreclosure.  Therefore, it was with great interest that we read in the ?Third Report, Evaluation of 601 Accelerated Claims Disposition Demonstration document dated February 17, 2006, page 10, fifth paragraph? that ?The JV servicer has a broader range of loss mitigation options, including restructuring the loan amount below the original UPB.?  We feel this is an excellent tool for both FHA and the borrower.  Additional loss mitigation tools should afford more people an opportunity to stay in their homes who otherwise could become homeless.  The additional loss mitigation tools and the use of highly trained professionals who specialize in working with delinquent borrowers will not only help keep more people in their homes, it will also help reduce the number of foreclosures which will reduce FHA?s costs.  It should also allow for a more consistent application of FHA loss mitigation to a larger population of FHA insured loans.  State HFA?s are particularly excited about this part of the program as our customers tend to live pay check to pay check and our participation in the ACD program will afford residents of our states more opportunities to save their homes when they encounter financial hardships.  Regulations DivisionPage ThreeAugust 3, 2006Ideally, all state HFA?s will be afforded the opportunity to participate in the ACD program.  If however, FHA decides to further test the ACD program prior to implementing it nationwide, we feel that at least one state HFA should be a program participant.  Georgia Housing and Finance Authority would like to be the participant representing state HFA?s.  Our participation would allow a sample of HFA borrowers to be part of the population being analyzed to determine how best to implement the ACD program.  This is, in our opinion, critical as HFA borrowers tend to have lower incomes then the average FHA insured borrower and most are first time home buyers.We look forward to learning how FHA decides to proceed with implementing the ACD program.  This is an exciting program that we feel will provide significant cost savings to FHA and state HFA?s who service FHA insured loans.  We also feel the program will provide further opportunities for our borrower?s to overcome hardships and possibly retain their homes.Sincerely,Philip C. Cottone, DirectorOffice of HomeownershipComment on FR Doc # E6-08637