News

SIRs also is releasing a new level of membership. The Certified Membership is now available to field reps who successfully become SIRs Certified for the services they provide and have a clear criminal background. The new level is a basic membership to recognize the knowledge of field reps who choose to be SIRs Certified. Certified Members are able to take advantage of substantial savings in their E&O insurance when purchased through Insurance-Tek program. The new membership is only $75 per year and should allow more field reps some of the advantages of SIRs and Insurance-Tek programs.

SIRs introduced the Property Preservation Certification in 2004. Since that time, many field service providers have implemented a variety of testing protocols to screen for qualified applicants. The release of these two new certification exams is anticipated to further assist with providing a more professional pool of field reps available to service the growing inventories of delinquent loans and foreclosed properties.

Information on exams

Coming soon - two new exams for Inspectors and for Field Service Providers. The new exams will provide certification for field inspectors and a second exam will be available for those "full service" providers - Certified Mortgage Field Service Specialist. The addition of the two new exams allows for certification for those who inspect only, offer preservation only, or offer both services. One, two or all three exams and certifications can be taken if desired.

SIRs was invited to attend a meeting held by HUD in Washington DC on April 25. The meeting purpose, as indicated to SIRs, was to discuss frequently asked questions involving re-conveyance, pre-conveyance inspections, second bids, title approval and to provide an opportunity for questions and answers through an open discussion.

HUD addressed some key concerns regarding lock codes, dollar amounts of second bids, the methodology used to determine reimbursable amounts, and options being explored for future mortgagee letters and reimbursement guidelines.

No changes to the current release of Mortgagee Letter 2007-03 are expected. The new letter took effect April 30.

Follow this link to read the entire article concerning this meeting.
 

** 4-11 HUD has revised this letter and re-released it for a 3rd time. If you downloaded a copy prior to April 11, 2007, you will need to download a new revised letter.

*4-6-07 HUD has updated ML 2007-03 and revised the General Requirements for Preservation and Protection of Properties Securing FHA Insured Mortgages attachments to ML 2007-03. HUD did not issue a new mortgagee letter number. The updates to 2007-03 are available from HUD by selecting HUD Mortgagee Letter 2007-03 from the list of mortgagee letters available on HUD's website.

Highlights of interest to Field Service Providers include:

1. Different specified types of inspection services and fees dependent upon whether a loan is delinquent or if a property is or believed to be vacant and whether or not the inspection is exterior or interior.

2. Stipulation that "A drive-by inspection alone is not acceptable evidence of occupancy or vacancy."

3. Clarification that the “Initial Inspection”, is performed on the date a Mortgagee first takes physical possession of a property by securing it.

4. Clarification regarding time intervals between inspections and how reimbursement will be determined based on 15 inspections per year and not necessarily whether or not the inspection occurred outside the parameter of 25 to 35 days between inspections.

5. Before and after photographs are required for any claimable property preservation and all inspections are to be documented with photographs.

6. All photographs are to be digital and a flat fee will be paid for all photographs regardless of quantity.

7. A nationwide single lock fee.

8. Stipluation that all exterior debris should be removed from properties in accordance with local laws.

9. Stipulation that no interior debris be removed except under certain circumstances.

10. Specification of what does and does not constitute health hazards.

11. An overall increase in the reimbursement amount for debris removal.

12. Singular lawn service fees for all lawns up to 10,000 sf and a slightly higher fee for lawns up to 15,000 sf

13. Clarification regarding when and where RPZ valves are to be installed for wet heat systems.

* 3-21-07 Update - HUD has delayed the implementation yet again. The new date is April 30, 2007. HUD has yet to respond to SIRs numerous requests for clarifications.

January 25, 2007 HUD released Mortgagee Letter 2007-03. It supersedes in their entirety, ML 2003-05, ML 2004-07, and ML 2005-22. Finally, it supersedes that section of ML 2002-19, Clarification Regarding Title Approval issues, Property Condition at Conveyance, Administrative Offsets and a New Process for Lender Appeal of Conveyance Issues that describes the Property Condition and Re-conveyance Appeals’ process, Mortgagee Neglect and Requests to Exceed Cost Limits for Preservation and Protection. The new letter takes effect 30 days from release or February 25, 2007.

The new mortgagee letter stipulates new costing reimbursement rates for most preservation and inspection services. It details winterization requirements with regards to minimum amounts of antifreeze to be utilized in drains and toilets. It details "no less than a 40-gallon tank with a minimum of 50 pounds pressure" be used when winterization services are performed. Many states, such as Indiana and New York, will be reimbursed for winterization services at a rate of $45 while states such as Florida will be reimbursed $100 and New Mexico $120 for the same service. The new letter also clarifies inspection service per living unit and provides different reimbursement rates based on whether the inspection is for an occupied or vacant property. Key codes appear to be removed from the new specifications - the only stipulation on types of locks is that they be one of three different Kwikset styles and the mortgagee is to record the code used on their claims form.

Gone is the vague requirement regarding RPZ valves on boiler systems. The new letter clarifies the RPZ be installed only in localities that require it. The new Mortgagee Letter is available from HUD for free by visiting their website. It is recommended that all preservation mechanics and specialists review the new requirements and begin purchasing equipment necessary to comply with it.

www.hud.gov ** According to HUD, ML2007-03 will not go into effect until March 26, 2007 http://www.hud.gov/offices/hsg/sfh/nsc/presprot.cfm