USDA: Loss Mitigation Mandatory Waiver, 7 Code of Federal Regulations (CFR) 3555, Sec 3555.301(h)
Investor Update
April 28, 2016
USDA continues to explore effective means by which to improve the quality and effectiveness of the Single Family Housing Guaranteed Loan Program (SFHGLP). Effective loss mitigation keeps borrowers in their homes by avoiding foreclosure while minimizing credit losses to the Agency. The Agency has determined, through successful Pilot results, issuing a written waiver of Agency concurrence reduces process times, increases program effectiveness and improves the customer’s experience.
Effective August 1, 2016, USDA is mandating all active participating SFHGLP lenders begin processing formal loss mitigation servicing plans in accordance with subject waiver, foregoing Agency concurrence granted by the authority under 7CFR 3555, Sec 3555.301(h). However, the Agency may revoke a lender’s waiver at any time, upon notice and without appeal rights.
The waiver is applicable to the following loss mitigation alternatives:
- Traditional Servicing Options, subject to applicable provisions of 7CFR 3555, Sec 3555.303 and the SFHGLP “Loss Mitigation Guide”;
- Special Servicing Options, subject to the applicable provision of 7 CFR 3555, Sec 3555.304 and the SFHGLP “Loss Mitigation Guide”;
- Special Relief Measures subject to the applicable provisions of 7 CFR 3555 sec. 3555.307(c) and the SFHGLP’s “Loss Mitigation Guide”;
- Voluntary Liquidations, subject to applicable provisions of 7 CFR, Sec 3555.305 and the SFHGLP “Loss Mitigation Guide”.
All active participating lenders will be required to enter and submit all loss mitigation servicing plans to the Agency’s Guaranteed Loan System (GLS) to serve as a record of all loss mitigation alternatives approved by the lender. All servicing actions completed under this waiver which are not submitted as required in GLS will not be considered authorized servicing and will be processed as an unauthorized servicing action should a loss claim be submitted in the future. In addition, the Monthly Default Reporting and Quarterly Status Reporting must be completed using the Electronic Data Interchange (EDI) Status of Mortgage Code Values.
Training Opportunities
The USDA, Centralized Servicing Center, located in St. Louis Missouri, is providing several training sessions to assist active participating lenders with Loss Mitigation, as well as Property Disposition and Loss Claim processing (Registration form). All training material will be provided on site. Below, please find a list of training sessions and dates available for registration:
Loss Mitigation Sessions* Loss Claim/PDP Sessions*
May 23-24, 2016 8:00am/5:00pm May 25-27, 2016 8:00am to 5:00pm
June 6-7, 2016 8:00am/5:00pm June 8-10, 2016 8:00am to 5:00pm
June 13-15, 2016 8:30am/4:30pm August 8-11, 2016 8:30am/4:00pm
July 11-13, 2016 8:30am/4:30pm August 22-25, 2016 8:30am/4:00pm
July 18-20, 2016 8:30am/4:30pm
*All training session times will be offered during Central Daylight Time and there will be no registration fees or charges for the training session(s).
Training Facility Location
USDA/RD/Centralized Servicing Center
4300 GOODFELLOW BLVD
BLDG 105
SAINT LOUIS, MO 63120
Registration Contact: william.wines@stl.usda.gov
Facility Access
Travel expenses to and from the facility will be the Lender’s responsibility. Access to the facility is restricted without proper clearance. Below, please find a list of requirements/procedures that must be met to gain access to facility:
1. The person driving any vehicle on premises must be preregistered and designated as the driver and include a list of all passengers.
2. Each person that will attend the training must be preregistered.
3. Upon arrival, each person will be required to provide one of the following forms of identification that must include your picture: a) Valid Passport, b) Valid State Driver’s License, c) Valid State Issued ID, or d) Valid Military ID.
4. Upon confirmation of attendance, parking assignment and site passes will be issued at the front gate.
5. All persons attending will need to arrive a minimum of 30 minutes, prior to the session start time, to allow sufficient time for site access.
General Travel Guidance
Travel to and from the facility is the responsibility of the Lender. Attendees should ensure that travel to and from the facility is planned to accommodate the start and conclusion of each training session. In addition, sufficient time should be allotted for air travel, depending upon the attendee’s destination. St. Louis offers ample hotel accommodations near St. Louis Lambert Airport and Downtown St. Louis. Both areas are within approximately 15 minutes of the facility.
System Access Requirements & Loss Mitigation Mandatory Waiver
In order to maintain compliance with the aforementioned waiver, the lender must appoint a minimum of two (2) internal Security Administrators that will be responsible for maintaining system access for all internal users. Furthermore, the lender must establish a loss mitigation processing staff and ensure they are properly trained in a manner consistent with published Agency Regulations and Guidelines.
Prior to August 1, 2016, the designated Security Administrators must 1) obtain Level II access to the GLS System and 2) complete/remit the Loss Mitigation User Agreement.
Once the designated Security Administrators have received confirmation of Level II access and the user agreement has been approved, the Security Administrators will need to ensure all internal loss mitigation processing staff obtain Level II access to GLS. Level II access will allow all loss mitigation processing staff to input all servicing plans into GLS.
Additional eAuthentication training is available online.
Help Resources
Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
USDA ITS Service Desk Support Center
For e-Authentication assistance
Email: eAuthHelpDesk@ftc.usda.gov
Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)
Rural Development Help Desk
For GUS system, outage or functionality assistance
Email: RD.HD@STL.USDA.GOV
Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)
Source: USDA
