Home Loan Servicing Update

Home Loan Servicing Update - April 2005

WHEDA Home LOAN SERVICING MANUAL

Please note there have been significant changes/clarifications made to the WHEDA Home Loan Servicing Manual. We have made changes based on feedback that we have received from you. Changes have been made to the following sections:

Section 6 - PMI Insurance: WHEDA no longer requires 62% LTV on Programs 92E and 82 B&C. All of WHEDA's Bond Issues are now at 80% LTV. Please note that loans closed prior to January 24, 1997 must use the purchase price or original appraisal, whichever is less in calculating the loan to value.

Section 13 - Collection Procedures

Section 14 - Delinquency Prevention (includes updated Military Relief Measures)

Section 15 - Property Inspections

Section 16 - Foreclosure Avoidance

Section 17 - Foreclosures

Section 18 - Bankruptcy

We welcome your ideas and feedback to clarify items in the servicing manual.

PROPERTY OCCUPANCY GUIDELINES

All WHEDA properties must be owner occupied for the life of the loan. This is one of the main requirements of obtaining a WHEDA loan. If you find through return mail, phone conversation, written request from the Homeowner, etc., that the property is not owner occupied or not occupied, it is imperative that you correct the situation immediately. Notify the borrower there is a violation and provide a list of available options to correct it. WHEDA's Mortgage Loan Advisors can provide you with sample letters, if needed. An audit of our servicers will be performed to assure compliance with this guideline.

ESCROWS

All WHEDA loans require escrows for taxes, Homeowners insurance and PMI if applicable. No Exceptions will be made. An audit of our servicers will be performed to assure compliance of this guideline.

LOAN STATUS REPORT - FORM 10.12

Loan Status Reports must be filed with WHEDA upon the earlier of the following:

Once the loan is 61 days delinquent
Foreclosure or other appropriate action is recommended
Forty-five (45) days after a first payment default

Reports are due by the 10 th day of each month and must be completed in their entirety.

PROPERTY INSPECTIONS

Please remember that property inspections must be done on any loan by the 60 th day of delinquency. The inspections must be done monthly (or more often if the property is vacant or the servicer feels necessary) until that loan is brought current or pays off. The Servicer is held responsible for any negligence that may occur to the property from an inaccurate or incomplete inspection. Inspection information should be included on the Loan Status Report Form 10.12 each month.

MORTGAGE PAYMENT PROTECTION

This value added benefit has been offered on WHEDA loans rate locked January 1, 2004 and after. This benefit may be provided by WHEDA's Mortgage Guardian, GE Mortgage Insurance, or MGIC. GE & MGIC now provide this coverage as a value-added benefit of private mortgage insurance.

Mortgage payment protection offers Homeowners the peace of mind knowing they may be protected by making their mortgage payment should they become involuntarily unemployed.

Please make sure you are reminding borrowers that may qualify for this benefit. Any questions should be directed to Benefit Administrator at 800-711-4281.

If you have any questions on who qualifies for this insurance or wish to get the specifics or details on the protection please contact Mortgage Guardian toll free at 800-711-4281.

SUBSCRIPTION SERVICE

Make sure everyone in your office is subscribed to WHEDA's news/updates/announcements. Anyone with an e-mail address can sign up. Signing up is easy!!

DELINQUENCY RATES

The table below represents the average delinquency rates for all lenders servicing WHEDA Home loans as well as what the WHEDA average was. You may utilize these figures as a comparison to your organization's rates.

2004		Total	30	60	90	F/C	BK
JAN	W	2.41%	1.92%	0.36%	0.13%	0.62%	0.92%
	L	3.46%	2.71%	0.58%	0.17%	0.87%	0.86%

FEB	W	2.04%	1.50%	0.45%	0.09%	0.49%	0.92%
	L	3.65%	2.93%	0.53%	0.19%	0.90%	0.74%

MAR	W	1.25%	0.99%	0.13%	0.13%	0.39%	0.91%
	L	3.06%	2.53%	0.31%	0.21%	0.80%	0.73%

APR	W	1.71%	1.45%	0.24%	0.02%	0.37%	0.91%
	L	2.26%	1.97%	0.19%	0.10%	0.73%	0.73%

MAY	W	2.01%	1.45%	0.48%	0.09%	0.37%	0.95%
	L	2.88%	2.52%	0.30%	0.06%	0.67%	0.73%

JUN	W	1.98%	1.61%	0.22%	0.15%	0.39%	0.92%
	L	3.33%	2.69%	0.53%	0.11%	0.55%	0.86%

JUL	W	1.75%	1.35%	0.32%	0.09%	0.44%	0.93%
	L	3.10%	2.67%	0.32%	0.11%	0.56%	0.87%

AUG	W	1.44%	1.03%	0.34%	0.08%	0.42%	0.98%
	L	3.17%	2.62%	0.40%	0.14%	0.51%	0.84%

SEP	W	1.66%	1.29%	0.19%	0.19%	0.37%	0.85%
	L	2.63%	2.12%	0.41%	0.10%	0.50%	0.81%

OCT	W	2.29%	1.81%	0.41%	0.06%	0.45%	0.83%
	L	2.84%	2.37%	0.36%	0.11%	0.49%	0.87%

NOV	W	2.37%	1.72%	0.44%	0.20%	0.48%	1.01%
	L	3.00%	2.61%	0.33%	0.06%	0.54%	0.80%

DEC	W	1.96%	1.50%	0.26%	0.20%	0.46%	1.01%
	L	2.83%	2.33%	0.34%	0.15%	0.51%	0.76%

2005
JAN	W	1.72%	1.42%	0.22%	0.07%	0.58%	1.00%
	L	2.29%	1.96%	0.25%	0.08%	0.54%	0.75%

FEB	W	1.57%	1.15%	0.33%	0.09%	0.60%	1.04%
	L	2.34%	2.02%	0.24%	0.08%	0.53%	0.68%

MAR	W	0.90%	0.70%	0.13%	0.07%	0.41%	1.06%
	L	2.47%	2.23%	0.16%	0.08%	0.47%	0.71%

(W = WHEDA L = LENDER)

REMINDER

Servicers must maintain a servicing volume of at least 50 WHEDA Home loans. If the volume falls below 50, please contact WHEDA to discuss your options.

Home Plus

Home Plus Draws on the line of credit cannot be processed until the Home Plus documents have been received. We are discovering that borrowers want access to their Line of Credit on the Home Plus Loan within days following the closing. The normal turn around time (which is stated on the Home Form 12a) is 15 days from the closing. To provide them this access, we need your Home Plus documents immediately. The following forms need to be received in order to process the draw:

If Borrower is participating in the Home Plus Program, please submit the following:

Original Mortgage Note (WBA Form 458).
Home Plus Amendment to Mortgage Note (Home Form 28).
Original recorded Mortgage (WBA Form 428). (Copy will be accepted until recorded.)
Original recorded Assignment of Mortgage . (Copy will be accepted until recorded.)
Original Notice of Right of Rescission. (Not required if funds were drawn at time of closing for down payment or closing cost assistance.)

COMMENTS/QUESTIONS

We welcome your comments and/or questions! Let us know how we can help you. Please contact Gary Stiemke at 608-267-1091.

UPCOMING UPDATES

Look for quarterly servicing updates which will be sent through the WHEDA Subscription Service.