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Disaster-Related Forbearance Policy Added to Loan Coverage Advisor

October 22, 2018

Loan Coverage Advisor® has been updated to include the Disaster-Related Forbearance Policy for selling reps and warranties. Now you can track reporting events and Alternative Payment Plan (APP) information for disaster-impacted loans after August 25, 2017 that meet the policy requirements defined in Single-Family Seller/Servicer Guide (Guide) Chapter 1301.11, for greater insight into your rep and warranty relief on those loans.

The Disaster-Related Forbearance Policy (refer to Guide Bulletin 2017-28) was created due to client-related concerns for borrowers’ mortgage payments and payment history. It allowed borrowers affected by natural disasters to get assistance with their mortgage payments through APPs with contingency on proper reporting by servicers. In these cases, originators could retain eligibility for early selling rep and warranty relief.

To provide insight into this information, the recent Loan Coverage Advisor release enhances several functions:

Search

  • Improved Selling R&W Relief Reason identifications, decreasing the number of loans sorted into the Other category for greater insight
  • New search results columns, including Alternative Payment Plan Status
  • New Event Types and Sub Event Types add to the Event Search
  • One 30-day and Two 30-day At-Risk delinquency searches updated

Loan Risk Details

  • Alternative Payment Plan Status and Alternative Payment Plan Period reflect impacts and duration in Current Coverage section
  • Event History updated to reflect all default remedy event impacts back to the start of the policy on August 25, 2017
  • News Event Detail icons added to the Event Details table
  • Additional Conversion updates for loans under disaster relief prior to this deployment will be applied in the month of October

Reports

  • Improved Selling R&W Relief Reason identifications, decreasing the number of loans sorted into the Other category for greater insight
  • Selling R&W Relief Summary and Relief Date Reports updated to include new reason “Acceptable Pay History (Alternative Payment Plan)”
  • Trend Report PDF updated to include all default remedy event impacts, including those due to an APP
  • Feature level help added

For More Information