The Claim Type 21 Claims Worksheet has a new comment in the Disposition Information section under Appraisal Based Claim radio button. The comment states “Section 407 & 408 Closing Costs are not included on Appraisal Based Claims”. Figure 7: CT21 New Claims Worksheet comment CLAIMS – CT23 Short Sale updates “Deed Recorded Date” from Loss Mitigation – Short Sale timeline is required for Claim Type 23 – Short Sale For all Claim Type 23’s, the step “Deed Recorded Date” step completion date from the Loss Mitigation – Short Sale timeline will be required to submit the claim to HUD. If the “Deed Recorded Date” step completion date is missing, a hard stop validation message will be displayed. In addition, the “Sale Closing Date” is no longer displayed on the Claim Worksheet under Disposition Information and is replaced by the “Deed Recorded Date”. See topic 9.2 for details. Claims Worksheet – Disposition Information screen without “Sale Closing Date”: Figure 8: CT23 Claims Worksheet – Disposition Information The hard stop validation message is “Date deed or assignment filed for record or date of closing or appraisal is required. Please enter a Sale Closing Date / Deed Recorded Date.” Figure 9: CT23 Validation Message for missing “Deed Recorded Date” To enter the “Deed Recorded Date” on the Loss Mitigation – Short Sale timeline. Step “Deed Recorded Date” is triggered by completion of the step “Sale Closing Date”. Go to Endorsed > Disposition > Setup (or Search, if the timeline already exists), select “Loss Mitigation – Short Sale” timeline. If the “Deed Recorded Date” is not displayed, first enter a completion date for step “Sale Closing Date”. Completing this step will add the step “Deed Recorded Date” and a completion date can be entered for “Deed Recorded Date”. “Sale Closing Date” step completion date should be populated with the sales closing date displayed on the settlement closing statement. “Deed Recorded Date” step completion date should be populated with the date the sales deed is recorded with the local county clerk’s office.
CLAIMS – CT24 Include Block #132 b amount in Block #135 and #137 totals Block #135 “Column B Additions” subtotal and Block #137 “Net Claim Amount” subtotal fields were updated to include the Block #132b amount on the Claim Type 24 Supplemental. CLAIMS – Rename Claims pop-up window The title of the pop-up window displayed when the servicer opens the Claims Worksheet and clicks “Finalize and Submit Claim” has been changed to “Warning” from “MCA validation”. Multiple messages may be displayed in this window. CLAIMS – Update Negative Claim Validation Message The Negative Claim Validation message on all claim types has been updated to “The total claim amount entered will result in a negative amount and cannot be filed. Refer to the HECM Worksheet for details. Please omit all funds due to HUD and remit them separate from this claim using the Over Claim transactions on the Loan > Transactions > Claims Page.” Examples of funds to be excluded from the claim form and remitted to HUD via the Over Claim process are Block #27 amounts, Repayments, or Refunds. New validation message: Figure 14: Updated Validation Message for Negative Claim See topic 20 for details on the Over Claim remittance process. Note: For the HECM Worksheet to be auto-saved to Documents, the “Print HECM Worksheet” icon must be clicked. If this is not clicked, the HECM Worksheet is not saved to Documents and the information can only be viewed in the edit screen. Before requesting assistance to research a negative claim, please ensure the “Print HECM Worksheet” button has been clicked. CLAIMS – Add HUD Decision Notes For any Claim Type 21, 23, or 24 where HUD selects the decision “Approve Claim” or “Pending Addition Info”, the comments from the HUD “Decision Notes” box on the Claims Worksheet will be automatically saved to the Notes page. If no text is typed in the box, the auto-note will display the claim type and the HUD Decision. CLAIMS – Claims Detail Report The “Claim Paid Amt” column on the Claims Detail report will now only be populated when the claim is actually paid in HERMIT.
Reason code list: (Part A/Block 27) – Hazard Insurance/Loss Draft Funds (Part A/Block 27) – Property Damage Adjustment (Part C) – Disbursements for Protection & Preservation Part D/Block 305 – Hazard Insurance Premiums Part D/Block 305 – Taxes Part D/Block 305 – Utilities Part D/Block 305 – Servicing Fees Part D/Block 305 – Forced Place Insurance Part D/Block 305 – HOA Fees Part D/Block 305 – Eviction Fees & Costs Part D/Block 305 – Other Part D/Block 306 – Attorney/Trustee Fees Part D/Block 307 - Recording Fees Part D/Block 307 – Sheriff Fees Part D/Block 307 – Clerk Costs Part D/Block 307 - Publication Fees Part D/Block 307 - Foreclosure and/or Acquisition, Conveyance Costs – Other Part D/Block 311 - Mortgage Insurance Premiums Part E/Block 407 - Taxes Owed to Buyer at Closing Part E/Block 407 - Water Rates Owed to Buyer at Closing Part E/Block 407 - Special Assessments Owed to Buyer at Closing Part E/Block 407 - Amount Owed to Buyer at Closing – Other Part E/Block 408 - Sales Commission Part E/Block 408 – Recording Fees Part E/Block 408 – Title Insurance Policy Part E/Block 408 – Additional Closing Costs at Settlement – Other Part E/Block 409 – Appraisal Fees Note Interest Back to HUD Debenture Interest Back to HUD Erroneous Duplicate Payment Other The Reason Code has been added to the Batch Details page of the Accounting Transmittal Screen and is included in the “Export to Excel” feature from the Batch Details page. The total of the Over Claim transaction amounts cannot exceed the claim amount on the original claim that was paid. This total is measured at the claim level, not the loan level. The Over Claim transaction type that is selected will determine which claim is checked. For a loan with both a CT21 and a CT24 supplemental were paid, if the “Claim Type 21 – Over Claim” transaction is selected, HERMIT will check against the claim total from the Claim Type 21. No Authorizations will be needed for the collection to be processed. An adjustment icon will be displayed on the transaction on the transaction Claims until the transaction is batched and sent over to the Accounting Module at the end of the day.
Figure 18: New Transaction Disb-Unscheduled from LOC - Release Fee The “Disb – Unscheduled from LOC Release Fee” transaction will have a corresponding adjustment Transaction Code if the disbursement is voided. The “Disb – Unscheduled from LOC Release Fee” can be entered via the UI on the Loan > Disbursement page for Assigned loans. Note: After the deployment of the V5.50 release, all existing disbursements under Charge Ground Rents” with Vendor type - “Valuator” will be moved to “Disb - Unscheduled from LOC - Release Fee” with Vendor type - “Release Fee”. All existing adjustment to disbursements under “Disb-LOC-Property Charge Ground Rents Adj” with Vendor type - “Valuator” will be move to “Disb - Unscheduled from LOC - Release Fee Adj” with Vendor type - “Release Fee” and linked to the parent transaction.