Next week, on Wednesday, November 4, the FHA via a complimentary webinar will offer guidance on the Claims Without Conveyance of Title (CWCOT) program "in which the mortgagee attempts to secure a third-party purchaser for the mortgaged property so that conveyance to HUD is not required in exchange for mortgage insurance benefits," according to an FHA notice regarding the virtual event.
The CWCOT program began in 2013 as an FHA claim option in which insurance benefits are paid to a mortgagee, after the sale of the property to a third-party purchaser at foreclosure of the FHA-insured mortgage, or through post-foreclosure sales efforts. As the FHA explained in a July statement [1], the most recent CWCOT enhancements take into consideration public feedback received earlier this year when a first draft was posted on the Single-Family Housing Drafting Table.
FHA’s CWCOT program and recent adjustments were designed to make the program “more viable for foreclosure sales associated with defaulted FHA-insured mortgages,” the FHA added in the same statement. Industry experts discussed HUD's recent updates to the CWCOT program to help improve efficiencies and minimize losses, during a complimentary DS News webinar that can be revisited here. [2]
Topics will include:
- Enhancements to the program announced in Mortgagee Letter 2020-21 [3], servicer participation and eligibility
- How foreclosing on FHA properties may differ from previous guidelines
- Requirements for appraisals, bidding instructions, and claim requirements
This week's webinar, which takes place from 1-2:30 p.m. (CST), is complimentary when you register here [4].
Here is what else is happening in the week ahead:
- Construction Spending Report, U.S. Census (Monday)
- National Unemployment Report, ADP (Wednesday)
- Housing Industry Core Metrics, Realtor.com (Thursday)