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CWCOT Webinar: Insights Into Critical Changes

Earlier this month, HUD released Mortgagee Letter 2020-21, which provided long-awaited updates and clarifications related to the Claims Without Conveyance of Title program. Next Tuesday, August 4, the DS News webinar series brings you a complimentary webinar, presented by Auction.com and featuring insights from industry experts who will guide you through the changes, what they mean, and why they're important.

As noted in the letter, the FHA's CWCOT program is "a claim option through which FHA pays insurance benefits to a Mortgagee after the sale of the property to a third party at the foreclosure of the FHA-insured mortgage or through a Post-Foreclosure Sale. With CWCOT, there is no conveyance of the property to HUD in exchange for payment of mortgage insurance benefits."

The program is designed to speed up "the disposition of foreclosed properties and [reduce] the amount of time a property sits vacant," thus helping prevent urban blight and get these properties back into the hands of owner-operators.

This DS News webinar, entitled, "CWCOT Update: What Servicers Need to Know," will bring you commentary and insights from the following subject-matter experts:

  • Wes G. Iseley, Senior Managing Director, Carrington Holding Company, LLC (moderator)
  • Tim Rood, Head of Industry Relations, SitusAMC
  • Jesse Roth, SVP of Strategic Partnerships & Business Development, Auction.com
  • Dave Worrall, President, LoanCare, a ServiceLink Company

According to the FHA's statement, the guidance in the ML enhances CWCOT procedures by:

  • Allowing a second appraisal upon vacancy for a property that had an exterior-only appraisal, where an interior appraisal could not be obtained;
  • Allowing mortgagees to submit eviction costs and certain eligible property preservation expenses incurred during post-foreclosure sales opportunities;
  • Allowing mortgagees to submit eviction costs and certain eligible property preservation expenses incurred during post-foreclosure sales opportunities;
  • Updating the policy and allowable fee structure related to independent third-party providers that conduct foreclosure sales or post-foreclosure sales efforts under CWCOT procedures; and
  • Regularly updating discounts in FHA Connection (FHAC) and change to tier-based pricing factors based on a property’s location, occupancy status, and appraised value. After the property’s appraised value has been established and the Commissioner’s Adjusted Fair Market Value (CAFMV) has been determined, authorized mortgagees may access the CAFMV via the link in FHAC at: https://entp.hud.gov/clas/index.cfm.

To register for the webinar, click here.

About Author: David Wharton

David Wharton, Editor-in-Chief at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has nearly 20 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. He can be reached at [email protected].

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