8
NATIONAL
MORTGAGE
SERVICING
ASSOCIATION
AND HUD WORK
TO IMPROVE
CWCOT
e Department of Housing and Urban
Development (HUD) announced changes to
the Federal Housing Agency's (FHA) Claims
Without Conveyance of Title (CWCOT)
program.
Changes proposed by HUD include:
» Providing for a second appraisal once a
property becomes vacant
» Expanding the number of states for
marketing services and auction services into
the judicial states
» Modifying the "haircut" structure in a
manner more specific to the value of that
property
» Changes to reimbursement for property
preservation and eviction expenses
"We think these changes will improve the
take-up rate of the CWCOT program, which
has already gone from 25% to 75%," said Dror
Oppenheimer, Senior Advisor to the Assistant
Secretary for Housing—Federal Housing
Commissioner at HUD during an industry
event. "We think this is going to expand way
beyond the 75% and provide real benefit for
servicers and the FHA. We look forward to
hearing back from the industry."
Michael Drayne, Acting EVP of Ginnie
Mae, said during the event that the most
important thing Ginnie Mae can do to
modernize our platform is to "break pool-level
functions into loan-level functions."
"is is an enormous undertaking for us,
it's a long-term proposition. is will affect
almost everything about the architecture of
the programs we already have and will take a
number of years to complete," Drayne said.
Ed Delgado, President and CEO of Five
Star Global (parent company of both DS
Journal
