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9 News and the NMSA), said, "ese proposed CWCOT changes represent a major victory for homeowners. Increased utilization of CWCOT where appropriate not only limits loss exposure and provides additional savings for the MMI Fund, it also benefits communities by preserving the condition and accelerating the sale of foreclosed properties. ese changes will further encourage servicers to participate in the CWCOT program, help keep more people in their homes, and provide a substantial, systemic benefit for homeownership." "I was happy to see the positive changes to the CWCOT program that will help communities, servicers, and the FHA Fund," said Wes Iseley, Senior Managing Director at Carrington Mortgage Holdings. "e National Mortgage Servicing Association provided feedback and data to support the changes." FHA's CWCOT program pays insurance benefits to a mortgagee after the sale of a property to a third-party after the foreclosure of the FHA-insured mortgage or through a second-chance sale. ere is no conveyance of the property to HUD with CWCOT in exchange for payment of mortgage-insurance benefits. e program also expedites the disposition of foreclosed properties and reduces the amount of time a property sits vacant. "e impact on servicers, neighborhoods, and the economic strength of the FHA MMI fund cannot be overstated. is was a massive undertaking by the FHA and required a near metaphysical change in their perceptions of patience and perseverance," said Tim Rood, Head of Industry Relations at SitusAMC and the Chairman of e Collingwood Group, a SitusAMC company. "Our hope is that these critical changes to the CWCOT program will pave the way for additional policy changes in the servicing space to better align FHA policies with those of the GSEs." Changes to the CWCOT program have been a top priority for industry organizations such as the National Mortgage Servicing Association (NMSA). Over the past year, leadership from NMSA have met with officials from the U.S. Department of Housing and Urban Development about the CWCOT program. In advance of this announcement, the NMSA sent a letter to HUD requesting that it take the following steps: » Re-value properties in the program; incorrect values on occupied properties hamper the effectiveness of CWCOT » Expand the first-chance sales footprint nationwide » Update the haircuts, which have not been adjusted in several years With a membership comprising more than 90% of the mortgage servicing market, the NMSA is a nonpartisan organization driven by senior executive representation from the nation's leading mortgage servicing organizations, formed for the purpose of effecting progress and change on the key challenges that face the mortgage servicing industry. By bringing together decision- making executives from across the nation, the NMSA drives the conversation on shaping the American housing industry for the benefit of homeowners. e NMSA is supported by associate members Auction.com, DIMONT, and National General Lender Services. "The impact on servicers, neighborhoods, and the economic strength of the FHA MMI fund cannot be overstated. This was a massive undertaking by the FHA and required a near metaphysical change in their perceptions of patience and perseverance." —Tim Rood, Head of Industry Relations at SitusAMC Register to receive your Daily Dose at DSNews.com GET YOUR DAILY DOSE OF DEFAULT SERVICING NEWS Start your day with the most current and critical news on the mortgage default servicing industry from DSNews.com. Sign up for our email newsletter and get the top stories delivered direct to your inbox every day. Register to receive your Daily Dose at DSNews.com