Evaluation

Borrower Solicitation and response and Servicer evaluation Servicers must comply with the evaluation hierarchy and solicitation requirements What the Servicer must do when extending a HAFA short sale offer to the Borrower

Borrower Solicitation and response and Servicer evaluation If Freddie Mac approves the Borrower for a HAFA Deed-in-Lieu What the Servicer must include in the evaluation notice

Evaluation Criteria If a HAFA-eligible Borrower responds to the Servicer's solicitation. If the Borrower was previously considered for HAMP.

Evaluation Criteria The documentation What the Servicer is not required to obtain.

Evaluation Criteria If the Servicer must order a new credit report If a HAFA Short Sale or Deed-in-Lieu is completed

Evaluation Criteria There are a number of criteria required from the Borrower to be eligible for an SSA Explained in the following slides.

Borrower Criteria The Borrower must currently occupy the Mortgaged Premises The Servicer must obtain a credit report from the Borrowers

Borrower Criteria What must be submitted What the Servicer must process

Borrower Criteria Have Cash Reserves,determined as follows: ▫Principal and interest ▫Monthly pro rata amount for real estate taxes, property and flood insurance ▫Monthly pro rata amount of homeowner's association/condominium fees ▫Any Escrow payment shortage amounts subject to a repayment plan

Cash Reserves The process for calculating and verifying Cash Reserves: 1) The Servicer must determine the Borrower's Cash Reserves 2) If the Servicer observes interest, dividend income or gains/losses

Cash Reserves (cont) 3) If there are inconsistencies between the Borrower's disclosure of assets and the tax return information 4) Based on the Cash Reserves test, if the Servicer determines that the Borrower's Cash Reserves exceed the greater of $5000 or three times the monthly payment.

Mortgage Premises Criteria The Servicer must order an interior Broker's Price Opinion (BPO) or appraisal using the 90 day "as is" marketing value from Freddie Mac's web site at The BPO or appraisal may not be more than 30 days old

Mortgage Premises Criteria The Servicer must review the BPO or appraisal The Borrower pay in advance for the valuation to the Servicer.

Mortgage Insurer Approval If the Mortgage is covered by mortgage insurance

Title Criteria The Servicer must review readily available information provided by the Borrower

Title Criteria When the Borrower is ineligible for a HAFA Short Sale or a HAFA Deed-in-Lieu. ▫If the Servicer's review of the title information reveals a lien, claim, encumbrance or defect that prevents the Borrower from conveying clear, marketable title to the Mortgaged Premises