HUD M&M III & P260 Transition Conference Call

Mortgagee Compliance Manager FAQ April 2010

1) How is this new process different from the current M&M set-up?

Answer:
M&MIII has consolidated the Mortgagee Compliance Process into one entity called the Mortgagee Compliance Manager (MCM), therefore, submissions to the multiple M&M contractors situated locally and regionally will be eliminated.

The new Mortgagee Compliance Manager is Michaelson, Connor & Boul (MCB). The MCM is responsible for pre-and-post conveyance activities including, but not limited to, 1) review of overallowable requests, 2) extension of time requests, 3) review Part A and Parts B-E Claims, 4) title package reviews and approvals and 5) ensuring properties are conveyed to HUD according to FHA standards.

2) Who is this MCM process for?

Answer:
Just as with M&MII, this process is for any Mortgagee servicing FHA loans and filing foreclosure conveyance claims for reimbursement. This also includes any field service vendors and foreclosure attorneys who work for Mortgagees.

3) When does this go into effect?

Answer:
The new MCM process will go into effect on April 7, 2010.

4) How do we transfer work from the current M&M contractors to the MCM, especially time sensitive requests?

Answer:
Non-critical submissions for overallowable, time extension & surchargable damage requests may be entered into the P260 Portal after March 31, 2010. The current M&M contractor assigned to any request have been instructed to work diligently to complete all reviews and any work associated with a property. If the work is not completed or the request not processed prior to April 7, 2010, the M&M contractor will send the request to MCB via overnight transfer to complete the process. You will not see this request in P260 until it has been processed by MCB.

5) What if my current M&M contractor has advised they won’t do anymore work after April 1st?

Answer:
This situation has been corrected. The M&M contractors have been instructed by their Contracting Officer to complete any work requested through April 6th when they will transfer any remaining requests to MCB.

6) Does the 5-day turnaround time start on March 31st when the P260 Portal opens so MCB will have decisions on the requests submitted by April 7th?

Answer:
The 5-day turnaround time for MCB to process requests and send decisions back to the Mortgagee/vendor does not begin until MCB assumes the process on April 7th.

7) Will there be any time extensions offered to the Mortgagees during the ramp-up phase of this transition?

Answer:
HUD is exploring the options for an extension during this transition phase. Decisions will be posted within this FAQ.

8) How do we file claims once this new process begins?

Answer:
Claims submission for payment will not change. Continue to use FHA Connection or EDI as dictated by your company. You will upload the Parts A and B-E claim forms and all supporting documentation into P260 for post-conveyance review.

9) Does this new process include HECM loans?

Answer:
The property preservation process for HECM loans will remain the same.

10) Where can I get contact information for MCB?

Answer:
Go to HUD’s website at http://www.hud.gov/offices/hsg/sfh/nsc/mcm.cfm to find contact information. You can also obtain this information on MCB’s web site, www.mcbreo.com.

11) Who will review overallowable and time extension reconsiderations?

Answer:
Reconsideration requests will be reviewed by MCB management through P260.

P260 Set-up and Process Changes

1) How do I get access to P260?

Answer:
Send your request to obtain Primary SuperUser access for P260 to MCB at mc@mcbreo.com. They will forward the request to HUD for approval. HUD will then forward the request to Yardi for set-up.
Each Mortgagee must have a primary SuperUser on record with MCB. The Primary SuperUser has the ability to set up other SuperUsers and general users. You will request general user P260 access through your company’s designed SuperUser(s).

2) Can vendors send a request to mc@mcbreo.com to obtain SuperUser access?

Answer:
No. Any vendor working for a Mortgagee must contact that Mortgagee for P260 access. As confirmed in ML 2009-42, “the Mortgagee remains fully responsible for proper servicing and the actions of the servicer/agent will be considered to be the actions of the Mortgagee”. The Mortgagee may set-up a contact within the vendor’s office as a SuperUser so they may set-up and manage users within their organization.

3) As a vendor, can I have one login since I work with multiple Mortgagees?

Answer:
No. Each Mortgagee must grant access to their vendors under their Mortgagee Servicing ID. This is to protect the integrity of Mortgagee information.

4) Do I use P260 for 1st legal extension requests?

Answer:
No. First legal extension requests will continue to be submitted through the EVARS system.

5) What is the website address for P260?

Answer:
P260 can be accessed on the Yardi website. From there you can choose the live system that corresponds with your time zone.
http://support.yardi.com/hudtraining_mm3_Mortgagees.asp

6) How do I submit bids for work in the P260 system? Do I use the highest bid for the line item work to be performed?  

Answer:
Guidance will be given via Mortgagee Letter(s). We anticipate this information to be released before April 7th. Please continue to check HUDCLIPS for the announcement.

7) What is MCB’s work around should the P260 system go down?

Answer:
You should access MCB’s website at www.mcbreo.com for communication and direction.

8) How will I know when a decision has been made on a request submitted through P260?

Answer:
An e-mail notification will be sent to the user who input the request. Additionally, you may access loan level information by running the Daily Activity Report in P260.

9) I have multiple Mortgagee Servicing IDs. Will I have access to all of the loans we service?

Answer:
Yardi is aware of this situation and plans to have a workaround before April 7th.

10) How long will the system stay idle before logging the user out?

Answer:
The system will stay idle for 30 minutes before logging the user out.

11) How do I submit the initial and final title packages post-conveyance?

Answer:
Title must be uploaded into P260. If anything is missing once MCB has reviewed, you will be notified of the missing documentation.

12) The overallowable request screen does not allow for debris removal in cubic yards. How do I input that line item?

Answer:
Until the cubic yards option is added to P260 utilize the “each” option in the drop down box and add “cubic yards” in the comments. This is a multiplication calculation between the “Quantity” and “Mortgagee Cost” so the unit is not important.

13) How do I attach documentation to support my overallowable or time extension request?

Answer:
You will utilize the “add attachment” link in P260 and which will allow you to browse your system and attach any documents needed to support your request.

14) Can I upload a document or PDF that contains a link to corresponding photos for overallowable requests? 

Answer:
No, please attach photos, not a link, to the request.

15) What is the process if additional information is needed after I have submitted the overallowable or time extension request?

Answer:
If MCB needs additional information to make a decision on the submitted request, the request will be denied in P260. Once you have the documentation to support the request, you will submit a new overallowable or time extension request in P260.

16) How will we be made aware of a demand or non-compliance issue?

Answer:
The current process will not change. Notifications will be sent via email. Any documentation to answer the notification should be uploaded into P260 and attached to the case number under review.

17) Where can I find a user guide for P260?

Answer:
User guide can be found on Yardi’s website at http://support.yardi.com/hudtraining_mm3_Mortgagees.asp.

18) How often do passwords change in P260?   

Answer:
Passwords change every 60 days.

19) What address should be referenced on the HUD Occupancy letters?

Answer:
Beginning April 7th, the address should be listed for MCB’s Oklahoma City office. You may obtain MCB’s contact information on HUD’s website http://www.hud.gov/offices/hsg/sfh/nsc/mcm.cfm or MCB’s website www.mcbreo.com.

Michaelson, Connor & Boul
4400 Will Rogers Parkway, Suite 300
Oklahoma City, OK 73108

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About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.