RC_LA_DA_303.4 Corporate Advance Essentials

Servicers incur significant expenses during the course of handling a foreclosure as well as other times of distress in the life of a loan. Legal fees, appraisal fees, taxes, maintenance costs, lender-placed insurance, and even advertising costs. These expenses add up quickly. In most instances, a portion of these default expenses can be recovered from the borrower, a private investor, Fannie Mae, Freddie Mac, or an insurance provider. These expenses are paid from an account known as a corporate advance account. It is important for servicers to know what expenses can be paid using corporate advance funds, how to recover these funds, and the rules for claiming expenses from Fannie Mae and Freddie Mac.

Corporate Advance Essentials defines corporate advance accounts and explains their use in the recovery process. It begins with a basic overview of corporate advance accounts. Next, it identifies which expenses can be paid using corporate advance funds. The course then describes how servicers recover corporate advance funds. Finally, it reviews Fannie Mae and Freddie Mac expense reimbursement eligibility. Emphasis is placed on compliance with internal guidelines, PMI master policies, servicing agreements, and regulations under the Real Estate Settlement Procedures Act (RESPA).

This is a single-family/residential course.

Topics:

• Corporate Advance Accounts
• Valid Expenses Using Corporate Advance Funds
• Recovering Corporate Advance Funds
• Fannie Mae and Freddie Mac Expense Reimbursement Eligibility

Seat time approximately 30 minutes.

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