Doing Business With


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Doing Business With

  1. 1. Doing Business With Broker Price Opinion Property Inspection Appraisal Loss Mitigation REO 1499 Huntington Drive • South Pasadena, CA 91030 • Phone (626) 403-3600 • Fax (626) 441-5623 E-Mail • Internet
  2. 2. Table of Contents Network Mortgage Servicing About Our Company . . . . . . . . . 3 Our Services . . . . . . . . . . 3 Working with Us . . . . . . . . . 3 REO REO Services . . . . . . . . . . 4 REO Manual . . . . . . . . . . 4 Loss Mitigation Loss Mitigation Services . . . . . . . . 4 Appraisal Appraisal Services . . . . . . . . . 5 Property inspection Property Inspection Services . . . . . . . 5 Broker Price Opinion Introduction . . . . . . . . . . 6 Receiving an Order . . . . . . . . . 6 Completing an Order . . . . . . . . . 6 Sending a Completed Order . . . . . . . . 7 Additional Information . . . . . . . . 7 Sample Broker Price Opinion . . . . . . . . 8 Using Our Internet Site Getting Started . . . . . . . . . 10 Downloading Forms . . . . . . . . . 10 Sending Completed Orders . . . . . . . . 11 Faxing, E-Mail and Overnight Mail . . . . . . . 13 12-9-2001 2
  3. 3. About Our Company Network Mortgage Servicing is a national asset management company specializing in the effective disposition of financial institutions’ Real Estate Owned (REO). Its experience includes over 200,000 REO sales nationwide and its real estate agent and appraiser network includes over 30,000 real estate professionals. In conjunction with its REO services, Network focuses on related default management efforts, including loss mitigation, due diligence and broker price opinion and appraisal services. NMS takes pride in customizing its services to best suit the needs of its clients and to always produce an end result that is of the highest quality and in a timely manner. its team is dedicated to minimizing the costs associated with non-performing portfolios and ensure its clients the highest possible returns. The Network staff is a group of experienced real estate and mortgage servicing professionals that understands the needs of its clients, agents and appraisers. NMS has developed strategic alliances with several e-commerce entities to offer a host of real estate information products and services to increase productivity and efficiencies. Our Services NMS specializes in these services: • Broker price opinions • Appraisals • REO sales and servicing • Loss mitigation services • Property inspections For each, NMS offers full customization to meet the needs of its clients. It offers several additional services to meet the needs of its clients for unique circumstances. Working with Us NMS is always welcome to doing business with new appraisers and real estate agents. If you are interested, simply send us your company’s information and zip code service area and we will contact you when we have an order in your area. 12-9-2001 3
  4. 4. REO Services Presently, NMS specializes in complex or challenging REO disposition, include high and low value homes, damaged properties, partly unfinished properties, poor markets and long term holdings. In addition to direct listings and real estate agent referrals, NMS brokers sales of REO portfolios between financial institutions and offers customized services, including the management of property repairs and blind customer inspections of listed properties. NMS can successfully dispose of a difficult to market REO holding through long-term commitments to bringing a property into a marketable condition. NMS will work with its clients and with local real estate brokers to identify solutions and implement them with minimal hassles and expenses for its clients. REO Manual If you are assigned an REO listing by NMS, please refer to our separate REO manual for instructions, procedures and forms. In the event that our client has its own REO manual, a copy will be forward to you at the time of the assignment. Loss Mitigation Services Purpose NMS brokers loss mitigation negotiations between lenders and delinquent borrowers, helping them reach such agreements as deferred payments, refinancing, short sales, assumptions and deed-in-lieu transactions. Universally Beneficial Solutions NMS considers each case individually, analyzing the financial needs of its clients and of the borrowers, and it strives to reduce the stress and hardship that are a part of the loss mitigation process. NMS works to preserve home ownership in as many cases as possible, while working to reduce losses to investors, preserve servicing income, collect fees and expedite any legal proceedings. NMS works to ensure that all parties benefit from a simpler, gentler process. 12-9-2001 4
  5. 5. Appraisal Services NMS offers many appraisal services, standard and customized. For most appraisals, NMS subscribes to general industry standards and requires appraisals to be completed in accordance with them. In the event that an appraisal order carries special requirements, they will be communicated to you at the time of the order. Property Inspection Services NMS provides custom property inspection services, including inspections by licensed inspectors and real estate agents. Presently, NMS specializes in servicing special cases, such as cases where a lender has lost contact with a borrower or occupant and cases involving substantial property damage. If you are assigned an inspection order, precise requirements will be forwarded to you at that time. NMS’ general guidelines for completing inspections orders are as follows: General Inspections Requiring Exterior or Interior Inspection These standard inspections generally require photographic and written documentation of all structural defects and hazards, in addition to a description of the property’s physical and occupancy status. Periodic Inspections These are general inspections performed at stated intervals. Occupancy Status Inspections Simple inspections to determine state of occupancy. Delinquency Inspections These require attempts to contact a borrower or occupant with whom the lender has lost contact or who is not responding to lender correspondence. Bankruptcy and Foreclosure Inspections These focus on the potential marketability of the property, in addition to critical safety hazards, in anticipation of potential lender ownership of the property. Catastrophe Inspections 12-9-2001 5
  6. 6. Performed after a property has suffered major damage, these are to provide lenders with information affecting decisions on potential property foreclosure and marketing, as well as to calculate monetary damage for insurance and repair purposes. 12-9-2001 6
  7. 7. Broker Price Opinion Introduction The broker price opinion you are about to provide will be an important tool for a nationwide lender. Whether for a foreclosure proceeding or for the sale of a portfolio of non-performing loans, it will be critical in allowing the lender to complete its transaction within its deadlines and budget. As such, it is important for you to keep in mind some simple things when doing your BPO, to ensure that the lender will receive the information it needs. Receiving an Order When NMS places an order with you, the paperwork will list the name and contact information of the Account Manager handling the order, form and photograph requirements, deadlines and all information about the subject property. If the Account Manager did not speak with you when placing the order, it may be canceled without notice if you do not confirm it by e-mail, fax or phone. If you need any additional information to complete the order or cannot complete it by the deadline, notify the Account Manager promptly. Inspecting the Property You are required to inspect the property. Any required photographs must be taken at the time of inspection, not from a file. Completeness and Accuracy of Data It is necessary for you to provide all of the information available that pertains to the marketability of the subject. This includes square footages, room counts and exterior features of all properties. If information is not available electronically, use your drive by inspection and knowledge of the market to ascertain probable information, noting your reasoning in the provided spaces on the BPO form. Selection of Comparable Properties Comparable properties should be similar to the subject property in size, location and construction. If recent sales and listings do not closely match the subject, use older or less comparable listings, making appropriate adjustments and notes in the spaces provided. Valuation of the Subject Property The value you provide for the subject must be within the range of those of the comparable properties. Use the provided spaces for value adjustments and notes to make it so and explain any deviant values. 12-9-2001 7
  8. 8. Recommending Repairs It is important that all repairs that you observe the property to require be listed on the form or an addendum, with a description and estimated cost. Comments and Notes These are very important to the lender. Use the form to provide as much information about marketability of the subject property as possible. Addenda may be attached if you require more space. Sending a Completed Order NMS accepts completed orders through its Internet site. See the relevant section of this manual for instructions. Although orders can be accepted by fax, overnight mail and e-mail, use of the Internet site helps ensure timely and quality delivery and processing of your BPO. If a faxed or e-mailed BPO is illegible or not in the required format, a handling fee may need to be deducted from your bill. BPOs lost or delayed in overnight mail will need to be sent again. Additional Information Be sure to provide us with a social security or employer identification number if we do not have one on file for you. NMS will remit payment within sixty days of receipt of your BPO or when the lender approves it, whichever is first. If the lender rejects or requires resubmission of a BPO, NMS cannot remit payment for it. Do not disclose your BPO to the property owner or occupant or to other companies. If you have done a BPO on the property for another company within the last six months, notify us before proceeding with the order. If the lender receives a BPO from you by way of two companies, only copy will be payable. Broker Price Opinions and REO Listings Broker price opinions are a crucial part of the REO process. Presently, NMS primarily handles special or difficult REO cases and regularly does not assign listings for standard properties. However, the lender might assign the REO listing to you directly. If it does, NMS will not ask you for a referral fee. Since competition for listings is high, providing a BPO that is accurate, timely and of good quality is necessary for you to be considered for a listing. Assistance with a Broker Price Opinion If you need assistance, contact a NMS Account Manager or refer to the sample BPO on the following pages. 12-9-2001 8
  9. 9. Sample Broker Price Opinion 12-9-2001 9
  10. 10. 12-9-2001 10
  11. 11. Using our Internet Site Getting started To use fully use NMS’ Internet site, you will need a user name and password. These will be provided to you when you begin doing business with NMS. Organization of the Internet Site NMS organizes the functions of its Internet site by product. To obtain instructions and forms and to submit a completed order, select the service you are providing from the main page of the Internet site, as here: Downloading Forms All of the forms that NMS uses are in Microsoft Word format. To download them, go to its Internet site and select the type of order that you have been assigned, as above. 12-9-2001 11
  12. 12. Locate the form you require and click on its name, as here: Depending on your browser settings, the form will open in your browser window or you will be prompted to save the form to your computer. Submitting a Completed Order When you have completed the required form, save it to your computer in a place that you can remember and prepare all photographs that you intend to submit to NMS. Return to the Internet site and select the type of order that you are submitting, then select Submit a Completed Order. You will be prompted to enter your user name and password in this dialog: 12-9-2001 12
  13. 13. If it is your first time, you will be prompted to select a new user name and password: You will be given a list of active orders that are assigned to you. Select the one you are submitting. The next screen will ask you to locate the form and photographs on your computer: Press the Browse button next to the field and use the window that opens to locate the form on your computer. After doing so, do the same for each photograph you want to submit by pressing the Browse button next to each field. For each photograph, please enter a description into the field to the right. Once you have located all the photographs, press Submit. If you have more photographs, press Submit Additional Photographs instead and continue on the next screen. After pressing either button, your computer will submit all the files you selected. Depending on the speed of your Internet access, the submission might take several minutes. Do not close your browser window or use it to access other web pages until the submission is complete, since doing so would cancel the submission. When the submission is complete, a confirmation will appear that will state the number of files that were successfully uploaded. It is not necessary to submit all of the files at the same time. The forms and photographs can be sent at different times or not at all. The confirmation will state the cumulative number of files that have been submitted for the order. When sending photographs, please use a compact and standard graphics format, such and JPG or GIF. Other graphics formats might increase submission times or be unusable. The Internet site cannot accept files that are compressed or executable; this includes ZIP files, self- extracting compressed files, files with extension EXE or COM and script files, such as VBS files. If you have any problems, please contact a NMS Account Manager. 12-9-2001 13
  14. 14. Submitting Orders by Fax, E-Mail and Overnight Mail NMS can accept completed orders by fax, e-mail and overnight mail. However, the Internet site is much preferred, since it helps to ensure that submitted orders are correctly filed, recorded and organized and that they are in the required formats. If you cannot use the Internet site and need to submit a completed order by any of these methods, please speak with a NMS Account Manager. If a faxed or e-mailed order is illegible or not in the required format, a handling fee may need to be deducted from your bill. Orders lost or delayed in overnight mail will need to be sent again. 12-9-2001 14