GUIDELINES FOR EFFECTIVE FILE TRANSFERSc.ymcdn.com/sites/ holds (including BK, litigation, etc.) Time Sensitive Dates o Information regarding any “headline” risk or other unusual

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GUIDELINES

FOR

EFFECTIVE

FILE

TRANSFERS

Prepared by the USFN Task Force on Servicing Transfers 2014-15


LAW FIRM TRANSFERS (File Remains with Same Servicer and Transfers from Law Firm A to Law Firm B)

Servicer Guidelines - Provide the Following Information to Law Firm A

o List of all files being transferred out of firm including:

Servicer loan numbers

Investor/Investor loan numbers

Borrower (s) name & address)

o Name of specific individuals (two) at Servicer handling transfer project (and

specific contact information for these individuals, including direct phone

number and email address)

o Information on Law Firm B

Name of specific individuals (two) at Law Firm B handling transfer project

(and specific contact information for these individuals, including direct

phone number and email address)

Street address of Law Firm B

Dates Servicer requires certain aspects of file transfer to be complete.

Final date Servicer will accept invoice for payment

Final date Servicer will accept transfer of any original documents

Address where the law firm should to return the original

documents/collateral to the servicer, or alternatively,

instructions/address to send them to Law Firm B

Final date Servicer will accept execution of substitution of counsel and

instructions as to whether law firm A or law firm B will prepare the

stipulations to substitute counsel and consent to be executed by servicer

detailing all case numbers that are being transferred to Firm B.

Final date for Law Firm A to cover hearings and sales

- Provide the Following Information to Law Firm B

o List of all files being transferred to Law Firm B including:



Location of original documents and including date of original docs sent to

Law Firm A.

Status of File


Last milestone completed (date)

All Holds (including BK, litigation, etc.)

Pending loss mitigation

Proceed instructions

Time sensitive dates


specific contact information for these individuals including direct phone number

and email address)

o Name and contact information of specific individual at Law Firm A, who can

answer file specific questions.

o Contact matrix with escalations

o SLA and other documentation (if Law Firm B does not already represent

Servicer)

o Written agreement (at minimum an email) from Servicer to Law Firm B stating

that Law Firm B is not responsible for any errors, timeline delays, etc. on the file

caused by Law Firm A

o Prior law firm information

Name of specific individuals (two) at Law Firm A handling transfer project

(and specific contact information for these individuals including direct


o Dates Servicer requires certain aspects of file transfer to be completed

Deadline for submission of invoices for payment;

Deadline for Execution of substitution of counsel documents

Deadline for completion of transfer of all data.

o Date files will be assigned to Law Firm B on client data portal

o Written agreement of amount Servicer will pay to Law Firm B for boarding and

auditing of incoming transfer files and invoicing details

o Date that firm is expected to start covering hearings/sales (following transition

period)

o Final date Servicer will accept execution of substitution of counsel and

instructions as to whether law firm A or law firm B will prepare the stipulations

to substitute counsel and consent to be executed by servicer detailing all case

numbers that are being transferred to Firm B.


- Internal Work

o Complete necessary steps on client data portal needed for file transfer from Law

Firm A to Law Firm B

Law Firm A Guidelines - Provide the Following Information to Servicer

o information on all files Servicer is transferring to Law Firm B including:


Investor loan numbers

Law Firm A file numbers

Status of file including:

Last milestone completed


Time Sensitive Dates

o A chronology on all files being transferred

o If Servicer has made clear its intent to transfer all of its pending files at Law Firm

A, from Law Firm A to Law Firm B, and Law Firm A is aware of any files that

Servicer failed to include on its list of transfer files, Law Firm A will provide

Servicer with a list of these files including listing of any discrepancies of files

noted from the Servicer’s supplied list.

o If Servicer has included files on the transfer list that Law Firm A believes it makes

no sense to transfer (as transferring will cause significant delay, such as files

with judgment or sales dates scheduled in the near future, etc.) advise Servicer

of this and provide a list of these files and the reasons it makes no sense to

transfer

o Name of specific individual(s) ( two) at Law Firm A handling transfer project

(and specific contact information for these individuals including direct phone


o Date Law Firm A anticipates transfer project can be complete

o Return any original documents to Servicer, or send to new law firm, obtaining

specific written instructions when doing so

o Invoice file; obtain specific instructions from Servicer in writing re: when to bill

and how to bill law firm’s late incoming bills, especially for items considered

“costs”.

o Obtain from Law Firm A a pre-transfer chronology of each file being transferred



o Copies of all files being transferred in format requested/acceptable to Law Firm

B

o Original documents itemized on each file, for all files if original document state

(or information that Law Firm A has been instructed to return original

documents to Servicer). Transfer of original documents should be acknowledged

by signed receipt at Law Firm B, or by Servicer when receiving original

documents.

o For any documentation required to be executed by Law Firm B and returned to

Law Firm A for the attorney substitution purposes, dates need to be determined

in advance of transfer.

o Name of specific individuals (two) at Law Firm A handling transfer project (and


and email address)

o List of all files Law Firm A is transferring to Law Firm B including:






All holds (including BK, litigation, etc.)


o Information regarding any “headline” risk or other unusual risk on any file being

transferred

- Internal Work



Law Firm B Guidelines - Provide the Following Information to Servicer

o List of all files received from Law Firm A including:


Investor


Borrower(s)’ name and address


List of original documents received or missing and bailee letters for the

original docs received

o List of any files Servicer advised Law Firm B they would be receiving from Law

Firm A that they did not receive, documenting all discrepancies.

o Name of specific individuals (2) at Law Firm B handling transfer project (and


and email address)

o Provide contact matrix with escalations

o Date Law Firm B anticipates transfer project can be complete; include each

event with the transfer and the targeted time frame to complete for each.

o Request any original documents needed

- Provide the Following Information to Law Firm A

o Execute and return any documentation required to be executed by Law Firm B

for attorney substitution purposes prior to the transfer of the files.

o Name of specific individuals (two) at Law Firm B handling transfer project (and


and email address)



- Internal Work

o Order title; confirm in writing what additional work Servicer requires in order for

Law Firm A to review/audit the transferred files and agreement to reimburse for

this work/fees incurred.

o Review files for any missing documentation or pleadings

o Review previously filed pleadings

o Validate file

o Prepare documentation and schedule any court hearings (if necessary) for

substitution of attorney


SERVICER TRANSFERS (File Remains with Same Law Firm and Transfers from Servicer A to Servicer B)

Servicer A Guidelines - Provide the Following Information to Law Firm

o Name of specific individual at Servicer A handling transfer project (and specific

contact information for this individual including direct phone number and email

address)

o New Servicer Information

Name

Address

Name of specific individual at Servicer B handling transfer project (and

specific contact information for this individual including direct phone


o Effective Date of Transfer

o List of All Files Being Transferred Including:

Current Servicer Loan Number

Investor/Investor Loan Number

Location of original documents

o Advise if File Information will exist on same client data portal when transfer

completed so that Servicer B will have access to the information

- Provide the Following Information to Servicer B

o Name of specific individual at Servicer A handling transfer project (and specific


address)

o List of All Files Being Transferred Including:

Current Servicer Loan Number

Investor/Investor Loan Number

Location of original documents

File Status

Last Milestone Complete

Holds In Place

Pending Loss Mitigation

Proceed Instructions



SCRA Status

Occupancy Status

Last Invoice Due

o Location of original documents

o Date file information will transfer to Servicer B’s servicing system

o If Servicer B is not a current client of Law Firm, establish an onboarding call to

discuss executing a contract with the Law Firm as well as review the servicer

policies and procedures and escalation matrix.

- Internal Work

o Prepare and send “goodbye” letter in compliance with investor and CFPB

requirements

Servicer B Guidelines - Provide the Following Information to Law Firm

o New loan numbers (with old loan numbers from Servicer A)

o Location of Original Documents

o Name of specific individual at Servicer B handling transfer project (and specific


address)

o Advise attorney if all documents, correspondence and pleadings previously

provided to Servicer A by law firm are now accessible to Servicer B

If information not provided by Servicer A and law firm needs to re-

provide a fee should be considered (additional time and work required to

duplicate what was previously done on file for Servicer A)

Note – Confidential documents that are not public record cannot

be provided to Servicer B due to attorney/client privilege!

o Advise attorney if a review of Servicer A’s demand letter is required

o Identify and honor all previous loss mitigation plans in process with Servicer A

and/or during transfer

- Provide the Following Information to Servicer A

o Name of specific individual at Servicer B handling transfer project (and specific


address)


o Verify that all files that were supposed to be transferred from Service A to Servicer

B were transferred

o Verify current status of all files with Servicer A

- Internal Work

o Prepare and send “hello” letter in compliance with investor and CFPB

requirements

o Honor all pending loss mitigation agreements

Law Firm Guidelines - Provide the Following Information to Servicer A

o Name of specific individual at Law Firm handling transfer project (and specific


address)

o A list of all files that were supposed to transfer from Servicer A to Servicer B that

did not transfer on the electronic system

o Send final invoice

- Provide the Following Information to Servicer B

o Name of specific individual at Law Firm handling transfer project (and specific


address)

o Firm contact information and escalation matrix (if they do not already have this)

- A list of files that were supposed to transfer from Servicer A to Servicer B that did not

transfer on the electronic reporting system

- Internal Work

o Prepare (and present to court if necessary) any documentation needed to amend

the plaintiff

o Determine if a new AOI or an AOM is necessary and take the steps to obtain these

documents

o Ensure all file information is available and correct on Servicer B’s client data portal

once transfer is supposed to be complete


General Guidelines/Information Relevant to File Transfers - If a Servicer has several different departments that handle the file (litigation,

bankruptcy, foreclosure, title, code violation) make sure all departments are aware of a

transfer of a file from one law firm to another and determine whether the entire file is

being transferred or just portions of it, communicate this clearly to the law firms.

- Be aware of investor guidelines that apply to file transfers (i.e., FNMA does not allow a

file to be transferred by a servicer from Law Firm A to Law Firm B after sale has taken

place unless FNMA directs this)

- Comply with all CFPB rules regarding service transfers (CFPB August 19, 2014 Bulletin

2014-01)

- When a file transfers from Law Firm A to Law Firm B, servicer must seek approval from investor if required,

- When a file is transferred from Servicer A to Servicer B, Servicer B must ensure Servicer

B and the investor have a relationship with the Law Firm.

GUIDELINES FOR TRANSFER OF FILES WHEN LAW FIRM A IS

CLOSING

Servicer Guidelines - Provide the Following Information to Law Firm A

o List of all files being transferred out of firm including:



Borrower (s) name & address)


specific contact information for these individuals, including direct phone

number and email address) and date the law firm is closing.

o Information on Law Firm B

Name of specific individuals (two) at Law Firm B handling transfer project

(and specific contact information for these individuals, including direct


Street address of Law Firm B

Dates Servicer requires certain aspects of file transfer to be complete.

Final date Servicer will accept invoice for payment


Directions for transfer of any original documents or date that servicer

representative will be on site at law firm to retrieve and audit collateral.

Address where the law firm should to return the original

documents/collateral to the servicer, or alternatively,

instructions/address to send them to Law Firm B

Instruction that law firm B will prepare the stipulations to substitute

counsel and consent to be executed by servicer detailing all case

numbers that are being transferred to Firm B.

Directive that Firm B will immediately handle all pending hearings and

sales and to provide a list of what is pending.


o List of all files being transferred to Law Firm B including:



Location of original documents and including date of original docs sent to

Law Firm A.

Status of File

Last milestone completed (date)


Pending loss mitigation

Proceed instructions

Time sensitive dates, including list of hearings and sales and/or

discovery deadlines

Court case numbers – Law Firm B must immediately pull docket

to confirm upcoming hearings, sales and/or discovery deadlines.



and email address)

o Name and contact information of specific individual at Law Firm A, who can

answer file specific questions.

o Contact matrix with escalations

o SLA and other documentation (if Law Firm B does not already represent

Servicer)

o Written agreement (at minimum an email) from Servicer to Law Firm B stating

that Law Firm B is not responsible for any errors, timeline delays, etc. on the file

caused by Law Firm A


o Prior law firm information

Name of specific individuals (two) at Law Firm A handling transfer project

(and specific contact information for these individuals including direct


o Dates Servicer requires certain aspects of file transfer to be completed

Deadline for submission of invoices for payment;

Deadline for Execution of substitution of counsel documents

Deadline for completion of transfer of all data.

o Date files will be assigned to Law Firm B on client data portal

o Written agreement of amount Servicer will pay to Law Firm B for boarding and

auditing of incoming transfer files and invoicing details

o Date that firm is expected to start covering hearings/sales – if law firm is closing

it may be immediately.

o Instructions to prepare substitutions of counsel and instructions as to

arrangements to have Law Firm A execute the substitutions of counsel prior to

Law Firm A closing as they require signature of transferring counsel

o Instructions to retrieve collateral from Law Firm A (possible onsite with servicer

representative)

- Internal Work



Law Firm A Guidelines - Provide the Following Information to Servicer

o information on all files Servicer is transferring to Law Firm B including:








o A chronology on all files being transferred

o If Servicer has made clear its intent to transfer all of its pending files at Law Firm

A, from Law Firm A to Law Firm B, and Law Firm A is aware of any files that


Servicer failed to include on its list of transfer files, Law Firm A will provide

Servicer with a list of these files including listing of any discrepancies of files

noted from the Servicer’s supplied list.

o If Servicer has included files on the transfer list that Law Firm A believes it makes

no sense to transfer (as transferring will cause significant delay, such as files

with judgment or sales dates scheduled in the near future, etc.) advise Servicer

of this and provide a list of these files and the reasons it makes no sense to

transfer

o Name of specific individual(s) ( two) at Law Firm A handling transfer project

(and specific contact information for these individuals including direct phone


o Date Law Firm A anticipates closing

o Return any original documents to Servicer, or send to new law firm, obtaining

specific written instructions when doing so

o Invoice file; obtain specific instructions from Servicer in writing re: when to bill

and how to bill law firm’s late incoming bills, especially for items considered

“costs”.

o Obtain from Law Firm A a pre-transfer chronology of each file being transferred

o Post-closing contact information of someone capable of answering any

questions


o Copies of all files being transferred in format requested/acceptable to Law Firm

B (if copies files cannot be provided due to limited resources of Law Firm A,

then a complete list of court case numbers must be provided so that the

documents can be pulled from the Court file.)

o Original documents itemized on each file, for all files if original document state

(or information that Law Firm A has been instructed to return original

documents to Servicer). Transfer of original documents should be acknowledged

by signed receipt at Law Firm B, or by Servicer when receiving original

documents.

o Any documentation required to be executed by Law Firm B and returned to Law

Firm A for the attorney substitution purposes, with dates to be determined in

advance of transfer.

o Name of specific individuals (two) at Law Firm A handling transfer project (and


and email address)


o List of all files Law Firm A is transferring to Law Firm B including:






All holds (including BK, litigation, etc.)


o Information regarding any “headline” risk or other unusual risk on any file being

transferred

- Internal Work



Law Firm B Guidelines - Provide the Following Information to Servicer

o List of all files received from Law Firm A including:


Investor


Borrower(s)’ name and address

List of original documents received or missing and bailee letters for the

original docs received



o Name of specific individuals (2) at Law Firm B handling transfer project (and


and email address)

o Provide contact matrix with escalations

o Date Law Firm B anticipates transfer project can be complete; include each

event with the transfer and the targeted time frame to complete for each.

o Request any original documents needed


- Provide the Following Information to Law Firm A

o Execute and return any documentation required to be executed by Law Firm B

for attorney substitution purposes prior to the transfer of the files.

o Name of specific individuals (two) at Law Firm B handling transfer project (and


and email address)



o Confirmation that hearings and sales will be handled immediately following

transfer and contact information to send any last minute notices of hearing or

pleadings to.

- Internal Work

o Order title; confirm in writing what additional work Servicer requires in order for

Law Firm A to review/audit the transferred files and agreement to reimburse for

this work/fees incurred.

o Review files for any missing documentation or pleadings; if law Firm A closed,

request documents from Court file (will need approval to incur costs to do so)

o Review previously filed pleadings

o Validate file

o Prepare documentation and schedule any court hearings (if necessary) for

substitution of attorney

o Immediately file Notice of Appearance on all cases to notify Court and all parties

of new attorney of record

o Prepare stipulation to sub counsel for Law Firm A to execute immediately prior

to closing date


Special thanks to the members of the USFN Task Force on Servicing Transfers

for their assistance in the development of this set of Guidelines.

For USFN:

Richard Leibert, Chair; Hunt Leibert

Marcy Ford; Trott & Trott

Mike Zevitz; South & Associates

Jill Rein; Pierce & Associates

Doug Hannoy; Feiwell & Hannoy

Kelly Ann Poole; Rosicki, Rosicki & Associates

Nicole Alling; Reimer, Arnovitz, Chernek & Jeffrey

And the following servicing professionals:

Alan Asuncion, Chris Santana & Jennifer Gordon; PennyMac

Byron Gay; Ocwen

John Walters; Freedom Mortgage

Melody Wright; RoundPoint Mortgage

Kati Vahl; Truman Capital

And advisors:

David Greene, Fannie Mae

Robin Lockhart, Freddie Mac