HUD National Loan Servicing

ISN was awarded the Secretary Loan Servicing contract by the U.S. Department of Housing and Urban Development (HUD) and began work on October 9, 2021. We look forward to working with all stakeholders on the program. ISN processes the loan servicing activities associated with Partial Claim Subordinate Mortgages and other HUD Programs (Good Neighbor Next Door, Hope for Homeowners, Insured 235 Capture Program, Emergency Homeowner Loan Program, Asset Control Area Program & Purchase Money Mortgage Program ) for FHA insured loans from mortgage lenders to HUD.

ISN reviews claims that are filed against FHA insurance funds considering two primary objectives:

1. Ensure that claims are filed in compliance with HUD guidelines.
2. Review claims submitted by the mortgagee to confirm that expenses are accurate, reasonable and were actually incurred.

ISN processes approximately 100,000 loan servicing activities each month that are associated with the above referenced HUD Programs.

Examples of the types of activities include:

1. Release Requests
2. Pay-Off Requests
3. Partial Claim Reviews/Audits
4. Certificate of Indebtedness (COI)
5. Proof of Claims (Bankruptcies)
6. Subordination Requests
7. Alternate Loan Program Servicing (Good Neighbor Next Door, Hope for Homeowners, Insured 235 Capture Program, Emergency Homeowner Loan Program and Asset Control Area Program)
8. Loan Servicing Reporting and Data Analytics

MESSAGE OR ALERT REGARDING – Welcome Letter

If you received a notice regarding the servicing of a subordinate mortgage loan held by the Department of Housing and Urban Development (HUD). This revised notice was to clarify that only the servicing of your HUD subordinate mortgage is being transferred to Information Systems & Networks Corporation (ISN) on October 9, 2021. This does not affect the servicing of your primary first mortgage loan and you should continue to make payments to your regular first mortgage servicer. A HUD subordinate mortgage loan type may be one of the following:

1. HUD Partial Claim (HUD Loss Mitigation Assistance)
2. GNND (Good Neighbor Next Door)
3. EHLP (Emergency Homeowners’ Loan Program)
4. HUD 235 Loan Recaptures
5. Nehemiah Program Loans
6. HUD REO ACA Rehabilitation Assistance
7. HOPE for Homeowners (H4H) Mortgages

This servicing transfer means that after this date ISN Corporation will be servicing your HUD subordinate mortgage loan and answering questions related to the HUD programs listed above. Nothing else about your HUD subordinate mortgage loan will change.

Again, this does not affect the servicing of your primary first mortgage loan and you should continue to make payments to your regular first mortgage servicer.

If you have any questions about your subordinate mortgage loan, you should first contact the FHA Resource Center who will properly route your inquiry. You may reach the FHA Resource Center at: 1-800-225-5342 Monday through Friday, between 7:00 a.m. to 7:00 p.m. Central Standard Time.

Resources

HUD’s FAQs:

Visit HUD’S knowledge base to obtain answers to frequently asked questions 24/7 at https://www.hud.gov/answers

Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays. E-mail: answers@hud.gov

FHA BULLETIN

Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339. Fax: 1-800-609-9826

FOR ALL REVERSE MORTGAGE- (HECM) RELATED INQUIRIES: NOVAD MANAGEMENT CONSULTING Phone: 1-800-CALLFHA (1-800-225-5342)

How to submit a request for a payoff statement for a Partial Claim held by HUD?

The Mortgagee, Borrower, or other Authorized Third Party may request a payoff statement for a HUD Secretary-Held lien. The payoff statement quote will contain the sum of all partial claims that have been paid related to the FHA Case number.

Partial Claim payoff requests may be submitted through various methods. The most efficient and preferred method is to use the self-service SMART Integrated Portal (SIP) at https://sip.hudnsc.org/ to receive payoff statements in minutes versus days for other options.

If you prefer, written payoff requests may be submitted to HUD’s Secretary-Held servicing contractor, Information Systems & Networks Corporation (ISN):

• by email to PCPayoffs@hud.gov if you are paying off a partial claim using Homeowner Assistance Funds (HAF), email is the preferred delivery method.

The payoff request must include the following:

• Ten-digit FHA Case number
• Property address
• Borrower’s name
• Anticipated payoff date
• Requestor’s contact information
• Instruction of where to send the payoff
• Borrower-signed authorization form, Power of Attorney, or other documentation showing legal authorization, if applicable. Electronic signatures will be accepted on any documents associated with servicing for FHA-insured Mortgages

Written authorization is required in order for ISN to release case-specific information to a third party: The third-party authorization, Power of Attorney, or other documentation showing legal authorization must be signed and dated by the Borrower, with a statement identifying the party to whom they wish ISN to release information.

To provide case-specific information, if the Borrower is incapacitated or deceased, please complete the authorization and provide a copy of the documents granting you legal access to the Borrower(s) loan information (such as a Power of Attorney, if incapacitated, or Letters of Administration, if deceased, etc.).

Incomplete requests are unable to be processed.

Please allow up to five (5) business days for the request to be processed. The payoff statement will include the payoff amount and instructions for submitting the payoff funds via mail or pay.gov.

Each request will be independently processed and must follow all the requirements listed above.

All payoff statements expire in 90 calendar days from the date issued. If a loan closing is rescheduled beyond the good-through-date on the payoff statement, a new payoff must be obtained. Each request will be independently processed and must follow all the requirements listed above.

HUD does not issue wire instructions for Secretary-Held HECMs or Partial Claims. Any Secretary-Held HECM or Partial Claim payoff statement containing wiring instructions is fraudulent. The recipient should immediately contact FHA at answers@hud.gov to report that they have received a possibly fraudulent communication, and to obtain a correct payoff statement.

FOR INQUIRIES REGARDING PARTIAL CLAIMS AND ALTERNATE PROGRAMS (GNND, EHLP, H4H, ACA, and 235 Recaptures):

INFORMATION SYSTEMS & NETWORKS CORPORATION Emails and phone messages will be responded to during normal hours of operation, Monday through Friday, 7:00 AM – 7:00 PM (Central) on all non-Federal holidays.