Green Tree Servicing LLC Mortgage Amendments Dept., T316 7360 South Kyrene Road

Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
Please read the Subordination Requirements in their entirety as the requirements have changed.
Complete and accurate packages will ensure timely turnaround. Packages are considered complete
when ALL required documentation has been received.
SUBORDINATION REQUIREMENTS
The approval criteria may vary by account based on investor requirements. We cannot provide
separate requirement checklists for each account. Review the below key items, and if your request
meets the general guidelines, submit your package for review. If there are specific requirements for
the customer’s account, a representative will contact you.
KEY ITEMS
1.
2.
3.
4.
5.
6.
7.
8.
Green Tree account must be current as of the due date and remain current throughout
subordination review process. Keep in mind; processing may take up to 15 business days. Grace
periods do not apply.
All late payments, late fees, legal fees and miscellaneous fees must be paid in full.
Green Tree does not subordinate to the following new loan types:
a.Lines of credit
b.Loans subject to additional advances
c.Reverse mortgages
d.Loans subject to negative amortization
e.Cash out to the customer (new loan cannot result in the customer receiving cash at
closing)
f.Debt consolidation
Green Tree does not agree to subordinate if its lien position will deteriorate (i.e., from 1st to 2nd
lien or 2nd to 3rd lien).
The proposed new loan may or may not be eligible to exceed the unpaid principal balance of the
existing first lien loan.
ØThe unpaid principal balance is not the total payoff amount. This means
settlement charges; interest, miscellaneous payoff fees and escrow amounts may
or may not be eligible for inclusion in the new loan amount.
ØIn general, the new loan amount cannot exceed a maximum of 105% of the
unpaid principal balance.
If new loan amount exceeds the existing loan principal balance, please call 888-568-8733 to
verify maximum new loan amount.
An appraisal may or may not be required. An appraisal may be required for the Subordination
request even if it is not required for the new loan (i.e., Home Affordable Refinance Program
[HARP]). If the new loan does not require an appraisal, please call 888-568-8733 to verify
Subordination appraisal requirements before submitting your request.
The proposed new loan may or may not be eligible to be an Adjustable Rate Mortgage (ARM).
ØARM loans will be considered on a case-by-case basis.
ØThe terms of the ARM, including the proposed interest rate, the frequency of rate
changes and the lifetime maximum interest rate, will be required for review. A copy
of the proposed Note and/or loan-specific ARM disclosure statement indicating the
terms of the ARM is required.
The proposed new monthly payment may or may not be eligible to exceed the existing account
payment amount.
Subordination Requirements Checklist (FRM-005)
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07/16/2012
Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
9.
10.
11.
All accounts in bankruptcy must be discharged /dismissed.
ØAll accounts with a discharged chapter 7 bankruptcy must have a valid
reaffirmation agreement. If the Green Tree account was not reaffirmed, a request
will only be considered if the new loan amount does not exceed the unpaid
balance of the existing first loan.
The request must be in the best interest of the customer and the investor.
Green Tree prepares and executes the Subordination Agreement. The Subordination Agreement
will not require the customer’s signature.
Note: The Subordination Agreement must not be altered once executed by Green Tree.
PROCESSING FEES
1.
2.
There is a $200.00 processing fee for each account number.
ØFee is non-refundable and non-negotiable.
ØFee must be paid via certified funds.
ØPersonal checks from the customer are not accepted and will be returned.
ØAll checks should be made payable to Green Tree and include the customer's name
and Green Tree loan number. Enclose the check with the package.
State Specific: The fee is waived in:
− The following states: IA, IN, KS, MD, MO, NC, NJ, PA, SC, VT, VA, WA, WV
and WY.
− California, if the unpaid balance of second lien is less than $20,000.
There is a $100.00 processing fee for change requests. This applies to requests that were
approved within 90 days. All required documents (see REQUIRED DOCUMENTS
SUBORDINATION CHECKLIST) must be current as of the re-submitted date. If your request
is greater than 90 days, the full processing fee is required.
WARNINGS
1.
2.
3.
4.
Completed packages take 15 business days to process. If a package is received incomplete, the
file is suspended, and the requestor is notified. The requestor is given 10 business days to
comply before the file is subject to cancellation.
Note: Processing time is based on complete package receipt date, not initial request date.
Green Tree processes all requests in the order in which they are received.
ØRequests will not be rushed.
Green Tree will not be held liable if rate lock commitments expire before Green Tree completes
the processing of the subordination request.
Green Tree reserves the right to deny a subordination request that does not represent the best
interest of the customer and the investor.
Subordination Requirements Checklist (FRM-005)
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Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
SHIPPING REQUIREMENTS
1.
2.
The subordination request package must be sent via mail or overnight service for processing.
You are encouraged to request delivery confirmation of your subordination request package.
Note Faxed requests are not accepted and will not be reviewed.
Ship the subordination request package to:
Green Tree Servicing LLC
Attention: Mortgage Amendments Department
7360 South Kyrene Road T316
Tempe, AZ 85283
Due to the volume of requests, we are not able to confirm receipt of your package. Your delivery
confirmation number is sufficient documentation that we have received your request.
3.
Requestor must provide a pre-paid self-addressed billing slip and envelope to return the
subordination agreement. Failure to provide a return shipping label will result in the
subordination agreement being sent via USPS first class mail.
REQUESTS FOR COPIES OF DOCUMENTS
1.
2.
All requests for copies of documents, including the original Note, should be directed to our
Customer Service Department.
ØPlease fax your request, including a copy of the customer's authorization letter, to
(866) 870-9919.
For questions or if following up on a request, please contact Customer Service directly
at (800) 643-0202.
Subordination Requirements Checklist (FRM-005)
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Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
GREEN TREE SUBORDINATION WORKSHEET
Please complete all areas. Please print clearly.
Conventional
New Loan Type
(Circle One)
FHA
VA
Conventional MHA
Conventional HARP
Other (explain)
Requestor
Escrow or
Account #:
Green Tree
Account #:
Rate
Reason for Refinance:
(Circle all that apply):
Rate & Term
Reduced Payment
IO to Full Amortizing
Other (explain):
Customer Name(s):
Customer
Information
Property Address:
Customer Phone Number(s):
County:
Company:
Requestor
Contact
Information
Name:
Phone:
Fax:
Email:
New Lender
Information
Name to appear on
Subordination Agreement
(NOT broker name):
Address to Mail
Subordination
Agreement:
Subordination Requirements Checklist (FRM-005)
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Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
Must be completed in entirely, be accurate, and reflect current
customer information. Please ensure information is legible.
Current First Lien Information
Current Loan Amount:
Current Interest Rate:
Fixed or Variable:
Term:
Escrow Included:
Monthly Escrow Amount:
Monthly Mortgage
Insurance:
$
Monthly Payment (P&I):
Monthly Principal/
Interest/Taxes/
Insurance (PITI):
$
Yes or No
$
$
$
Subordination Requirements Checklist (FRM-005)
Proposed New First Lien Information
%
New Loan Amount:
New Interest Rate:
Fixed or Variable:
New Term:
Escrow Included:
Monthly Escrow Amount:
Monthly Mortgage
Insurance:
Monthly New Payment
(P&I):
Monthly Principal/
Interest/Taxes/
Insurance (PITI):
Page 5 of 8
$
%
Yes or No
$
$
$
$
07/16/2012
Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
To
Print Form
Mortgage Amendments Department
From
Date
Account Number
RE
Subordination Request Processing Fee
GL: 4400010
CC: 907
Attach Check Here
Please return this form with the processing fee to ensure the fee is processed correctly.
Make checks payable to Green Tree.
Subordination Requirements Checklist (FRM-005)
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Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
REQUIRED DOCUMENTS SUBORDINATION CHECKLIST
1.
Green Tree Subordination Worksheet was completed by requestor.
ØMust include terms of existing mortgage and proposed mortgage.
ØProposed mortgage amount must match an all corresponding documents.
2.
Copy of completed Loan Application – Form 1003.
3.
4.
5.
6.
7.
Copy of the completed Uniform Underwriting and Transmittal Summary – Form 1008.
ØProposed mortgage amount must match on all corresponding documents.
ØMust reflect Debt-to-Income Ratio
Exception Not required on Veteran's Administration (VA) streamline refinances.
ØFor VA refinance, VA Loan Summary or Interest Rate Reduction Refinancing
Loan (IRRRL) Worksheet is required.
Copy of Mortgage Loan Commitment Letter/Approval Letter (The letter that indicates
approval and defines the terms of the mortgage.)
ØMust be signed and dated by the Lender.
ØApproved mortgage amount shown must equal or be greater than the proposed
mortgage amount.
Copy of preliminary title report reflecting all active accounts against the property.
ØMust include complete recording information (including mortgage dates,
lender names, amount of obligation, and any assignment/subordination
information) for all liens.
ØEffective date must be within 60 days of submission.
ØAll judgments and old liens must be subordinated or released. Provide separate
documentation clearing these items, for example, a copy of executed satisfaction
and/or subordination.
ØProof property taxes are paid current. Proof includes tax receipt, tax
certification, or escrow statement.
ØPurposed insured amount must match or exceed proposed mortgage amount.
Copy of the Appraisal including any addenda.
ØValuation cannot exceed 4 months in age.
ØA Broker's Price Opinion (BPO) or Automated Valuation Model (AVM)
may be acceptable for some accounts.
ØAppraisal is required based on investor requirements and not based on
proposed mortgage loan program. If the new loan does not require an
appraisal, please call 888-568-8733 to verify appraisal requirements before
submitting the request.
Copy of the Good Faith Estimate or Preliminary Settlement Statement SST/HUD1.
ØMust reflect exact payoff amount on the payoff statement.
ØThe payoff amount should be listed on the loan payoff disbursement line, and
not the “cash back” to borrower line.
ØMust not show any cash out to the customer.
ØProposed mortgage amount must match on all corresponding documents.
Note: The SST/HUD1 is required for some accounts. If the package is submitted
without the SST/HUD1 and it is required, a representative will contact you.
Subordination Requirements Checklist (FRM-005)
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Green Tree Servicing LLC
Mortgage Amendments Dept., T316
7360 South Kyrene Road
Tempe, AZ 85283
888-568-8733
8.
9.
10.
11.
12.
13.
14.
Copy of Payoff statement for accounts(s) to be paid in full.
ØExact payoff amount(s) MUST be listed on HUD1 if adding daily interest to
the payoff. Please detail the calculations on the payoff statement for
verification.
ØThe statement must be current as of the date request is received.
For MHA/HARP eligible loans, provide documentation showing proof of eligibility, i.e.
DU Findings.
Customer’s Authorization Letter, authorizing the release of information to a third party
must be signed by all customers on account documents.
Subordination Processing Fee, if applicable.
ØSee PROCESSING FEES for details.
Return shipping label and envelope.
ØFedEx, UPS, Priority Mail, First Class Mail are acceptable.
ØCourier services are not acceptable.
ØSee PROCESSING FEES for details.
Confirm prior to submission.
ØVerify Green Tree account current.
ØProposed mortgage amount matches on all documentation.
ØDocuments are current as of submission date.
ØReturn shipping label is included.
Resubmitted Packages.
ØIf providing updated and/or corrected documentation, corresponding
documents may need to be updated and included as part of resubmission.
Example: If new loan amount is reduced on HUD1, the following items must be
updated: Subordination Worksheet, Form 1003 and Form 1008.
t◊t
Subordination Requirements Checklist (FRM-005)
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