FHA Standalone Partial Claim COVID-19 National Emergency
Updated: Aug 10
March 26, 2020
In response to FHA’s Loss Mitigation Options for Single Family Borrowers Affected by the Presidentially-Declared COVID-19 National Emergency in Accordance with the CARES Act.
FHA Standalone Partial Claim
Our Waterfall’s Standalone Partial Claim was designed exclusively for Owner-Occupant Borrowers Affected by the COVID-19 National Emergency and received an FHA Unique Circumstance Forbearance. The only time the system will default to this option is when the Disaster Protocol COVID-19 is entered and the RFD is FEMA Disaster or Pandemic.
Borrowers who are Delinquent due to a forbearance received following a COVID-19 National Emergency Declaration are deemed to satisfy the eligibility requirements for FHA Loss Mitigation Home Retention and Home Disposition Options.
Eligibility for COVID-19 National Emergency Standalone Partial Claim requirements are:
• The Mortgage was current or less than 30 Days past due as of March 1, 2020.
• The Borrower indicates they have the ability to resume making on-time mortgage payments.
• The Property is owner-occupied.
Processing an FHA Standalone Partial Claim:
Begin entering the data as usual within the FHA module of WaterfallCalc.com (WFC).
~At the top of the first page, Loan Basic tab:
Select the “Use Disaster Protocol: field defaulted to “NO” Change this to “YES” You are ready to do a Partial Claim to bring the loan current.
Leave the “Special Circ. FB” field defaulted to “NO”.
Leave “Recv’d Complete LM Pkg” to default “NO”
The RFD must either be “FEMA Disaster” or “Pandemic”.
Default tab, page 2: At the bottom of the 2nd page:
Enter in the borrower’s income and expense information. NOTE: if no documentation was received or the income cannot be confirmed to continue for 12 mos., you will enter $0.01 as the Gross & Net income.
Leave “Include Legal’ s in Repay?” Field defaulted to “NO”.
Disaster tab, page 3:
When entering the Disaster Information on the Disaster tab, you will enter the disaster name EXACTLY as follows: COVID-19, Otherwise your calculations may be incorrect. (Include the hyphen and no extra spaces)
Disaster Date is determined by individual state.
Property In PDMDA: field defaulted to “YES” Should be YES.
Job In PDMDA: field defaulted to “YES” Should be YES.
Disaster Forb Issued: field defaulted to “YES” Change to “NO” if a Unique Circumstance Forbearance was NOT completed prior to the partial claim.
Current Prior to Disaster: field defaulted to “YES” In order to say 'Yes' to this field for COVID-19, the loan must have been paid thru 2/1/2020 otherwise it should be “NO”. The borrower can be reviewed only with a full package received.
Received Income Confirmation: field defaulted to “YES” Change to “NO” if current income was not verified to be the same or more than what the Borrower made prior to the disaster.
Optional remaining term: field defaults to “0”. You have the ability here adjust the remaining term of the loan in this field.
HAMP entry, page 4:
Capitalization Analysis: Capitalize Legal F/C is greyed out and cannot be altered.
Current Payment Information, page 5:
Spread Shortage is defaulted to “0” months, this option is recommended.
Disaster/PDMDAs Report was designed to supplement the filing of the Partial claim to FHA. Can only be used when the borrower was current prior to Pandemic and with confirmation of same income from the borrower.