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19.3 FILING A LOSS CLAIM
All requests for loss claim payments will be made through an electronic web submission via USDA Lender Interactive Network Connection (USDA LINC) and can be accessed at https://usdalinc.sc.egov.usda.gov/RHShome.do. All information entered into the USDA LINC Loss Claim Administration system must be supported by documentation in the loss claim file. The servicer is responsible for the completeness and accuracy of the loss claim submission.
Information for gaining access to USDA LINC, submitting loss claims, and uploading loss claim documentation can be located in the Loan Servicing section under USDA Loss Claim Administration User Guide found at https://www.rd.usda.gov/programs- services/lenders/usda-linc-training-resource-library .
A. Sold to a Third Party or PFS
For property that is sold through PFS or to a third party at the foreclosure sale, the loss claim must be submitted within 45 days from the PFS closing date, foreclosure sale date, or the date the proceeds were received, whichever is later.
B. Acquired by the Servicer at Foreclosure or Deed-in-Lieu
For properties that are acquired by the servicer, the servicer must order an appraisal within 15 days of the foreclosure sale date, acquisition date, or possession of the security property and file the loss claim within 60 days of the foreclosure sale date, acquisition date, or possession of the security property. In cases where a separate legal action is
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necessary to gain possession following a foreclosure, the proceeding should be initiated within 30 calendar days of the foreclosure sale, redemption period, or other prevailing State law affecting acquisition of title. The Agency will determine the value of the property for the basis of the loss claim by utilizing the market value of the security property through the Property Sale Value Calculator (PSVC). The Agency will apply an acquisition and management resale factor to estimate holding and disposition costs, based on the most current VA Management and Acquisition Factor (also known as the VA Net Value Factor), as announced by the VA in a notice published in the Federal Register and found at: https://www.benefits.va.gov/HOMELOANS/servicers_valeri.asp.
C. Market Value Appraisal
The servicer will order an appraisal prepared by a licensed or certified appraiser. The appraisal must comply with USPAP and meet all the following requirements:
x USDA to be named as either the client and/or intended user.
x The intended use is market value for loss mitigation or asset valuation.
x State the highest and best use analysis for the subject property.
The appraiser will use one of the following forms:
x Uniform Residential Appraisal Report (URAR/Fannie Mae Form 1004 or Freddie
Mac form 70) ;
x Manufactured Home Appraisal Report (Fannie Mae Form 1004C or Freddie Mac
Form 70-B); or
x Individual Condominium Unit Appraisal Report (Fannie Mae Form 1073 or
Freddie Mac Form 465).
Along with the above-mentioned appraisal forms, the following should be included:
x Photos documenting the interior inspection are part of the appraisal inspection.
The following color photos must be included:
x All living spaces in the property (i.e. living room, family room, bonus
room, dining room/area, etc.)
x All bedrooms
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x Kitchen
x Bathrooms
x Basement/crawlspace
x Laundry room
x Mechanicals (furnace/air conditioner unit/water heater/electrical panel)
x Attic
x Garage/sheds
x Any/all deferred maintenance items
Appraisals will be in PDF format with color photos upon submission to USDA LINC.
D. The Property Sale Value Calculator
The Agency has developed a Property Sale Value Calculator (PSVC) to determine the estimated sales price for REO loss claims. The model coefficients use data on approximately 94,000 historical loss claims from the program. The Agency updates the model coefficients on a regular basis using actual property sale values acquired through a third-party data provider. The Agency adds historical data to the model every year and re-generates coefficients to ensure historical relationships between variables represent the most recent data available and that the model produces accurate property value estimates.
19.4 CALCULATING NET RECOVERY VALUE