This process is applicable to all 203(k) Streamline and Full loans and HomeStyle loans.
Once a draw check is disbursed to the borrower and/or contractor the Draw Administrator must complete the necessary paperwork before filing the draw request in the appropriate 203(k) or HomeStyle images folder in PCL to be retained for a minimum of three years.
The Draw Administrator prints out only the documents that need information entered into them, or need the Draw Coordinator’s or Draw Administrator’s signature on them (draw request forms,
contingency requests, etc.). All other documents that do not need a signature or additional information added can simply be dropped into PCL in the appropriate folder (title update, final inspection, lien waiver, letter of completion, permits, pictures, copies of checks, etc.). At this time the Draw
Administrator also opens the appropriate disbursement cover sheet. The cover sheet summarizes the information contained in that particular draw. The Draw Administrator completes the cover sheet and fills in any missing information in the draw documents (only information that the Draw Administrator may complete, i.e., loan number, FHA Case number, etc., will be missing at this point). Once the
paperwork is complete the Draw Coordinator signs all necessary documents and the Draw Administrator signs any documents that require their own signature. If any checks are missing the Draw Administrator should locate them prior to processing the paperwork.
o Final Draws
o 203(k) Full Final Draws require that the Draw Administer print a Final Release Notice from PCL’s Print Forms for the Draw Coordinator’s signature. The missing number on how much Movement Mortgage is applying to the principle must be entered in. This information is included on the Streamline Final Disbursement form and should be filed out in lieu of printing a separate Final Release Notice.
o For 203(k) Final Draws where the file is not being serviced by Movement Mortgage, the Draw Administrator prints off a copy of the ‘Borrower’s Acknowledgement’ from PCL (found in the FHA 203K Borrowers Acknowledgement Images Folder) so it is clear where the borrower would like their interest applied. If the file is being serviced by Movement Mortgage it is not necessary to print off the Borrower’s Acknowledgement as it is already contained within the loan file.
o For all 203(k) Final Draws once the documents have been signed off on the Draw Administrator logs into FHA Connect to Escrow Closeouts and enters the appropriate information. A copy of the close out confirmation page is PDF’d and retained in the PCL file. The close out date is then entered on the Escrow Disbursement Tracking
Spreadsheet.
o For all HomeStyle and HomePath Final Draws, the HomeStyle or HomePath Completion Certificate is email to Fannie Mae by the Draw Coordinator so Fannie Mae can complete the appropriate close outs. The close out date is then entered on the Escrow
Disbursements Tracking Spreadsheet. o Contingency Draws
52 o Stand-alone Contingency Draws for Streamline 203(k)’s and all Contingency Requests for
Full 203(k)’s (regardless of whether they take place in conjunction with a draw request or not) require that the Draw Administrator go into PCL’s Print Forms and print off a Contingency Release Notice which the Draw Coordinator must sign. If a Contingency Draw is requested in conjunction with a Streamline Final Draw this form is not required as it is included on the Streamline Final Draw Form and that portion of the Final Draw form is completed in lieu of a separate Contingency Release Notice.
o In addition to the Draw Requests the Draw Coordinator must sign off on all Change Orders (including extension requests, work stoppage notices, etc.).
o For files that are not being serviced by Movement Mortgage the investor cover sheet should be used and completely filled in, including any applicable principle reduction information.
Once the paperwork is complete, all the checks are accounted for and all the necessary signatures have been obtained the Draw Administrator scans the draw documents in and saves them in the appropriate 203K, HomeStyle Documents images folder in PCL in the appropriate loan file. If this file is serviced by an investor the draw request should be forwarded to them at the appropriate time to request
reimbursement. The appropriate cover sheet should also be utilized. See Section 1600, Draw
Coordinator’s Additional Responsibilities, for details regarding the reimbursement process for investor owned renovation files.
Movement Mortgage-Serviced Files Only: Once all of the items have been completed for a final draw for any loan program the Draw Administrator emails accounting, cc’g the Draw Coordinator, and lets them know that an escrow account needs to be closed out for a particular borrower. The Draw Administrator provides the loan number, the borrower’s last name, lets accounting know how much money to apply to the borrower’s principle and how to handle the interest: apply to principle (for all HomeStyle files) or mailed directly to the borrower (for 203(k) files check the ‘203(k) Borrower’s Acknowledgement form to verify their interest choice).
When a file is completely closed out, the accounting information has been forwarded and all relevant renovation documents have been properly filed in PCL the account should be marked as Completed in the Escrow Disbursements Database and removed from the active portion of the Escrow Disbursements Tracking Spreadsheet and moved to the closed accounts list. At this point the renovation file is
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