Safeguard Properties

<- Return To Industry Updates

Cortez Masto Introduces FHA Foreclosure Prevention Act of 2018

Legislation Update
April 19, 2018

Source: Office of U.S. Senator Catherine Cortez Masto

Additional Resources:

U.S. Congress (S.2698 bill info/full text)

U.S. Congress (H.R. 5555 bill info/full text)

HousingWire (Waters introduces legislation to prevent FHA foreclosures)

Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) introduced the FHA Foreclosure Prevention Act of 2018, legislation that will ensure banks, credit unions and mortgage lenders follow the law before taking a family’s home. When families fall behind on their mortgage payments, lenders who benefit from taxpayer-backed insurance through the Federal Housing Administration’s (FHA) must communicate with the borrower, connect the borrower to homeownership counseling, offer pre-foreclosure sales and meet other loss mitigation requirements. These laws protect borrowers from unnecessary foreclosures and tax payers from costly and unnecessary insurance payouts.

“As Nevada’s attorney general during the foreclosure crisis, I have seen far too many lives turned upside down due to rampant foreclosures, as well as the devastating effects that come with losing one’s home,” said Cortez Masto. “To this day, borrowers are unnecessarily being put at risk of losing their homes because of servicers’ failures to comply with the FHA’s loss mitigation requirements. This bill will implement common-sense measures to give borrowers a fair chance at avoiding foreclosure.”

U.S. Representative Maxine Waters (D-Calif.), Ranking Member of the House Committee on Financial Services, introduced a companion bill in the House of Representatives. U.S. Senator Elizabeth Warren (D-Mass.) cosponsored the legislation in the Senate.

“A decade after the devastating foreclosure crisis, we continue to see significant problems with the servicing of FHA loans that unnecessarily put homeowners at risk of foreclosure,” said Ranking Member Waters. “This is why my bill, the FHA Foreclosure Prevention Act, would ensure that FHA servicers help families experiencing financial hardship avoid foreclosure so that they can remain in their homes.”

The FHA is a critical part of our housing market today, and helps promote access to homeownership for underserved communities – including first-time homebuyers and minority borrowers who are not otherwise served by the conventional mortgage market – through the provision of government-backed mortgage insurance. In 2017, the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) issued a report that outlined significant problems with HUD’s oversight of servicers’ compliance with FHA’s loss mitigation requirements. Deficiencies in servicer compliance with the FHA’s loss mitigation requirements unnecessarily puts borrowers at risk of foreclosure. In addition, the OIG found that inadequate compliance posed an increased risk of $120 million to the insurance fund, some of which could have been avoided if servicers had followed the law and worked with borrowers as required. This legislation seeks to implement common-sense reforms to help strengthen compliance with the FHA’s loss mitigation requirements and help ensure that every delinquent FHA borrower get the opportunity to avoid foreclosure.

The FHA Foreclosure Prevention Act of 2018 will:

  • Prohibit the Secretary of HUD from paying FHA insurance benefits to any lender unless it has provided documentation on its compliance with loss mitigation requirements.
  • Require the Secretary of HUD to conduct oversight of servicers, which must include appropriate sampling and review of such compliance and direct information collection from borrowers whose files were sampled.
  • Establish a robust complaint and appeals process for borrowers who believe they have been subject to unfair treatment related to noncompliance with FHA’s servicing requirement, including its loss mitigation requirements. The Secretary of HUD will be required to report annually to Congress regarding the types and volume of complaints received through this process.
  • Require a servicer to provide borrowers with notification of the results of the servicer’s loss mitigation review before initiating foreclosure proceedings. The notice must include several components to help the borrower understand their rights, and their ability to file a complaint.

Related Posts

FEMA Major Disaster Declaration – Kentucky Severe Storms, Straight-line Winds, Tornadoes, Landslides, and Mudslides

FEMA has issued a Major Disaster Declaration for the state of Kentucky in areas affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides from May 21-27, 2024.

Read More

FEMA Major Disaster Declaration – Missouri Severe Storms, Straight-line Winds, Tornadoes, and Flooding

FEMA has issued a Major Disaster Declaration for the state of Missouri in areas affected by severe storms, straight-line winds, tornadoes, and flooding from May 19-27, 2024.

Read More

<- Back To Newsroom Next Article ->

Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing our website, you agree to our use of cookies.

x

CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

x

Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

x

COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

x

CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

x

Business Development

Carrie Tackett

Business Development Safeguard Properties