Fannie Mae SVC-2014-08 Miscellaneous Servicing Policy Updates

On May 21, Fannie Mae released Servicing Guide Announcement SVC-2014-08, subtitled Miscellaneous Servicing Policy Updates.

Servicing Guide Announcement SVC-2014-08

Miscellaneous Servicing Policy Updates

This Announcement describes and updates Fannie Mae policies regarding

  • calculating the repurchase price,
  • release of security,
  • servicer oversight and business continuity requirements, and
  • stay of foreclosure and other legal proceedings for servicemembers.

Effective Date

Unless otherwise stated, the servicer is encouraged to implement the new policies in
this Announcement immediately; however, servicers are required to implement
these policies no later than September 1, 2014.

Calculating the Repurchase Price

Servicing Guide, Part VI, Section 202: Repurchase Proceeds
Fannie Mae is clarifying its policy for calculating the repurchase price when a
mortgage loan (other than a reverse mortgage) was originally purchased at
a premium or discounted purchase price and has undergone negative
amortization. Fannie Mae will limit both the purchase discount and the
purchase premium to the amount of the original purchase discount or
premium, if applicable.

In addition, Fannie Mae is clarifying that the purchase price used to calculate the
repurchase amount is expressed as a percentage of par. If a discount was paid
at the time that Fannie Mae purchased the mortgage loan, this percentage will
be less than 100%. Conversely, the percentage will be greater than 100% if a
premium was paid at the time that Fannie Mae purchased the mortgage loan.

Release of Security

Servicing Guide, Part III, Chapter 7: Releases of Security; Section 701:
Release or Grant of a Easement; Section 702: Release of Oil, Gas,
or Mineral Rights; Section 704: Partial Release of Real Property;
Section, 705: Partition of Real Property; Section 706: Substitution
of Security; and Section 707: Condemnation or Taking by
Eminent Domain

Fannie Mae is updating the documents required to evaluate a request to release all
or a portion of the property securing a mortgage loan and revising the
Application for Release of Security (Form 236). When Fannie Mae’s approval of a
release of security is required, the servicer must submit Form 236 and all required
documents as specified on the Form 236 to Fannie Mae via email
to Fannie Mae will review the request and follow
up with the servicer accordingly. The servicer is no longer required to contact
their Servicing Consultant, Portfolio Manager, or Fannie Mae’s National Servicing
Organization’s Servicing Solutions Center for these approvals. 

Servicer Oversight and Business Continuity Requirements

Servicing Guide, Part I, Section 202: Servicer’s Basic Duties and
Responsibilities; Section, 301.01: Servicer’s Audit and Control
Systems; and Section 307: Compliance with Applicable Laws

Fannie Mae currently requires each Fannie Mae–approved servicer (and any
subservicer or third-party originator it uses) to be aware of, and in full
compliance with, all federal, state, and local laws (including statutes,
regulations, ordinances, administrative rules and orders that have the effect
of law, and judicial rulings and opinions) that apply to any of its origination,
selling, or servicing practices or other business practices (including the use
of technology) that may have a material effect on Fannie Mae. Fannie Mae
is clarifying the servicer’s oversight responsibilities to include all outsourcing
and third-party vendors used by the servicer. The servicer must also have
policies and procedures in place to ensure that all outsourcing firms and
third-party vendors used by the servicer are fully compliant with the
requirements of the Servicing Guide (where applicable), and must perform
annual quality control tests accordingly. Test results must be provided to
Fannie Mae upon request.

Servicing Guide, Part I, Chapter 3: Maintaining Eligibility
Fannie Mae is updating the servicer’s oversight responsibilities to require all
subservicers, third-party originators, outsourcing firms and/or third party
vendors used by the servicer to implement and maintain business continuity
plans that ensure their ability to regain critical business operations in the
event of a disruption or disaster.

Additionally, the servicer must implement and maintain business continuity plan(s)
that ensure the servicer’s ability to regain critical business operations in the
event the subservicers, third-party originators, outsourcing firms, and/or third
party vendors used by the servicer fail to maintain business continuity, suffer
complete business failure, or dissolution.

All plans must be comprehensive, in a written format, accessible to critical staff,
annually tested and updated. Test results must be provided to Fannie Mae
upon request.

Stay of Foreclosure and other Legal Proceedings for Servicemembers

Servicing Guide, Part III, Chapter 1, Exhibit 1: Military Indulgence; Servicing
Announcement SVC-2013-10, Miscellaneous Servicing Policy Updates;
and Part IV, Section 205: Effect of Servicemembers Civil Relief Act
Fannie Mae is updating its requirements for foreclosure proceedings for active duty

The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of
2012 provides for a 12-month extended stay of foreclosure and other legal
proceedings from the date on which military service ends. This extended stay
expires December 31, 2014, and effective January 1, 2015, the 12-month stay
reverts back to 90 days under the Servicemembers Civil Relief Act.

However, for Fannie Mae mortgage loans, the 12-month extended stay of
foreclosure and other legal proceedings period will remain in effect beyond
the originally communicated expiration date of December 31, 2014.
Additionally, the servicer must also stay any foreclosure proceedings that
were already in process or postpone the initiation of foreclosure
proceedings against a servicemember eligible for military indulgence. The
servicer is no longer permitted to obtain the eligible servicemember’s
written consent and/or petition the court to continue or commence
foreclosure proceedings. 

Servicers should contact their Servicing Consultant, Portfolio Manager, or Fannie
Mae’s National Servicing Organization’s Servicing Solutions Center at
1-888-FANNIE5 (1-888-326-6435) with any questions regarding this

Leslie A. Peeler
Senior Vice President
National Servicing Organization
Please click here to view the online announcement.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website:



Alan Jaffa

Alan Jaffa is the chief executive officer for Safeguard, 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® finalist in 2013.


Chief Operating Officer

Michael Greenbaum

Michael Greenbaum is the chief operating officer for Safeguard. Mike has been instrumental in aligning operations to become more efficient, effective, and compliant with our ever-changing industry requirements. Mike has a proven track record of excellence, partnership and collaboration at Safeguard. Under Mike’s leadership, all operational departments of Safeguard have reviewed, updated and enhanced their business processes to maximize efficiency and improve quality control.

Mike joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities within the organization, including the role of vice president of operations in 2013 and then COO in 2015.

Mike built his business career in supply-chain management, operations, finance and marketing. He has held senior management and executive positions with Erico, a manufacturing company in Solon, Ohio; Accel, Inc., a packaging company in Lewis Center, Ohio; and McMaster-Carr, an industrial supply company in Aurora, Ohio.

Before entering the business world, Mike served in the U.S. Army, Ordinance Branch, and specialized in supply chain management. He is a distinguished graduate of West Point (U.S. Military Academy), where he majored in quantitative economics.



Sean Reddington

Sean Reddington is the new Chief Information Officer for Safeguard Properties LLC. Sean has over 15+ years of experience in Information Services Management with a strong focus on Product and Application Management. Sean is responsible for Safeguard’s technological direction, including planning, implementation and maintaining all operational systems

Sean has a proven record of accomplishment for increasing operational efficiencies, improving customer service levels, and implementing and maintaining IT initiatives to support successful business processes.  He has provided the vision and dedicated leadership for key technologies for Fortune 100 companies, and nationally recognized consulting firms including enterprise system architecture, security, desktop and database management systems. Sean possesses strong functional and system knowledge of information security, systems and software, contracts management, budgeting, human resources and legal and related regulatory compliance.

Sean joined Safeguard Properties LLC from RenPSG Inc. which is a nationally leading Philintropic Software Platform in the Fintech space. He oversaw the organization’s technological direction including planning, implementing and maintaining the best practices that align with all corporate functions. He also provided day-to-day technology operations, enterprise security, information risk and vulnerability management, audit and compliance, security awareness and training.

Prior to RenPSG, Sean worked for DMI Consulting as a Client Success Director where he guided the delivery in a multibillion-dollar Fortune 500 enterprise client account. He was responsible for all project deliveries in terms of quality, budget and timeliness and led the team to coordinate development and definition of project scope and limitations. Sean also worked for KPMG Consulting in their Microsoft Practice and Technicolor’s Ebusiness Division where he had responsibility for application development, maintenance, and support.

Sean is a graduate of Rutgers University with a Bachelor of Arts and received his Masters in International Business from Central Michigan University. He was also a commissioned officer in the United States Air Force prior to his career in the business world.


General Counsel and Executive Vice President

Linda Erkkila, Esq.

Linda Erkkila is the general counsel and executive vice president for Safeguard and oversees the legal, human resources, training, and compliance departments. Linda’s responsibilities cover regulatory issues that impact Safeguard’s operations, risk mitigation, enterprise strategic planning, human resources and training initiatives, compliance, litigation and claims management, and 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. Her practice spans over 20 years, and Linda’s experience covers regulatory disclosure, corporate governance compliance, risk assessment, executive compensation, litigation management, and merger and acquisition activity. Her experience at a former Fortune 500 financial institution during the subprime crisis helped develop Linda’s pro-active approach to change management during periods of heightened regulatory scrutiny.

Linda previously served as vice president and attorney for National City Corporation, as securities and corporate governance counsel for Agilysys Inc., and as an associate at Thompson Hine LLP. She earned her JD at Cleveland-Marshall College of Law. Linda holds a degree in economics from Miami University and an MBA. In 2017, Linda was named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.


Chief Financial Officer

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard. Joe is responsible for the Control, Quality Assurance, Business Development, Accounting & Information Security departments, and is a Managing Director of SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Joe has been in a wide variety of roles in finance, supply chain management, information systems development, and sales and marketing. His career includes senior positions with McMaster-Carr Supply Company, Newell/Rubbermaid, and Procter and Gamble.

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.


AVP, High Risk and Investor Compliance

Steve Meyer

Steve Meyer is the assistant vice president of high risk and investor compliance for Safeguard. In this role, Steve is responsible for managing our clients’ conveyance processes, Safeguard’s investor compliance team and developing our working relationships with cities and municipalities around the country. He also works directly with our clients in our many outreach efforts and he represents Safeguard at a number of industry conferences each year.

Steve joined Safeguard in 1998 as manager over the hazard claims team. He was instrumental in the development and creation of policies, procedures and operating protocol. Under Steve’s leadership, the department became one of the largest within Safeguard. In 2002, he assumed responsibility for the newly-formed high risk department, once again building its success. Steve was promoted to director over these two areas in 2007, and he was promoted to assistant vice president in 2012.

Prior to joining Safeguard, Steve spent 10 years within the insurance industry, holding a number of positions including multi-line property adjuster, branch claims supervisor, and multi-line and subrogation/litigation supervisor. Steve is a graduate of Grove City College.


AVP, Operations

Jennifer Jozity

Jennifer Jozity is the assistant vice president of operations, overseeing inspections, REO and property preservation for Safeguard. Jen ensures quality work is performed in the field and internally, to meet and exceed our clients’ expectations. Jen has demonstrated the ability to deliver consistent results in order audit and order management.  She will build upon these strengths in order to deliver this level of excellence in both REO and property preservation operations.

Jen joined Safeguard in 1997 and was promoted to director of inspections operations in 2009 and assistant vice president of inspections operations in 2012.

She graduated from Cleveland State University with a degree in business.


AVP, Finance

Jennifer Anspach

Jennifer Anspach is the assistant vice president of finance for Safeguard. She is responsible for the company’s national workforce of approximately 1,000 employees. She manages recruitment strategies, employee relations, training, personnel policies, retention, payroll and benefits programs. Additionally, Jennifer has oversight of the accounts receivable and loss functions formerly within the accounting department.

Jennifer joined the company in April 2009 as a manager of accounting and finance and a year later was promoted to director. She was named AVP of human capital in 2014. Prior to joining Safeguard, she held several management positions at OfficeMax and InkStop in both operations and finance.

Jennifer is a graduate of Youngstown State University. She was named a Crain’s Cleveland Business Archer Award finalist for HR Executive of the Year in 2017.


AVP, Application Architecture

Rick Moran

Rick Moran is the assistant vice president of application architecture for Safeguard. Rick is responsible for evolving the Safeguard IT systems. He leads the design of Safeguard’s enterprise application architecture. This includes Safeguard’s real-time integration with other systems, vendors and clients; the future upgrade roadmap for systems; and standards designed to meet availability, security, performance and goals.

Rick has been with Safeguard since 2011. During that time, he has led the system upgrades necessary to support Safeguard’s growth. In addition, Rick’s team has designed and implemented several innovative systems.

Prior to joining Safeguard, Rick was director of enterprise architecture at Revol Wireless, a privately held CDMA Wireless provider in Ohio and Indiana, and operated his own consulting firm providing services to the manufacturing, telecommunications, and energy sectors.


AVP, Technology Infrastructure and Cloud Services

Steve Machovina

Steve Machovina is the assistant vice president of technology infrastructure and cloud services for Safeguard. He is responsible for the overall management and design of Safeguard’s hybrid cloud infrastructure. He manages all technology engineering staff who support data centers, telecommunications, network, servers, storage, service monitoring, and disaster recovery.

Steve joined Safeguard in November 2013 as director of information technology operations.

Prior to joining Safeguard, Steve was vice president of information technology at Revol Wireless, a privately held wireless provider in Ohio and Indiana. He also held management positions with Northcoast PCS and Corecomm Communications, and spent nine years as a Coast Guard officer and pilot.

Steve holds a BBA in management information systems from Kent State University in Ohio and an MBA from Wayne State University in Michigan.


Assistant Vice president of Application Development

Steve Goberish

Steve Goberish, is the assistant vice president of application development for Safeguard. He is responsible for the maintenance and evolution of Safeguard’s vendor systems ensuring high-availability, security and scalability while advancing the vendor products’ capabilities and enhancing the vendor experience.

Prior to joining Safeguard, Steve was a senior technical architect and development manager at First American Title Insurance, a publicly held title insurance provider based in southern California, in addition to managing and developing applications in multiple sectors from insurance to VOIP.

Steve has a bachelor’s degree from Kent State University in Ohio.