Safeguard Properties

Biden Issues Executive Order on Foreclosures

Posted on by Safeguard

Industry Update
January 20, 2021

Source: DS News

On the first day of his administration, President Joe Biden issued a slate of executive orders, including one that called on federal departments and agencies to extend their bans on evictions and foreclosures through at least the end of March. As with the previous extensions, this act is designed to provide ongoing relief to homeowners and renters feeling the negative financial impact of the ongoing COVID-19 pandemic.

According to the order, both housing foreclosures and evictions would be delayed until at least March 31, 2021.

Earlier this week, FHFA extended once again their moratoriums on single-family foreclosures and real estate owned (REO) evictions through February 28. The moratoriums were previously set to expire on January 31.

To access full article, please click the source link above.

CFPB Director Kathy Kraninger Resigns

Posted on by Safeguard

Industry Update
January 20, 2021

Source: HousingWire

Editor’s note: This story originally appeared in the January edition of DS News. 

Florida’s Fourth District Court of Appeals has recently issued two new opinions concerning the “HUD Face-to-Face Provision.”

Both actions involved the involuntary dismissal of foreclosure cases at trial based upon the lender’s failure to present prima facie evidence showing it complied with 24 C.F.R 203.604(b), specifically those minimum actions required to comply with the reasonable efforts expectation of the rule when a face-to-face interview has not been conducted. (It should be noted that Malcolm Harrison was the appellee in both cases and the servicer prevailed in both cases by overturning the circuit courts’ ruling.) 24 C.F.R 203.604(d) illuminates the specific actions required to comply with the reasonable efforts exception: (d) A reasonable effort to arrange a face-to-face meeting with the mortgagor shall consist at a minimum of one letter sent to the mortgagor certified as dispatched by the United States Postal Service (USPS). A reasonable effort shall also include at least one trip to see the mortgagor at the mortgaged property unless the mortgaged property is more than 200 miles from the mortgagee, its servicer, or a branch office of either; or it is known that the mortgagor is not residing in the mortgaged property.

Based on the above rule, a lender must meet a two-prong test: (1) visit the borrower(s) at least once to attempt a face-to-face interview, and (2) demonstrate a letter was sent via USPS to the borrower(s) asking to schedule the face-to-face interview.

To access full article, please click the source link above.

FHA INFO #21-05: Foreclosure and Eviction Moratorium Policy Extension

Posted on by Safeguard

Investor Update
January 21, 2021

Source: HUD

Additional Resources:

HUD:
Biden Administration Authorizes Extension of Federal Housing Administration Single Family Foreclosure and Eviction Moratorium (Press Release)

Acting HUD Secretary Announces Extension of Eviction and Foreclosure Moratoriums (Press Release)

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2021-03, Extension of Foreclosure and Eviction Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency. Yesterday, President Joseph R. Biden directed agencies to extend a federal moratorium on evictions and a moratorium on foreclosures on federally guaranteed mortgages in response to the coronavirus pandemic. This ML announces a moratorium of foreclosures and evictions for single family properties with FHA-insured mortgages through March 31, 2021.

The moratorium applies to all FHA Title II Single Family forward mortgages and Home Equity Conversion Mortgages (HECM), except for those secured by vacant or abandoned properties.

This ML also extends the deadlines for the first legal action and reasonable diligence timelines for 120 days from the date of expiration of this moratorium for FHA-insured Single Family mortgages, except as noted above.

• View all HUD Press Releases at: https://www.hud.gov/press
• View all Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
• View all Single Family policy waivers under the “Single Family” subhead at:
https://www.hud.gov/program_offices/administration/hudclips/waivers/
• View the online or PDF versions of the Single Family Housing Policy Handbook 4000.1 at:
https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

Need Support? Contact the FHA Resource Center.

• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at:
www.hud.gov/answers.
• E-mail the FHA Resource Center at: answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
• Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

Fannie Mae: SVC-2021-01: Servicing Guide Updates

Posted on by Safeguard

Investor Update
January 20, 2021

Source: Fannie Mae

The Servicing Guide has been updated to include changes to the following:

▪ Automatic reclassification time frame for delinquent MBS mortgage loans*: incorporates Lender Letter LL-2020-13, which
extended automatic reclassification triggers from four to 24 months for most delinquent MBS mortgage loans.

▪ Update to delinquency status reporting for a disaster payment deferral*: eliminates the requirement for reporting a
delinquency status code for a disaster payment deferral if the mortgage loan is brought current.

▪ Miscellaneous update: updates our policies on remote online notarizations for the purpose of servicing or modifying a
mortgage loan.

*Policy change not applicable to reverse mortgage loans.

To access full announcement, please click the source link above.

Freddie Mac: FHLMC Guide Bulletin 2021-3: Moratorium Extension

Posted on by Safeguard

Investor Update
January 20, 2021

Source: Freddie Mac

This Guide Bulletin announces an extension of the COVID-19 foreclosure moratorium.

EFFECTIVE DATE

All of the changes announced in this Bulletin are effective immediately unless otherwise noted.

EXTENSION OF THE COVID-19 FORECLOSURE MORATORIUM

We are extending the foreclosure moratorium announced in Guide Bulletins 2020-4, 2020-10, 2020-16, 2020-25, 2020-34 and 2020-46. Servicers must suspend all foreclosure actions, including foreclosure sales, through February 28, 2021. This includes initiation of any judicial or non-judicial foreclosure process, move for foreclosure judgment or order of sale. This foreclosure suspension does not apply to Mortgages on properties that have been determined to be vacant or abandoned.

RESOURCES

We encourage Servicers to review the following COVID-19 resources:

GUIDE UPDATES

The Guide will not be updated at this time to reflect these changes.

CONCLUSION

If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call the Customer Support Contact Center at 800-FREDDIE.

Sincerely,

Bill Maguire
Vice President, Servicing Portfolio Management

USDA: Foreclosure and Eviction Moratorium Extended

Posted on by Safeguard

Investor Update
January 20, 2021

Source: USDA

Proposed NY Bill Requires Maintenance of Tenant-Occupied Properties

Posted on by Safeguard

Legislation Update
January 13, 2021

Source: The New York State Senate (S1579 full bill text)

Sponsor Memo

BILL NUMBER: S1579
SPONSOR: PARKER

TITLE OF BILL:

An act to amend the real property actions and proceedings law, in relation to requiring a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith

PURPOSE:

To require plaintiffs in mortgage foreclosure actions to Act in good faith at the commencement of a foreclosure action and throughout the foreclosure process

SUMMARY OF PROVISIONS:

Section 1307 of the real property, actions and proceedings law is amended to require plaintiffs from the commencement of foreclosure proceedings to obtain a mortgage foreclosure in ‘good faith’ and defines ‘good faith’ as honesty in fact and the observance of reason able standards of fair dealing.

JUSTIFICATION:

Struggling financial situation a financial crises causes citizens to fall behind on their mortgages and in many instances leave or abandon their homes. In some instances the foreclosing institution will commence the process but not follow through or delay taking control of the property which in some instances can cause the property to become unmaintained and blighted in the surrounding neighborhoods. This law would obligate mortgage foreclosure plaintiffs to act in good faith when it commences a foreclosure and throughout the foreclosure process. Financial institutions cannot delay in taking action in controlling and providing upkeep on the vacant dwelling itself.

FHFA: Foreclosure and REO Eviction Moratorium Extended

Posted on by Safeguard

Investor Update
January 19, 2020

Source: FHFA

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until February 28, 2021.  The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on January 31, 2021.

“To keep our communities safe, and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratorium,” said Director Mark Calabria.

Currently, FHFA projects additional expenses of $1.4 to $2 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. FHFA continues to monitor the effect of the foreclosure and eviction moratorium on borrowers, the Enterprises and their counterparties, and the mortgage market and extend or sunset its policies based on the data and health risk.

The Enterprises continue to offer comprehensive loss mitigation programs for borrowers with eligible hardships. These programs, which were established pre-pandemic and have helped more than 4.5 million families stay in their home, will remain available even when COVID-19 forbearance flexibilities end.

Under the comprehensive loss mitigation programs, qualified borrowers with a financial hardship that affects their ability to pay their mortgage may be eligible for temporary forbearance of up to 12 months, whether their hardship was caused by COVID-19 or not. Qualified borrowers can also obtain loan modifications to assist their ability to resume regular monthly payments once their hardship is resolved.

Contacts:

​Media: Raffi Williams Raffi.Williams@FHFA.gov / Adam Russell Adam.Russell@FHFA.gov

HUD Face-to-Face: Is it a Condition Precedent?

Posted on by Safeguard

Industry Update
January 15, 2021

Source: DS News

Editor’s note: This story originally appeared in the January edition of DS News. 

Florida’s Fourth District Court of Appeals has recently issued two new opinions concerning the “HUD Face-to-Face Provision.”

Both actions involved the involuntary dismissal of foreclosure cases at trial based upon the lender’s failure to present prima facie evidence showing it complied with 24 C.F.R 203.604(b), specifically those minimum actions required to comply with the reasonable efforts expectation of the rule when a face-to-face interview has not been conducted. (It should be noted that Malcolm Harrison was the appellee in both cases and the servicer prevailed in both cases by overturning the circuit courts’ ruling.) 24 C.F.R 203.604(d) illuminates the specific actions required to comply with the reasonable efforts exception: (d) A reasonable effort to arrange a face-to-face meeting with the mortgagor shall consist at a minimum of one letter sent to the mortgagor certified as dispatched by the United States Postal Service (USPS). A reasonable effort shall also include at least one trip to see the mortgagor at the mortgaged property unless the mortgaged property is more than 200 miles from the mortgagee, its servicer, or a branch office of either; or it is known that the mortgagor is not residing in the mortgaged property.

Based on the above rule, a lender must meet a two-prong test: (1) visit the borrower(s) at least once to attempt a face-to-face interview, and (2) demonstrate a letter was sent via USPS to the borrower(s) asking to schedule the face-to-face interview.

To access full article, please click the source link above.

Biden Nominates Rohit Chopra to Head CFPB

Posted on by Safeguard

Industry Update
January 18, 2021

Source: HousingWire

President-elect Joe Biden announced several appointments Monday, including FTC Commissioner Rohit Chopra to head the Consumer Financial Protection Bureau.

Chopra is a CFPB veteran, having previously served as assistant director, where he was the bureau’s top student loan watchdog. In 2011, the Secretary of the Treasury appointed him to serve as the CFPB’s student loan ombudsman, a new position established in the financial reform law. As one of Sen. Elizabeth Warren’s, D-Mass., first hires as she constructed the CFPB, Chopra was on the ground floor as the bureau was built. He has also served as special advisor at the U.S. Department of Education.

Chopra was confirmed unanimously by the Senate in 2018 for his current position at the FTC, where he pushed for aggressive remedies against lawbreaking companies.

“Our administration will hit the ground running to deliver immediate, urgent relief to Americans; confront the overlapping crises of COVID-19, the historic economic downturn, systemic racism and inequality and the climate crisis; and get this government working for the people it serves,” Biden said of Monday’s nominees. “These tireless public servants will be a key part of our agenda to build back better — and I am confident they will help make meaningful change and move our country forward.”

To access full article, please click the source link above.

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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.

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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.

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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.

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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.

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Business Development

Carrie Tackett

Business Development Safeguard Properties