Safeguard Properties

VA: Circular 26-21-05: Extended COVID-19 Foreclosure and Eviction Relief

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Investor Update
February 16, 2021

Source: VA

Additional Resource:

Circular 26-21-04: Approving Forbearance Requests for Veterans Affected by COVID-19

1. Background and Purpose. Under chapter 37 of title 38, United States Code, and Executive Orders related to the COVID-19 national emergency, VA has taken numerous steps to help Veterans who are experiencing financial hardships, directly or indirectly, as a result of the COVID-19 pandemic. The purpose of this Circular is to extend foreclosure and eviction relief on properties secured by VA-guaranteed loans, including those previously secured by VA-guaranteed loans but currently in VA’s Real Estate Owned (REO) portfolio.

2. Moratorium on Foreclosure and Eviction. Due to the ongoing COVID-19 national emergency and its impact on Veteran borrowers, all properties secured by VA-guaranteed loans, including those previously secured by VA-guaranteed loans but currently in VA’s REO portfolio, are subject to a moratorium on foreclosure and eviction through June 30, 2021. Except with respect to a vacant or abandoned property, the moratorium applies to the initiation of foreclosures, the completion of foreclosures in process, and evictions.

3. Questions. Any questions regarding this Circular should be submitted via email to
valerihelpdesk.vbaco@va.gov.

4. Rescission: This Circular is rescinded July 21, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director, Loan Guaranty Service

HUD: Extensions and Expansions of COVID-19 Homeowner Relief

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Investor Update
February 16, 2021

Source: HUD

Additional Resource:

Mortgagee Letter (ML) 2021-05

FHA INFO #21-09: Extensions of Single Family Foreclosure and Eviction Moratorium, Start Date of COVID-19 Initial Forbearance, and Home Equity Conversion Mortgage (HECM) Extension Period; Expansion of COVID-19 Loss Mitigation Options 

Extensions and expansions support the immediate and ongoing needs of homeowners who are experiencing economic impacts related to the COVID-19 pandemic.

 

WASHINGTON – To provide urgent economic relief to homeowners impacted by COVID-19, today the U.S. Department of Housing and Urban Development (HUD) announced extensions of the Federal Housing Administration’s (FHA) foreclosure and eviction moratoriums, as well as an extension of the initial start date of a COVID-19 Forbearance. Forbearance is an option mortgage servicers use to provide homeowners with a pause to their monthly payments for a limited period of time during a COVID-19 induced hardship.

The FHA has extended the length of forbearance for some borrowers, and will allow more borrowers access to COVID-19 loss mitigation options. These measures will provide relief to the nation’s homeowners with FHA-insured single family mortgages who continue to suffer financially because of the COVID-19 pandemic.

Additionally, the Office of Public and Indian Housing is planning to announce similar relief for Native American and Native Hawaiian homeowners assisted under the Section 184 Indian Home Loan Guarantee Program and the Section 184A Native Hawaiian Housing Loan Guarantee Program.

HUD’s actions align with President Biden’s priority to provide economic relief and support to working families by providing urgently-needed housing relief for homeowners and renters.

“As President Biden has made clear, it is urgent that we help homeowners throughout the nation who are struggling financially from this unprecedented national emergency,” said Acting HUD Secretary Matthew Ammon. “The steps we are taking today will provide both immediate relief to those in desperate need of assistance and help more homeowners keep their homes and resume their payments when the pandemic subsides.”

The extension of the foreclosure and eviction moratoriums applies to all homeowners with an FHA-insured forward or Home Equity Conversion Mortgage (HECM) loan, and homeowners with a Section 184 or Section 184A mortgage loan, except for properties that are legally vacant or abandoned, through June 30, 2021. HUD prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions during the moratoriums. HUD also extended the deadlines for the first legal action and reasonable diligence timeframes for servicers to 180 days from the date of expiration of the foreclosure and eviction moratorium.

To address the ongoing need to expand mortgage payment assistance solutions for homeowners, for all FHA-insured forward mortgages, today HUD:

• Extended the timeframe for homeowners to request the start of a COVID-19 Forbearance from their mortgage servicer through June 30, 2021. This extension provides homeowners with additional time to request a forbearance from their mortgage servicer.

• Expanded the COVID-19 Forbearance to allow up to two forbearance extensions of up to three months each for homeowners who requested a COVID-19 Forbearance on or before June 30, 2020. These additional forbearance extensions will provide relief to homeowners in this situation who will be nearing the end of their maximum 12-month forbearance period and have not yet stabilized their financial situation.

• Expanded the use of FHA’s streamlined COVID-19 loss mitigation home retention and home disposition options to all homeowners who are behind on their mortgage payments by at least 90 days. This expansion will require mortgage servicers to assess more homeowners for a streamlined waterfall of loss mitigation home retention options, starting with FHA’s COVID-19 Standalone Partial Claim.

To assist seniors with HECMs, FHA has extended the timeframe for the start of an initial COVID-19 HECM extension through June 30, 2021. For HECMs that entered an initial extension period on or before June 30, 2020, up to two additional three-month extension periods are available.

HUD urges all homeowners who are able to make their mortgage payments to continue to do so. However, homeowners who need COVID-19 mortgage payment assistance should contact their mortgage servicer immediately or consider contacting a HUD-approved housing counseling agency. Homeowners may also visit HUD’s Coronavirus Relief for Homeowners web page or HUD’s COVID-19 Resources for Native Americans webpage for additional information and resources.

Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.

Waterspout Comes Ashore as Quick-Hitting Tornado in Florida

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Disaster Alert
February 14, 2021

Source: CBS 10 Tampa Bay

Approximate location (according to media outlets) sustaining structural damage:

Florida

– Boca Ciega Point (St. Petersburg, 33708)
*Property damage reportedly confined to Boca Ciega Point Boulevard North, near Duhme Road.

The National Weather Service found a “narrow swath” of EF-0 tornado damage, with peak winds estimated at 75 mph, in the area of Boca Ciega Point Boulevard.

ST. PETERSBURG, Fla. — Morning thunderstorms rocked parts of the Tampa Bay area early on Valentine’s Day, with a tornado damaging several condominiums along the Intracoastal Waterway.

It appeared confined in a gated community on Boca Ciega Point Boulevard N. near Duhme Road, according to a National Weather Service storm report. Meteorologists issued a tornado warning just after 1 a.m. for a storm in this area and much of central Pinellas County. That warning has since expired.

A National Weather Service meteorologist who conducted a survey concluded a strong thunderstorm briefly became a supercell and formed a waterspout. Once it crossed land and moved onshore, it became a tornado and caused “a very narrow swath” of damage along Boca Ciega Point Boulevard N., the NWS said.

For full report, please click the source link above.

FEMA Emergency Declaration Texas Severe Winter Storm

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FEMA Alert
February 14, 2021

FEMA issued an Emergency Declaration for areas in Texas affected by a severe winter storm beginning on February 11, 2021 and continuing. FEMA is authorized to identify, mobilize, and provide at its discretion, equipment and resources necessary to alleviate the impacts of the emergency.  Emergency protective measures for mass care and sheltering and direct federal assistance will be provided at 75% federal funding.

Texas Severe Winter Storm (EM-3554)

FEMA Declared Disaster Texas: ZIP Code List

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

PA Registration Bill Would Require Foreclosed Property Maintenance

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Legislation Update
February 3, 2021

Source: Pennsylvania General Assembly (HB 372 Full Text/Info)

MEMORANDUM

Posted: December 11, 2020 09:26 AM
From: Representative Austin A. Davis
To: All House members
Subject: Foreclosed Property Maintenance
Neglected properties are a danger. Not only an eyesore, abandoned properties are a haven for criminal activity, a potential fire hazard, and a sanitary problem for the whole neighborhood. Foreclosing entities have a responsibility to maintain the properties on their books and must be held liable in their dereliction of duty.

My legislation will create the Property Foreclosure Maintenance Act. This bill will require registration of foreclosed properties with the local municipality. Once registered, foreclosing entities will be held responsible for properly maintaining foreclosed properties under their care.

Proper upkeep of deserted properties is essential in keeping Pennsylvania neighborhoods clean and safe for its residents. It further encourages pride of ownership and increases the attractiveness of a property which aids in attracting purchasers.

Keeping these properties habitable and marketable not only stabilizes property values, it ensures their likely sale to deserving families who will love and maintain them. Well cared for homes create healthy communities. Please join me in preventing blight and promoting safe, well-maintained neighborhoods for all Pennsylvanians.
View Attachment

Freddie Mac: FHLMC Guide Bulletin 2021-05: Servicing Updates

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Investor Update
February 10, 2021

Source: Freddie Mac

This Guide Bulletin announces:

Duty to Serve:

• Exhibit 40 updates

Escrow Requirements

• Greater specificity on Escrow account requirement

Community Land Trust Mortgages

• Requirement flexibilities for Community Land Trust Mortgages

Depository Accounts risk threshold

• Updates to depository accounts risk threshold

Electronic Payment Deferral Agreement

• Updates to the delivery requirements of Electronic Payment Deferral Agreement

Additional Guide updates

• Further updates as described in the Additional Guide updates section of this Bulletin

EFFECTIVE DATE

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

 

DUTY TO SERVE: EXHIBIT 40 UPDATES

As announced in Guide Bulletin 2018-9, we are currently partnered with NextJob®, a national employment solution company, to help Servicers assist eligible homeowners with Home Possible® and HFA Advantage® Mortgages in specific high-needs areas who experience employment challenges.

We are updating Guide Exhibit 40, Duty to Serve High-Need Areas according to the most recent annual updates from the FHFA. These updates impact what areas are eligible for participation with the NextJob re-employment services as outlined in Guide Section 9102.4(c).

Guide impact: Exhibit 40

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

Freddie Mac: FHLMC Guide Bulletin 2021-06: Temporary Servicing Guidance

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Investor Update
February 10, 2021

Source: Freddie Mac

Freddie Mac has published several Guide Bulletins in 2020 and 2021 with guidance for assisting Borrowers who have been impacted by a COVID-19 hardship. As part of our continuing effort to support Servicers in their work to assist Borrowers who have a hardship due to COVID-19, we are announcing an extension of the COVID-19 foreclosure moratorium and temporary updates to forbearance plans for Borrowers with a COVID-19 hardship and to the COVID-19 Payment Deferral.

 

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 last announced in Guide Bulletin 2021-3. Servicers must suspend all foreclosure actions, including foreclosure sales, through March 31, 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.

COVID-19 FORBEARANCE PLAN

To assist some Borrowers who enrolled in the COVID-19 forbearance plan in early 2020 and have reached the end of their 12-month term without having resolved their hardship and may need additional forbearance of their monthly Mortgage payments, we are extending the allowable term of the COVID-19 forbearance in accordance with the temporary requirements described in the table below for Borrowers who:

  • Have a COVID-19 related hardship; and
  • Are on an active forbearance plan for a COVID-19 hardship as of February 28, 2021
To access full release, please click the source link above.

FHFA: Extended Foreclosure and REO Eviction Moratoriums

Posted on by Safeguard

Investor Update
February 9, 2021

Source: FHFA

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until March 31, 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 February 28, 2021.

FHFA also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional forbearance extension of up to three months. Eligibility for the extension is limited to borrowers who are on a COVID-19 forbearance plan as of February 28, 2021, and other limits may apply. Further, COVID-19 Payment Deferral for borrowers with an Enterprise-backed mortgage can now cover up to 15 months of missed payments. COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity.

“To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the Enterprises’ foreclosure and eviction extension,” said Director Mark Calabria.

Currently, FHFA projects expenses of $1.5 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 COVID-19 servicing policies on borrowers, the Enterprises and their counterparties, and the mortgage market.  FHFA may extend or sunset its policies based on the data and the health risk.

Contacts:

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

Take the Muncie Model of Land Banking Statewide

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Land Bank Update
February 5, 2021

Source: The Star Press

Additional Resource:

LegiScan (IN SB0236 Full Text/Info)

The Muncie Land Bank has successfully grown into a community asset for addressing the issue of property abandonment and vacancy. New pending legislation in the State Senate (Senate Bill 236) proposed by State Sen. Tim Lanane and supported by State Rep. Sue Errington could make the Muncie Land Bank even more effective and make the process of starting a land bank in other communities more transparent and efficient.

In 2016, Senator Lanane wrote state legislation that allows cities and counties to create land banks. The Muncie Land Bank used these laws to get started and over the past three years, through two mayoral administrations, our volunteer board and one staff member have received the support of elected officials on both side of the political aisle. It has grown into a nonprofit that can purchase or receive donated properties, maintain them and return them to private buyers who put them to productive use. Each of these steps helps improve local property values and increase the local property tax-base.

For full article, please click the source link above.

Grand Island Officials Consider Creating ‘Land Bank’

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Land Bank Update
January 19, 2021

Source: The Grand Island Independent

The city of Grand Island could be creating its own “land bank.”

A land bank is a quasi-governmental entity used to acquire tax delinquent and dilapidated properties and to put them back into productive use.

Omaha has had a land bank since 2014.

A bill approved in August by the Nebraska Legislature allows other Nebraska cities to create them.

“Up until just recently, when LB424 went into effect, Omaha was the only city in the state that had created one and had the authority to create one,” Regional Planning Director Chad Nabity said.

A land bank board would be appointed by the mayor and approved by the City Council.

As a separate entity, it can get separate financing to acquire tax delinquent properties.

It then may cancel the taxes on those properties to put them back on the market in a way that they don’t have to make money trying to resell them.

“They can undercut the cost and subsidize the cost of clearing that property, or whatever else needs to be done, so somebody can then acquire the property and rebuild on it or fix up the house, or whatever, depending on how bad the property really is,” Nabity said.

A land bank also has the ability to receive properties from individuals or banks that may have some of these problems, but are not tax delinquent.

“The individual may be looking for a tax benefit and sees that it may be more of a tax benefit to them than keeping the property,” he said.

No action has been taken yet toward creating a land bank in Grand Island.

Community Redevelopment Authority and the Grand Island Area Economic Development Corp. are partnering to bring in consultant Marty Barnhart, a former Omaha Land Bank director, to determine if Grand Island would benefit from a land bank.

“Our first blush is to bring Marty in and discuss with him the ways we think we can use it, the way it was used in Omaha, and, before we make a decision that we’re going to even consider forming a land bank, whether there’s enough benefit to doing it,” Nabity said.

For full article, please click the source link above.