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MReport: Top 30 Companies in Mortgage & Servicing

Posted on November 16, 2020 by Safeguard

Safeguard in the News
November 16, 2020

The industry has faced unprecedented challenges this year, but life and business continue even amid them. With this November edition, MReport is proud to continue its annual tradition of spotlighting the Top Companies in Mortgage & Servicing—with one important difference. When considering this year’s unexpected difficulties, and taking into account the quality of nominations received, this year a Top 25 list simply didn’t seem sufficient.

And so, it’s our pleasure to bring you the first-ever MReport Top 30 Companies in Mortgage & Servicing List.

The companies in the pages that follow have met the challenges this year has brought with the ideal blend of benefits, perks, culture, and atmosphere that sets them apart from the rest. In a year that many of us have spent working remotely, these are the companies whose team members made the case for organization being a great place to work.

The companies recognized are broken down into six categories— Lenders and Servicers, Government, Legal Providers, Minority- or Women-Owned Companies, Service Providers, and Tech Providers.

Read on to learn about the perks and benefits that keep their employees happy, their outreach within their communities through philanthropic causes and charities, and what they do to promote a positive and inclusive work environment.

As nominated by the employees who work within these organizations, here are MReport’s 2020 Top 30 Companies in Mortgage and Servicing.

FHA’s Response to a National Health Crisis

Posted on November 13, 2020November 13, 2020 by Safeguard

Industry Update
November 10, 2020

Source: DS News

This year’s National Property Preservation Conference featured keynote speaker Dror Oppenheimer, U.S. Department of Housing and Urban Development (HUD) Senior Advisor to the Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade. Oppenheimer, in the words of the conference moderators, “Provides expert advice… on the management of the FHA’s $1.3 trillion insurance portfolio of single-family mortgages, including asset management strategies, process improvement and technology implementation … ”

Oppenheimer began his address by outlining some of the Federal Housing Administration’s (FHA) initial responses to the COVID-19 crisis:

The FHA immediately put in place temporary provisions to minimize in-person contact between servicers and borrowers; it implemented the provisions of the CARES Act and it implemented functionality in its FHA Catalyst platform, the new FHA tech outlined in DS News’ October cover story.

“With widespread support from the industry we’ve used appropriations from Congress to build out the [Catalyst] platform,” he said. “It allowed us to quickly deploy new technology solutions to meet the constraints of doing new business during COVID-19.”

He said that the agency has continued to expand FHA Catalyst’s claims module for servicers.

“It started last year with capabilities to electronically submit supplemental claims. And it’s since evolved into other claim times, particularly our loss mitigation home retention claim types like our COVID-19 standalone partial claim.”

The COVID-19 Standalone Partial Claim is specifically designed to help homeowners with FHA insured mortgages to bring their mortgage payments current and come back to sustainable homeownership post forbearance. It, along with all other FHA home retention options, does not require the borrower to make a lump sum payment.

Other technological advancements are being implemented, he said, and the FHA has a “vision” of further improvement for the “near future.”

“We’re committed to continuing this work because it is the cornerstone upon which we can achieve,” he added. “So many of our goals to help FHA continue to serve low- and moderate-income and first-time homebuyers, to ensure that we operate FHA in a safe and sound manner, and to make it efficient for lenders and servicers to do business with us.”

He continued to forecast a better future, despite the industry unknowns discussed throughout the conference.

Southeast U.S. Experiences Widespread Flooding

Posted on November 13, 2020November 13, 2020 by Ashley Shepherd

Disaster Alert
November 12, 2020

Source: AccuWeather

Additional Resource:

WITN (River Flooding: Latest Crest Forecasts)

Approximate locations possibly sustaining structural damage/flooding:

North Carolina

– Charlotte (Mecklenburg County, 28202, 28204, 28206, 28208, 28213, 28269)
– Forbush (Yadkin County, 27055)
– Hiddenite (Alexander County, 28636)
*Major flooding reported at Hiddenite Family Campground
– Kannapolis (Cabarrus/Rowan Counties, 28081, 28082, 28083)
– Morganton (Burke County, 28655, 28680)
– Rocky Mount (Edgecombe/Nash Counties, 27801, 27802, 27803, 27804, 27815)
*Rain accumulation of 9.82 inches recorded
– Statesville (Iredell County, 28625, 28677, 28687)
– Wilson (Wilson County, 27893, 27894, 27895, 27896)
– Winston-Salem (Forsyth County, 27101, 27102, 27103, 27104, 27105, 27106, 27107, 27108, 27109, 27110, 27111, 27113, 27114, 27115, 27116, 27117, 27120, 27127, 27130, 27150, 27152, 27155, 27157, 27198, 27199)
*Hardest hit area
*Major flooding reported at Colonial Estates/Creekwood Apartments
– Yadkinville (Yadkin County, 27055)

South Carolina
– Fort Mill (York County, 29707, 29708, 29715, 29716)
*Concentrated home flooding reported on Regent Parkway
York (York County, 29745)

NOTE: This has not yet been declared a FEMA Disaster.

Floodwaters at Hiddenite Family Campgrounds in Alexander County, North Carolina rose to deadly levels as heavy rainfall, some it the result of Tropical Storm Eta, brought widespread flooding to the Southeast on Thursday. The deluge unleashed inches of rainfall within mere hours in some areas of the state, prompting water evacuations and washing out roadways and bridges.

Videos showed cars nearly submerged at the campground and one story homes turned into islands in the floodwaters from the South Yadkin River near the campground. One of the structures was submerged nearly up to its roof and others saw waters up to their windows. Debris ranging from campers to sheds floated down the swollen river, WCNC in Charlotte reported.

For full report, please click the source link above.

HUD: FHA INFO #20-83: Proposed Private Flood Insurance Rule

Posted on November 11, 2020November 11, 2020 by Ashley Shepherd

Investor Update
November 10, 2020

Source: HUD

Today, the Federal Housing Administration (FHA) posted on the FHA Single Family Housing Drafting Table its proposed rule, Acceptance of Private Flood Insurance for Federal Housing Administration (FHA)-InsuredMortgages (Docket No. FR6084-P-01), which will be published in the Federal Register at a future date. The proposed rule would — for the first time — allow the option for private flood insurance on FHA-insured properties located in Special Flood Hazard Areas (SFHAs). The proposed rule can be viewed on FHA’s Single Family Housing Drafting Table (SF Drafting Table). Interested stakeholders will have 60 days to provide comment using the methods specified in the proposed rule once it is published in the Federal Register. Read today’s Press Release.

FHA’s private flood insurance proposed rule would amend current FHA regulations to allow borrowers the option to purchase private flood insurance to satisfy the mandatory flood insurance requirement of the Flood Disaster Protection Act of 1973 (FDPA). Furthermore, FHA’s proposed rule would promote consistency with industry standards and reduce the regulatory restrictions on flood insurance for FHA-insured loans.

FHA recognizes the value of consistency across the housing market with respect to private flood insurance now that Federal regulators have published a final rule on private flood insurance acceptance. However, its proposed rule varies from the Federal regulators’ final rule on private flood insurance acceptance in several areas to ensure borrowers and the Mutual Mortgage Insurance Fund are best protected.

To ensure mortgagees and other interested stakeholders are prepared to provide comments at the appropriate time, FHA encourages its stakeholders to review the Acceptance of Private Flood Insurance for Federal Housing Administration (FHA)-Insured Mortgages proposed rule on the SF Drafting Table.

Once the private flood insurance proposed rule publishes in the Federal Register, FHA will communicate to stakeholders that the 60-day comment period has commenced and encourage them to submit their comments using the instructions outlined in the Federal Register posting.

Quick Links:
• View the Private Flood Insurance Federal Register proposed rule at:
https://www.hud.gov/program_offices/housing/sfh/SFH_policy_drafts
• View all HUD-issued Press Releases at: https://www.hud.gov/press

Resources
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-CALL-FHA (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.

FHFA: Deputy Director for the Division of Resolutions Announced

Posted on November 11, 2020 by Safeguard

Investor Update
November 9, 2020

Source: FHFA

Washington, D.C. — The Federal Housing Finance Agency (FHFA) today announced that Jason Cave joins the Agency as Deputy Director for the Division of Resolutions (DOR). He replaces DOR head Robert Fishman, who is retiring in December after a distinguished 20-year career in federal service.

“Robert’s leadership has been invaluable to me and to FHFA. His straight-forward advice and management of the conservatorships has helped keep the Enterprises accountable. He is the very definition of public trust,” said Director Mark Calabria. “I am excited to welcome Jason to FHFA where his deep well of experience and knowledge will help position FHFA for success now and into a post-conservatorship environment.”

Cave joins FHFA from the Federal Deposit Insurance Corporation (FDIC), where he served in various roles over the past 27 years, including as Senior Advisor to the Chairman and most recently as Senior Advisor to the Director of the Division of Complex Institution Supervision and Resolution. Cave helped establish the precursor to that Division, the Office of Complex Financial Institutions, which was created to administer new systemic resolution authorities including living wills.

Additionally, Cave has been an active participant in international policy and supervision initiatives and has been a member of the Basel Committee on Banking Supervision, where he negotiated the post-crisis reform package known as Basel III. Cave also served as Chairman of the Basel Committee’s Task Force on Simplicity and Comparability, which introduced key safeguards into international capital standards.

The Division of Resolution was previously named the Division of Conservatorship. In January 2020, the name was changed to reflect DOR’s primary and long-run function and to align FHFA with other safety and soundness regulators. As FHFA moves to responsibly end the conservatorships of Fannie Mae and Freddie Mac, DOR will continue to work with the Enterprises’ boards of directors and senior management to accomplish the goals of the conservatorships. DOR will also develop and oversee FHFA’s resolution responsibilities, such as living wills and other contingency plans that enable the Agency to resolve in a safe, sound, and timely manner issues related to financial stress, instability, and insolvency at FHFA’s regulated entities.

Contacts:

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

Fannie Mae: SVC-2020-06: Servicing Guide Updates

Posted on November 11, 2020November 11, 2020 by Safeguard

Investor Update
November 10, 2020

Source: Fannie Mae

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

▪ Disaster Payment Deferral*: updates to reflect changes previously announced in the Evaluation Notices and payment deferral agreement

▪ Miscellaneous revisions*: updates to terminology

* Policy change not applicable to reverse mortgage loans.

Disaster Payment Deferral

As stated in Announcement SVC-2020-05, we revised our Evaluation Notices and payment deferral agreement with regard to a borrower maintaining or losing HAMP “pay for performance” incentives to eliminate such action being tied to “good standing.” In follow-up to that announcement, we have updated D2-3.2-06, Disaster Payment Deferral accordingly.

Miscellaneous revisions

In multiple topics we have changed the term “curtailment” to “principal curtailment” for consistency across the Guide and in the Investor Reporting Manual, which has also been updated. (The topic dates were not updated.)

See the Servicing Guide for details about these updates.
Servicers who have questions about this Announcement should contact their Fannie Mae Account Team, Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643).
Have Guide questions? Get answers to all your policy questions, straight from the source. Ask Poli.

FEMA Declared Disaster Puerto Rico

Posted on November 6, 2020November 6, 2020 by Safeguard

FEMA Alert
November 5, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in Puerto Rico affected by severe storms and flooding that took place September 13, 2020. The following municipality has been approved for assistance:

Individual Assistance

Arecibo

Puerto Rico Severe Storms and Flooding (DR-4571)
*White House Press Release

FEMA Declared Disaster Puerto Rico: 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

Sliding Scale

Posted on November 5, 2020November 5, 2020 by Safeguard

Editorial
October 30, 2020

Source: Property Preservation Executive Forum (Fall 2020 Newsletter PDF)

Are you prepared to grow your property preservation services?

There is a famous quote that has been attributed to Abraham Lincoln that states, “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.” Whether or not he said it is up for debate, but nonetheless, it is interesting because it highlights the importance of being prepared. In this case, no matter how strong you are, if you do not prepare your ax by sharpening it, chopping down the tree will be nearly impossible.

The same can be applied to business, especially in the mortgage servicing and property preservation industry. Over the past few years, we have experienced a downturn in volume, allowing time to adjust business practices and prepare for fluctuations in the market. It also has given us an opportunity to adjust processes for the latest crisis, the COVID-19 pandemic.

COVID-19 and other major disasters have taught us that our playbook is always in need of modification, just like the 2008 housing crisis helped us prepare. We can plan for the future, but we have to maintain the flexibility to adjust when a curveball comes our way.

Planning is great when things go as predicted but being prepared is imperative for when things do not go as planned. Property preservation companies need to remain focused on what is next, relying on what we learned from prior events to be prepared for anything in the future.

Educate

An important factor in remaining prepared is educating your company on things like market conditions, lessons learned, government guidance and other key indicators that will signal change.

Ensuring you understand current market conditions will help drive business needs. Things like foreclosure and eviction forbearances, unemployment, elections, and COVID-19 relief bills can factor into where the economy currently is headed. It also indicates potential volume fluctuations for defaulted loans. Successful property preservation companies need to have the ability to scale up to accommodate spikes in volumes.

Another method for remaining equipped is establishing protocols based on lessons learned from past experiences. The 2008 housing crisis taught mortgage servicers and property preservation companies that routine inspections and being flexible enough to scale your business were necessary. It also highlighted the need for maintaining close partnerships with municipalities and code enforcement officials across the country to ensure potential violations were addressed in a timely manner. The crisis exposed some of the weaknesses within the already-established systems and processes that needed to be altered in the event something like this would happen again.

Stay informed of updates from the investors and government-sponsored enterprises (GSEs) is most critical in remaining prepared. Things can happen quickly and change often when volumes increase or there is a significant change in the market. Things to be aware of include inspection requirements and new servicing guidelines, like those recently released by the FHA. Additionally, try to identify the key indicators that will signal any changes in the market. You will need to know where to find that information and how to apply it to your day-to-day operations.

Assess and Understand

Once the education part of preparedness is complete, servicers need to assess your current operations and understand what changes need to be implemented to remain prepared. Ask questions like:

– What is our current property preservation strategy?
– Do we have the right allowables in place?
– Do we have the right or enough vendors?
– Do our vendors understand current conditions?
– How are our vendors performing today?
– What are the steps and how long does it take to on-board a new vendor in my organization?
– Does our field service provider have a plan to scale capacity?

These items are critical when scaling up in the event of a significant increase in volume. Your property preservation provider must be able to recruit qualified vendors, train them properly and get them in the field quickly. The company also needs to have the proper controls in place to ensure work is completed on time and with consistent quality. The most innovative technology must be in place to ensure contractors are at the correct properties and have the ability to report results quickly.

Maintaining good relationships and open lines of communication are other dynamics to consider when preparing for market shifts. Communicate openly and often to ensure your property preservation company has all of the information it needs to protect your portfolio. Customer service is always imperative, but especially in times of change. Check in with your contacts and collaborate on process improvement. Maybe they can help you sharpen that ax to remain prepared for anything.

Michael Greenbaum is the COO for Safeguard Properties, the mortgage field services industry leader—inspecting and preserving vacant and foreclosed properties across the U.S. With a focus and investment in innovative technologies, Safeguard provides the highest quality service to our clients by proactively developing industry best practices and quality control procedures. We pride ourselves in our dedication to working with community leaders and officials to eliminate blight and stabilize neighborhoods across the country.

Tropical Storm Eta Makes Second Florida Landfall

Posted on November 5, 2020March 10, 2021 by Safeguard

Updated 3/3/21: FEMA issued a Presidential Major Disaster Declaration for areas in North Carolina affected by Tropical Storm Eta November 12-15, 2020.

North Carolina Tropical Storm Eta (DR-4588)

Updated 11/12/20: The Weather Channel issued a report providing the latest on impacts from Tropical Storm Eta, which made a second landfall in Florida and is spreading high winds and flooding rain to multiple areas.

Tropical Storm Eta Floods Florida Homes, Businesses and Shuts Down Streets

Approximate locations reportedly sustaining structural damage/flooding:

Florida

– Bradenton Beach (Manatee County, 34217, 34218)
– Cedar Key (Levy County, 32625)
*Landfall zone
– Gulport (Pinellas County, 33707, 33711)
– Longboat Key (Manatee, Sarasota Counties, 34228)
*Concentrated home flooding reported in The Village area (off Russell St.) and along St. Jude Dr.
– Madeira Beach (Pinellas County, 33708, 33738)
– Oldsmar (Pinellas County, 34677)
*Home flooding reported on Shore Dr. E. (storm surge/rain)
– Safety Harbor (Pinellas County, 34695)
– St. Pete Beach (Pinellas County, 33706, 33707, 33736)
– St. Petersburg (Pinellas County, 33702, 33705)
*Reported impacted ZIP codes only
*Serious flooding reported at Twin City Mobile Home Park/Trak Motel Apartments
– Shore Acres/St. Petersburg (Pinellas County, 33703)
– Tampa (Hillsborough County, 33606, 33611, 33614 33629)
*Reported impacted ZIP codes only
*Possible home flooding in neighborhoods along Bayshore Blvd.
– Venice (Sarasota County, 34284, 34285, 34286, 34287, 34290, 34291, 34292, 34293)
– Treasure Island (Pinellas County, 33706, 33740)

Updated 11/11/20: FEMA issued an Emergency Declaration for areas in Florida affected by Hurricane Eta beginning on November 7, 2020 and continuing.

Florida Hurricane Eta (EM-3551-FL)

Associated County ZIP Code List (13 Counties)

Updated 11/11/20: Florida Governor Ron DeSantis amended his original state of emergency declaration to include several additional counties facing direct impacts from Hurricane Eta.

Executive Order 20-278

Associated County ZIP Code (Updated)

Updated 11/11/20: The Weather Channel published a report providing the latest forecast information for Hurricane Eta, which is tracking toward the Big Bend region of Florida.

Hurricane Eta Spreading Heavy Rainfall, Gusty Winds Into Florida Gulf Coast

Updated 11/9/20: The Weather Channel issued a report providing the latest updates on Tropical Storm Eta, which made landfall in the Florida Keys and lashed the area with torrential rain.

Tropical Storm Eta’s Drenching Rains Turn Florida Streets Into Rivers

Additional Resource:

Local10.com (Water invading neighborhoods across Broward County due to Eta)

Approximate locations reportedly sustaining structural damage/flooding:

Florida

– Fort Lauderdale (Broward County, 33308)
*Approximate impacted ZIP code only
– Key Largo (Monroe County, 33037)
*Tree on home
– Matecumbe Key (Monroe County, 33036)
*Landfall zone
– Miami (Miami-Dade County, 33150)
*Impacted ZIP code only
*Tree on home (NW 4th Ct.)
– Miami Gardens (Miami-Dade County, 33014, 33015, 33017, 33054, 33055, 33056, 33169, 33179)
*Concentrated home flooding appears to be in 33056 ZIP code
– River Oaks/Fort Lauderdale (Broward County, 33312, 33315)

Updated 11/7/20: Florida Governor Ron DeSantis declared a state of emergency for eight counties in anticipation of Tropical Storm Eta.

Executive Order Number 20-277

Associated County ZIP Code List

Updated 11/6/20: The Weather Channel issued a report outlining the latest forecast for Tropical Depression Eta, which currently is tracking toward South Florida and could impact the area as a tropical storm.

Eta Expected to Strengthen to a Tropical Storm and Track Toward South Florida Early Next Week

Disaster Alert
November 5, 2020

Source: The Weather Channel

NOTE: This has not yet been declared a FEMA Disaster.

At a Glance

Eta has weakened to a tropical depression over Central America.
The system is expected to approach Florida with rain, wind and high surf early next week.
Until then, life-threatening inland flooding will persist for days in Central America.

Eta is expected to re-strengthen over the Caribbean Sea this weekend and could approach South Florida early next week after bringing flooding rainfall to Central America over the next few days.

Eta has become very disorganized due to its interaction with the mountainous terrain of Central America. Catastrophic, life-threatening flash flooding and river flooding could occur in some parts of Central America through this weekend, according to the NHC. Landslides are possible in areas with mountainous terrain.

Eta could dissipate for a time as it tracks farther inland through Central America, but that doesn’t mean the forecast for this system comes to an end.

The remnant spin and energy from Eta are expected to emerge over the northwest Caribbean Sea on Friday. That’s when Eta could reorganize into a depression or storm, as depicted in the latest forecast above from the National Hurricane Center.

Eta will be steered northeastward initially once it moves back over the northwest Caribbean beginning Friday. That’s because Eta will be pushed in that direction by the interaction with the counterclockwise flow around an upper-level low-pressure system located in the Gulf of Mexico, as seen in the graphic below.

For full report, please click the source link above.

MHA: HAMP Update: Revised Official Monthly Reporting Job Aids Posted

Posted on November 3, 2020 by Safeguard

Investor Update
October 30, 2020

Source: MHA

The Official Monthly Reporting (“OMR”) and Reporting OMR for Government Loans job aids have been updated to include clarifications for “Federally Declared Disaster (FDD)/National Emergency Forbearance Plan Exit Determination of Modification Status and Reporting” guidance.

The revised documents are available at the links below, and can be viewed within the Learning Center Tab under Job Aids in the HAMP Section on HMPadmin.com.

• Official Monthly Reporting – OMR
• Reporting OMR for Government Loans