Page 173 – Safeguard Properties

FEMA Declared Disaster North Carolina

Posted on October 15, 2020January 14, 2021 by Safeguard

FEMA Alert Update
January 13, 2021

FEMA issued an update to a Presidential Major Disaster Declaration for areas in North Carolina affected by Hurricane Isaias from July 31 to August 4, 2020. The following additional county has been approved for assistance:

Public Assistance

Lenoir

North Carolina Hurricane Isaias (DR-4568 Amendment 1)

FEMA Declared Disaster North Carolina: ZIP Code List

FEMA Alert
October 14, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in North Carolina affected by Hurricane Isaias from July 31 to August 4, 2020. The following counties have been approved for assistance:

Public Assistance

Beaufort
Bertie
Brunswick
Carteret
Chowan
Columbus
Craven
Hertford
Hyde
Jones
New Hanover
Onslow
Pamlico
Pender
Pitt

North Carolina Hurricane Isaias (DR-4568)

FEMA Declared Disaster North Carolina: 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

Freddie Mac: FHLMC Guide Bulletin 2020-39: Servicing Updates

Posted on October 14, 2020October 14, 2020 by Safeguard

Investor Update
October 14, 2020

Source: Freddie Mac

This Guide Bulletin announces:

Electronic Payment Deferral Agreement

▪ Requirements for eSignatures on Electronic Payment Deferral Agreements

Transfers of Ownership and assumptions

▪ Expanded requirements for Transfers of Ownership

Escrow requirements

▪ New requirement for Servicers to have a written policy in place for waiving an Escrow account – February 1, 2021

Eligible Disasters

▪ Guide changes for the previously announced Disaster Payment Deferral – October 1, 2020

▪ Guide changes related to placing a Borrower who is impacted by an Eligible Disaster in a forbearance plan

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.

Fannie Mae: Lender Letter LL-2021-02: Impact of COVID-19 on Servicing

Posted on October 14, 2020June 30, 2021 by Safeguard

Updated 6/30/21: Fannie Mae updated provisions regarding the suspension of foreclosure-related activities and filing motions for relief from the automatic stay in certain bankruptcy cases.

Lender Letter LL-2021-02

Updated 6/24/21: Fannie Mae updated LL-2021-02 to extend the existing suspension of certain foreclosure-related activities through July 31, 2021.

Lender Letter LL-2021-02

Updated 2/25/21: Fannie Mae updated LL-2021-02 to extend the existing suspension of certain foreclosure-related activities through June 30, 2021.

Lender Letter LL-2021-02

Updated 2/10/21: Fannie Mae updated LL-2021-02 to extend the existing suspension of certain foreclosure-related activities through March 31, 2021.

Lender Letter LL-2021-02

Updated 1/20/21: Fannie Mae updated LL-2020-02 to extend the existing suspension of certain foreclosure-related activities through February 28, 2021.

NOTE: The document will now be known as LL-2021-02.

Lender Letter LL-2021-02

Updated 12/9/20: Fannie Mae updated LL-2020-02 to include a temporary mortgage insurance termination policy change to waive certain payment history requirements for borrowers who have experienced a financial hardship related to COVID-19, and to extend the existing suspension of certain foreclosure-related activities to Jan. 31, 2021.

Lender Letter LL-2020-02

Investor Update
October 14, 2020

Source: Fannie Mae

We are actively monitoring reports about the spread of COVID-19 (coronavirus) in the United States and understand that there are concerns about its potential impact on borrowers. At the direction of the Federal Housing Finance Agency (FHFA) and in alignment with Freddie Mac, we are communicating temporary policies in this Lender Letter to enable servicers to better assist borrowers impacted by COVID-19. The policies in this Lender Letter are effective immediately and are effective until Fannie Mae provides further notice, unless otherwise stated.

We are releasing information to our servicers as quickly as possible and will update and republish this Lender Letter as new guidance becomes available.

Additions to Lender Letter on Jul. 15, 2020, updated Oct. 14, 2020

▪ Disbursing insurance loss proceeds: Clarifying servicer requirements related to disbursing insurance loss proceeds for
borrowers impacted by COVID-19.
▪ Impact of COVID-19 on Fannie Mae Home Affordable Modification Program (HAMP) ”Pay for Performance” incentives: Clarifying when a borrower on a COVID-19 related forbearance plan maintains good standing.
UPDATED Oct. 14, 2020 to clarify when a borrower impacted by COVID-19 remains eligible for any future HAMP “Pay for Performance” incentives.

Fannie Mae: Lender Letter LL-2021-07: COVID-19 Payment Deferral

Posted on October 14, 2020June 30, 2021 by Safeguard

Updated 6/30/21: Fannie Mae adjusted the terms for a Flex Modification with reduced eligibility criteria for COVID-19 impacted borrowers to provide an opportunity to reduce their interest rate, regardless of the mortgage loan’s mark-to-market loan-to-value ratio.

Lender Letter LL-2021-07

Updated 2/25/21: Fannie Mae updated COVID-19 payment deferral eligibility criteria to:

▪ Permit the mortgage loan to be less than or equal to 18 months delinquent as of the date of evaluation, and
▪ Eliminate the limit of one COVID-19 payment deferral and instead limit the COVID-19 payment deferral to a cumulative deferral of 18 months of past-due principal and interest (P&I) payments.

Lender Letter LL-2021-07

Updated 2/10/21: Fannie Mae updated COVID-19 payment deferral eligibility criteria to permit a mortgage loan to be less than or equal to 15 months delinquent as of the date of evaluation. Additionally, the new criteria eliminates the limit of one payment deferral and instead limits the COVID-19 payment deferral to a cumulative deferral of 15 months of past-due principal and interest payments.

Lender Letter LL-2021-07

NOTE: The document will now be known as LL-2021-07.

Updated 11/18/20: Fannie Mae revised Lender Letter LL-2020-07 to eliminate the requirement for reporting a delinquency status code for a COVID-19 payment deferral if the mortgage loan is brought current.

Lender Letter LL-2020-07

Investor Update
October 14, 2020

Source: Fannie Mae

With Lender Letter LL-2020-05, Payment Deferral, we announced payment deferral, a new retention workout option jointly
developed with Freddie Mac at the direction of the Federal Housing Finance Agency (FHFA). That workout option was created to assist borrowers who became delinquent due to a short-term hardship that has since been resolved.

In response to the COVID-19 pandemic and servicer feedback, we are introducing COVID-19 payment deferral, a new workout
option specifically designed to help borrowers impacted by a hardship related to COVID-19 return their mortgage to a current
status after up to 12 months of missed payments. Designed to be simple and efficient for both servicers and borrowers, this
solution is for borrowers who have completed a COVID-19 related forbearance plan, or who have a confirmed but resolved COVID19 financial hardship. COVID-19 payment deferral was jointly developed with Freddie Mac at the direction of FHFA. COVID-19 payment deferral offers servicers:

▪ A solution that is simple to explain to borrowers, as the amount of their delinquency moves into a non-interest bearing
balance, due and payable at maturity of the mortgage loan or earlier payoff; and all other terms of the mortgage remain
unchanged.
▪ No trial period, resulting in fewer borrower touchpoints than required for modifications.
▪ An efficient automated process through Servicing Management Default Underwriter™ for evaluation and decisioning case
submissions.

While COVID-19 payment deferral is similar to the recently announced payment deferral, we have made several
enhancements to assist borrowers who have a COVID-19 related hardship. Key differences include:

▪ The borrower has experienced a financial hardship resulting from COVID-19 that impacted their ability to make their
monthly mortgage loan payment, which has been resolved.
▪ The mortgage loan must have been current or less than two months delinquent as of Mar. 1, 2020, the effective date of the
National Emergency declaration related to COVID-19.
▪ The mortgage loan must be equal to or greater than one month delinquent but less than or equal to 12 months delinquent
as of the date of evaluation.
▪ Certain eligibility criteria are not applicable, such as time from mortgage loan origination and rolling delinquency
parameters.
▪ The servicer must defer the delinquent principal and interest payments (P&I) together with any allowable servicing
advances paid to third parties as a result of the delinquency into the non-interest bearing balance.

Updates to Lender Letter on Oct. 14, 2020

▪ Clarifying when a borrower who accepts a COVID-19 payment deferral remains eligible for any future HAMP “pay for
performance” incentives.
▪ Clarifying that a mortgage loan with an origination date after Mar. 1, 2020, the effective date of the National Emergency
Declaration, does not exclude it from COVID-19 payment deferral eligibility.

Fannie Mae: SVC-2020-05: Servicing Guide Updates

Posted on October 14, 2020October 14, 2020 by Safeguard

Investor Update
October 14, 2020

Source: Fannie Mae

Foreclosure bidding / Third party sales

The VMS Valuation Order Template has been updated to require the foreclosure sale date be completed when a servicer is requesting the property valuation for bidding instructions.

Effective: This policy clarification is effective immediately. This policy change is not applicable to reverse mortgage loans.

Revisions to Evaluation Notices and the Payment Deferral Agreement

At the request of the Treasury Department, we have 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”. With the November Servicing Guide update, we will also be revising this language as it relates to D2-3.2-06, Disaster Payment Deferral.

Additionally, we have revised the Evaluation Notices in accordance with recent policy updates to remove references to disaster event policies.

As a reminder, all communications with borrowers must comply with applicable law.

Effective: These revisions are effective immediately.

For full update, please click the source link above.

Fannie Mae: Assistance Options for Those Affected by Hurricane Delta

Posted on October 8, 2020 by Safeguard

Investor Update
October 8, 2020

Source: Fannie Mae

Additional Resource:

Safeguard Properties Disaster Alert Center:
Hurricane Delta Reporting

WASHINGTON, Oct. 8, 2020 /PRNewswire/ — Fannie Mae (OTCQB: FNMA) is reminding those impacted by Hurricane Delta of available mortgage assistance and disaster relief options. Under Fannie Mae’s guidelines for single-family mortgages impacted by a natural disaster:

• Homeowners may request mortgage assistance by contacting their mortgage servicer following a disaster

• Mortgage servicers are authorized to suspend or reduce a homeowner’s mortgage payments for up to 90 days – even without establishing contact – if the servicer believes the homeowner was affected by the disaster

• Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months

• During this temporary payment break:

- Homeowners will not incur late fees
- Foreclosure and other legal proceedings are suspended

• There are a number of options available to potentially help homeowners catch up on missed payments, including Disaster Payment Deferral available as of October 1, 2020.

In addition, homeowners currently on a COVID-19-related forbearance plan who are subsequently impacted by the storm should contact their mortgage servicer to discuss options.

Fannie Mae also offers help navigating the broader financial effects of a disaster to homeowners with a Fannie Mae-owned mortgage and renters living in Fannie Mae-financed properties through its Disaster Response Network*, including:

• A needs assessment and personalized recovery plan

• Help requesting financial relief from FEMA, insurance, and other sources

• Web resources and ongoing guidance from experienced disaster relief advisors

Homeowners and renters can call 877-833-1746 to access Fannie Mae’s Disaster Response Network™* or other available resources.

“First and foremost, we want everyone in the path of the storm to prioritize their safety,” said Malloy Evans, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. “We also want to remind homeowners that support is available, and encourage those in need to seek assistance by contacting their mortgage servicer or visiting Fannie Mae’s disaster recovery page on KnowYourOptions.com.”

*Operated by Clearpoint Credit Counseling Solutions, a division of MMI, through its Project Porchlight program

Freddie Mac: Disaster Relief Options for Homeowners as Hurricane Delta Nears

Posted on October 8, 2020October 8, 2020 by Safeguard

Investor Update
October 8, 2020

Source: Freddie Mac

Safeguard Properties Disaster Alert Center:
Hurricane Delta Reporting

MCLEAN, Va., Oct. 08, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today reminded mortgage servicers of its disaster relief policies for homeowners as Hurricane Delta approaches Louisiana and other northern Gulf Coast states. Freddie Mac’s disaster relief options are available to homeowners whose homes or places of employment are located in presidentially-declared Major Disaster Areas where federal individual-assistance programs are made available to affected individuals and households.

“Hurricane Delta will mark the fifth hurricane to hit the U.S. so far this season,” said Bill Maguire, Freddie Mac’s Vice President of Single-Family Servicing Portfolio Management. “Along with our mortgage servicers, Freddie Mac stands ready to provide immediate mortgage relief options to those affected by this latest natural disaster.”

Freddie Mac reminds homeowners the priority during a natural disaster is to get safely out of harm’s way. Once safe, homeowners whose homes or places of employment are impacted should contact their mortgage servicer—the company they send their monthly mortgage payments to— as soon as possible to talk about available mortgage relief options.

Mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide homeowners mortgage relief for up to 12 months without incurring late fees or penalties. Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan.

Once back on their feet, homeowners have several options to make up the missed payments, including additional forbearance, if needed.

– Reinstatement. The option for a lump sum payment is available, but never required, if the homeowner’s loan is owned by Freddie Mac. If possible, however, it is the fastest way to get back on track.

– Repayment plan. Homeowners pay more each month on top of their existing mortgage payment to make up the missed payments.

– Payment Deferral. This option is available if homeowners can resume making their regular monthly payment. With payment deferral, homeowners become immediately current on their mortgage and missed payments are added to the end of the mortgage term without interest or penalties.

– Loan modification. If a homeowner is facing a long-term financial hardship but can make a reduced mortgage payment, a modification may be the best option.

Freddie Mac also reminds servicers that its disaster relief options are available to affected homeowners outside the declared disaster areas if their home incurs a disaster-related insured loss that impacts their ability to make their mortgage payment.

Affected homeowners currently on a COVID-19-related forbearance or other relief plan, including from a previous natural disaster, should contact their servicer to discuss options.

NYDFS: Fees Paid to Register Mortgages in Default Guidance

Posted on October 8, 2020 by Safeguard

Industry Alert
September 1, 2020

Source: New York State Department of Financial Services

It has come to the attention of the New York State Department of Financial Services (“DFS”) that certain counties, cities and other municipalities in New York State, by ordinance or otherwise, are requiring mortgage lenders and servicers, (“Mortgagees”), to register mortgages declared to be in default by the Mortgagee with the county, city or other municipality in which the real property is situated. As a requirement for registration, as well as for any renewal of such registration, the Mortgagee is required to pay a fee to the county, city, municipality or its agent (a “Registration Fee”). It has also come to the attention of DFS that such Registration Fees have been charged to, or collected from, mortgagors’ accounts by some Mortgagees.

Section 419.5 of the Superintendent Regulations (3 NYCRR Part 419), only permits Mortgagees to collect certain specified types of fees from a mortgagor, consisting of attorney’s fees, late and delinquency fees, property valuation fees, and fees for services actually rendered to a mortgagor when such fees are reasonably related to the cost of rendering the service to the borrower. A Registration Fee is neither an attorney fee, late or delinquency fee, property valuation fee, or fee for a service rendered to a mortgagor. Therefore, a Registration Fee may not be charged to, or collected from, a mortgagor under Part 419.

Mortgagees that are subject to the requirements of Part 419 and who, at any time, have collected any Registration Fees from a mortgagor, are hereby directed and instructed to refund and credit the full amount of such Registration Fees to the account of the mortgagor. If the Registration Fee was charged to a mortgagor’s account but was not collected, Mortgagees are hereby directed and instructed to remove and reverse any and all Registration Fees charged to the mortgagor’s account.

Mortgagees are also directed and instructed to create a log of all mortgagors that were either charged, or paid any Registration Fee to any such Mortgagees at any time, containing details of the full amounts of such Registration Fees, whether collected or charged, and the date(s) the full amounts of collected Registration Fees were refunded and credited to the mortgagors’ accounts, and the date(s) that any charged Registration Fees were removed or reversed from the mortgagors’ accounts, for inspection during DFS’s next examination of the Mortgagee.

Should you have any questions regarding this letter, please contact Rholda Ricketts at (212) 709-5540.

Very truly yours,

Rholda Ricketts
Deputy Superintendent

Fannie Mae: Texas AAA Matrix Update

Posted on October 6, 2020 by Safeguard

Investor Update
September 30, 2020

Source: Fannie Mae

Effective Sept. 30, Investor Pre-Approval (IPA) is no longer required for services rendered on or after Oct. 1, 2020 for claims associated with a home equity judicial foreclosure in Texas.

To download the full matrix, please click source link above.

HUD: FHA INFO #20-73: Temporary Policy to Waive Requirements for “Interior” Photographs in Presidentially-Declared Major Disaster Areas

Posted on October 6, 2020 by Safeguard

Investor Update
October 6, 2020

Source: HUD (temporary policy waiver)

Today, the Federal Housing Administration (FHA) published a temporary policy waiver to its Single Family Housing Policy Handbook 4000.1 requirements that suspends the standard inspection requirement for “interior” photographs of property in designated Presidentially-Declared Major Disaster Areas (PDMDAs).

This waiver of requirements for interior photographs in PDMDAs is now consistent with the temporary inspection guidance allowing for exterior-only or desktop-only inspections due to the COVID-19 National Emergency currently in place.

Quick Links:

• View the temporary policy waiver requirement for interior photographs in PDMDAs at: https://www.hud.gov/program_offices/administration/hudclips/waivers/

• Access the online or PDF versions of the Single Family Housing Policy Handbook1 at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

• View Mortgagee Letter 2020-05 and all other archived Mortgagee Letters at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

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.