Page 175 – Safeguard Properties

FHA INFO #20-95: FHA Extends the Expiration Dates for Multiple COVID-19 Related Policies

Posted on December 22, 2020December 22, 2020 by Safeguard

Investor Update
December 21, 2020

Source: HUD

Additional Resource:

FHA: Foreclosure and Eviction Moratorium Extension (Press Release)

In this Announcement:

Today, the Federal Housing Administration (FHA) announced extensions to several temporary provisions previously instituted through Mortgagee Letters (ML) and policy waivers to help mitigate the impacts of the COVID-19 pandemic on borrowers with FHA-insured mortgages and mortgagees. These extensions, listed below, include:

• Extension of the foreclosure and eviction moratorium for FHA-insured Single Family mortgages through February 28, 2021;

• Extension of the date for approving an initial forbearance requested by an FHA borrower due to financial hardships resulting from COVID-19, through February 28, 2021; and

• Extension of the temporary provisions for endorsement processes for mortgages where a borrower has been granted a forbearance related to COVID-19 prior to the loan being endorsed for FHA insurance through March 31, 2021.

See the following MLs and policy waivers for additional details and the effective dates for the policies. Read today’s Press Release.

• Mortgagee Letter 2020-43: Extension of Foreclosure and Eviction Moratorium in Connection with the Presidentially Declared COVID-19 National Emergency. This ML announces the further extension of the foreclosure and eviction moratorium that is currently in place. This moratorium, which is effective until February 28, 2021, is for all Single Family FHA-insured mortgages, except those secured by vacant and abandoned properties. The ML also extends the post-moratorium deadlines for the first legal action and reasonable diligence timelines for 120 days.

• Mortgagee Letter 2020-44: Second Update to the COVID-19 Forbearance Start Date and the COVID-19 Home Equity Conversion Mortgage (HECM) Extension Period. This ML announces the further extension of the effective date for approving an initial COVID-19 Forbearance or for granting an extension to a HECM deadline as outlined in ML 2020-06, through February 28, 2021.

• Temporary Partial Waiver of Mortgagee Letter 2017-05: Home Equity Conversion Mortgage (HECM) Claim Type 22 (CT-22) Assignment Requests. This temporary partial waiver of ML 2017-05 continues the flexibilities provided in a previous waiver to allow for mortgagees to submit a CT-22 Assignment Claim without having to obtain a signature from the HECM borrower on an occupancy certification if they are able to verify the occupancy through other means, such as email, or verbally. This temporary waiver is effective through February 28, 2021.

• Temporary Partial Waiver of Mortgagee Letter 2015-11: Loss Mitigation Guidance for Home Equity Conversion Mortgages (HECMs) in Default due to Unpaid Property Charges. This temporary partial waiver continues the flexibilities provided in a previous waiver to allow mortgagees to offer a recalculated repayment plan for unpaid property charges to HECM borrowers regardless of the total outstanding arrearage. This temporary partial waiver is effective through February 28, 2021.

• Temporary Regulatory and Handbook Waivers of Requirements to send Delinquency Notices to Mortgagors on a COVID-19 Forbearance. For borrowers on a COVID-19 Forbearance, these waivers provide temporary relief for mortgagees from the requirements to send delinquency notices related to borrowers in default. These waivers are designed to address potential confusion and uncertainty surrounding policy changes enacted due to the COVID-19 National Emergency.

• Mortgagee Letter 2020-45: Extension of Temporary Guidance for Endorsement of Mortgages under Forbearance for Borrowers Affected by the Presidentially-Declared COVID-19 National Emergency consistent with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This ML extends the temporary provisions for endorsement processes originally contained in ML 2020-16 for mortgages where a borrower has been granted a forbearance related to the Presidentially-Declared COVID-19 National Emergency prior to the loan being endorsed for FHA insurance. This extension is effective for pending endorsements through March 31, 2021.

• Mortgagee Letter 2020-46: Extension of Temporary Guidance for COVID-19 Multisubject: Updated Temporary Guidance for Verification of Self-Employment; Rental Income; 203(k) Rehabilitation Escrow Account. This ML announces the further extension of the verification of business operations options for self-employed borrowers and rental income guidance and the administration of the 203(k) Rehabilitation Escrow guidance outlined in ML 2020-24, and extended through ML 2020-40, to case numbers assigned on or before February 28, 2021.

• Mortgagee Letter 2020-47: Extension of Re-verification of Employment and Exterior-only Appraisal scope of work option for Federal Housing Administration (FHA) Single Family programs impacted by the Coronavirus Disease of 2019 (COVID-19). This ML announces the further extension of the re-verification of employment guidance in ML 2020-05; and extends the exterior-only appraisal inspection option in ML 2020-37, through February 28, 2021.

Quick Links:

• 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

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-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.

FEMA Declared Disaster Oklahoma

Posted on December 21, 2020January 19, 2021 by Safeguard

FEMA Alert Update
January 13, 2021

FEMA issued an update to a Presidential Major Disaster Declaration for areas in Oklahoma affected by a severe winter storm from October 26-29, 2020. The following counties have been approved for assistance:

Public Assistance

Alfalfa
Blaine
Comanche
Custer
Ellis
Garfield
Grant
Jackson
Kay
Lincoln
Major
McClain
Pawnee
Stephens
Tillman
Washita

Oklahoma Severe Winter Storm (DR-4575 Amendment 1)

FEMA Declared Disaster Oklahoma: ZIP Code List

FEMA Alert
December 21, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in Oklahoma affected by a severe winter storm that took place October 26-29, 2020. The following counties have been approved for assistance:

Public Assistance

Caddo
Canadian
Cleveland
Dewey
Grady
Kingfisher
Kiowa
Logan
Noble
Oklahoma
Payne
Pottawatomie
Roger Mills

Oklahoma Severe Winter Storm (DR-4575)

FEMA Declared Disaster Oklahoma: 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

FHA: Foreclosure and Eviction Moratorium Extension

Posted on December 21, 2020December 22, 2020 by Safeguard

Investor Update
December 21, 2020

Source: HUD

Additional Resources:

FHA INFO #20-95: Multisubject: FHA Extends the Expiration Dates for Multiple COVID-19 Related Policies

Extensions ensure borrowers can continue to seek assistance and avoid eviction and foreclosure while maintaining temporary policy flexibilities for lenders and servicers

WASHINGTON – Today, the Federal Housing Administration (FHA) announced it is extending the foreclosure and eviction moratorium for single family FHA-insured mortgages for an additional two months, through February 28, 2021. The FHA is also extending through February 28, 2021, the deadline for single family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months, which can be extended for an additional six months. In addition, today FHA also extended multiple temporary provisions for lenders and servicers to allow them to continue doing FHA business despite social distancing considerations.

This is the fourth extension of FHA’s eviction and foreclosure moratorium. The moratorium prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties. Further, FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a borrower requests this assistance, and up to an additional six months of COVID-19 forbearance for borrowers who request an extension of the initial forbearance. Borrowers needing assistance must engage with their servicer to obtain an initial COVID-19 forbearance on or before February 28, 2021.

“Throughout this global pandemic, the Trump Administration has taken unprecedented steps to assist FHA-insured borrowers who are impacted by COVID-19,” said HUD Secretary Ben Carson. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability.” “COVID-19 has created hardships for millions of Americans. FHA will continue to assist borrowers who are struggling to regain their financial footing as a result of this pandemic. American homeowners should not be forced from their homes while they are seeking help,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade.

To assist lenders and servicers in continuing to supply FHA-insured affordable mortgage financing despite the considerations for social distancing, today FHA also extended:

• The timeframe for providing an insurance endorsement on single family mortgages in forbearance through March 31, 2021.

• Temporary re-verification of employment guidance and exterior-only appraisal inspection option through February 28, 2021.

• Temporary provisions for verification of self-employment, rental income, and 203(k) Rehabilitation Mortgage escrow accounts through February 28, 2021.

FHA encourages borrowers with FHA-insured mortgages who can make their mortgage payments to continue to do so. Those who are struggling financially because of COVID-19 should engage with their mortgage servicer -the entity to which they make their monthly mortgage payments. FHA provides post-COVID-19 forbearance loss mitigation options to assist borrowers with bringing their mortgage current. FHA does not require a lump sum payment at the end of any COVID-19 forbearance period.

Borrowers with FHA-insured mortgages seeking additional information on available options should visit FHA’s COVID-19 Resources for Homeowners web page on FHA.gov. Other homeowners are encouraged to visit the Consumer Financial Protection Bureau’s Coronavirus Mortgage and Housing Assistance web pages.

Hawaii’s Kilauea Volcano Erupts, Forms New Lava Lake

Posted on December 21, 2020December 22, 2020 by Safeguard

Disaster Alert
December 21, 2020

Source: The Weather Channel

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

At a Glance

Hawaii’s Kilauea volcano erupted Sunday night.
The eruption occurred within the Halema’uma’u crater.
A magnitude 4.4 earthquake followed the eruption

The Kilauea volcano on Hawaii’s Big Island erupted Sunday night in what scientists monitoring the volcano were calling a “rapidly evolving” situation.

The volcano’s alert status was upgraded and a red alert hoisted to warn aviators to avoid the area.

The eruption happened at around 9:30 pm local time within Kilauea’s Halema’uma’u crater. Lava from the eruption boiled off the water in the summit’s water lake and formed a new lava lake, according to a tweet from USGS Volcanoes.

Lava fountains up to 164 feet high were being observed after the initial eruption.

The National Weather Service issued an advisory for the possibility of ash falling in areas southwest of the eruption. This was later followed by an update that said no ashfall had been observed by the Big Island Civil Defense and that the eruption might have been mostly steam.

For full report, please click the source link above.

Tornado Damages Buildings, Knocks Down Trees In Tampa Bay Area

Posted on December 17, 2020December 17, 2020 by Safeguard

Disaster Alert
December 16, 2020

Source: The Weather Channel

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

Florida

– Lake Gibson/Lakeland (Polk County, 33809)
*Approximate impacted ZIP code only
*Structural damage reported on Gibson Shores Drive and around US Highway 98 and Daughtery Road

– Largo (Pinellas County, 33771, 33773)
*Approximate impacted ZIP codes only
*Structural damage reported around 66th Street N and Bryan Dairy Road/Bayou Club area near S Belcher Road

– Pinellas Park (Pinellas County, 33780, 33781, 33782)
*Concentrated structural damage reported on Endeavor Way and Elmhurst Drive

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

At a Glance

A possible tornado moved across the Howard Frankland Bridge late Wednesday afternoon
About two dozen buildings were damaged in Pinellas County.
Damage was also reported in Polk County.

About two dozen buildings were damaged when a possible tornado moved through the Tampa-St. Petersburg metro area Wednesday afternoon.

The possible tornado likely touched down between St. Petersburg and Clearwater, in the town of Pinellas Park before 4 p.m.

Rob Angell, fire chief in Pinellas Park, said the damaged buildings were all industrial buildings located near each other in an area near Endeavour Way and Bryan Dairy Road.

“There were bout 20-25 buildings damaged, some of them minor and some were extensive,” Angell told weather.com in a phone call Wednesday night.

Damage included roofs, downed trees and several buildings that were totally collapsed, he said.

Earlier, Pinellas Park police had tweeted that police and fire units were “working multiple locations with structural damage due to weather.”

Photos showed sections ripped from buildings, vehicles overturned and trees and power poles down.

The National Weather Service declared the storm a particularly dangerous situation in a warning at 4:09 p.m., saying “a confirmed large and extremely dangerous tornado” was in progress.

For full report, please click the source link above.

FHA INFO #20-94: FHA Catalyst: Claims Module Now Accepting All FHA Forward Mortgage Claim Types

Posted on December 16, 2020December 22, 2020 by Safeguard

Investor Update
December 16, 2020

Source: HUD

Today, the Federal Housing Administration (FHA) announced the addition of the remaining Single Family forward mortgage claim types within the FHA Catalyst: Claims Module. With these additions, servicers can now electronically submit all FHA Single Family Title II forward mortgage claim types within the module. Read today’s Press Release.

The remaining claim types were added to the module on December 15, 2020, and are now available for submission through FHA Catalyst.

• Single Family Loan Sale claims (Claim Type 02)
• Claims Without Conveyance of Title (CWCOT) (Claim Type 06)
• Pre-Foreclosure Sale (PFS) claims (Claim Type 07)
• Hawaiian Home Land Mortgages (Section 247 Mortgages) claims (Claim Type 02)
• Insured Mortgages on Indian Land (Section 248 Mortgages) claims (Claim Type 02)

For guidance on submitting claims using the new functionality, servicers are encouraged to review the updated FHA Catalyst: Claims Module Single Family Forward Claims User Guide. Additional module resources can be accessed on the FHA Catalyst: Claims Module web page. The FHA Catalyst claims submission capabilities were initially announced in Mortgagee Letter 2020-38.

Access to the FHA Catalyst: Claims Module is available upon request only by contacting the FHA Resource Center by email at: answers@hud.gov or call: 1-800-CALL-FHA (1-800-225-5342).

Quick Links:

• View all HUD Press Releases at: https://www.hud.gov/press
• View FHA Catalyst information at: https://www.hud.gov/catalyst
• Access the FHA Catalyst: Claims Module Single Family Forward Claims User Guide at:
https://www.hud.gov/sites/dfiles/Housing/documents/FHA_Catalyst_Claims_Module_Single_Family_Forward
_Claims_User_Guide_v6.pdf

Resources

FHFA: Non-performing Loan Sales Report – December 2020

Posted on December 15, 2020December 15, 2020 by Safeguard

Investor Update
December 15, 2020

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released the latest report on the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). The Enterprise Non-Performing Loan Sales Report includes sales information about NPLs sold through June 30, 2020 and reflects borrower outcomes on NPLs sold through December 31, 2019 and reported through June 30, 2020.

The sale of NPLs reduces the number of delinquent loans in the Enterprises’ portfolios and transfers credit risk to the private sector. FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.

This report shows that from program inception in 2014 through June 30, 2020, the Enterprises sold 128,471 NPLs with a total unpaid principal balance (UPB) of $24.1 billion. From December 31, 2015 to June 30, 2020, the number of loans one or more years delinquent held in the Enterprises’ portfolios decreased by 70 percent.

NPL Sales Highlights:

• NPLs sold had an average delinquency of 2.9 years and an average loan-to-value ratio of 91 percent.

• The average delinquency for pools sold ranged from 1.4 years to 6.2 years.

• NPLs in New Jersey, New York and Florida represented nearly half (44 percent) of the NPLs sold.

• These three states accounted for 47 percent of the Enterprises’ loans that were one year or more delinquent as of December 31, 2014, prior to the start of NPL program sales in 2015.

• Fannie Mae sold 86,216 loans with an aggregate UPB of $15.8 billion, an average delinquency of 3.0 years, and an average LTV of 89 percent.

• Freddie Mac sold 42,255 loans with an aggregate UPB of $8.4 billion, an average delinquency of 2.8 years, and an average LTV of 96 percent.

Borrower Outcomes Highlights:

• The borrower outcomes in the report are based on 124,036 NPLs that were settled by December 31, 2019 and reported as of June 30, 2020.

• Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.

• NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (39.1 percent foreclosure avoided versus 16.1 percent for vacant properties).

• NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (76.4 percent foreclosure versus 33.6 percent for borrower occupied properties). Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.

FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.

Read the Non-Performing Loan Sales Report.

For more information, visit the NPL page on FHFA.gov.

Contacts:

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

Winter Storm Gail to Slam Northeast with Heavy Snow

Posted on December 15, 2020December 17, 2020 by Safeguard

Updated 12/17/20: The Weather Channel published a report outlining winter storm activity that produced record snowfall in the Northeast U.S.

Winter Storm Gail Was a Record Snowstorm for Two Northeast Towns

Updated 12/16/20: The Weather Channel issued a report detailing the latest conditions associated with Winter Storm Gail as it impacts the Northeastern U.S.

Winter Storm Gail: Numerous Crashes Reported in Virginia, Maryland; Residents In Several States Told To Stay Home

Updated 12/16/20: New Jersey Governor Phil Murphy declared a state of emergency in response to expected winter storm activity.

Governor Murphy Declares State of Emergency In Response to Expected Winter Storm

Associated County ZIP Code List (Statewide)

Updated 12/15/20: Virginia Governor Ralph Northam declared a state of emergency in anticipation of winter storm activity.

Executive Order Number Seventy-Three

Associate County ZIP Code List (Statewide)

Updated 12/15/20: Pennsylvania Governor Tom Wolf declared a state of emergency in anticipation of winter storm activity.

Gov. Wolf Signs Winter Weather Emergency Proclamation, Advises State is Prepared for the Storm and Vaccine Distribution

Associated County ZIP Code List (57 Counties)

Disaster Alert
December 15, 2020

Source: The Weather Channel

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

At a Glance

Winter Storm Gail is forecast to strike the East Coast Wednesday into Thursday.
Heavy snow is expected near or just north and west of portions of the Interstate 95 corridor.
Strong winds and coastal flooding will also affect parts of the East Coast.

Winter Storm Gail will intensify into a high-impact nor’easter for parts of the mid-Atlantic and Northeast beginning Wednesday, where it will bring heavy snow, strong winds and some coastal flooding. Significant winter storm impacts are not only expected in the interior Northeast, but also near parts of the Interstate 95 corridor from southern New England to New York City and areas near Philadelphia.

The upper-level energy that will eventually spawn this East Coast storm is pushing into the Plains right now, where it will bring generally light to moderate snowfall on Tuesday.

Once that energy reaches the eastern states on Wednesday, it will help generate and intensify an area of low pressure near the Northeast coast. At the same time, strong high pressure in eastern Canada is expected to supply fresh, cold air into the Northeast.

With these ingredients coming together, we are expecting one of the more impactful Northeast winter storms in the last couple of years.

Winter Storm Alerts

The National Weather Service has posted winter storm warnings, watches and winter weather advisories from southern New England into parts of the mid-Atlantic and the central and southern Appalachians.

Philadelphia is included in the winter storm warnings as well as Harrisburg, Pennsylvania, Scranton, Pennsylvania, Hagerstown, Maryland, and Roanoke, Virginia.

Winter storm watches remain in effect from the New York City metro into southern New England, but parts of those areas will likely be upgraded to warnings later today.

For full report, please click the source link above.

Foreclosures May Be Subject to ‘Drastic Changes’ Next Year

Posted on December 14, 2020December 14, 2020 by Safeguard

Safeguard in the News
December 11, 2020

Source: DS News

In the latest episode of DS5’s Inside the Industry, we’re speaking with Elizabeth Squires, Director of Client Account Management at Safeguard Properties. She discusses the impact COVID-19 has had on the property preservation sector and foreclosure volumes. Squires also speaks about what challenges 2021 may bring.

“Our issues in volume are subject to drastic changes, based on many external factors,” Squires says about foreclosures next year.

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

FEMA Declared Disaster New Jersey Tropical Storm Isaias

Posted on December 14, 2020January 14, 2021 by Safeguard

FEMA Alert Update
January 13, 2021

FEMA issued an update to a Presidential Major Disaster Declaration for areas in New Jersey affected by Tropical Storm Isaias on August 4, 2020. The following additional county has been approved for assistance:

Public Assistance

Sussex

New Jersey Tropical Storm Isaias (DR-4574 Amendment 1)

FEMA Declared Disaster New Jersey: ZIP Code List

FEMA Alert
December 11, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in New Jersey affected by Tropical Storm Isaias on August 4, 2020. The following counties have been approved for assistance:

Public Assistance