Safeguard Properties

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.

FEMA Declared Disaster Colorado Wildfires

Posted on by Safeguard

FEMA Alert
January 15, 2021

FEMA issued a Presidential Major Disaster Declaration for areas in Colorado affected by wildfires that took place September 6 to November 5, 2020. The following counties have been approved for assistance:

Public Assistance

  • Grand
  • Larimer

Colorado Wildfires (DR-4581)

FEMA Declared Disaster Colorado: 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