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HUD: FHA INFO #20-84: 2020 Report to Congress

Posted on November 20, 2020November 20, 2020 by Safeguard

Investor Update
November 13, 2020

Source: HUD

Today, the Department of Housing and Urban Development (HUD) released its Federal Housing Administration (FHA) Annual Report to Congress on the financial status of FHA’s Mutual Mortgage Insurance (MMI) Fund for fiscal year (FY) 2020. Read the Press Release.

As detailed in the report:
• The MMI Fund capital ratio for FY 2020 was 6.10 percent, an increase of 1.26 percentage points from the combined capital ratio of 4.84 percent in FY 2019.
• FHA had insurance-in-force on single family forward and Home Equity Conversion Mortgages (HECM) with a total unpaid principal balance of more than $1.29 trillion as of September 30, 2020.
• The performance of the forward book of business posted a stand-alone capital ratio of 6.31 percent, an increase of 0.87 percentage points from 5.44 percent in FY 2019.
• While improved over FY 2019, the HECM reverse mortgage portfolio continues to show a negative stand-alone capital ratio, improving to negative (-) 0.78 percent in FY 2020 from negative (-) 9.22 percent in FY 2019.

Quick Links:

• Review the complete report at: https://www.hud.gov/fhammifrpt
• Read today’s Press Release 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: 2020 Performance and Accountability Report

Posted on November 20, 2020November 20, 2020 by Safeguard

Investor Update
November 16, 2020

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its annual Performance and Accountability Report, which details FHFA’s activities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac during fiscal year 2020.

For the twelfth consecutive year, FHFA received an unmodified audit opinion on its FY 2020 financial statements from the U.S. Government Accountability Office. Included in the unmodified opinion, GAO noted no material weaknesses or significant deficiencies in FHFA’s internal controls. GAO also found no instances of reportable noncompliance with the applicable laws and regulations it tested.

Read the full 2020 Performance and Accountability Report.

HUD: FHA INFO #20-86: FHA Catalyst: Claims Module – Expanded Functionality

Posted on November 20, 2020November 20, 2020 by Safeguard

Investor Update
November 19, 2020

Source: HUD

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2020-38, FHA Catalyst: Claims Module – Expanded Functionality for Conveyance, Single Family Loan Sales, Claims Without Conveyance of Title, and Pre-Foreclosure Sale Claims – and Phased Removal of Social Security Number Collection for Claim Submissions. This ML announces expanded capabilities within FHA Catalyst, providing mortgagees with new claim submission functionality through the platform. This expanded capability is part of FHA’s continuing efforts to improve and standardize processes for its stakeholders.

Mortgagees can electronically submit all parts of the Single-Family Application for Insurance Benefits Form HUD-27011 using the FHA Catalyst: Claims Module for the following claim types on the dates noted below.

• Conveyance Claims, through foreclosure or Deed-In-Lieu of Foreclosure, (Claim Type 01) are effective November 19, 2020.

• Hawaiian Home Land Mortgages (Section 247 Mortgages) claims (Claim Type 02), Insured Mortgages on Indian Land (Section 248 Mortgages) claims (Claim Type 02), Single Family Loan Sale claims (Claim Type 02), Claims Without Conveyance of Title (CWCOT) (Claim Type 06), and Pre-Foreclosure Sale (PFS) claims (Claim Type 07) are effective December 15, 2020.

FHA is also phasing out collection of the borrower’s Social Security Number (SSN) as part of the claim submission process. Beginning November 19, 2020, mortgagees who submit claims via the FHA Catalyst platform will not be required to submit the borrower’s SSN with those claims. Beginning June 30, 2021, mortgagees will not be required to submit the borrower’s SSN with any claims, regardless of the claims submission method.

Additionally, these policies will be incorporated into applicable sections of the Single Family Housing Policy Handbook 4000.1. Stakeholders are encouraged to read the ML in its entirety for further guidance.

The FHA Catalyst: Claims Module is available upon request only. To gain access, mortgagees should contact the FHA Resource Center by email at: answers@hud.gov or call: 1-800-CALL-FHA (1-800-225-5342).

Quick Links:

• View Mortgagee Letter 2020-38 and all other archived Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
• View FHA Catalystinformation at: https://www.hud.gov/catalyst
• Find more information about the FHA Catalyst: Claims Module at:
https://www.hud.gov/program_offices/housing/FHACatalyst/claimsmodule
• Access the Single Family Housing Policy Handbook 4000.1 in online or portable document format (PDF) from
HUD’s Client Information Policy Systems (HUDCLIPS) Handbooks web page at:
https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

FHFA: Foreclosure Prevention Report – August 2020

Posted on November 19, 2020November 19, 2020 by Safeguard

Investor Update
November 12, 2020

Source: FHFA

August 2020 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 166,942 foreclosure prevention actions in August, bringing the total to 5,083,030 since the start of the conservatorships in September 2008. Nearly half of these actions have been permanent loan modifications.

• There were 3,599 permanent loan modifications in August, bringing the total to 2,428,926 since the conservatorships began in September 2008.

• Twenty-three percent of modifications in August were modifications with principal forbearance. Modifications with extend-term only accounted for 61 percent of all loan modifications during the month.

• The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan dropped from 108,492 in July to 60,364 in August.

• Initiated forbearance plans decreased 13 percent from 88,989 in July to 77,546 in August. The total number of loans in forbearance plans decreased from 1,263,980 at the end of July to 1,147,033 at the end of August, representing approximately 4.0% of the total loans serviced, and 82.1 percent of the total delinquent loans.

• There were 308 short sales and deeds-in-lieu of foreclosure completed in August, down 4 percent compared with July.

The Enterprises’ Mortgage Performance:

• The 30-59 days delinquency rate dropped to 1.11 percent, while the serious delinquency rate increased from 3.19 percent at the end of July to 3.26 percent at the end of August. The increase in the serious delinquency rate was as a result of the COVID-19 pandemic and the forbearance programs being offered to affected borrowers.

The Enterprises’ Foreclosures:

Third-party and foreclosure sales dropped 14 percent to 542 while foreclosure starts decreased 4 percent to 1,935 in August.

August 2020 Highlights — Refinance Activities

• Total refinance volume increased in August 2020 to record levels as mortgage rates fell in previous months. Mortgage rates decreased further in August: the average interest rate on a 30-year fixed rate mortgage fell to 2.94 percent from 3.02 percent in July.

• In August, 15 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 98.

• The percentage of cash-out refinances decreased to 24 percent in August from 25 percent in July. Mortgage rates have continued to fall, creating more opportunities for non cash-out borrowers to refinance at lower rates and lower their monthly payments.

Attachments: Foreclosure Prevention, Refi, and FPM – August 2020

HUD: FHA INFO #20-85: Updates to FHA Single Family Housing Policy Handbook 4000.1

Posted on November 19, 2020November 19, 2020 by Safeguard

Investor Update
November 18, 2020

Source: HUD

Today, the Federal Housing Administration (FHA) published an update to Single Family Housing Policy Handbook 4000.1 (SF Handbook). This update includes revisions and additional clarifications to various FHA policies and programs throughout the SF Handbook since its last update on January 2, 2020, as well as the incorporation of changes previously announced in the Mortgagee Letters included in the Handbook Transmittal, which can be found on the Housing Handbooks page on hud.gov.

FHA encourages Mortgagees and other interested stakeholders in FHA transactions to review and familiarize themselves with the changes in this update as outlined in the Handbook Transmittal. Additionally, a separate redline version of the SF Handbook has been posted on its Handbook Information Page.

As a quick reference, following are some Key Changes included in each Handbook section:

Section I — Doing Business with FHA

• Clarification of the application and eligibility financial requirement for the covered audit period by stating a Mortgagee’s audited financial statements must cover the most recent fiscal year. For companies operating fewer than 12 months, the audited financial statements must cover all months of operation.

• Clarification and alignment with 24 C.F.R. § 202.5(m)(1) of the Post-Approval reporting requirement for a Mortgagee that experiences an operating loss of 20 percent or greater of its net worth.

• Clarification of the notification requirements for a Mortgagee that ceases operations to submit a change request in the Lender Electronic Assessment Portal (LEAP) for voluntary withdrawal of FHA approval.

Section II — Origination Through Post-Closing/Endorsement

• Clarification of the definition of an Accessory Dwelling Unit (ADU) located on a single family residential property. A one-unit property with an ADU will be treated as a one-unit property; however, an ADU located on any property with two or more units must be considered as an additional unit.

• Instructions for addressing situations where, during the application process, it is discovered that an existing debt or obligation secured by a Mortgage is not listed on the credit report and not considered by the Automated Underwriting System (AUS).

• Adding Form HUD-9991 and other Required Condominium Documents to the Case Binder Stacking Order.

Section III — Servicing and Loss Mitigation

• Incorporation of guidance on enhancements to FHA’s Claims Without Conveyance of Title (CWCOT) Procedures

• Incorporation of guidance on Loss Mitigation Options for Borrowers affected by the COVID-19 National Emergency.

Section IV — Claims and Disposition

• Incorporation of guidance on use of FHA Catalyst for Supplemental, Loss Mitigation Home Retention, and Reconveyance claims submissions.

Section V — Quality Control, Oversight and Compliance

• Clarification of the existing requirement for conducting field reviews of appraisals on early payment default (EPD) mortgages by requiring Mortgagees to perform field reviews on all (100 percent) of the EPDs underwritten by the Mortgagee.

• Incorporation of FHA’s Defect Taxonomy Appendix 7.0 into the Title II Loan Review section of Mortgagee Monitoring.

The effective dates for the various SF Handbook sections are as follows:

• SF Handbook changes that are incorporated to reflect a ML (as identified in Section II of the Transmittal) have an effective date as previously announced in the respective ML. Changes identified in Sections I.A, V.A, and V.E.4.b must be implemented immediately.

• Changes identified in Section II.A may be implemented immediately; however, implementation is mandatory for mortgages with case numbers assigned on or after February 16, 2021.

• All other changes may be implemented immediately; however, implementation is mandatory not later than February 16, 2021.

As mentioned, all interested parties in FHA transactions are strongly encouraged to familiarize themselves with the policy and program updates and clarifications as outlined in the PDF version of SF Handbook that published today. The online version of the SF Handbook is currently being updated and will be available soon.

Quick Links:
• Review the November 18, 2020 SF Handbook Transmittal at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

• Access the SF Handbook online and/or portable document format (PDF) on the Housing Handbooks page on HUDClips at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

• View the redline version of the SF Handbook at: https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1

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.

MReport: Top 30 Companies in Mortgage & Servicing

Posted on November 16, 2020 by Safeguard

Safeguard in the News
November 16, 2020

Source: MReport

Safeguard Properties Spotlight

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

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