Safeguard Properties

HUD: FHA INFO #20-88: Extension of Temporary Guidance on the Endorsement of Mortgages Under Forbearance

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Investor Update
November 27, 2020

Source: HUD (Corrected Version)

Today, the Federal Housing Administration (FHA) published  Mortgagee Letter (ML) 2020-39, 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 further extends the period for mortgage forbearance provisions provided under the CARES Act, as announced in ML 2020-16 on June 4, 2020. More specifically, ML 2020-39 allows mortgages to be endorsed for insurance when the borrower, after closing, has requested a forbearance due to the COVID-19 National Emergency.

Mortgagees may use the guidance in this ML immediately for pending endorsements through December 31, 2020.

Quick Links:

• View Mortgagee Letters 2020-39, 2020-16, and all other archived Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

MHA: End of Year 2020 HAMP Reporting System Availability

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Updated 12/14/20: MHA issued a reminder that the standard hours of operation for the HAMP Reporting System will be adjusted for end of year 2020.

HAMP Update: Reminder – End of Year 2020 HAMP Reporting System and HAMP Solution Center Availability

Investor Update
November 23, 2020

Source: MHA

Please be aware that the standard hours of operation for the HAMP Reporting System will be adjusted to the following schedule:

• December 21-22, 2020 – No HAMP Reporting System response files will be available
• December 23, 2020 – HAMP Reporting System will process any files submitted to the HAMP Reporting Tool after 4 p.m. ET on 12/18 through 2 p.m. ET 12/23 and send response files for those submissions
• December 24, 2020 – January 1, 2021 – No HAMP Reporting System response files will be available
• January 4, 2021 – HAMP Reporting System online for normal processing per standard hours of operation and will process any files submitted to the HAMP Reporting Tool after 2 p.m. ET on 12/23 through 1/3 and send response files for those submissions

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The “All Trial and Official Loan Data” Ad-Hoc report will not be available on 12/28/2020.
All other reports will be published by their expected dates in December. Additionally, the deadline for Servicing Transfer concurrence and AAA for Non-GSE will be extended to 1/7/2021.

MHA: Thanksgiving Holiday Support and System Availability

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Investor Update
November 18, 2020

Source: MHA

In observance of Thanksgiving, HAMP Reporting System response files will not be available on Thursday, November 26, 2020 and Friday, November 27, 2020. The response files will be sent when the system is online for processing at 9 a.m. ET, Monday, November 30, 2020.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center will close at 2:00 p.m. ET on Wednesday, November 25, 2020 and will resume monitoring of the support@hmpadmin.com mailbox at 9:00 a.m. ET on Monday, November 30, 2020.

HUD: FHA INFO #20-87: Private Flood Insurance Proposed Rule in Federal Register

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Investor Update
November 23, 2020

Source: HUD

Additional Resource:

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

Today, the Federal Housing Administration (FHA) published a proposed rule in the Federal Register (FR), Acceptance of Private Flood Insurance for Federal Housing Administration (FHA)-Insured Mortgages (Docket No. FR-6084-P-01). Initially announced in FHA INFO 20-83 and posted on the Single Family Housing Drafting Table, the proposed rule will provide the option for private flood insurance on FHA-insured single family mortgaged properties located in Special Flood Hazard Areas.

The proposed rule amends 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). Additionally, it promotes consistency with industry standards and reduces the regulatory restrictions on flood insurance for FHA-insured single family loans.

Interested stakeholders are encouraged to review and provide comments on the private flood insurance proposed rule in a timely manner. Comments must be submitted using the methods outlined in the Federal Register posting not later than January 22, 2021.

Quick Links:

• View Federal Register Notice (Docket No. FR-6084-P-01) at: https://www.federalregister.gov
• View the Acceptance of Private Flood Insurance for FHA-Insured Mortgages Proposed Rule on the Single Family Housing Drafting Table at: https://www.hud.gov/program_offices/housing/sfh/SFH_policy_drafts

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

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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

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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.

Contacts:

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

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

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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

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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

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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

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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.